Multiple Saving accounts: What are the pros and cons of owning more than one?

Owning a savings account has now become a requirement for most working individuals. However, plenty of these individuals owns more than one single saving account. The reasons may vary, right from getting access to better account features, or as a part of the requirements for a job. No matter the reasons, here are a few pros and cons you can enjoy as a part of owning multiple accounts:

Benefits:

High ATM withdrawals: Most of the savings account comes with their daily ATM withdrawal limits, especially when it comes to free ATM transactions in a day and month. Each additional account you add to your profile, will be added to your total withdrawal limit. Therefore, additional saving accounts will allow you the perfect opportunity to distribute your bank balance across several accounts, and ensure that you get to withdraw more from ATM’s whenever you require it.

Higher branch transactions: The saving account charges a certain processing fee for certain products. They can include cheque clearing, cash deposits and withdrawals beyond a certain limit. With multiple accounts, you have the opportunity to distribute the transactions between several accounts, to reduce the overall banking costs. This is especially crucial if you make payments for purchases of mutual funds, insurance products, bonds and equity shares that are routed through saving accounts. This is also viable for any deposits you get through dividends, bonuses and redemption proceeds.

More offers on banking cards: As a part of the savings account, banking cards such as ATM and debit cards are offered. These cards come with cashback offers, discounts and reward points. By availing multiple accounts, you will be able to make a point of sale and online transactions, based on the best offers, available on your card.

Disadvantages:

 Lower returns: You will need to maintain a minimum or average monthly balance in each saving accounts. This can not only differ from institute to institute but also the minimum amount. For example, the amount can be anywhere between Rs. 500 to Rs. 2 lakh. This, in turn, will offer you a low-interest deposit per annum, which can offer you a higher ROI if deposited in other financial products.

Non – maintenance charge: A non – maintenance of an average or minimum balance will attract non – maintenance charges. This amount can be anywhere between Rs. 1000 to Rs. 4000. Even free transactions will become chargeable due to non – maintenance.

Increased cost: Multiple saving accounts will lead to multiple cards. This, in turn, will increase the annual charges of the cards. It can amount to Rs. 100 to Rs 750 depending on the amount you have invested or the number of cards you have.

No matter the pros and cons of the saving account, you need to remember that no two financial habits will be the same. Therefore, to ensure that you get the best of benefits, without the disadvantages affecting you, you need to ensure that the account is fully utilised in the ways suggested above.

Credit cards: Ensuring a low credit score doesn’t affect your application

A credit card offers you the perfect opportunity and flexibility to make any financial expenditure. Additionally, it offers you the opportunity to borrow funds from the bank or financial institute, wherein which, you can repay it back within a fixed period. However, when it comes to applying for any of the credit cards, there will be certain factors you need to consider. One of these factors includes your credit score. But how does it play a role in your card application?

For one, you might be in for a rude shock, if you find that your application had been rejected, or card rates that are unaffordable. This is where the credit score will come into play.  Your lender will take into consideration your credit score, the basis of which, the appropriate card rates will be provided. If your credit score is low, there is a high chance that your application will be rejected, or you will get card rates that go beyond what you can afford.

While the acceptable limit for a credit score is 650, a score higher than 750 will help you get a better credit card rates. If you think your score is lower than the above-given rates, here are few steps you can take to ensure that your card application is approved right in the beginning:

Check to see if your repayments match: The first factor you need to check is your repayment history of any financial products you have borrowed. In other words, if you have applied for a loan or any other financial products that include borrowed funds, you need to check the repayment history. The reason behind this is that the details of your credit score will come mainly from your lender. If there are any discrepancies in your repayment history, your lender will normally send it to CIBIL. Therefore check to see if your repayment history is matched along with the lender’s to eliminate any possibility of inconsistencies. In the event there are, you can take the appropriate steps to change it.

Repay all current debts: While your repayment history can affect your credit score, so can your current debts. That is because any debt you take on, you will need to have the ability to repay it back. Your credit score indicates the amount of debt you current have, and whether you have repaid it or not. Taking on any additional credit cards is equivalent to taking on additional debt, whether you use it regularly or not. So to improve your chances of getting your card application approved ensure that all your debts are paid off. If you can’t pay off the major debts, ensure that the smaller ones are paid off. Once your debts are paid, ensure that the lender’s system is updated before you begin the application process for the card.

Benefits of Money 2 India Service for NRIs

If you are an Indian living abroad, you may need a swift and safe online money transfer service that can help you send money to your family members back home. This is where the Money 2 India service comes to your rescue. This is a convenient, money transferring service that allows you to send money from any overseas bank account to India. Let us take a look at the various advantages of this online service:

- Secure Transfer: There are many banks in India that offer this service. There is a guarantee of secure transfers as the transactions are carried out only after your approval and within latest firewall security. There are many customized online services from direct debit transfers to online banking amenities, which are made as per your requirements. Also, there are a wide range of security measures that are taken to make sure that your transactions are carried out safely. All banks make sure that the databases and internet systems used are kept separate so that no internal or third party can have access to your bank information. This ensures safety to various customers who transfer money to from other countries to India.

- Convenience to Beneficiary: There are different delivery options that make it easy for your beneficiary to receive the money sent by you. Options like electronic money transfer to Indian bank accounts, electronic transfer to resident Visa Debit Card issued by Indian bank, and Demand Drafts issued and sent to your beneficiary in India are available. Depending on the convenience of your beneficiary, you can choose your delivery mode in order to make a smooth transaction. The Money 2 India service is very quick and has a reach into many parts of India.

- Track Your Transfers: When you use this service, you can also track the status of your transfer by login into Money2India.com and also get notifications and alerts about every stage of your transfer. This makes it easier for customers to trust this service and be assured that their money is in safe hands. The service is available 24 x 7 which makes it more approachable. You can call up customer care, where well-trained professionals answer your queries and brief you in detail about their offerings.

- Cost Efficient: This online service offers great exchange rates and low cost services. This means that you get more Rupees for each foreign currency you send to India. It makes the process profitable for you.

These are the advantages that make the Money 2 India service so favourable for NRIs. Whether you want to send money to set up a business in India or for the maintenance of your home, you can do it with just a few clicks.

How Does International Wire Transfer Work?

Wire transfer is a superfast way to transfer funds from one account to another in electronic form or via cash by visiting the cash counter. There are different banks like Axis, ICICI, HDFC and more who offer this service for domestic as well as foreign customers. Using the international wire transfer service you can transfer funds from a local bank abroad to the beneficiary’s bank account in India. Let’s find out what are the steps to sending funds using this service.

- First, you will need to fill out the remittance form with your Nostro Account Number, SWIFT code and yours and your beneficiary’s bank account number.
- Once you are registered with the bank, you can easily transfer money to your beneficiary’s account whenever the need arises.
- You can visit one of the Indian banks to know more about the process or call the 24 x 7 helpline numbers for all your queries and to know in detail about their service offerings.
- If you are unaware of what currency to transfer to another country, here is your answer. If you are living in the U.S. and you do not know the currency of the country you are making a transfer to then you should transfer in U.S. dollars.
- When you send currency in the form of dollars or whatever the currency of your residing country is, it reaches your recipient quicker. Also, this kind of a transfer lets you lock in the current exchange rate, which makes the transfer so much more convenient.
- You will also be charged a fee for making a wire transfer as it is a service that is safe and reaches the beneficiary quicker than any other mode of transfer.
- Weigh all the factors like exchange rates, fees, and currency availability before you decide to transfer funds.

These are the main steps to using the international wire transfer service. One can also open a foreign currency fixed deposit account or a rupee account with the accumulated remittance through wire transfer. It is a useful service for entrepreneurs who want to establish businesses in different countries or for Non-Residential Indians (NRIs) who want to send money to their family members. You can also transfer funds to another country for house maintenance or repairs or for the purchase of new land or property. This is an easy and assured service that can solve all your money transferring problems.

How to Trade in Indian Stock Market with Portfolio Investment Scheme

A portfolio investment scheme (PIS) lets non-residential Indians (NRIs) to trade or invest in the Indian stock exchange. Once you register yourself for this scheme, it becomes easy to make NRI investments in the Indian market. There are several Reserve Bank of India (RBI) approved banks like HDFC, Axis, ICICI, SBI and more that offer this scheme to its NRI account holders. NRI customers can carry out transactions through various branches of these banks from any part of the world. Here is how you can go about trading in the Indian stock market by enrolling into a portfolio investment scheme.

- Firstly, you will need to fill out a form for your NRI account. This form must be filled thoroughly and signed by all the account holders. It must include all the details regarding purchases of shares via the primary stock market.
- The NRI account holder will also have to fill the PIS application form in order to enroll into this scheme.
- The NRI investor should also produce the tariff sheet for the bank to review.
- A Demat holding statement also must be filled and submitted at the designated branch.

These are the mandatory documents that are required for applying for PIS. This is the first step for NRI investors to be able to trade in the Indian stock market. So, what is the best way for NRIs to invest in the Indian market? Let’s find out:

- It is a great idea to invest in India-specific funds introduced by US mutual funds. Or you could go for Indian mutual fund organizations that let NRIs to invest in their schemes. 
- All the investments made by NRIs should be in Indian currency, which is rupee. Indian mutual funds are obligated to trade only in the local currency. This is why the foreign investor must open an NRI accounts like the non-resident ordinary rupee (NRO), the non-resident external rupee, and the foreign currency non-resident (FCNR).
- The amount you want to invest in Indian markets must be debited from one of the NRI accounts or from an inward remittance via general banking channels. An NRI can also send a demand draft or cheque with the help of the exchange house abroad and draw it to its corresponding Indian bank.
- Only after proper authentication and id verification can an NRI investor start trading in India. Therefore, one must make sure that all his/her documents are in place and ready for approval.

Advantages of Holding a FCNR Deposit Account

What does FCNR deposits stand for? It is Foreign Currency Non-Repatriable deposits, which is a fixed deposit account for foreign currency. This is a unique type of account provided by Indian banks and you can deposit all the major currencies including US Dollar, Canadian Dollar, UK Pound, Japanese Yen, Deutsche Mark and Euro can be deposited to this account. You can securely save and grow these foreign currencies in your account while protecting them against currency fluctuations. Here are the benefits of holding this account.

- Interest Rate: The account earns interests based on the rate that the particular bank offers. This rate stays unaffected whatsoever and allows you to reap benefits on all the currencies deposited in the FCNR deposits account.
- Tax Exemption: You can enjoy a tax exemption on the total amount of your deposits into this account. It is a special kind of account that is absolutely non-taxable. So, you don’t have to be worry about additional charges levied on your deposits.
- Joint Accounts: One can open an individual or joint account with other NRIs. You can also repatriate the principal and interest amount at any point of time. You can also avail a nomination option where you can nominate someone you trust to be a beneficiary of your account on your behalf.

Depositing & Transferring Money to Your Account

- You can deposit money to your account from abroad by transferring money in a freely-convertible foreign currency.
- You can directly remit the amount to the FCNR bank account in India via telegraphic transfer or wire transfer.
- You can also transfer money from an existing account in India to other Banks as per your need. It is a hassle-free process with no extra charges.
- Whenever you or your joint NRI account holder travels to India from abroad, you must present your currency notes or travellers cheques for any kind of withdrawal process.

So, if you are a non-residential Indian, you are eligible to open an FCNR account. You can open an individual account or a joint account with your NRI partners. One must maintain the account for at least a minimum of one year and a maximum of 5 years to reach maturity. Different banks offer different interest rates that are subjected to change; so compare all of them and choose the one that matches your requirements. Interest rates are put out on a yearly basis. There is ample information available online that can help you make an informed decision of opening an FCNR deposits account.

Everything About an NRI Deposits Account

‘NRI deposits’is a term used for the fixed deposits made by non-residential Indians in any of the banks in India. There are several banks in India that offer a variety of customised fixed deposit accounts to Indians residing overseas. One can choose from a range of different schemes that are offered by different Indian banks. These banks also give you an opportunity to earn great interests on your fixed deposits. Following are the benefits and eligibility criteria of having a NRI fixed deposit account.

- Eligibility:You can open an NRI fixed deposit account either individually or jointly with your family or spouse, who are NRIs. This flexibility is offered by various top banks in India. Also, one can open this account only if he/she is not residing in India but is of Indian origin or nationality.
- Interest Rate:When you open this kind of an account, you earn more interest on NRI deposits as compared to general savings accounts. Therefore, holding this account is beneficial if you are a non-residential Indian.
- Premature Withdrawal:With prior notification, one can withdraw the account at a premature stage. However, if you want to earn interest on your savings, you will have to make sure that your deposits are in the account for a particular period of time in the designated bank.
- Tax Concessions:There are several schemes and policies that apply when it comes to opening an NRI account. Some NRI fixed deposits are non-taxable, like if you open an FD account through an NRE account in India, it is not taxable. However, accounts opened through NRO or FCNR accounts are bound to receive tax concessions.
- Account Renewal:As and when your account matures, it can be auto-renewed as per the option chosen by you while opening the account. You can either choose to renew the account or close it eventually.
- Loan Policies:Several banks offer loan against your fixed deposits. If you are looking to take up a loan, then the NRI deposits can be a great security for it. It is always better to compare different facilities and offers provided by various banks before making the final decision.

These are the advantages of holding an NRI deposits account. If you are an Indian, living in another country, you can still open an FD account or several accounts in India and reap its benefits. You can also take a good look at the customized deposit schemes that can be profitable for you in the future.