How to consolidate your demat account into one account?

When you purchase any shares or securities in their electronic form, they are held in a dematerialized account, also known as a demat account. As a stock market investor, you may be familiar with the steps on how to open a demat account. In fact, as a frequent investor, you may or may not be in a position where you will hold multiple accounts.

But at some point in time, you may need to streamline the security holding that is scattered across all your accounts that have been opened at some point in your time. Furthermore, you may have to close the inactive or zero balance accounts. At this stage, you will also need to transfer all the securities in other demat accounts to only one account.

By doing so, this consolidation will help you save annual fees and charges, which you will normally incur on multiple accounts. However, to save you the trouble from visiting multiple DP offices or branches and submitting requisite forms and documents, you need to ensure that you are aware of the process.
Here is how you can merge the demat accounts into one:

Step 1: Get the delivery instruction slip
The delivery instruction slip (DIS) is like a cheque leaf. It enables the transfer of securities off the market, especially from one account to another. It will be required to be filled in and signed. Once done, it will be required to be handed over a depository participant’s office.

Step 2: Verify details on the DIS
The delivery instruction slip will hold the unique ISIN of the demat holdings to be consolidated. It would also include the name of the security and details of the source. It would also include the targeted demat accounts and DP ID. This delivery instruction slip will need to be signed by the demat account holder, as per the mode of the operations.

Step 3: Transferring the account
In the case of off-market transactions, it will put through the system. In case the target account hast the same account holders, there will be no tax implications. In this case, the demat account and the DP ID will be modified in records of the depository. However, the beneficiary owners will still be retained.

Step 4: Closing previous demat account

While you may the steps on how to open a demat account you will also be instructed on how to close the account. After the transfers have been completed, and the financial contents of the said accounts have transferred to the single demat account, the zero balances accounts will need to be closed by submitting an account closure form.

Once these steps are taken, you can easily use the single account for all your requirements. However, before you take this step, you should be aware that securities with a lock – in or lien cannot be transferred. Furthermore, securities transaction tax will not be payable for off-market transactions.

How many different kinds of current accounts do HDFC banks offer?

Let us first get to know what a current account actually is

This is a deposit account that mostly is aimed at professionals and businessmen. The current account has got a lot to do with liquid deposits and it also allows withdrawal of money and checks that are written against the balance in the current account and the number of transactions that can be carried out in the current bank account is not limited for a day.

HDFC banks offer myriad customised current accounts that serve the purpose of multifarious operations.

Ultima current accounts

This is an ideal current account option for any kind of businesses especially because they need features that go beyond even the most expensive products that are currently being offered in the current account market. The ultima current account is positioned to market specifically to large distributors, manufacturers, stockists, multi-speciality hospitals and dealers. The main benefits of an Ultima current account is that there is unlimited free local and anywhere cheque collections as well as payment facility and to top it all it also offers free RTGS / NEFT collections and payments.

Ezee current account

For savvy traders who operate across a number of cities the  biggest problem is the transaction costs, an Ezee current account  option will help reduce the transaction costs  but at the same time provide access to the most advanced and secure net banking ways and tactics.

Supreme current account

Large traders who operate from across the country face a lot of high transaction costs, the supreme current account help reduces the transactional costs and this offers free access to the most advanced and secured net banking and mobile banking ways and tactics. One also can avail the benefits of higher cash deposit limits at all HDFC bank branches across the country. Along with that with a Supreme current bank account one can avail fi free RTGS/NEFT collections and payments on all transactions.

Agri current account

This current account takes into account the seasonal nature of the agriculture-related industries; the Agri current account offers a lot of features that almost entire maximum return. There are a lot of other benefits as well, one does payment and collection of cheques at all bank locations. Another added benefit is that users of this current bank account can avail free monthly cash deposit at their home location up to Rs 10 lakhs.

Plus current account

Businesses that have suppliers and customers from across the country, the cost of transaction soars a lot higher and when one has a plus current account that cost is heavily cut down  and this current account also offers higher limits for a wide  range of transactions  resulting in a lot of money saving.

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.