How is internet banking and mobile banking beneficial to one and all

Internet banking is also called mobile banking or online net banking. It is an electronic payment system that allows the customers of a bank or other financial institution to carry out a number of banking transactions. When doing internet banking the banking system available online will automatically connect to the central banking system and are able to access banking systems.

The first and foremost thing that a customer would require to access internet banking will require a computer with a working internet connection. Once that is established he/she has to register with the website of the bank in which his/her account is and that has to be done by a username and password and other credentials for customer verification purposes. The verification procedures are not at all similar to the verification procedure done on the telephone.

The banks provide a unique customer identification number to a customer which he or she can use in order to access the internet banking. The services that can be accessed via internet banking includes, fund transfers to other bank account and other financial institutions, keeping a track of the number of accounts in the bank and obtaining account summaries and transaction details, credit card payments, utility bill payments, opening a fixed deposit account downloading of bank account statements. The ,kind and amount of services that a particular bank allows through internet banking varies from every bank while the above services are quite common for internet banking facilities in almost all banks some banks might additionally let a customer to order a chequebook, change a telephone number or address, stop payment on a cheque and report loss of credit card.

Internet banking has been developed in order for the customer to enjoy the convenience of banking at his/her fingertips instead of having to visit the bank branch and wait for one’s turn in long queues. Nowadays the world has become a busy place and it is not feasible for anyone for that matter to be stand in long queues in banks in order to deposit a cheque for transfer of funds to another account or put a request for an account statement. With the advent of internet banking, all of these meagre works has become simple. Nowadays one can access every detail of one’s bank account in the comfort of one’s own home and all he ’she would require is the internet.

With internet banking a customer has a permanent access to his/her bank account, the transaction costs are less and less worrisome, one can access internet banking from anywhere, the time taken to do a banking procedure is reduced. One doesn’t have to be bothered about the security of these transactions as they are very secure and no personal information or password is divulged anywhere. The transfer of funds from one bank account to another is done safely, accurately and immediately and needless to mention internet banking allows security of the bank account as well.

Did you know the most common 4 methods of international money transfer?

There are various alternatives available to transfer money to India. However, it is mandatory to research about it ever more and make sure you choose the best while you send your money.

Online Transfer

This is the simplest method for an international money transfer. To do this all one requires is an internet connection and you also should be using the local banking services to send the money to an Indian account. Some other important things that you will be requiring to do this successfully are the account holder’s address and obviously his/her name, the name of the bank of the recipient, the IFSC code and the branch address to which the money will be sent. You will also need the IBAN or SWIFT code of the bank the money is being sent to. This method is mostly suggested if you regularly transfer funds. You can get rid of the steep banking charges and you can also carry out the transaction from the comfort of your home.

ACH transfer

Automated clearing house is another way of international money transfer and is used for transferring money from an Indian account to an account in the US.  A huge advantage of such a method to transfer money is, you can get rid of long bank queues, you will not have to worry about hidden costs, you will also not be required to send checks for the money transfer to materialise. When the money is transferred in this manner, the bank gets the sum that has been sent in the next four working days. This amount can be delivered to the payee on the next day.

Paypal transfers

Another method of electronic money transfer from one account to another throughout the world. Paypal money transfers can also be cloaked as an online money transfer method. While sending the money through paypal be sure that you won’t be charged a penny, however, the one who recieves the sum will be asked to pay a nominal charge of 3.9% on every international money transaction along with the exchange rate of the transfer.


Wire Transfer

One of the most commonplace methods of transferring money internationally is the Wire Transfer method. This method requires the sender to visit a financial institution or a bank or bureaus that cater to international money transfer, for instance Global Exchange, book my Forex,  Western Union, Remit2India, and transfer the money. This wire transfer international money transfer service first takes all the required details about the person or persons the money is being sent to from the person sending the money, the sender is also supposed to divulge the bank details of the money recipient. One those facts are collated, the bureau then starts the transfer procedure which takes the next few days to complete.

Do you know what is Private banking?

This kind of banking is conventionally offered to a bank’s high net worth  individual (HNWI) clients. It is a personalised financial and banking service. This is typically done for wealth Management because the High net worth individual clients have accumulated more wealth than a normal average person and therefore they have the means to access a more diverse and large variety of conventional and alternative investments. Private banks have thus come up with private banking in order to match  such individuals with options that suit them better.

Private banking doesn’t just provide excellent  and exclusive investment advice, it goes much further and addresses a client’s entire financial situation. These services include helping the clients with special financial solutions, protecting and growing assets in the present, retirement planning and passing wealth on to future generations.

Some exclusive private banks accepts clients with at least $500,000  worth of investable assets.  This is because such a high level of wealth lets the clients to be a part of alternative investment methods such as hedge funds and real estate.And a person who has this level of wealth will never have any liquidity problems. Morgan Stanley, Merill Lynch, Credit Suisse, UBS are examples of private banks.

Personalised service

The customers of a private bank receive exclusive personalised service. A relationship manager is assigned to every account holder to deliver a tailor made customised  asset management plan. This is why the customers can also directly liaise with the management officials if ever the need arises.

High net worth individuals typically get services at a huge discount in private banks because of their huge assets. For exchange customers who have export business might receive a reduced foreign exchange rate. They are provided with a lot better investment options by the private banks, investments with returns that  outperform the market.

Challenges with a private bank

The private banks have always dealt with a lot of regulatory environment since the GFC or the Global financial crisis in the year 2008. This is why there is a higher level of transparency and accountability. The licensing requirements for the private banking professionals are hugely stringent and ultimately this benefits the customers because it assures them that they are getting the best advices with regards to their money and assets!

Since the Global financial Crisis happened the private banks have experienced a high employee turnover which finally resulted in  need to focus on talent recruitment. A long-standing customer relationship is mandatory for the success of a private bank which is why there is a need to keep the employees satisfied as well so that a higher level of customer satisfaction can be achieved. Because only if the employees are happy will they do their work better and it will thus bring success to the company!

Do you know what is a recurring deposit account?

It is a savings avenue and it is very similar to the mutual fund’s systematic investment plan or SIP. Its a recurring deposit a particular amount of money is deducted every month from your bank account. In order to have a functioning recurring deposit, the very first thing you require to do is to apply for a recurring deposit account and request the bank to deduct the amount you wish to be deducted from either your savings or current bank account every month. Almost all banks offer the facility of internet banking through which your deposit can be deducted as well. What’s more the deposit can start from as little as Rs 5 and Rs 500 with private sector and private sector banks respectively. The investment time ranges from a minimum of 6 months to a maximum period of 10 years.

How do you calculate the interest?

It is absolutely the same, just like in bank fixed deposits. As of now ICICI bank which is a private sector bank is giving up to 7.5 percent interest for a period of one year and SBI which is a national public sector bank offers 7.75 percent for a deposit period of one year. However the senior citizens are entitled to an extra 0.5% interest .

Can you withdraw the amount before the maturity time?

Yu surely can do it. However the interest paid will be lower than the base rate for the time the deposit has been with the bank. Some banks have a penal interest of 1–2 %. Having said that it is always sensible to know that a recurring deposit account has a lock-in period of one year and if you want to withdraw the amount in less than a month’s time, you will not get any interest.

What if you are a defaulter?
If in case you end up being a defaulter which means you have missed paying your installments for one to 6 months, the bank is entitled to discontinue your account. However you can very well get the account back when you pay the outstanding amount within a month from the date on which you defaulted.

Are there any other benefits?
Yes! The main benefit is that you can also take a loan or a avail an overdraft facility up to 90% against the ¬required amount . this is surely a better option during an emergency instead of withdrawing your fixed deposit because that will continue to earn interest and at the same time you would be getting a loan at a rate lesser than a personal loan.
When is the right time to apply?

It is a good saving method to create an emergency funding for something you have in mind anyone who has a lower income or perhaps are starting off their career can very well make use of a recurring deposit account.

Different types of debit and ATM cards in India

A debit card is a card that is used for monetary transactions instead of cash. It is also called plastic cash, bank cards so on and so forth. With a debit card you can easily access your savings bank account in any bank from ATM’s you can deposit and withdraw cash whenever you want to and this would even save you the hassles of standing for hours in a long queue. A debit card can also be used in mobile and internet banking.

Do you know about different types of debit cards are available in India?
Visa debit cards: Such debit cards are issued with the bank’s tie-up with Visa payment services and this is why they also provide the Verified by Visa platform for online transactions.

MasterCard debit cards: A MasterCard cirrus card or a MasterCard Maestro Card gives worldwide access to the funds of the customers and this is why they can easily carry out online transactions using their bank accounts by making use of the MasterCard SecureCode platform.
Visa Electron Debit cards: Visa electron debit cards are absolutely similar to the Visa debit cards and the only feature that is missing from these are that these cards do not provide the overdraft feature.

RuPay debit cards
NCPi had introduced this card as a domestic card scheme. These cards help to carry out online transactions on the Discover network and ATM transactions under the National Financial Switch network

Contactless debit cards
Just a tap or wave of the contactless debit cards enables the customer to make a payment near PoS terminals as these cards work on Near field technology also known as NFC therefore making any electronic payment transfer is safer and secure.

Maestro debit card
Maestro from Master Card is a premier international debit card. It was founded in the year 1992.It is a service that has been popularly adopted at over 13 million locations that has been overspread across more than 100 countries across the globe. The signature logo on every Maestro partner card makes them easily identifiable. And this popularity instantly enables the customer to gain immediate access to his or her money  through a network of compatible ATM’s, POS outlets and online resources that are at once international and at once robust.

Do you know there is a difference between an ATM card  and a debit card?

The main difference between an ATM card and a debit card is that ATM cards can be used just in ATM machines to withdraw cash whereas a debit card can be used in ATM machines and in stores and restaurants as well for online payments.

Do you know all about Demat accounts and how to open a demat account?

The function your savings bank account fulfills for your money, your demat account does it for your shares. To be straight and succinct, a demat account holds all your shares in a dematerialised and electronic format.  All your financial machinery including government securities, mutual funds, shares, bonds are held by Demat accounts. If you want to trade in the stock market it is mandatory that you have a demat account.

Now lets see how a demat account works:

The CDSL and NSDL are two depositories in India that holds all demat accounts. A unique identification number is associated with every demat account and this is the number that you are supposed to provide while buying or sharing any share or bond in short making any transaction. This number make the companies identify you and deposit the shares and bonds in your account.

Then there are depository participants who provides a connection to the central depository. They are the brokers or financial firms that offer demat services.

Whenever you check your account,m you can see all the securities your demat account holds, this is also called portfolio holding. Whenever you make any transaction, these portfolio holdings and details are automatically updated.

Now lets get to the brass tacks! – how do we open a demat account?

The very first step is to choosing a Depository participant. There are many depository participants out there sone of them are 1. Globe capital market limited, 2. SMC global securities limited, 3. HDFC bank limited, 4. Sharekhan limited, 5. Edelweiss securities limited, 6. Kotak securities, 7. India Infoline limited so on and so forth.

Once that is done and you have chosen a depository participant, you have to fill up a demat account opening form  with the required documents and a pan card! After which, a copy of the rules and regulations and the terms and agreements will be handed over to you which will also include the charges that will be borne by  you. When Depository participant is done processing your documents for the account opening, it will give you your account number and the unique id that has been spoken about earlier on.  You have to use these details to access your details on your demat account whenever you want to. A monthly charge of maintenance of the demat account has to be paid by you and at the same time you also have to pay the charges for buying and selling securities, these charges differ in almost every depository participant.

Unlike a normal savings account a demat account can be opened even of one doesn’t hold and shares and the maintenance of shares in the account is not necessary to keep the account operable.

So, you want a car? How do you apply for a car loan?

Are you tired of the bus and train journeys and you want a car for yourself? Do you have enough funds to buy a car yourself? If you do, well and good otherwise you have to opt for a car loan like most other people do.

In order to avail a car loan the first thing that needs to be done is getting a credit check.

You have to check your credit, the moment you decide to get a loan. This score is more of an assurance to your lender about you being able to repay your loan. There are three main credit bureaus from where you can know your credit rating. 1. Trans Union, 2. Equifax, 3. Experian.

Determining how much you can afford.

Whenever you are going in for a loan, it is always advisable to check how much of the loan amount can be borne by you. Generally it is sensible never to exceed more than 20 percent of your take home pay. You also have to deliver about, how much down payment you can make, what would be the EMI and the interest rate on the loan.

You have to take a lot of things into your realm of thought when you are taking up a car loan

1. Depreciation – A car loses its value as it ages and hence it is a depreciating asset
2. Interest rate – The yearly interest fee that is added to your principal loan amount.
3. Insurance premiums – You have to figure out how much your car insurance will cost you, if in case repair cost of a particular car tends to be higher, the insurance premium too would cost higher
4. Fuel – You also have to determine how much gas will your car consume
5. Maintenance – This cost varies, one doesn’t know what kind of maintenance a car might require but the most common ones include, costs of changing tyres, oil so on and so forth.
6. Tax and fees – There are a umber of taxes and fees that are charged on on-road cars for instance for registration of your car with the state, you will be paying sales tax and not to forget the annual property tax as well.
7. Federal tax credits – You also have to do a good research, in the cases of some cars, the government incentives are available.

Below enlisted are some of the questions you need to ask before you apply for a car loan.

1. documentation – What are the documents that I will be required to produce for the loan?
2. How long will it take for processing my car loan?
3. Do you have a set amount that needs to be submitted as down payment?
4. What would be the base interest rate for the car loan
5. How much loan will I end up paying over the course of the loan?
6. What are the fees that are included in the loan?
7. Can I make early payments without penalties?
8. Can you ask me to make full payment of the loan? If yes, why?