Enjoy a hassle free operation of your demat account with these do’s and don’ts

When it comes to investing, it is crucial that you make and take every decision with scrutiny. No doubt, as a part of this process you will also need to keep track of all the stocks you have sold or stored in your demat account. In the long run, it will seem like a tedious process. But given below are a few do’s and don’ts you can consider to ensure operating your demat account will be hassle free:
Do’s:
• The first thing you will need to do is to ensure that your both your holding and your transactions statements are received periodically. You can instruct your depository participant of this requirements. At the same time, you should be aware that you are entitled to receive a statement of all your transactions of your online trading account at least once a quarter, even if you have made no transactions.
• Always check the statements on the receipts you receive. If you notice any unauthorised debits or credits made to your demat account, you must contact your DP for clarification.
• Inform your DP, if there are any changes in your residential or contact details, as soon as possible. Additionally, when sending your securities for your online trading account, you should keep track of the distinctive numbers of the securities that you have sent.
• You must always check the demat performance of the issuer company with your DP before you decide to send the certificates.
• Keep your delivery instruction slip book in safe custody, just like you would for a cheques book.
• Only accept the delivery instruction slip book from your DP, if only each slip has been pre – stamped with a serial number and your demat account number. 
• Mention details such as International Securities Identification Number and the number of securities accurately. If in doubt, contact your DP or your broker.
• If you have corrected a mistake, over – writing or cancellations on the instruction slips, a sign against the same to authorise it.
• Ensure that all the joint holders of the demat account sign the slip.
• If there is space left after filling instructions for furnishing security details, you must strike out the blank space.
• In the event of your death, you can transmit your securities to your heirs, by adding a nominee. This makes this transmission process easy.

Don'ts:
• Avoid leaving your instruction slip book with any individual as you increase the risk of the details of your account and transactions to the public.
• Do not sign a blank delivery instruction slip as it is almost equivalent to the bearer’s cheque.
• As far as possible avoid any overwriting, cancellations, misspellings, changes in the name and quantity of securities as it may lead to confusion.

How is the Recurring Deposit Calculator Helpful?

What is a recurring deposit account? It is a kind of special Term Deposit account provided by Indian banks for people with regular incomes, where you deposit a fixed amount every month into your account and earn an interest at a similar rate of a fixed deposit account. Generally, you can keep this account for a minimum of six months and a maximum of 10 years. A recurring deposit calculator helps you calculate the amount you save by making monthly deposits into your account. Let’s find out how this works:

- This calculator computes the maturity amount, which is the addition of the principle and the interest earned. You will get a fair idea of the lump sum amount that will come to you, once the tenure of your recurring deposit account is over.
- The calculator however does not account for Tax Deduction at Source (TDS) as various banks have different periods of deduction. TDS is applicable on all interest paid amount of all recurring deposit accounts.
- The recurring deposit calculator analyses your maturity value based on a ready-made formula. You can plan the tenure of this account as per your requirement. It can be for your wedding, children’s future or for your future car.

Choosing the Recurring Deposit Interest Rate: You have to make sure that you compare all the existing interest rates offered by various banks, before you finally choose the best rate for your recurring deposit account. Nowadays, the TDS is applicable on the interest paid amount of the RD account. The TDS rules are similar for fixed deposit accounts as well. Several banks including ICICI, HDFC, Axis, SBI, and others offer recurring deposit accounts at different interest rates. Choose the plan that suits your desired cause the best.

What to Remember before Reaching RD Maturity: Firstly, you will have to consider the monthly installments as an individual and separate deposit. The compounding generally happens every quarter of a year, so start it is a good idea to start your account at a quarter period of the year to stay in tune about your earned interests. Also, every month’s deposit has a different tenure. Therefore, every deposit will earn a different interest amount. You must also know that the total maturity amount that you will receive will be the enhanced value of every month’s investment. The recurring deposit calculator makes this process pretty simple and gives you a cumulative idea of how much you will be depositing each month and how much you will be receiving at the end of your tenure.

How a Loan EMI Calculator Helps in Your Financial Decisions

Financial decisions like buying a house, car or other investments are crucial steps in one’s life. It is essential that one weights every pro and con before taking the final call. Most of the people go for different types of loans in such cases. However, it is important that you choose the right kind of loan and check your repayment options using a loan EMI calculator. This is a digital computing system that gives you the breakup of the Equated Monthly Installment (EMI) payable for any loan that you take up. Here is more on getting the right loan and how this calculator can help you out with various financial processes.

- A loan calculator will help you gauge the amount of loan that you are capable of borrowing based on your income, interest rates and other factors. It can be quite a challenge to calculate the EMI payable manually. This is where the calculator saves your time and energy by simplifying the whole process. Once the computing is done, you can decide on a feasible amount to be borrowed for your needs.

- A calculator also provides a graphical representation of all the data regarding your monthly payments, in the form of an amortization table. This way, you can easily get a clear idea about the amount payable by the end of the loan’s tenure, the payable rate of interest, span of the loan and processing fee.

- You can also plan to customise your loan or repayment process with the help of the loan calculator. At times, you might experience an increment in your income, which might open up the option for you to prepay a part of the loan. The calculator takes such factors into consideration and gauges the amount payable in such a scenario.

- Using the loan EMI calculator for your financial decisions ensure accuracy and an error-free outcome. This will also save a lot of your time and make the process all the more quicker.

- You can also make a loan repayment plan using the calculator in advance and be ready with all the required documents and then apply for the loan. It helps you be sure of, which loan suits your needs the best.

You can make quick, smart and sorted decisions with the help of the loan EMI calculator. Whether it is a personal loan, home loan or any other kind, you can be sure of the amount you can borrow from the bank and the exact amount to be repaid per month. This is the best way to avoid complicated calculations and a messed-up plan.

Why internet banking is the future for cashless banking?

The world is rapidly moving towards the age of digitalization. It has taken over almost over all our fields in our lives, right from shopping, education, banking, groceries or even bill payments. It is also easily accessible, with your smartphone, laptop or even your desktop.

But one of the most progressive features of this digitalization is internet banking. More and more individuals are preferring to use digital cash payment methods as opposed to carrying hard cash around. But is it beneficial enough to become a cashless banking option? Here are a few factors that support this causation:

Can be used to make online purchases: When it comes to traditional purchases, you would first view the product, analyse it and then make the decision to purchase it. However, the product for purchase would be restricted by limited options and limitation in quality. For intangible products, such as services, you would have to ask around, by word of mouth, before you can get the service and then make the required purchase. But now, you can easily go online and make any purchase you want. You can even review the different available options, their prices and their qualities before making a decision. Once your choice is made, you can easily use your Net Banking facility or any of the banking cards to finalise the online purchase. This is an ideal choice for those who want to make retail purchases or even purchase services such as hiring transport.

Can be used to make online transfers: Money transfers have always been a requirement for individuals who have travelled and settled abroad. But while sending cash in the form of cheques, drafts or even physical cash, would be a risk as well as time-consuming, online money transfers have now made this process easy. Through the internet banking process, individuals can now make real-time money transfers as required without the need to withdraw funds or draw DD’s or cheques to send back home. Additionally, you can even track the transfer, which is especially beneficial for those who are living in the rural areas.

Can be used to make online termed deposit applications: Plenty of individuals are now finding themselves in a situation where their income is lower than their financial demands. In this case, they would opt for a loan to satisfy their financial requirements. But through the traditional means to apply for the loan, one would be required to submit a set of documents in order to apply for the loan. However, in recent times, as a part of the account opening process, you will need to submit a set of documents, which come under the ‘know your customer scheme’ (KYC). These documents are also the same for the loan. But through the Net Banking facility, you can easily opt for a loan, especially if you want to open a recurring or fixed deposit. Through this process, the funds from your account will be easily transferred to the required deposit without you even having to move your seat from home.

Credit utilisation ratio: How to use multiple credit cards to reduce this ratio

Credit cards are one of the ideal ways to make payments. Not only do they offer the convenience to make any transactions, but it also offers a mean to track your record. It also shows your availability of credit on tap. However, this can be optimally utilised only if you maintain a prudent use of your credit card. This is also the place where the credit utilisation ratio can be used as a parameter, to keep a tab on your credit card use.

The credit utilisation ratio (CUR) is an outstanding credit balance expressed in a percentage that is compared with the total credit limit across all your credit cards. As a card holder, it is crucial that you keep this ratio as low as possible, as most lenders and financial institutions will use this as a parameter of an individual’s credit management. Given below are some of the factors pertaining to the CUR and why should you be aware of it:

Why a high CUR is not good for you: Running up your credit card will not only lower your credit score, but it will also make your CUR look credit hungry. It will always make you look like you are in a financial crunch. When your CUR is high, lenders will assume that you are defaulting on your payments. This can affect your credit score negatively. This, in turn, will affect you especially if you are planning to apply for a loan. Therefore, as a precaution, you should keep your credit expenditure less than 30% either by using multiple cards or paying off your debt as soon as reaches its limit. Ensure that you do not overuse any of your cards, especially on a regular basis.

How can you benefit from using multiple cards?:While it is a good practice to make your expenditures through your bank cards, it is an ideal option to split your expenditures through multiple cards. This helps reduce the CUR for each credit card. As mentioned previously, this card is calculated separately and collectively on each credit card that is allotted to you. You can easily use these cards judiciously in order to maintain a healthy CUR. All you need to do is identify your monthly spending patterns and plan your expenditures accordingly to minimise your CUR or even the use of your credit cards. If you think you are spending a bit too much, opt for a higher credit limit.

When should you use these multiple cards? No doubt, it may be easy to opt for these credit cards when you are in a financial crunch. However, it is important to consider using these cards only when you need it. Opt to use the cards wisely, only to increase your purchasing power. Compare the different cash back offers and rewards for specific products, and then use the appropriate card to optimise your shopping experience.

Questions you need to ask yourself before opting for a personal loan

For any emergency or miscellaneous financial requirement, you can always opt for a loan, especially a personal loan. This loan, comes under the classification of unsecured loans, meaning, you need not submit any collateral in order to apply for this loan. Additionally, it can be used for several purposes, such as paying off several debts, medical purchases, planning a vacation, and many others more.

But unlike other loan types, the personal loans have a high risk associated with it. For one, it has a high-interest rate. Additionally, it also comes with a tenure that can be short. By any chance, you cannot pay back the borrowed funds along with the interest rate; it will affect your credit score. Keeping these factors in mind, it is crucial that you be aware of the requirements and factors pertaining to personal loan. Here are a few questions you need to ask yourself before opting for this loan:

Why should I consider this loan?
Different individuals will have different financial profiles and different requirements. In the occasion that an individual requires quick and easy finance, such individuals can easily take a loan against whatever available assets they have. However, for individuals who do not have sufficient or any asset, as a matter of fact, can opt for a loan without such requirements. The personal loan is one such option. However, depending on your profile, you may or may not get the loan amount to satisfy your needs. Nevertheless, you can always check with your lender on how much of credit you can avail through this loan.

Can this loan affect my credit score?
When it comes to any loans, it is crucial that your credit score is as high as possible. The reason behind this is that lenders will check your credit score to see if you are a low or high-risk candidate when you apply for this loan. While this can be applicable before your loan application, this is also crucial when you already have an existing loan which you are repaying. Any delay in the repayment will affect your credit score. Since the personal loans are already a high-risk loan, you need to consider a proper repayment strategy when it comes to this loan, as taking on such a loan will have a chance of affecting your own.

Finally, is the personal loan right for me?
In reality, the personal loan will suit any individual. However, this should be considered only if other financial options are unavailable. Additionally, if you do not have the required assets to liquidate for a loan, this would be the ideal choice. Nonetheless, it all depends on your financial requirement and the urgency for it. Would you be opting for this loan to pay back previous debts, or would you be using it to pay off a purchase for a car or bike? Keeping these factors in mind, it is crucial that you opt for this loan only if it feels right.

How can you benefit from an EMI calculator for your loans?

At some point in one’s life, you will face a financial crunch or a requirement for a larger financial amount that goes beyond your income. At this point in your life, you can either opt to borrow from your friends or family, or you can either opt for a loan from a financial lender. With the latter option, not only will you get plenty of options to consider, but you will also get plenty of benefits along with these options.

But while you may or may not get the required amount when borrowing from your friends and family, you can be well assured that you will have a higher chance of getting the required funds through a loan from a financial lender. But before you can take this loan from a lender, it is crucial that you first take the necessary steps to plan your loan. Tools such as the EMI calculator will help you plan your loan, as well as take the necessary step to repay the borrowed funds. Here is how this loan will help you:

Know how much of interest rate one is eligible for: Different loans have different interest rates. Additionally, each applicant will have a different financial profile, meaning you, as an applicant will be eligible for a different interest rate which may be above or below of what is offered for that loan. No matter the loan type or amount you borrow, opting for the right interest rate is crucial as it determines how much you are eligible to pay back to the lender, along with the principal amount. You would not want to be in a position where you end up paying more for you an interest rate, as compared to the principal amount, would you? This is where the EMI calculator will assist you, as it will it help you determine how much of an interest rate you are eligible for and how much you can afford. Since it also tied up with the tenure of the loan, you will also know how long you will be paying for the loan and the added interest rate.

Know how much of a tenure one can afford: As mentioned previously, the interest rate is tied up with the tenure. At the same time, each loan type will have different repayment tenures. For example, the home loan has a tenure of 10 to 30 years, which is a considerably long time, especially with a high-interest rate. But can you afford such a long tenure, especially if you will be taking on additional debts in the near future? Therefore, it is crucial that you are aware of your loan tenure so that you not only know how long you will be paying the tenure but also how much you can afford. Using any of the online EMI calculators, you can calculate the ideal amount that will suit your requirements.

Apart from these benefits, there are plenty more which you can consider. However, you must remember, that your lender may or may not provide you with the loan rates you have calculated through any of the online EMI calculators. But you can always use the information you get through the calculator to leverage for better loan rates.