Everything you need to know about savings bank account

What actually is a savings account?
It is a bank account in a bank or a financial institution, where if one deposits money, it bears interest and at the same time the bank or the financial institution provides a modest interest rate on the money that is deposited over time. The banks or the financial institutions in which your savings bank account is might voluntarily limit the number of times you can actually do a transaction on your bank account and this might be a regular feature each month and at the same time they have every right to even levy fees if the required amount of minimum balance is not maintained in the bank account.

Let's get to the brass tacks of a savings account.

In sharp contrast with a savings bank account a checking account will allow you to write cheques and one could also use the electronic debit card to access your money and the best part is checking accounts don’t really have limits to the number of times of the transaction that one makes every month. Savings bank account is generally for saving the money and those us why one doesn’t really use them on a day to day basis.

What are the benefits of savings bank account?

One of the main benefits of a savings account is that the savings bank account pays interest and therefore in the long run the money that is put in the account will get you some extra money by just lying in the cabinet. Along with facilitating savings, a savings bank account it is also very easy to access your money through it

What are the disadvantages of a savings bank account?

The liquidity of the savings bank accounts is one of the main advantages of a savings account, however it is this very feature that makes money in the savings bank accounts very readily available and that is also a reason behind the temptation to spend them and the interest that they pay are not too much they pay a very nominal rate of interest.

How does the savings account work?

In order to get a savings bank account for yourself, you have to visit your nearest bank and at the same tie you can also set up a bank account online on the bank website. In order to make deposits you have to visit the bank in person and you could set up automatic transfers from your checking account or you could also have the option of getting a portion of your salary deposited into your savings bank account. In order to withdraw cash you have to either visit the bank branch or use an ATM.

All you need to know about gold loans

It is evident a gold loan is a loan amount that is given against gold. Gold loans are offered by a lot, any nationalised banks, private banks and a lot many financial institutions and these loans are offered to people who avail of the loan against gold at attractive interest rates. Many people avail of a gold loan so that money can be borrowed for a shorter tenure in order to meet the requirements of the children education or some emergency cash crunch in the family. While some people are of the opininon that instead of keeping the gold in the locker, it must be worked out for some added cash.

What are the advantages of a gold loan?

In order to avail for a gold loan you don’t require to show any salary or any income and for that matter one doesn’t even have to get hold of any credit report. This is the sole reason behind unemployed people being able to go for a gold loan.

In clear contrast to any other loans, for availing a gold loan one doesn’t require to submit many papers, just the nominal address proofs and ID proof are more than enough in order to get the loan amount.

The low-interest rates are the main benefit of a gold loan. Usually a gold loan is given at the rates of 12-16 % per year and this si much lower when compared to the interest rates of a personal loan which one can avail of at an interest rate of 15-26% per year.

In rural areas, in exchange for gold, agricultural loan too is granted  to every agriculturist at  more than nominal rate of interest of 7 to 8 % per year, however  in order to avail this loan, proper agricultural documents have to be submitted to the bank.

This is one of the simplest loans because unlike the procedure of other loans when availing a gold loan, you just have to pledge your gold with a bank or any other financial institution and then you can get up to 80% of the market value of the gold as a loan.

There is the option of paying only the interest during the entire term and after the tenure you can actually pay the entire principal amount altogether,
This is the only loan where the banks take just about 2 hours to complete the approval procedure for the gold loan and if we take the nonbanking financial companies into consideration, they at most take a few minutes to complete the approval procedure and one can get his hands on the loan amount almost immediately. Therefore in the case of immediate financial aid a gold loan is the best option.

Do you know what prepaid forex cards are?

When you are travelling abroad, these forex cards are used in order to make payments and make your travel convenient. Forex cards are pre-loaded and these let you access money in the required local currency. The better part of forex cards is that you can always top them up as per your cash requirement.  If you want to withdraw cash in the foreign currency you can always do that with this card. At the same time you can also check your balance and shop. There are many banks in India that offer forex travel cards they are ICICI banks, HDFC bank, SBI bank, Standard Chartered Banks, Axis banks offer forex cards.

How do you apply for a forex card and is there a limit on them?

Form A2 requires to be submitted by you and at the same time any other required forex document as is mandated under the Foreign exchange management act regulations, some other documents needed to be submitted are proof of passport and required funds. The card gets activated only when the funds are cleared or paid to the bank. If in case you are planning for a trip you can load up the card with a maximum of Rs 4.5 lakhs or $10,000. If in case you are undertaking a business trip, you have a limit of Rs 11.25 lakhs or $25,000. The banks charge Rs 100 to Rs 300 per card and this charge varied from one bank to the other.

Are these better than the other cards that are available?

A service charge of 3% for each usage is levied on the debit and credit cards and if in case you are withdrawing from ATMs, it would attract a flat withdrawal fee of Rs 300. You have ti be prepared to be billed at the exchange rate prevailing on the date you are converting the money and you will also be charged according to the conversion rate. Also you have to be swift enough to pay all your bills on time because any delay in the bill payment will attract a penalty of 2.95 percent every month. There travellers cheques are accepted at limited outlets and therefore when compared to the other options forex cards are economical because the exchange rates get locked on the day the transaction was done. Just because the forex cards are available in a lot many currencies you can avoid currency conversion as well that will in turn save you a lot of money.

Does the use of the forex cards get impacted by the exchange rates?

Of course it does. You have to be very careful of the exchange rates when you are doing a transaction with a forex card.

Health Insurance: All you need to know

Health is the most important aspect of our lives Everyday people are constantly being made aware of the importance of good health and the benefits of living healthy. However nothing is certain on the surface of this earth and not even our health. There is bound to be uncertainty in every phase of our life and our health too is bound to have its own issues.

We do fall sick due to flu  or sometimes even some major illness and sometimes even worse things befall for instance one might be involved in some gruesome accidents. Whatever the case may be, when these things strike us, they do at a time when they are least expected and we are not left with a choice but to squander all our savings behind them and in worst cases, it might even push us to absolute bankruptcy. The hospital fees and laboratory costs, the fees of the doctor are forever on the rise. Therefore opting for a health insurance seems really sensible in today’s day and age. Sometimes a health insurance may cost a lot but not having one might cost us even more. When one has met with an accident the hospital bills are more than enough to empty our pockets, let alone the medicine costs. If cancer is taken into considerations things are even worse with the costly chemotherapy, the regular doctor check-ups, lab tests, it could drain one completely in the matters of money.

If one has a health insurance it could help you get rid of the costs of regular medical check-ups, surgeries, contact lenses, glasses and even emergency treatments. Before one goes in for a health insurance it's mandatory that he or she knows everything about it.

There are two main kinds of a health insurance plan. They are the indemnity plan and the managed care plan namely.

The indemnity plan is also called the fee for service plan. This health insurance has wider freedom and flexibility in the choices of the insured. He/she can pick the doctor, hospitals, labs and other medical service providers. This can be done only when the medical service is included in the contract. But the main hitch with the plan is that the indemnity health insurance doesn’t pay up for all the charges, in this case the insured has to shoulder 20% pf the payment. The indemnity health insurance plan just covers illnesses and accidents however diseases like flu shots and birth control are not included.

In the case of managed care health insurance, it is quite a lot different from the indemnity health insurance plan, firstly the choice of the doctors and hospitals is limited to only those who have contracts with the HMO and also preventive care and mental health treatment is covered by the health insurance plan.

All you need to know about NRE fixed deposits

Here are the main highlights of an NRE fixed deposit account

This is the rupee fixed deposit for foreign earnings; one can enjoy full repatriability of investment including the interest with an NRE fixed deposit account. The interests earned in the accounts are not taxable in India and the best part is loans  of up to 90% of your deposit at attractive interest rates.

Now let's have a look and get an understanding of what NRE fixed deposits actually are

NRE fixed deposits are a high return rupee deposit option to invest your foreign income.

Why should one choose an NRE fixed deposit account?

There are numerous benefits if one chooses an NRE fixed deposit account , with these accounts you earn high tax-free interest  and also get the facility of free repatriability on al;l your foreign earnings  plus a plan up to 90% of your deposit at attractive interest rates.

Let us dive into the features and benefits of the NRE fixed deposit accounts as well.

With NRE fixed deposits the customers can enjoy a high level of flexibility; you can fund your account with any convertible currency. You are also entitled to a lower deposit amount of Rs 25,000. The renewal process to is simple and without a lot of hassles, the principle and the interest earned gets automatically renewed when matured.

There are competitive exchange rates when you want to convert your foreign currency into rupees and the movement of the money too is convenient, they are freely repatriable. All the interest earned on the NRE fixed deposit account is non-taxable in India. The loan options too are excessively alluring with loans up to a 90% of the deposit at attractive interest rates and maximum INR 500 lakhs. The processing of the NRE accounts is quick as well with EDC-A (Electronic Deposit Confirmation Advise) on your email Id within 1 working day but this is possible only when you have subscribed to the account statement through email id option.

The main documents that are required to open an NRE fixed deposit account are self-attested photocopies of passport, valid work permit or employment visa or residence visa or residence permit and proper address proofs.

When you will be submitting the application for the account opening from outside India, you will require photocopies of the undermentioned documents that have it be self-attested by the document holder as well as attested by a banker or a notary or an embassy official or a consulate official – The first and last four pages of your passport, your valid work permit , employment visa, residence visa and residence permit and other address proofs.

When all these documentation have been done and duly submitted without any issues, you are on your way to get your NRE fixed deposit account.

All you need to know about NRO accounts

These are the key highlights for an NRO account or the Non-resident ordinary accounts in India.

You can land your money from your foreign earnings in India.

With an NRO bank account you can avail of free money transfers at competitive exchange rates. You can also add an Indian resident as a joint holder of your bank account.  As an NRO account holder you are also entitled to get a free mandate card and cheque book for your family in India and due to this you can also provide them access to your bank accounts anytime and anywhere.

Now let us get into the details of what exactly is an NRO account

An NRO account or a Non-resident ordinary account is a savings account that enables you to maintain your income earned in India such as rent dividends, pension so on and so forth.

Why should one go for an NRO account?

Non-resident Indians should go for an NRO account because of the assurance it gives to manage the local rupee earnings in India efficiently even as you are living your life abroad. You can also easily predesignate your account when you change the status from resident to a no resident Indian.

Now lets us dive right into the characteristics and the benefits of having NRO accounts

There is a much higher yield post tax, one can avail of this benefit by the DTAA benefit facility.

Anyone who holds an NRO account can avail of low cost and hassle free money transfers which are readily available through myriad offline and online modes at competitive exchange rates.
Another benefit is that not much balance is required to maintain the NRO account, just Rs 10,000 is required to do the needful.

With the help of a domestic ATM cum debit card  you can have anytime and anywhere access to your NRO account at over 11000 ATMs and over 3000 branches  all over India plus one has the facility of the phone banking and 24x7 net banking as well.

The interest rates calculated on daily closing balances are at 4% per annum and the interest is paid on a half yearly basis and in the months of June and Decembver. The interest that is earned in the current financial year is completely repatriable but this is only after the tax has been deducted.

Another benefit is the safe and simple online money transfer tracking service with online transfer to over 100 banks in India.

An NRO account can also have a joint holding with an Indian resident or an NRI; what’s more you can also predesignate your NRO account when you become an NRI however your account number doesn’t change.

Here’s all you need to know to know about NRE accounts

The key highlights of a Non-Resident External (NRE accounts) are as follows: This is a safe way to land your foreign income earned outside India.

The money transfers are free and at competitive exchange rates

You can enjoy full repatriable of your money and earn tax-free interest in India.

You can also get a free mandate card and cheque book for your family in India and this can help you provide them anytime anywhere access to your account.

Now lets us know what exactly is an NRE account - an NRE or a non-resident external account is a saving account maintained in where you invest your foreign income earned outside India.

Why should one opt for an NRE account?

An NRE account lets the account holder enjoy tax-free interest and full repatriable of funds and also because of the fact that this is the most convenient way to use your foreign earnings in India.

Let's dive right into the other benefits and characteristics if an NRE account

No interest amount that you have earned in India on of your foreign money is taxable.

All the funds in an NRE account are fully repatriable and they are not charged for repatriation.

The minimum monthly account balance needed to maintain an NRE account is just Rs 10,000.

With an international Debit card you can access your bank account at over 11000 ATMS and over 3000 branches all over India and phone and the 24x7 net banking as well.

The interest rates that are calculated are done on daily closing balances at 4% per annum; the interest is paid to you half yearly in the month of June and December.

The money transfer service of your foreign money to the banks or financial institutions in India is safe secure and easy. You can transfer your money to over 100 banks in India and you can also track your transfers.

You can hold a joint account with another NRI as well.
There are a lot of other benefits as well, there are free cheque books and ATM cards for the mandate holder and what’s more there are also handpicked exclusive offers that are designed especially for the NRE account holders that cater to all your need when you are in India and abroad. Not to forget the free PO Box facility that is available to send documents.

The monthly average balance that is required to maintain an NRE account is just Rs 10,000 at an account level and you have to keep a minimum balance of Rs 25000 at a customer id level, if in case for some reason you are not able to maintain this balance at a savings bank account level services charges will be levied on your account.