Protecting your ATM card: All you need to know about bank card skimming

Bankcard skimming is the latest crime of the 21st century where you don’t have a clue that you are being robbed. It is called skimming because your debit card or credit card gets skimmed using a device similar to a card reader by attaching it to the ATM machines. This method is widely being used by fraudsters all over the country to steal money from your bank accounts.

The device generally consists of two important hardware; a camera to see your ATM pin and a magnetic card reading device to capture your details and clone your card. However, there is always a new method being developed to carry out skimming such as the use of any piece of material to jam the enter button of the ATM. So once you are done with making the transaction, it will not process as the enter button is jammed. Once you leave the ATM thinking it to be not working, the skimmer would remove that material and hit enter to process your transaction.

It is almost impossible to notice such minor tricks in your daily busy life. However you can always take precautions in order to avoid such incident. Here are some of the easiest ways to protect you from such crimes:

• Always check the card reader before inserting your ATM card. If it moves then something is not right as ATM machines have card reader attached to it which is fixed and doesn’t move.

• You always check the ATM machine before using it. If you find anything out of place or any additional piece of equipment then it’s a no go.

• Always protect your ATM pin by placing a hand over it while entering your ATM card password. This will block it from the view of the camera if it’s placed inside.

• Never lose the debit card out of your sight if you are using it at a restaurant or retail stores for making payments. It can easily be copied or used to make extra payment.

• You should always take a good look inside the ATM especially at the machine to check for any cameras or if you notice anything unusual such as the keypad, lower bottom of your screen.

• You should also take a good notice if a person inside the ATM is just standing idle and pretending to do a transaction.

• Last but not the least is that you should always monitor your bank account. Keeping a regular check on the transactions is always a smart thing to do

What are the requirements to secure a business loan?

What does a person do when he wants to start a business or expand his existing one? And what happens when the person cannot arrange for the money himself? The most plausible course of action would be to apply for a business loan from a financial institution. This loan is also availed by established businesses to fund for startup expenses or pay for expansions. Business loans are actually borrowed capital which a company is obligated to pay according to the loan’s terms and conditions. A potential lender will surely want to know how a business intends to spend the borrowed amount. So business owners should surely have a clear outline regarding his plans on how to utilize their loans.

The basic requirements to avail a business loan are as follows:

• Bank statements – Bank statements provide lenders with an insight into how well you manage the cash which comes into your business. Lenders get to calculate your average bank balance, and this helps them to understand that whether your business is sustainable and whether you can pay back the loan amount with interest. This is particularly true for small business lenders.

• Balance sheet – A balance sheet helps the lender to understand what you have and what you owe, and this helps them to understand how well you manage your assets and liabilities. Business lenders often scrutinize these documents carefully.

• If you have a new business and it is relatively small, it can prove to be a bit difficult to get a loan for the business. Lenders want to have a look at your personal tax returns. This helps them to understand how well you are managing your own finances and help them to decide whether you are eligible for a loan or not.

• You should build cordial relationships with the people at the lending institutions even before you actually apply for the loan. This is because people generally do business with people they know and trust.

• You should have a clear idea of how you are going to utilize the money. And you should also work out the exact amount of money that your business requires. Underestimating the amount of money that you need will lead to lack of working capital and thus prove to be detrimental for your business.

• You should thoroughly and carefully prepare a loan application package (which is the paperwork) that is to be submitted to apply for a loan.

• Lenders often take into account the time period for which you have been running your business. In case of a small businesses, longer the period that the business is running, better are your chances of getting a loan.

Thus it is evident that there are a number of essential prerequisites that you need to complete before you can apply for a loan. Having a sound financial record is of utmost importance. Planning in advance and having a clear idea in your mind can put you in good stead to get your business loan approved.

Travel financially smart on your travels abroad with the multi-currency card

A multi-currency Forex card is a prepaid card in which multiple currencies can be loaded. They are front-loaded cards that offer a traveller who is going overseas the convenience of using it as a normal debit or credit card. This card provides protection and security from currency fluctuations, cross currency transaction charges and also allow for minimum charges to be levied on using this card at overseas ATMs. This multi-currency card saves a person the trouble associated with finding currency exchanges, cashing traveller’s cheques or carrying a lot of cash when he or she is travelling abroad.

The benefits associated with the multi-currency card are as follows:

• If a traveller is travelling to multiple countries, he does not have separate cards for different currencies. Only one card would suffice.

• There is no need to search for any outlet to encash the amount loaded in the card or to convert currency.

• You can use the card at merchant outlets as well as for regular e-commerce transactions.

• It enables you to withdraw cash from any Visa or MasterCard outlet with minimal charges.

• Do not worry about paying your bills when you are dining outside or indulging in any form of entertainment as this card will take care of all that.

• Furthermore, this card is widely accepted by merchants and ATMs.

In addition to these features, this multi-currency card have other benefits like:

• You can have a pleasant shopping experience when you are abroad. This is because it enables you to pay in the currency with which you are most familiar and help you take informed decisions.

• There are no hidden charges. Whatever you spend is reflected in your card statement as it is.

•  These cards are actually less expensive than credit cards when you are travelling abroad. This is because in case of credit card, the rate of exchange rate applied is the day’s rate. While for this card, the rate of exchange is fixed the day you purchase this card.

• It will be difficult for somebody else to use this card even if it is lost or stolen because the card is protected by a Personal Identification Number.

Today, more and more people from India are travelling abroad every year. What they require inevitably is foreign currency before they embark on their trip. The multi-currency card has made foreign travel much easier and hassle-free. This card can be used even in remote areas of a country which you are visiting and where the Dollar or Euro is not so prevalent. This helps the local traders and allows you to have a holiday experience like no other. Some cards also offer good deals on air tickets and holiday packages and even provide you with travel insurance. This means it is a win-win situation for you.

Why a current account is a must for entrepreneurs?

A Current account, also known as a demand deposit account is a bank account suitable for businesses. Though it may seem like a normal account, these accounts offer more features than a savings account. Current accounts actually play a very important role in determining the health of the economy. It is the sum total of the balance of trade (goods and services exported minus the imports), net income from abroad and net current transfers. A positive current account balance indicates that the nation is a net lender and vice versa.

A current account can be opened with a financial institution such as a commercial bank or co-operative bank with a minimum balance starting from INR 5000. Some banks also offer zero current balance accounts. Because of the various extra features it has over savings account, you can not avail any interest on the money in your current account.

Since the number and amount of transactions is not limited in current account, it is extremely handy in the smooth functioning of your business on an everyday basis. A Current account is the life blood of modern trade and commerce. Listed below are some of the major factors that why current account is a must for entrepreneurs:

• One of the key aspects of a current account is that it has an overdraft facility. You can borrow money from the bank through your current account on a short term basis.

• By having a current account you have a clear picture of your business and its growth. It helps you in showing the actual profit and loss statements as it does not offer any personal transaction feature.

• It enables you to carry out your everyday business transactions promptly and properly so that your day to day business activities do not suffer on an account of financial issues.

• It is also very useful to businesses as it allows them to make direct payments to their creditors through cheques, demand draft and pay orders.

• The number of transactions and the withdrawal amount is not limited as compared to a savings account which help you to carry out as many transactions as needed.

• Many companies ask for credit worthiness letter from the bank before handing over a project. So if you have a current account which is well maintained without any defaults, you can get a recommendation for your credit worthiness without any hiccups.

• All the transactions made in your current account are eligible for tax exemptions. These tax exemption feature helps the business save money on taxes.

Having a current account for your business also gives you a more professional presence. At the same time it gives you more flexibility to carry out your business as compared to a savings account.

Why the demat account should be your first account for investing?

Demat account stands for de-materialized account. This account is similar to your bank account; the only difference is that instead of money, it holds your stocks and other financial instruments in paperless or digital format. Earlier the trading of shares and mutual funds or other financial instruments were done on paper and you needed to retain a copy in order to prove your claim as an investor. Thanks to the internet which has paved the way for the demat account, now you can hold all your investment online.

If you are planning to invest in stock market, the first thing you need is to open demat account along with a bank account and a trading account. Companies into banking and broking generally offer you all the three accounts combined together known as a 3 in 1 account. You need to open demat account with a depository participant (DP) via your bank or other financial institutions, the two DP registered under SEBI are National securities depository limited (NSDL) and Central depositories securities limited (CDSL).

The need for having a demat account and its advantages:

In order to deal in securities in the Indian stock market, it is mandatory for you to open a demat account with depository participants (DP). Once you have the demat account registered under any of the depository participants, you are all set to buy and sell stocks and securities at will. Investing in stocks and securities through a broker and having a personal demat account gives you far more freedom and advantages, such as:

• It is the most convenient way of dealing in securities as all the transactions are carried out online. You are able to buy and sell securities from anywhere on the go.

• It ensures immediate buying and selling of securities as all the transactions are done electronically.

• It saves you a lot of time and hard work as compared to paper transfers as you don’t have to keep track of huge paperwork.

• The risks associated with paper securities such as bad delivery, fake securities, delays and thefts are totally eliminated.

• There is no limit for purchasing and selling of securities. You can even buy and sell one security at a time.

• The transaction cost is very low compared to paper securities as you don’t have to pay any stamp duty.

Because of the above mentioned points, a demat account is very much helpful especially for new investors, who are totally unaware of the workings of the share market. It allows you to be free from stress by providing maximum freedom while choose transactions according to your needs.

What are the do’s and don’ts of internet banking?

Internet banking is a system which allows individuals to perform their banking activities at home via the internet. Some online banks also have a physical presence while others are online only. A customer can perform all routine transactions like account transfers, balance inquiries, make payments and even apply for loan or credit cards. The most important feature of this mode of banking is that it enables a person to conduct your banking activities from the comfort of his home and at any time of the day.

Some people are skeptical about using internet banking and this is not without cause. In spite of all the advantages, there are quite a few drawbacks of this mode of banking. Unscrupulous people may try to trick you and steal your money from account if you are not careful. However, the primary advantages of banking over the internet are as follows:

• You do not have to physically visit a branch but can do your banking from anywhere and at any time of your liking. The account is accessible 24 x 7.
• You can use a wide range of devices for conducting your business activities. For example- mobiles, tablets, computers, laptops or anything else that supports internet.
• All the transactions are updated immediately and this allows you to have access to your account information without going through the hassles of documentation.

There are, however, a number of dos and don’ts that you need to keep in mind while banking over the internet. They are:

• It is highly recommended that you choose a safe and secure password for mobile banking. You should not use family name, pet name, date of birth or any such commonly known names as your password.
• Do not provide account information if you receive any random e-mails asking for such. Do not divulge any information even if it is stated in the mail that it has come from a bank or any other government entity.
• You should always visit your bank’s banking site directly and avoid accessing the site through other third party link or e-mail. You should verify the domain name before you log in.
• You should log out of your internet banking site as soon as you are finished with your business. You should not close the window without logging out.
• You should avoid using public Wi-Fi and you should also install a suitable firewall and security antivirus to protect your computer and its contents.

While using your mobile to do banking,

• You should never save your log-in details or your password.
• Always keep your phone locked to prevent unauthorized use and also report loss of phone immediately to the bank.
• Never download apps from shabby websites and always log out of your account.
• You should keep a tab on your account balances regularly.

Inculcate these habits if you are banking over the internet and keep potential harmful elements at bay.

The difference between invest and protection

Whenever you think of the term insurance, the first thing that comes to your mind is protection. The insurance industry has evolved pretty quickly from insuring life to goods and services, and now there are companies that re-insure the insurance companies. Insurance is basically the promise of being compensated by a company in case of death, damage, loss, illness or theft in return for the monthly premium you pay. At present anything and everything is being insured by insurance companies.

The different types of insurance policy in India are endowment policy, term insurance, whole life insurance, children policy and annuity plans. People in India are getting more and more familiar with insurance and are using it for multiple reasons. The first and foremost part of insurance is that it is a protection against uncertainty, but many people are also using it as an investment.

The sole purpose of insurance is to cover your/ your family’s expenses in case of any mishap. There are different types of insurance policies that give you economic protection and also cover your risks in case you meet with an accident. Insurance policy covers your expenses and also encourages you to save money. Moreover, it gives you a sense of comfort and eliminates dependency. The most common insurance policy among Indians is life insurance which is further classified into whole life insurance and term insurance. Contrary to this some people also use insurance as an investment. Most people usually are unaware of how insurance can be used as an investment. Mention below is some of the points of how insurance can be used as an investment:

• Insurance gives a you a tax deferred growth that is you don’t have to pay any taxes on the interest, dividends and capital gains from the insurance until you withdraw the proceeds.

• There is no fixed term on life insurance which means you can keep it as long as you want and keep on getting earnings as long as you want.

• Insurance policy can also be used as collateral in buying a property on seeking a loan. This gives added advantage to policy holders as they not only earn from it but also use it as fluctuating capital.
There is always a debate when it comes to using insurance policy as an investment or protection.

Taking all the above points into consideration, it is always beneficial to use insurance as a protection as by disturbing the insurance amount and premium may lead to early expiration and also deprive you of some of the benefits that you have.