How to deal with ATM card frauds

While an ATM card or a Debit card come extremely handy on a day to day basis, one has to be careful when using them. ATM frauds are very common and one may fall prey to such a theft when they least expect it. Thus, it is best to be alert when using an ATM card or a Debit card.

To avoid falling prey to an ATM card theft, one needs to first know the various means through which such fraud is committed-

1. Cash trapping through a ruler device- In this case the thief installs a ruler device that holds onto cash in the ATM machine. When cash is withdrawn it does not come out, and while the customer seeks help the thief withdraws the money and escapes.
2. Distraction and attack- In this case, the customer is distracted by one gang member just after he has authorized the transaction via an ATM machine. The distraction may be in the form of some emergency assistance. While the customer is helping out, another gang member removes the money from the machine.
3. Very often fake pin pads are also installed in order to get hold of transaction PINs. 
4. Card skimmers may also be used to commit ATM card fraud. This device basically records the data from the ATM card’s magnetic strip. While this means of fraud is more common in case of credit cards, it is also sometimes used to commit ATM card frauds.

Here is how one can deal with ATM card frauds-

• Once you have entered the ATM room, stay alert and carefully observe the place.
• Hide the ATM keypad while typing the PIN as well as the amount.
• In case the machine does not work efficiently, inform the authorities immediately. Make sure to cancel any transaction first.
• While making the transaction do not take help of any strangers, especially those who look suspicious.
• After the transaction is complete and the money has come out of the machine leave the ATM room but ensure that you are not followed. If one feels suspicious head right towards a local police station and make a complaint. 
• If one has fallen prey to a debit card fraud or witnessed it make sure to get in touch with the authorities immediately. This way prompt action can be taken and the criminal or gang may be located and put behind bars.

All types of crime and thefts can be prevented by the spread of awareness. Thus, one should be aware about such crimes in order to stay alert and vigilant.

Why do you need internet banking today?

Internet banking is convenient and is gaining much popularity these days. While many may still prefer the traditional way of banking, that is, making transactions through checks and bank drafts, there are others who have adopted the modern system of banking- Internet banking!

Very soon most individuals will prefer this modern form of banking over the traditional means of making transactions, and rightly so!

With the advent of the internet, lifestyle these days has become superfast. No one has the time to make frequent bank visits in order to make transactions. Thus, internet banking is the perfect solution for instant transactions from the comfort of the office or home. It is fast, easy and reliable!

Here are a few reasons why Internet banking is great and a must these days-

• Pay bills with just a few clicks

Online banking allows one to clear their bills without the hassle of standing in long lines. Bills can be cleared anytime from anywhere. While many complain that relevant information has to be first put in about the payees, which takes considerable time, this is merely a onetime thing. Once this step is completed, bills can be paid anytime by just choosing the payee profile and authorizing the payment.

• Easy view of list of transactions

One can get access to their transactions and account balance anytime, anywhere. There is no need to constantly update passbooks in order to keep a tab of the account history anymore. Thus, one can easily keep a tab on any pending transactions or other issues related to the account. Any errors that occur can also be immediately detected and resolved.

• Access to mobile banking facility

Internet banking has just become more advanced with the recent introduction of mobile banking applications and facilities. Thus, one can now do bank transactions and payments through apps on their smart phones. One only has to download the app and boot in relevant information to log in. Once this process is done transactions and bill payments are just a touch away.

• Easy access to bank information

Internet banking also allows one easy access to information about loans and various investment options that the bank offers.

While Internet banking has made life easier and is quite secure, one should be vary of cyber-crime and ensure that their account is well protected. Account passwords should be changed often and always log out after every session. It is also best to avoid sharing account passwords with anyone or logging on to the bank account on an open Wi-Fi.

Know how your interest is taxed with your recurring deposit

A recurring deposit is very similar to a fixed deposit, except one does not have to lock in the entire sum at one go. In case of a recurring deposit a fixed amount of cash has to be transferred to the account on a monthly basis for a certain period of time.

To open a recurring deposit account, one has to first open a savings bank account. Each month, money will be automatically deducted from the savings account and transferred to the recurring deposit account. If one opts for a recurring deposit of 5 years, the rate of interest that he may get is about 8.4% annually.

How is interest taxed in case of a recurring deposit?

While before the year 2015, there were no taxes charged on interest earned from recurring deposit investments, the government came up with a new rule during the financial budget of 2015-2016, that TDS (Tax Deducted at Source) would apply henceforth and 10% would be deducted from the interest that is earned on recurring deposit.

But TDS is only deducted if the interest earned is above Rs10, 000. In case one fails to submit their PAN card information to the bank, they are charged 20% on the interest earned.

In case one has a recurring deposit account and their income falls below the non-taxable income category, form 15G still needs to be submitted in case of fixed deposits as well as recurring deposits.

How can you opt for tax exemption on a recurring deposit?

In order to reduce tax payment it is best to opt for tax saving recurring deposit accounts. One simple way of saving tax payment on recurring deposit is by opening an account with the Post Office. Tax exemption is only applicable if the account has tenure of about 5 years.

The income tax is generally cleared at the end of every financial year or after the recurring deposit matures. The same applies for fixed deposit accounts. The choice is generally made by the tax payer. But, once the time of tax payment is chosen it cannot be changed.

Are taxes liable for a minor holding a recurring deposit account?

In case a recurring deposit account is held by a minor, the parents are entitled to pay the tax on the earnings.

Calculation of income on recurring deposit
For the most accurate results it is best that one uses a recurring deposit calculator, which is available on a number of bank websites. A RD calculator is simple to use and saves time.

Essential factors you need to keep in mind when investing in a fixed deposit.

A fixed deposit (FD) account is offered by banks as a form of investment either for a short period of time or a long span at attractive interest rates. In case of a savings account, cash can be withdrawn at any point of time, but an FD works differently. In case of an FD the amount deposited is locked in for a certain span of time at a high rate of interest.

A fixed deposit is a great way of saving money, especially for aged individuals who do not want to take much risk with their investments. Agreed, it gives back lower returns as compared to mutual funds, but an individual’s money stays secure in an FD and returns are definitely guaranteed.

The best way to calculate investment and consequent returns when planning to open and FD is through a FD calculator. The FD calculator will give one a clear idea about his investment, the amount of interest earned and the term of the FD.

There are also a few factors that should be kept in mind when investing in a fixed deposit account. They are-

Opt for a deposit insurance when opening a FD

Banks offer a deposit insurance up to 1lakh rupees only. Thus, if one wants to invest more than a lakh in an FD, it is best that you open more than one FD account at different banks or under different family member names, to ensure safety of investment.

Ensure a good interest rate deal

Do not end up locking in a large sum of money, for a long period of time at a very low interest rate. In order to ensure a good deal, split the investment between different FDs at different interest rates and terms. Thus, if one FD account has a tenure of one year, the other can hold a tenure of about 2-3 years.

Opt for a FD at public sector bank

This is primarily because a public sector bank is a safer option than a private sector bank. Moreover, the returns are also higher when investing in a FD at a public sector bank as compared to the private sector. Calculate the returns with an FD calculator to compare.

Consider co-operative societies and non-financial institutions

FDs are also offered by co-operative societies as well as non-financial institutions. Because of the high risk factor in investing in an FD with such institutions, the rate of interest offered to the customer is also quite high as compared to banks. Thus, while high returns are ensured, make sure to choose an institution that is reputed and reliable in order to ensure some safety of investment.

Internet Banking: Things to avoid for safe banking

Today, mostly all transactions and payments are done through internet banking. It is not only simple, but also one of the easiest modes of transacting money. It is also quite safe, but because this means of transacting money is very popular, cyber-crimes are on the rise.

Cyber criminals keep finding new methods through which they breach security. Thus, it is best to stay safe than sorry when it comes to handling hard earned cash. Here are a few things that should be avoided in order to ensure safe internet banking-

Avoid using same passwords for a long time

This is one of the easiest ways to ensure that a net banking account is secure. Keep changing the password from time to time. Also make sure that the password is strong, use both upper as well as lower cases and add in numbers whenever possible. Special characters should also be used. In case, you have a number of different bank accounts for internet banking, ensure the use of different passwords for all accounts

Avoid sharing account passwords

This is a definite No! In case one does have to share their password during any emergency, change it as soon as possible.

Avoid connecting the net-banking account with an E-mail link

Do not sign into an online bank account through an E-mail link. Most E-mail links are no good and may be designed to steal confidential data.

Avoid using any other app for internet banking

It is best that one uses the official bank app when internet banking. An official bank app is more secure as compared to third party applications. Also ensure that you are downloading the app from authentic application stores such as the Google app store or the Apple app store. Avoid downloading any apps through ‘aggregator’ applications.

Avoid internet banking through a Wi-Fi network that is public

Unless and until the transaction or payment is extremely important, avoid internet banking when using an open Wi-Fi or shared network. This is primarily because such Wi-Fi connections can be hacked easily and confidential data can be stolen in no time.

Avoid internet banking at a Cyber café or through a shared computer

Just like in the case of open Wi-Fi, it is very easy to hack into cyber café computer systems and get access to account information. These computer systems are meant for public use and generally have a lot of harmful malware.

One should also ensure that they always log out of the net-banking account after using it. This will keep one’s confidential data safe from hacking means, such as- session hijacking as well as cross-site scripting exploits.

Enjoy the conveniences of online mobile recharge

The advancement of science and technology has resulted in the constant evolution of the telephone. This means of communication which once began with bulky home telephones have now transformed into smart touch phones. The development of Android and Apple technology has made communication even easier. Today, everyone owns a smart phone and an internet connection is a must.

Recently, transactions and transfers, especially online mobile recharge and payments have become easier, as a number of banks and other institutions have come up with their own apps through which payments and transactions can be made.

For instance, in case of online mobile recharge, payments can be made through personalised apps that have been introduced by banks or various mobile phone companies like Airtel, Vodafone and Reliance.

Online transactions and payments are easy and simple. Here are a few advantages that you can enjoy when doing an online mobile recharge-

Anytime time recharge

Now there is no need to go to a store and get a recharge done. One can just learn how to recharge online and do it from the comfort of their homes. Moreover, online mobile recharge can be done anytime as the facility is available 24X7!

Convenient payment

Through online mobile recharge, one saves himself from the hassle of producing the exact change as demanded by the store keeper. Online payments and recharge can be easily done via a debit, ATM or a credit card. Moreover, net banking has also been introduced making online transactions much simpler. One only has to fill in the details of their card and an OTP is sent via message. Once the OTP is typed in, the transaction is processed and the payment is completed.

Great offers, discounts and cashback options
While many consider that online mobile recharge is a hassle and takes too much time with the app download and setting up of payment details, this is only a onetime thing. Once the payment setup is done, you can do online mobile recharge within a few seconds. Moreover, attractive cashback offers and discounts can be availed while making online payments. There is generally no cashback offer when one goes to the store to do a recharge.

It is not only banks and mobile companies that have come up with apps that help in online mobile recharge as well as other transactions. There are a couple of apps in the market that only help with online payment. One can book film tickets, recharge their mobiles and even shop online with the help of these apps. For example, Paytm is a popular app for online mobile recharge as well as for other payments.

Organise your personal loan repayment with this financial tool

A personal loan can be easily availed at the time of a financial emergency. A number of people opt for a personal loan in order to finance their child’s education or wedding. Personal loans are also taken to meet medical needs or make home improvements.

While a personal loan is unsecured and can be availed much faster as compared to other loans, one should thoroughly consider his options before applying for this type of a loan. This is primarily because any type of default in the repayment of the loan, can put a person in greater debt and gravely affect his credit score as well as history.

Before applying for a personal loan, compare the rate of interests and benefits that are offered by various banks and calculate if you can meet the monthly instalments in time. One can do such calculations with the help of a personal loan EMI calculator.

A personal loan EMI calculator is a tool that one can use in order to find out the EMI that one needs to pay as per the rate of interest offered by the bank. To use a personal loan EMI calculator one needs to feed in basic information like the loan amount that is required, the tenure of the loan you are looking for and the rate of interest that the bank is offering.

This calculator can be used to make comparisons of the different rate of interests that various banks are offering and if you can afford repayment. The tool prepares a person by informing him about the exact amount of loan that he can borrow. Thus, it is an effective tool that helps one organise their personal loan repayment plan.

This is how one can take the help of a personal loan EMI calculator in various situations-

• In case of a car upgrade, one can use a personal loan EMI calculator to check if they should opt for a secured or unsecured loan.
• In case of home improvements, this calculator will help in planning just how much you can borrow. Thus, you will be able to decide on improvements that are affordable and those that are expensive.
• When planning a holiday, a personal loan EMI calculator will help one decide the amount that he can borrow. One can also check the tenure he should opt for in order to make repayments easy.
• One can also use a debt consolidation EMI calculator to check if opting for a personal loan at low interest rates, will benefit their payment of debts.