How to get the best deal on your card when planning a foreign trip?

With the holiday season coming around the corner, you may be bombarded with a multitude of different discounts and offers regarding investment opportunities, travel packages as well as bank card offers. No doubt, this would also be the perfect time to plan a quick escapade with your loved ones or your family for a much-deserved vacation. And what better holiday vacation you can take than by travelling to a foreign destination?

Undoubtedly, with any choice of destination you make, it will come with a hefty price. Additionally, you will also need to take into consideration the expenditures you will need to undertake when at the destination itself. But instead of losing out an opportunity to collect souvenirs or sample an exquisite yet local dish, there are ways and means where you can actually indulge in guilt free expenditures. This canbe done with the right banking card. Amongst all the different available choices, the multi-currency card is one of the most popular choices.

With this card, you only need to invest a few your funds in the local currency, which in your case, would be the rupee. Once you travel abroad, you only need to swipe the card whenever required, and the funds will be deducted from the account in the local currency value. But this card is only as beneficially saving, as the deals, you will get on it.  Here are a few tips you can keep in mind when it comes to getting the best deal on your multi-currency card:

Look out for changing financial trends: Financial trends often change with certain factors, one of which includes the international festive and holiday seasons. Depending on this factor, currency values may either increases or decrease. While the trend itself may be unpredictable, you can always look out for predictions pertaining to these change. This will not only give you an idea what to expect, but also allows you to take that split second decision to invest in a currency right now, or wait for a longer period of time. Since the currency value will be fixed when loaded on the card, you can make most of the change in currency value, especially if it works in your favour.

Avoid unnecessary fees: One of the major advantages of using the multi-currency card abroad is the avoidance of unnecessary fees. When using a normal banking card abroad, you will normally have to pay fees such as conversion fees, service charges amongst many others. Overall, this can add a financial burden to your expenditures when travelling abroad. However, when opting for the multi-currency card, the value of the currency will be fixed. Additionally, as a part of the application for the card, you can review the terms and conditions, which also specifies the charges you will have to pay along with your expenditures, giving you the required transparency to avoid any potential setbacks.

Get the best of businesses privileges with the current account

One of the crucial requirements of owning a business is incorporating a convenient and flexible financial channel. This financial medium should benefit not only your business, but also your clients.

But amongst all the available financial products available, one of the most convenient options is the current account.  Plenty of business, both startups as well as established ones, has opted for this account, to handle their daily transactions or any other clientele transactions. Here is how you and your business can benefit from this account:

Payments and collections through NEFT: The current account uses the National Electronic Funds Transfer (NEFT), which is a nationwide payment system that facilitates a one to one fund transfer. Through this channel, individuals, firms and corporate can electronically transfer funds from any bank branch to an individual, firm or corporate bank account in any branch in the country. This makes it easier to manage business transactions between businesses, especially on a monthly basis.

RTGS collection: The real time gross settlement system also known as the RTGS system facilitates an online transfer of funds between bank customers and different banks. Not only can this system be used for transfer high-value funds, but it is also done on a real time basis.

Multiple transactions: One of the main factors of a business is the transaction to be made in with another client or business or even your own employees. Any restrictions on these transactions will affect the business development or any current business relations. This is where the current account will prove to be beneficial. It is through this account that you will be able to make multiple transactions that will ensure a smooth functioning and disruption free channel.

Multiple location transfers: For businesses who have branches in different locations will have restrictions in terms of dealing with multiple clients that have been scattered around the country. This is where the multiple location transfer feature of the current account will work for your business. Along with this feature and combined with NEFT and RTGS, you can now easily make business transactions from any bank branch to facilitate a smoother and faster transaction.

Overdraft benefits:  As a business that thrives on each financial transaction is makes, it is crucial that it has the required flexibility to make transaction even if there are insufficient funds in the account. This is where the overdraft facility will benefit businesses, allowing them to over withdraw funds in the event it is required, in order to facilitate a smooth financial transaction.

Apart from these factors, there are plenty more that can benefit you and your business. As it is crucial that you opt for a financial product and channel that will assist your business and let it flourish, this account will go a long way to help you achieve your dream.

What are the vital products you need to have before investing?

When it comes to investing, you will require stringent discipline to match your goals, and also have a strong intent to match your requirements. You will find plenty of recommendations from the RBI, several banks, investment and service providers.

However, the eligibility to invest in the first place and the efficiency which the investments are made and managed will depend on the following factors:

Bank account: Most investment products will require payments and receipts that will need to be routed through a banking system. In most cases, cash as a form of payment is often regulated. However, the cash amounts are often accepted to certain limits. Other products such as mutual funds do not accept checks that are issued from outside accounts. In other words, any capital market transactions made are only routed through the investor’s bank account.  Any dividend, interest, maturity redemption checks are made out to the investor’s name, wherein which a bank account will be required to process it. Additionally, the direct transfer of funds or even modes such as the NEFT and RTGS systems allow a transfer of funds from the account of the remitter to a recipient only.

Permanent account number: This alphanumeric identity needs to be furnished and produced at the time of commencing any financial transaction. Whether it is opening a bank account or a demat account, making or redeeming any investments or deposits and many more activities, you will be required to furnish the PAN number. However, you may not have to provide this number, if your transactions are below a prescribed value for certain products. In the event a PAN is not available, you will need to make a declaration in Form No.60 under the Income Tax Rules 1962, wherein which particulars of the transactions and proof of your identity and address will be required.

KYC norms: Under the PML Act 2002, you would be required to provide your identity details in order to make financial transactions. This is done under the Know Your Customer (KYC) norms. With this, banks, depository, participants and other similar institutes and financial intermediaries will conduct this compliance process, the first time an investor makes a transaction. If the KYC procedure has already complied with any capital market intermediary, the acknowledgement can be used to invest in others.

Demat account: Any securities that have been purchased or going to be sold will be held in a dematerialized or electronic form, known as the demat form. Certain investments such as shares, debentures and government securities will mandatorily require you to open a demat account. Other investment products such as mutual funds and small saving schemes can also be held in this account. Investors can open a demat account with any depository participant that is associated with the NSDL or the Central Depository Services Ltd (CDSL).

Safe internet banking: Factors to keep in mind

Today’s progress in economy and technology has made banking easy. Through internet banking, you can now access the basic functions anytime and anywhere you would want. They are even accessible through your fingertips via your mobile phone.

While there are several benefits to this form of internet and mobile banking, the flip side of this coin also shows up. There are certain risks involved with this form of banking, which has remained a huge concern for users. In order to ensure that you enjoy secure and safe banking transaction, here a few factors you can follow:

Always use genuine anti – virus software: Very often it is your system that gets compromised through phishing, malware and virus software. This is also applicable for mobile banking.In order to protect your computer or mobile from such factors, you need to use a genuine anti – virus software. While you do get trail versions online, a completely anti – virus software will help detect and remove spyware that can allow outsiders to access sensitive information.

Avoid using any public Wi – Fi: One of the biggest threat of internet banking with a  public wi – fi network is that the hacker can sit between the end user and the hotspot and trace all the data with ease. With this easy access, the hacker can easily introduce malware or viruses into your device. So if you must use the Wi – Fi for any internet usage, avoid using it to access your bank details or make any payments. As a precaution, you can set up a VPN software on your computer to create a secure a tunnel between the computer and the internet.

Check for the latest update on your operating system: Whether you are using a computer, laptop or any mobile based device, you should ensure that your operating system is well updated with the latest security patches and updates. As far as possible, avoid using cracked OS’s or jail breaking or rooting your phone. You should also look to limit or restrict access from programs or apps that are being installed, to only what they really require.

Change your password regularly/keep a strong one:While this may sound clichéd and avoidable, it is important that you keep your account safe while maintaining confidentiality. The facts goes without saying you must not share these details with anyone. No bank will ask for your confidential information. Additionally, when you are changing your passwords, choose strong or long passwords. If you must, create different passwords for log – in and your transactions.

Subscribe for mobile notifications: It may seem like a nuisance to get constant alerts, but it will actually work to your benefit, especially if you get an instant notification if any suspicious transaction occurs. Whether the transaction exceeds the specific limit or within it, you will be aware of how much funds is remaining in your account. Additionally, you will also get alerts if there are any unsuccessful login attempts to your net-banking account.

What are the types of insurance available in India?

In your life, you will face unexpected risks, which can affect not only your, but also your loved ones. So how can you face these risks and yet stay protected? This is where an insurance policy will help keep and your loved ones protected. But with so many types of insurance policies available, how does one opt for the right one to get the optimum protection?

Given below are the different types of policies currently available that you can opt for:

General Insurance

• Personal Insurance: This is one of the most popular and generic types of insurance policies available. It covers several requirements such as health and coverage against death or injury by accident. Under this category, you can also cover your family members in an individual policy such as medical insurance, accidental insurance, property insurance as well as vehicle insurance.

• Rural Insurance: Rural insurance is an insurance policy that is designed to meet the requirements and needs have rurally based individuals or businesses. Normally, it focuses on coverage’s for life and health and even protection against natural disasters that can have a negative effect on businesses.

• Industrial Insurance: Businesses can opt for financial protection for any of their important projects, construction, contracts and equipment from situations such as fire, theft, damage or loss.

• Commercial Insurance: This insurance is designed to provide financial protection against theft, liability and property damage. This also focuses on injuries suffered by employees or even interruptions in the business.

Life Insurance

• Whole life insurance: Whole life insurance policies normally cover the entire duration of an insured’s life. A yearly premium will be required to be paid so long as the policy lasts.

• Endowment plans: This policy provides a lump sum amount once the policy holder dies or when the policy matures. In this case, there are certain types of policies that provide payment in case of critical illnesses.

• Money back plans The money back plans are used as a form of investment. It is used to produce ideal financial returns in the future for several purposes.
 
• Term life insurance: The term life insurance plans or term assurance plans are available to the insured, for a fixed period of time. Once the period of time comes to an end, the policy owner can opt to withdraw the policy or extend it.

• ULIP’s: United Linked Insurance Plans are policies where the financial worth of a policy reflects on the net asset value of the core investment assets that are related to it. They offer a unique feature, to policyholders, which is both flexible as well as protective.

Other Forms of Insurance

• Home insurance: Home insurance, also known as homeowner’s insurance of hazard insurance is taken to cover private homes against losses and liabilities.

• Travel insurance: Travel insurance policies can be availed to cover both long and short trips. It can also be used within or countries abroad.

How to tell if you are ready to purchase a car with a car loan?

Purchasing a car may seem like an easy feat as driving one, but on the contrary, there is a lot more to be done. Not only will you be required to provide paperwork, but you will also need to be on top of it to secure the high-ticket purchase. So how do you know when to wait, or go for the big purchase?

A car loan is one way you can go about purchasing your car. However, your lender will ensure that you do not cross 45% of your monthly income as payment. This would also include the other monthly liabilities. While this may seem like a small amount, in reality, it is quite big. As compared to other savings such as your monthly obligations, excluding childcare, college savings, and other savings in general, this is a large expenditure to take care of.

So if you find you’re unable to make those ends meet, chances are you may not be ready to buy a car. Given below are some means to keep your loan payments as manageable as possible:

Pay off previous debts: The first step you need to take is to pay off previous debts. You need to check if you have a workable down payment. If you have any debt payments that push your debt over the 45% mark, try to pay them off. Focus on the debts that have the greatest balance. In doing so, not only will it allow you to apply for car loan that is large, but most importantly it will allow you to afford a new mortgage payment.

Keep your monthly debts in check:Whatever current monthly debts you have, it will limit your purchasing power especially if you want to apply for car loan. Therefore, it is crucial that you reduce these debts on a monthly basis. You can make a repayment plan that focuses on repaying each debt within the given tenure. Alternatively, you can focus on repaying each debt one at a time. Once your overall debt to income ratio has increased, you can apply for the loan to purchase a car.

Avoid focusing on high-interest debts:It is not what you owe, but rather what you pay that counts. Lenders look at certain factors when it comes to your application for a car loan. Most lenders focus on the minimum payment that you’re obligated to make on credit payments of whatever interest rate you have. In other words, your 0% home loan can adversely affect your ability to borrow, especially if that payment is a few thousand rupees a month.

All you need to remember is that only you will be making the payment for the loan. So purchase a car if it only makes financial sense for you. While low rates are an attractive reason to purchase a car, you need to exercise financial prudence.

Debunking the top myths associated with personal loan

When it comes to investments, you would always look for options that are risk free, with a promise of high returns while also beating the demands of inflation. However, when it comes to investing a loan such as a personal loan, there will always be a fear that the loan will overwhelm you and your financial requirements, leaving you with an ever bigger debt.

But not to worry, we are here to debunk some of the common misconceptions about the personal loan and how to get the best deal:

Myth #1 – Increase in the interest rate would mean inflated EMI’s

It may seem like a simple math. Whenever a bank revises the base rate, it would only mean an increase in the personal loan interest rates. Of course, it would change your overall monthly budget, especially with your EMI’s. However, this is the biggest myth. In line with the changes of the interest rate, the tenure will normally change. In fact, most banks tend to adjust the tenure with a change in the interest rate, while keeping the EMI value the same. If you want to pinpoint the exact changes in your tenure, you can always use the personal loan calculator to assist you.

Myth #2 – All interest rates offered are the best deal

While the cheapest rate for a product score you a good deal, the same cannot be said for personal loan rates. You will need to dig deeper to ensure that you are getting the best deal that will suit your needs. You will need to check out the valuation charges, processing fee and other additional rates apart from the personal loan interest rates.  The initial glance over the rates may look tempting, but it may not be flexible for your requirements. The best way to avoid such a situation, is to review the personal loan features that will suit your finances and objectives before you zero in on a lender. Don’t forget to compare options before you apply for one.

Myth #3 – Borrowers should always opt for a shorter tenure

Most borrowers are under the assumption that a short loan tenure is the best route to avid any repercussions from an increase in any repo rates by the RBI. However, on the contrary, shorter the tenures would also mean higher EMI’s, which puts you in a position to face liquidity issues if you don’t manage your money carefully. Instead, try to save some funds side by side and invest in options that give you a good return at the same time. A diversified investment portfolio will help you pay off your personal loan as opposed to increasing your EMI, by reducing your tenure.