How a Prepaid Forex Card is Helpful During Your Travel

The holiday season is here and many of you must be packing your bags for a foreign tour with your loved ones. With changing times our banking needs have upgraded to another level. With almost every country going cashless, having a prepaid forex card is a blessing. This card is the best way to buy foreign currency while travelling abroad. Here are some of the benefits that make this cashless option so favourable for everybody who is planning a vacation.

- Accepted Everywhere: This card is accepted almost everywhere and you will never have any trouble finding a counter that takes this card for foreign currency. It is a feasible option if you have set out on a Euro trip, as you will save a lot of cross country currency exchange cost. Who would want to pay extra while travelling from one country to another?

- Reasonable over Credit/Debit Card: The prepaid forex card is a much cheaper option than a credit/debit card. If you decide to use your credit or debit card in a foreign country, you will be charged with a cross-currency mark-up for every transaction, which can range from 3-5%. Whereas, the forex card already carries foreign currency and it saves on all those extra mark-up costs.

- Safe and Secure: A card is always easier to carry than bundles of cash. And various companies also provide a secondary card along with the original forex card, which can be activated by placing a request on a toll free number when you lose the original one. The forex card can also be hot listed when lost just like your credit or debit card.

- Why Buy Currency: Why should one buy currency when it is more cost effective to buy a prepaid card. One should always opt for a prepaid forex card rather than buying cash and tediously carrying it along.

- Shielded from Currency Fluctuations: The prepaid card is always unaffected by any kind of currency fluctuations. It is because the amount loaded in the card is valued on the exchange rate of the day of the transaction, which remains unchanged.It is a win-win situation for you as no amount of currency hike or fall will affect the money already stocked on your prepaid card.

These are some of the benefits of the prepaid card while travelling abroad. You can plan your trip ease when you have the forex card handy. It is absolutely hassle-free and loaded with advantages. There are several banks like HDFC, ICICI, Axis, SBI and more offers a variety of prepaid cards to make your international trip a joyful one.

Several Advantages of Online Mobile Recharge

With changing times we as a race have made progress in all the areas of our lives. From banking to shopping and paying bills, everything has been digitalised. Things have become much more convenient and simple with technology spreading its branches to all the aspects of our lifestyle. Gone are the days when people would stand in line for hours just to get their mobile phones recharged. With digital options stepping, the same can be done at the comfort of your home or office. There are several benefits of online mobile recharge, following are some of them.

- Convenience: The recharge process has become absolutely hassle-free as you can make payments while relaxing on your couch. The services are available 24 x 7 and there are no restrictions whatsoever. This is the best way one can save time and energy.

- Easy Payment: One can recharge their pre-paid numbers or pay their post-paid ones using a Debit, Credit or ATM card. One can also use net banking accounts or Paytm accounts for online mobile recharge.

- Variety: There is a wide variety of recharge options for SMS, data packs, talk time, ISD services and more, which can be recharged via an online mode. There is no need to visit store after store to find the exact recharge you are looking for. There are various online portals that are a one-stop-solution for all your online mobile recharge needs.

- All-in-one:There are various online applications like Freecharge, Mobikwik, Paytm and more that provide recharge options for all major mobile service providers. You can get any account recharged with the help of these convenient mobile apps.

- Cash Back: Some of the recharge apps and portals also offer a certain percent of cash back amount along with other benefits like free coupons for various food and entertainment outlets. This is a great advantage for all mobile users as none of the physical recharge stores would offer such exciting offers for recharging your mobile.

- Easy Procedure: The process of recharging your phone is quite simple. All you got to do is download the app or visit the portal, login with your details, sync your bank details like credit/debit card number, password, related mobile number, and a few more banking details. Once this is done, you can recharge your phone any time you need to without any complication.

These are some of the benefits of online mobile recharge that makes it such a favourable option during these fast-paced, digitalised times. If you still haven’t tried this, you need to try it for yourself and get ready to be a total fan of this digital wonder.

How to avoid traps when applying for a credit card this festive season

With the festive time approaching, it may not come as a surprise that you will be caught up in the sudden festivities. Soon you will find yourself amidst the chaos of choosing gifts and shopping for attires.

But to make your financial expenditure more flexible and convenient during this time, surely you would think a credit card would make a great tool to help finance your purchase. No doubt, you will rack reward points or even cash back offers with the amount of shopping you will do with the card. After all, the bill at the end would justify the means of saving in the long run. But is it?

Not many are aware, that excessive expenditure on your credit card can lead to plenty of financial traps in the future. And this future can also be long term. So if you are thinking to apply for a credit card here are a few things you need to keep in mind, before you begin the application process.

• Limit your application to one credit card: It may seem easy when you are considering a credit card to apply for, especially when it comes to multiple credit cards. But you should actually restrict your application to one card. This will go a long way to set what you spend, especially since the limit on the card will prevent any extensive expenditures. Additionally, one card will make it easier to set a regular pattern of purchases and repayment, which goes a long way to establishing a good credit history.

• Understand all the terms and conditions: Before even beginning the process to apply for a credit card, you first need to consider the terms associated with this banking card. What is the interest fee, what are the annual fees attached to it? Are there different rates for cash advances? You will need stringent answers to these questions before you consider a credit card to apply for.

• Set a budget: Setting a budget is critical when you begin to shop with the credit card. No doubt, the limit on the card will prevent you from over expenditure, but a budget will deter you from even reaching that limit in the first place. It also helps prevent any unnecessary expenditures and reduce your overall credit bill. 

• Set a time limit on big purchases: You may have to spend big bucks on items that are a bit expensive. Before making this purchase, you will need to consider the necessity and feasibility of your repayment on such purchases along with your other smaller purchases. To be on the safer side, establish a waiting period of several days before you buy.

• Ensure that you avoid paying a bare minimum: While you shop, you can also take steps to repay the borrowed funds as soon as possible.Your minimum repayments can be as low at 1.5% of the outstanding amount. But by paying the minimum amount, you don’t cover your interest payments. In the end, you will pay more interest overall, thus making it longer to pay off your debt.

What are the factors you need to consider when applying for a car loan?

In today’s day and time, owning a car is not only an imperative but also a part of one’s lifestyle. There are also plenty of options a potential car owner can consider, based on the different features of the car. However, it is these features that set the price of the car, which in turn, influences the car owner’s choice of financing the purchase. In other words, if you are looking to purchase a car, you may need to consider your financial borrowing options.

Amongst the various financial options, the car loan is one option that is the most favourable option to finance this purchase. But before you can opt for the best car loan, that can suit your needs; there are certain factors you will need to consider. These factors will go a long way to determining the loan type that will suit your need, but also ensure that you have a convenient means to repay back the borrowed funds. They include the following:

Amount to put down: The amount to put down, also known as the down payment, is one factor that not many car owners are aware of. However, it is one of the most important factors that you should consider, as in turn, it will affect the principal amount you are liable for. It also determines how much of interest you will need to pay for the principal amount. Additionally, since the value of the car depreciates the moment you sign up for it, the down payment will determine how much you owe the car, especially in terms of insurance.

Length of the tenure: Like any other loan, you would be required to pay a loan amount during a fixed tenure for the car loan. The normal duration is not more than 15 years. While a longer tenure will lead to lower monthly payments, it will also increase the interest rate. Opt a tenure that does not outlive the car itself.

Interest rates: The interest rates for the car loan may vary, but the ideal way to get the best car loan interest rates is to compare lenders. You can keep in mind that loan rates are typically high on long loans, therefore try to opt for a shorter one.

Cost of deferred payments: Plenty of lenders may be offering a ‘payment free’ limited months as a part of their offer. While this may imply that you don’t have to pay for your car during that time, chances are, you will still have to pay the interest. In other words, in addition to the principal amount along with the added interest, you will also need to pay interest for those ‘free months.'

Financial lenders dealer: When opting for loan options, you can either approach a financial institution or through a car dealer. While it may be convenient to have a dealer arrange the financing, you should be aware they will offer a mark – up on their offerings, so as to increase the overall cost of the loan. Don’t settle for such offers, until you have independent loan offers to compare them with

Why should you open a recurring deposit for your child right from birth?

In today’s day and age, you may be feeling the pinch of the financial demand. No matter what you do, or how much of an additional income you earn, you may seem to never have enough. But what if you could plan your financial future, right from the time of birth, in order to have a sufficient financial cushioning by the time of earning on one’s own two feet?

While the chance may have gone by for you, your children, on the other hand, have the perfect opportunity. But with all the financial products available in the market, how can you choose the right one? The recurring deposit is one such option that you can consider. Through this termed deposit, you only need to put in a few funds, on the designated date, on a monthly basis until the deposit has matured. On maturity, you have the choice to reconvert the initial investment amount along or along with the added interest. Here are some of the few benefits your child can earn financial with the recurring deposit.

Start small, increase later: One of the main benefits of the recurring deposit is the flexibility in the amount that can be invested. As mentioned above, you would be required to invest a small amount, on a monthly basis until the tenure is met. This amount will vary from lender to lender. For some lenders, the amount will be as small as Rs 100 to 1000. The upper limit can also be Rs. 49,000. While it may go beyond your financial limit to invest the upper limit, in this investment, you can start with the smallest amount for the first few initial years. You can then increase the investment amount, as per your financial flexibility.

Create long tenures: The recurring deposit comes with fixed tenures. These tenures can last anywhere between 6 months to 10 years. You can opt for a comfortable tenure that offers you a flexible yet optimum return on your investment. Additionally, when considering this factor, you should also remember that the interest rate will be tied to the tenure of the deposit. Therefore, the longer the tenure, the higher will be the interest rate.

Opt for compounding interest: As mentioned previously, the termed deposit comes with an interest rate. However, it also comes with two different types, namely, the simple and the compounding interest rate. The simple interest rate is calculated on the initial amount that is invested, at a fixed interest rate. With the compounding interest, the deposited interest is added to the principal amount, thus increasing the value of the principal amount, at a fixed interest rate.

Create multiple deposits: While one termed deposit may not satisfy all the financial requirements your child may require in the future, you can compensate for it, by creating multiple deposits with different tenures. In this way, you can time the maturity at the time where you can use it, or reinvest it for a higher interest rate.

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.