All you need to know about UPI Payment

UPI or Unified Payment Interface as it stands for, is an app or a payment system launched by National Payments Corporation of India (NPCI) that allows you to transfer money between any two bank accounts using your smartphone. The things that you need to know about this relatively new banking feature are as follows:

What can you do with it?
UPI is an app that allows you, the customer, to make payments from one bank account to both online and offline merchants. It saves you from going through the hassle of giving things like IFSC codes, net banking passwords, credit card details.

How to get it?
You can download the UPI app on your smartphone from the Google Play Store. At present, about twenty banks have launched their UPI apps on the Play Store.

What do you need to start using it?
To use this new feature launched by NPCI the first thing you need is a bank account. Then all you need to do is download the app on your smartphone from the Play Store and then install it. You need to set the app login, create a virtual address, add your bank account, set the M-pin and then you are ready to use it.

Is it safe?
UPI payment is a completely safe and secure mode of transaction as it shares only a virtual address created by you and does not provide any other sensitive information.

What transactions can you make using UPI?
You can use this feature of UPI payment to perform various transactions like bill payments, remittances, and merchant payments.

What is the transaction limit?
 You can make a money transfer up to Rs 1 lakh per transaction through UPI.

How to make a transaction?
The payment transaction using UPI is very simple. For the goods and services purchased online, you can make in–app payments. You just need to click on the buy option of any site or app and it will automatically trigger the link for UPI payment. Then you just need to verify the transaction details and enter a secure PIN to complete the transaction.

These are all the necessary information you need to know about UPI payment that was recently launched by the NPCI. It is a new feature in the sector of banking and making online payments in our country. It has not only made payment transactions easier but has also made it more secure and safe. You can now make UPI based payments in offline stores across the country instead of making cash payments.

What are the best investment options you can consider for a high returns?

The basic objective of investment is the need to obtain financial security. The general view of people is that they can earn more money if they work more. But you need to put in a lot of time and effort for gaining financial security if you are following this idea. This is where investment comes in. The concept of investment is to maximize your earning potential by making your money work for you. There are several investment plans that can help you get high returns. Some of the prominent and best investment options for high returns are:

• Mutual Funds- Investing in mutual funds is among the best investment plans that will give you high returns. It is a popular market choice that is guaranteed to give good returns in the long run. You can invest in mutual funds with an amount that is as low as five hundred rupees.

• Public Provident Funds (PPF) - It is one of the safest investment options that can give you good returns in the long run. Investing in PPF will lock your money for certain time duration in your PPF bank account or post office account but will provide you with tax free withdrawals.

• Company Fixed Deposits- Investing in Company FD schemes can be beneficial as it offers higher interest rates in comparison to bank FDs. You can use a fixed deposit calculator and plan your investment period accordingly.  It gives higher returns in the long run because once you invest in Company FD you are allowed to withdraw money from it only after the maturity period. This is why using an fd calculator before investing is a good idea.

• Real Estate- Investing in real estate is one of the best decisions you can make. It is a rapidly growing sector in the country. The biggest feature of this sector is the low risk of losing your capital as the rate of property tend to go up in very short periods of time.

• Shares or stocks- It is one of the most popular investment options. It gives high returns in a short period of time but also carry higher risks. You should research and analyze the stock or share if you plan on investing in it. Proper planning can yield high returns in long run.

• Post Office Schemes- It is a safe and secured investment scheme that can give you high returns. It has monthly income plans suitable for salaried employees and retired people with regular income. You can use fd calculators to know and plan your investment accordingly.

• Tax free bonds- Investing in tax free bonds is a good option for you if you are worried about taxes on high returns. It provides you good rates of return and you don’t have to worry about paying tax for it.
These are some of the best investment options that you can consider for high returns. You can opt for investing in any one of these options like real estate. You can also invest in multiple of these options like shares as well as Company FD using fixed deposit calculators to plan your investment properly and get high returns. Proper planning and a little bit of research before investment will ensure you good returns in the long run.

Rules to effectively trade on the stock market

The stock market is a place where public listed companies trade their stocks or shares. The companies on stock market sell their shares to attract investment and lower their risk factor. Investing in stocks or shares can prove to be beneficial in the long run. It can act as a passive source of income where you don’t need to work but you will still earn money. In order to effectively trade on the stock market you need to know certain things or follow certain rules like:

Have a trading plan- The first and foremost thing to do when you enter a stock market is to create a trading plan and follow it religiously. A proper trading plan should have a written set of rules that contains a well defined entry, exit and risk management strategy.

Do proper research- It is absolutely necessary to perform a proper research before investing in the stock market. You should do a thorough study of the companies you want to invest in instead of just investing based on the name or reputation of the company. Now-a-days you can even use the research and analytical tools available in your trading account for this purpose.

Invest in business you understand- It is better if you invest in business that you understand. Investing in stocks of a company that you have a decent knowledge about is better as compared to investing in a company where you don’t know what business the company is in.

Don’t time the market- Attempting to time the market is something you must try to avoid at all costs. It is a very inconsistent method as it is not possible to successfully time the market over multiple stock market cycles. It can in fact, lead to heavy losses in the long run.

Control your emotions- In order to add more dividends or returns to your trading accounts you must have control over your emotions. In the stock market you need to take decisions with a clear mind. You must not let your emotions cloud your judgments.

Invest only surplus funds- Investing in stock market can be a risky business. So you should always invest only the surplus funds that you have. Investing more than you can afford to lose will result in high chances of you suffering loss in the long run.

Learn from your losses- In trading, loss is a certainty. You will be successful at times and at times you will face losses. But it is important that you must accept your loss and learn from it. Learning from your mistakes will broaden your perspective and help you make better decisions in the long run.

So, trading in stock market requires you to learn to do proper research and observe the trends in the market over time. You must be patient and level headed if you want to be successful at trading in the stock market. Proper plans, good decision making ability and learning from your mistakes are some of the key rules that can help you trade effectively on the stock market.

Tips To Help You Manage Your Personal Loan With Ease

Most of you reading this article have at some point of time or the other taken a personal loan from the bank for purposes such as- travel, wedding, medical emergency, renovation, education, etc. It is a great solution for those of you aiming to avail of instant cash. So once you have taken a personal loan India how do you manage it?

Read these tips to find out.

Here are some tips to help you manage your personal Loan with ease.

• Debt Snowball Method-Firstly, start off by listing all the outstanding debts that you have by prioritizing the smallest one at the top or the head and then the next bigger one and then the next. So, after you have made the list and you realize that you have more than one personal loan to pay back, opt for the ‘debt snowball’ approach- here the order of paying back your loans works from the smallest to the largest one. This method helps you lessen the burden of repaying loans. However, some people consider this method to be a more long-drawn affair as opposed to the ‘debt avalanche’ approach.

• Debt Avalanche Method- The ‘debt avalanche’ approach works in a similar fashion but with few minor differences here and there. While you do begin by making a list but you order them not by their balance but by their interest rate. So in the debt avalanche method you go from the debts with the highest interest rate to the ones with the lowest. Number of people think this method to be money saving and in certain cases even faster.

• Ensure To Save- Most of the time people get so caught up in the thought of repaying back their loan that they forget to concentrate on their savings. Giving attention to one financial aspect shouldn’t mean that you completely neglect the others. Do not forget to invest in your retirement savings even while you are engrossed in managing your debts.

• A Little Disciple Goes A Long Way- Prioritize your financial liabilities and be disciplined about paying back your debts on time. If you make it a habit about paying them back your bills late and at random times you may have to face the problem of an escalation in rates. At this time do whatever it takes to keep your additional expenses low. By repaying back your debts on time every month you will avoid any chance of missing payments.

• The Right Bank- When considering taking a personal loan India choosing the right bank is extremely important. When you are selecting your bank keep certain criteria in mind such as- the reputation of the bank, their interest rates, their reliability and the refunding options. Keeping these things in mind will eventually help you to manage your personal loan with ease when you are trying to pay it back.

What can you expect from a cut in the repo rate for home loan interest rates?

A Home Loan at low interest rates is an idea that would definitely appeal to you. It is possible for you to enjoy the benefits of minimal home loan interest rates if you are aware of repo rates. By definition, a repo rate is the rate at which commercial banks borrow from the central bank. A cut in this repo rate would mean significant benefits if you are looking to take a home loan. You can expect the following things from a cut in the repo rate for home loan interest rates:

• More funds for banks- Repo rate is the interest rate that the central bank charges commercial banks for lending funds. When there is a cut in this rate, commercial banks will find it preferable to borrow more from the central bank. This in turn will allow the banks to increase their credit creation market, that is, to give out more loans to their customers.
• Reduced EMI for home loans- With a cut in repo rate banks usually pass on the benefits of lower interest rates to the consumers. They do this by giving their customers cheaper loans. In case of big ticket loans like home loans this will mean reduction in EMI.
• Reduced cost of credit- A cut in the repo rate also means that the banks are most likely to provide more number of big ticket loans to their customers. This will be beneficial for you as it will result in reduced cost of credit for home loans.
• Option of switch over to MCLR rate regime- For base rate borrowers, that is, those who have borrowed from banks at the lowest available rates, a cut in repo rate can provide added benefits. It gives them the option to switch over to MCLR (marginal cost of fund based lending rate) rate regime. MCLR rate regime offers the customer an option to reset the interest rate once every year. In this way they can take advantage of lower home loan interest rates.

So a cut in the repo rate, that is, the interest rate decided by the central bank for lending funds to the commercial banks, will provide the commercial banks with an initiative to borrow more from the central bank. Subsequently it will allow the banks to expand their credit creation market. This in turn will lead to the banks providing home loans to their customers at reduced cost of credit and will also bring forth a reduction in EMI for home loans in case of new customers. So if you are looking to take up a home loan or you already have one, keeping an eye on the current repo rate scenario may prove beneficial for you.

Reasons Why Should You Invest In Multiple Recurring Deposits

Have you ever wondered how nice it would be if you could have enough money to buy the thing you always wanted? For example if it’s that new phone you were craving to buy for a long time now or that leather jacket that so you were dying to buy for years now. All this can be possible if you take small steps in the present. Invest in multiple recurring deposit accounts today to reap the fruits of your labour in the future. And if you are still not wholly convinced why, read on to find out.

Here are some reasons why you should invest your money in Multiple Recurring Deposits.

• Completely Risk-Free- Investing in multiple recurring deposit accounts is a risk-free affair and there are assured returns on your invested amount. It is an extremely useful option if you have short-term goals in mind. As opposed to probably a fixed deposit where you would have to deposit a lump sum amount at the time of opening the account and leave it untouched for that stipulated period of time.

• Baby Steps- Some banks give you the benefit of investing in amounts as small as rupees 100. So if you are someone with a low income right now or someone who is at an entry level/fresher you can also invest in a recurring deposit.

• Your Finger In Many Pies- If you have multiple goals in mind such as your child’s school/ college tuition fees, your home loan, buying a new phone or saving up money for your daughter’s/son’s wedding, then multiple recurring deposit accounts would save you the hassle of keeping aside money for such various plans. The minimum duration of investment in majority of banks is one year.

• Enjoy Hassle Free Deposit- Many banks save you the trouble of investing in money manually. If you have a set amount you want to set aside every month for different goals then the concerned bank (giving you this benefit) will subtract this money from your monthly credited amount. So you do not have to stress about it or keep track yourself.

• Seniority Matters- The interest rates for recurring deposit account is determined by different banks based on the amount you decide to invest every month and the tenure of investment. Numerous banks offer senior citizens special benefits and rates. Senior people should opt for banks that have this feature to avail at best rates for their investments.

So, you see, whether you are starting out new in the world of employment or are a retired person or senior citizen the world of recurring deposits offers you numerous benefits to avail and enjoy. So be wise and invest your finances in multiple deposits today.

How to manage your bike insurance premiums with these tips

In India motorcycles and scooters are a popular mode of private transport, primarily because they are more fuel efficient and are easy to maintain as compared to a car. Moreover, bikes are easier to navigate on Indian roads and streets. As per the Indian law, a motorcycle has to be insured. While insurance prices are constantly on the rise, one needs to choose carefully so as to get the most out of his bike insurance.

Here are a few ways through which one can effectively manage their bike insurance premiums-

Try to maintain a clean record

You are more likely to avail a good premium deal if you are a safe driver. Thus, if one does not have a history of road accidents and has a clean slate when it comes to rash riding, they can avail a much lower premium for the insurance coverage.

Make a wise choice when purchasing a bike

This is a very important factor to consider when it comes to managing bike insurance premiums. If the bike that one purchases is very expensive and has a hi-tech engine and over the top features compared to the present market standards, the premium on the bike insurance will also be quite high. If a good but standard bike is purchased instead, its premium will be comparatively lower and more managble.

Make yearly premium payments

Pay the premium amount on a yearly basis rather than monthly basis. This way one may pay less on the total amount. A number of insurers reduce the premium amount if it is paid all at once.

Become a part of a riding association

Almost all bike insurers offer a small discount to members of a riding or Automobile Association.

Take proper security measure

Make sure that the bike is secure against any vandalism or damage. Insurers lower the premium payment in case of bikes that are equipped with effective safety measures.

Try not to claim insurance for small damages

Avoid claiming insurance in case of a small scratch or a mere dent. Get it fixed and pay for it yourself. This way one can enjoy a no-claim discount at the end of the year. If one does claim insurance for a tiny damage, he will not get a no-claim bonus for that year.

Opt for package deals

Insurers prefer that their customers opt for multiple policies. Thus, if one already has home insurance say with insurer A, opt for a bike insurance with him as well. He may offer a discount on the premium.