How to send money to India in 3 easy steps

The number of individuals who have traveled abroad and settled for reasons such as better extended studying, earnings or migration purposes is increasing every year. However, while these individuals may travel abroad, they still keep in touch and provide for their families at home. Most individuals take this step, by sending money back home, in order to reduce any possibility of financial burden or as security sake.

However, sending finances from one country to another takes considerable planning. As the sender will need to consider several factors when making a decision to send money to India, very often, each decision taken is a calculated one. If you are looking to transfer any funds to India, here are certain steps you can take:

Step 1: Look at all your viable options
 
Each individual will have different financial requirements as well as habits. Based on these factors, you can opt for a sending option that will suit your needs and requirements. Most of the sending options include:
• Bank or financial institutes
• high street transfer firms such as the Western Union
• Forex brokers
As a general rule, banks and financial institutes are the safest options, especially if you are considering regular payments. Alternatively, money transfer firms are often quick, especially if you need to send funds in an emergency. Forex brokers are the best choice for those who want to send large amount of funds, as they provide the best protection against fluctuating foreign conversion rates.

Step 2: Ensure that you are aware of the costing

When you send money to India, the overall amount you will spend will not only include the amount you need to send. You will also need to include additional costings, which include:
• What is being charged by the firm when transferring the money
• The charges the recipient may incur when converting the funds into the local or another foreign currency
• The current foreign exchange rates
How much will it cost, when transferring funds from abroad is obviously a key consideration. You will need to find out the total amount of foreign currency you will by after all the costs have been done.

Step 3: Confirm all details before making the transfer

Once you have settled on the best option, you will need to consider the transfer. At the same time, ensure that they will be able to manage the amount you need to transfer, within the time limit you want. The best way to ensure this, is by getting a written proof through the means of an acknowledgement receipt or email. Ensue that you keep all the paperwork and receipts as evidence in the event something goes wrong or you need to provide proof.

Online shopping: Be aware of online money transfers when you shop online

Online shopping has become one of the greatest conveniences in modern day e – commerce. All you need to do is log online, check out the available wares you require and make the purchase you want through your banking card or COD option. Then you only need to sit back and relax as the product is shipped to the destination you want.

However, not all shopping expenditures come as easy as the process mentioned above. At times, you may not get the product you have ordered. Other times, you may get a damaged product. At times, you may also make the purchase you want, but the online money transfer is intercepted by an outside source, who diverts the funds to non – genuine source. All in all, you might not get your money’s worth, unless you are aware of the possibilities of money transfer frauds.

Given below are few possibilities that can affect your online money transfer orders when you shop online:

Online payment portals:
This is one of the common stages where your online money transfer will be affected. Most online shopping portals require an additional payment portal, to ensure that your money transfer is approved. During this transfer, hackers or any outsider can intercept the payment portal, if it is not secure enough. While they may not get the funds in the money transfer, they can still steal your bank details and use it to their convenience. You must ensure that the website, seller, and payment modes are secure before making any payments.

Modus Operandi:

This has been a common occurrence over the last few years. When you purchase a product and complete your online money transfer, along with receiving an acknowledgment, you may not get the product you want. Alternatively, you may get a product that is damaged or counterfeited. In this case, if you are not protected against fraud purchases, you may lose some percent of your funds, if not all. In this case, the fraud can happen at any time during the sale and delivery process. To avoid such a problem, look for products or marketers who sell and deliver their products. Alternatively, special services, wherein product quality, and delivery are guaranteed, for a premium.

Fake website:

Fraudsters are now upgrading their methods to fleece unsuspecting shoppers, of their funds. These individuals have now set up websites that resemble genuine one’s, along with similar logos and domain names. Alternatively, these individuals also set up a dummy site that possesses a product line that is only available online.

Genuine site with a fake seller :

There is a possibility that when you don’t receive the product, or if it damaged or fake, it is the possibility that the scam could be from the end of the seller or the courier company, by using the details of your online money transfer. In this case, ensure that the website is well alerted about the possibility of such scammers.

What are the benefits of a demat account and why should you be aware of it?

A demat account functions in the same way as a bank account would function. While a bank account is used to store funds, it can also be used to withdraw and deposit funds. Similarly, the demat account is also used to store and deposit securities in its electronic form. These securities are stored in the form of shares, bonds or debentures. As per the Depository Act of 1996, demat accounts are now being made mandatory, if you have more than 500 units in securities,

But while this account is used for this purpose, it also has plenty of benefits. By using these benefits to your advantage, you can make the most of your investment. Here are some of the benefit of this account which you should be aware of.

• One of the main benefits of the demat account is that it is a convenient mode to hold your securities. When you purchase or sell any security, you need not worry about storing it any option, as the demat account is designed to hold these securities in a secure manner.
• Your broker can always hold your securities anytime you purchase or sell them. However, it comes at a price. But the demat account, you need not worry about high brokerage fees, as they have their service fees which are considerably cheaper.

• Before securities were dematerialized, they were preserved and stored physically. However, this increased the risk of misplacement, especially if kept with the broker. Additionally, there was always a risk of thefts and fake securities. Apart from this, there was a high chance of delays in the turnaround period of selling or purchasing. However, with this account, securities are now stored in a dematerialized format which can be electronically accessed. This eliminated all the risks involved with the previous form of storage.

• Apart from the risks of materialized securities, stamp duty was also involved in the transferring. However, with the electronic conversion, there is no stamp duty involved. This reduced the overall expenses when it comes to trading stock.

• The depositary participants are enlisted by the National Securities Depository Limited or Central Securities Depository Limited. These two entities are core linked. Therefore, if there is any change made with a DP, it is updated with the depository as well as the other DP’s.

• As a demat account holder, you can make multiple transactions. You can sell or purchase a single share, anytime you want. As compared to the previous form of storing, it was difficult to purchase or sell physical securities as they used to be stacked together. Dematerialized securities are easily divisible electronically, making it easier to share any amount of shares at any time.

5 fact guide to understanding your fixed deposit

Ask any individual about their most preferred choice of investment option and everyone will indicate the fixed deposit. While there are plenty of reasons as to why this is a preferable option for investments, as compared to others, this is the least risky.

Additionally, you only need to put in a lump sum amount for a fixed time and earn interest during that tenure. In order to make the most out of your investment in this option, you will need to understand the factors behind it. Given below are a few important factors you can consider with this termed deposit:

Fixed returns: When investing in this termed deposit, your funds are parked in a particular bank deposit for a fixed period. The bank or financial institute where you are investing your funds in, will provide you with a fixed interest in exchange for holding your funds. This is the reason why the deposit is termed as a safe option. You will earn profit from this investment, through the form of interest. Depending on your profile or age, you can earn a higher interest. 

Tenure of your choice: With this term deposit, there is a variety of tenure which is available as per your choice. This term can last between 6 months to 10 years depending on your will. The longer you keep your tenure, the more interest you will earn.

Interest payout: The deposit of the interest earned can also be decided on your desire. This can be done when the deposit matures or even at regular intervals. Normally a bank or financial institute will offer a deposit of interest at quarterly, half-yearly or annual intervals.

Loan against your fixed deposit: When you are in immediate need for funds, there is no need to break your fixed deposit. In this case, you can always take a loan against the termed deposit and use it to satisfy your needs. However, the amount of funds that you withdraw is limited. It also depends on your financial profile and your relationship with the bank. Additionally, you may also need to pay interest on the funds that is borrowed.

Tax savings: Plenty of banks and financial institutes provide tax saving schemes along with fixed deposit services. In this case, the total taxable income that you earn is reduced by the amount you save in this deposit. The depositor must ensure that the tenure of the deposit is in between 5 years to 10 years. The maximum amount you are allowed to invest in such deposit for tax purposes is also fixed at 10 lakhs. However, the interest that you earn in this case will be taxable.

Steps to follow for an easy foreign currency exchange

When you travel abroad, there is always a concern how one can send money from abroad back home or even make any international business payments. For most of the time, this step if not a tedious one can also be a taxing one. Not only would you need to search for different banks, exchange providers or even walk the streets of unknown cities for the best conversion rates. Even a small miscalculated decision can increase your costing. In order to have an easy foreign exchange process, here are a few steps you will need to follow:

Step 1: Plan ahead

The first step you need to take is to check for the current mid – market exchange rate. There are plenty of tools that can assist you, which you can find online or even at the service providers. You will need to compare these rates and the fees offered by these banks or currency exchange services or online providers. Once you find the best deal, you can now take the next step to exchange your funds.

Step 2: Understand the foreign exchange costs

Different centers will offer different rates. At the same time, some foreign exchange costings will be transparent, while others are hidden. Therefore, it is important that you are aware of what you will be paying before you make the transaction. While these centers will take steps to ensure that they stay in business by earning profits, there are different options how they do it. One way they do so is through the means of commission, flat fees, handling fees, or even minimum charges. They also may include a spread in exchange rates by purchasing currencies and selling it at a marginal rate. Some centers may also charge based on transfer fees for wire transfers and other forms of delivery.

Step 3: Amalgamate your transactions.
Every currency exchange transaction is associated with costs. Few transactions can result in lower costing. Additionally, depending on the type of transaction you are opting for, you may save plenty of you funds by consolidating multiple fund transfers in one large transaction. In addition to this, some foreign exchange providers may even provide beneficial rates or offer lower commission fees for the currency exchange over a certain amount.

Step 4: Plan for banking overseas especially for extended stays

The above steps are beneficial for those who want to travel abroad for a short duration. However, if you are traveling abroad for a longer or permanent duration, you can consider banking overseas. Opening a bank account in the local bank will help ensure that you funds is not only secure but also provides you with a secure means to transfer funds on a regular basis.

What are the reasons that make forex cards a popular option today?

Over the last few years, plastic cash is becoming a popular option over physical cash. This also holds true when you are going on a foreign trip. In this case, you can always opt for a forex card. But what is a forex card? A foreign exchange card, popularly known as forex card allows you to make transactions in forex currency with the protection against currency conversion. Plenty of financial experts are recommending travelers to opt for this banking card when it comes to dealing with foreign currency as it offers plenty of benefits and helps you save more in the long run. Here are a few reasons as to why you should opt for this card today:

Widely accepted:

Forex cards have been widely associated only with luxury outlets such as high-class restaurants or shopping malls. However, of late, it is slowly being accepted even for small transactions such as travel and grocery purchases. Additionally, it also depends on the destination you are traveling to. If you are visiting a single country, it is best if you invest in a forex card with a single destination currency. With multiple currencies, you can opt for forex cards that offer you multiple currencies with additional perks.

Safer to carry:

From a security point of view, any banking card mitigates the risk of financial loss. This can occur in the form of theft or even the loss of your wallet. In this case, just like any other banking card, you will need to get your card hot listed. This ensures that your amount remains safe. At the same time, you can opt for a secondary backup card to use for such occasions. This secondary card can be activated when you contact the lender.


Hedge against currency fluctuation:

One of the main drawbacks of using your ordinary banking card for foreign expenditures is the currency fluctuations. As the currency conversion often takes place in real time, it is done with the currency conversion value of that time. Based on the volatile conditions of the market, there is a high chance you may face a loss. With a forex card, you have the added advantage of hedging against these fluctuations. This isdue to the fact that, the value of the forex amount loaded is determined based on the exchange rate of the day. This value remains fixed throughout the tenure of the card being used. Therefore, a customer can fix the forex value on the card, when the rates are most favorable.

Cheaper than buying currency

As compared to getting physical cash, opting for a forex card is cheaper. This is due to the fact that there is a considerable difference in the cost dynamics and logistics involved in both options.

Now that you are aware of what is a forex card, you can contact your local financial institute or bank to get this card for your next travel trip abroad.

What are the travel card benefits you should look out for?

Banking cards are omnipresent in today’s modern day society. Every individual uses them to make expenditures, right from cars to grocery purchases. But with so many choices of cards to opt from, it is tough to choose amongst the different options available. However, when it comes to choosing a card for travel purposes, the travel card is the ideal option for you. Here are some of the benefits you can look out for when it comes to this banking card.

Sign up bonuses

Center lenders provide a big sign up bonus, especially if you meet the minimum spending requirements. This is a great way to jump start your mileage account, especially if you are looking to redeem free flights later on. Therefore, look for the terms and conditions of sign up bonuses and see if you are eligible for them.

Spending bonus category

Certain credit cards can also be used as travel cards. In this case, when you use this card, you will get a point for a fixed amount of rupee you pay. However, certain credit cards will give you extra points, if you shop at specific retailers. This also works if it is a branded credit card if used at the same brand outlet. This will not only help you earn points fast, but also in multiple points. In this way, you can get to earn more points and thus redeem them for better travel perks.

Low minimum spending cards
Just as you need to satisfy a maximum amount in order to be eligible for certain perks, you may also need to satisfy a minimum spending requirement. The best way to achieve this target is to use normal day to day spending. Opt for cards that offer you to make a single purchase in order to unlock the bonus. As a first-time travel card user, it is best to opt for such a card. This will help you adjust your expenditures while managing your funds, as compared to high minimum spending cards. As you once you apply for these cards, you cannot reply for the same card. Therefore, you must take advantages of these benefits in order to make the most of it to your favor. Start small and learn to build up your ability to manage multiple cards shortly. Otherwise, you may end up spending more than you require just to earn the points which will not be free

Have special perks:

All travel cards offer great perks. While some travel cards provide you with special elite royalty statuses, other will offer unique perks. These perks can include foreign transaction fees, free checked baggage, and free nights amongst many others.