Factors to keep in mind when renewing your car insurance?

Why should a person get his/her car insurance renewed? To answer this question, first and foremost what has to be kept in mind is that is it is illegal to drive a car without a valid insurance policy. Car insurance protects your prized possession against any kind of physical damage caused due to any natural or man-made disaster. Do not worry about finding the right policy as you can check the different policies online and purchase car insurance online.

Different insurance companies provide different policies that are sure to meet the requirements of any individual. The process of renewing car insurance has become very easy and it can be done from the comfort of your drawing room as well. The factors that a person needs to keep in mind while renewing the car insurance are:

• There are different terms and conditions that govern the renewing of insurance policy. The conditions may differ from one insurer to the other. Grace period ranging from 3-30 days may be provided by some insurance companies to people so that they can pay the required amount and renew the policy.

• Some insurance companies may not even provide grace periods. The policy lapses in such a scenario.

• Companies offering grace periods may charge some fees from the person seeking renewal.

• A person who is has a habit of paying the car insurance premium during the grace period may be penalized by the insurance company.

• Furthermore, making late payments regularly may prove to be detrimental to both the insurer and also the person making the payments.

• Renewing a policy during the grace period requires a person to pay all the dues that are pending.

Not having a valid car insurance policy will make you ineligible to drive on the roads of India as it is it mandated by the law in our country. Some of the points that are to be kept in mind when you want to renew an expired car insurance policy are:

• You may have to pay the higher premium amount and may also miss out on some of the benefits that you had been previously enjoying when you renew a lapsed car insurance policy.

• You may not even be able to renew your policy if had lapsed for a considerable amount of time. The specific time-period may vary from insurer to insurer.

• A person who wants to renew a lapsed policy may have to pay fines for all the days that have gone by without the premium being paid.

• Even if an insurance provider lets you to renew the lapsed policy, it may demand vehicular inspection, and you may also lose the right to claim a bonus.
These are the factors that have to be kept in mind while renewing car insurance. So it is better to pay car insurance online instead of facing so many hassles.

How to transfer funds into your trading account?

Transferring funds to start the process of trading is not as difficult as it may seem to some people. Following certain steps carefully will allow you to transfer funds into your trading account without much hassle. You can choose to transfer funds into your account by using a couple of methods. Using an instant payment getaway method or using checks and NEFT/RTGS/IMPS facility can help you make the transfer. You can also pay via margin check or DD to your broker. In order to transfer your funds, you need to follow few simple steps and start trading.

Process of transferring through Payment Gateway

One of the most common methods of transferring funds, offered by brokers is through payment gateway. All large banks offer this facility. Payment gateway is the most popular method as it allows individuals to use their debit card or the facility of internet banking to conduct online trading in a hassle free manner. As soon as the transfer is done, the account reflects the credit and users can start trading immediately. Certain important factors like, using your debit card or using internet banking alone for transferring funds, and making a hefty payment to the broker when the funds keep increasing should be kept in mind about the payment gateway.

Adding in Funds via NEFT/RTGS/IMPS

The next best method for transferring funds is through NEFT, RTGS or even IMPS. NEFT or National Electronic Fund Transfer helps you transfer funds instantly to the trading account if you share the same bank as your broker. However, if the banks are different, an estimated period of 2-3 hours is required to make the transfer. The alternative method of Real Time Gross Settlement is also the same as NEFT; however, the one difference between the two is that RTGS is applicable on fund transfers above Rs 2 lakhs. On the other hand, IMPS is also quite similar, but the advantage with IMPS is that you do not have to follow the 10:00 am to 6:00 pm rule like that of NEFT or RTGS. You can make the transfers any time, and on NEFT holidays as well.

Transferring Funds via Check/DD to the Broker
Transferring funds can also be done by drawing a cheque in favour of the broker. But this method is used for offline trading alone. The process is a little longer as it takes 2-3 days for the account to reflect the credit. You also need to make sure that the cheque is signed properly and your account is funded as well. Following any of the aforementioned steps will help you transfer the funds to your trading account easily.

What are the key factors you need to look out for when investing in forex

Before investing in forex, it is essential to understand what exactly forex is. Forex or foreign exchange market is the largest financial market in the world and the average traded value every day is more than 4 trillion U.S dollars. The units of this market include commercial companies, central banks, investment firms, banks, retail investors and even hedge funds. People can buy, sell, speculate and exchange currencies in this market.

In simple words, it is a 24-hour cash market pairs of currencies are usually traded. What investors actually do is that they trade in pairs of currencies and they speculate the value of which of the currencies that they are betting on will go up and whose value will go down. The factors that a person needs to look out while investing in the foreign exchange market are as follows:

• Forex market is a 24-hour cash market where currencies are bought and sold at the current exchange rate or at the current price.

• When a future financial contract entails that an investor has to buy or sell a currency at a pre-determined date, the holder of foreign exchange has the may buy or sell a specified amount of a foreign currency before or on the specified date. This is due to the existence of the foreign currency options.
The main benefits of trading in the foreign exchange market are:

• Unlike trading in the stock market which requires depositing a lump sum of money so as to become eligible for trading, the foreign exchange market allows you to start trading with a minimal amount.

• Due to the constant supply and demand for money, the foreign exchange market is the most liquid market in the world. It is open for 24 hours per day and this implies that a person can trade at a time of his/her convenience.

• Forex brokers use some of the newest trading platforms that are available as desktop programs for a personal computer and these programs are also available to be used on Android and iOS devices. This technological advancement is perhaps the most important benefit of trading in the foreign exchange market.

• You are able to sell currencies without actually purchasing them. Foreign exchange markets allow you to sell high and buy low and this counters the traditional trading logic of buying first and selling later.

• Another important benefit of trading in the foreign exchange market is that an investor can employ leverage to buy or sell funds that are hundreds of times more than the funds that he/she actually holds. This may result in substantial gains or even losses for the individual concerned.

• A potential trader generally can gain access to an unrestricted demo account which lets the individual to trade with paper currency but under actual market conditions.

These are the key factors that a person needs to keep in mind while investing in the foreign exchange market.

Why fixed deposits still hold a strong financial investment potential today

Fixed deposits are still the preferred form of investment for millions of Indians. However, since the introduction of newer investment options, the popularity of fixed deposits have been waning. FDs though, still remain one of the most secure investments in the market. Here is a look at some of the reasons why investing in fixed deposits can be a great way to earn profits.

1. No risks
Fixed deposits are among the few investment options where you are assured a return on the investment. There is no way that you would lose the invested money. FD account returns are generally greater than the interest offered by the savings account. However, to get the best returns, it is recommended that you do not withdraw from the fixed deposit account prior to maturity.

2. Flexibility
In case of FDs, you have greater flexibility as compared to other investments. This means that you are free to select the tenure of the fixed deposit as per your own wishes. Apart from this, a fixed deposit does not warrant a bank account in the same bank where you might be investing. This makes matters easier, as you do not have to maintain a separate bank account just for the investment.

3. Limited fluctuations in rates
Fixed deposit investment do not result in the highest amount of gains financially. However, it is perhaps the most stable form of investment. Mutual funds, gold investments and others offer greater returns but the rate fluctuates frequently. So, in the long run, FDs are your best choice.

4. Loans against investment
Emergencies may arise at anytime in life. However, you do not need to break the FDs for every financial need. In fact, you can easily take a loan against the fixed deposit amount. While there is no fixed percentage of loan that every bank grants against an FD, mostly, the loan amount ranges between 60-90% of the total fixed deposit amount.

 5. Wide range of investment allowed
Fixed deposits allow you to invest as little or as much as you like. There is no such minimum or maximum limit for investment. This helps people of all ages and background to invest their money and earnings, regardless of their annual income.
So, if you do not have a fixed deposit account or you have not tried out this form of investment till date, you should try it out today. It is a surefire way of ensuring that you make sizable returns on your investment.

Minimize your loan stress with these tips

Loans are an effective way in which you can take a certain amount of money in credit from a lender and then repay them at a later point of time. This method of credit allows you to purchase products and items, which you would not have been able to otherwise. However, some things need to be kept in mind while repaying the loan money. These tips will minimize the burden of the payback and allow you to remain stress-free.

1. Prioritize your loans
You may have to repay more than one loan at a time. This can be cumbersome and difficult to manage. However, a good way to go about it would be to prioritise the loans that need to be paid. Pay the highest loans first and the smallest loan at the end. This practice ensures that the interest rate on your loans improves going forward. Try to clear off as much of the big loan as possible, without jeopardising the repayment of the smaller loans.

2. Increase payments with rise in income
Since taking the loan, you may have undergone a promotion in the workplace or growth in your business. This usually means that your annual income is bound to increase. It is important to increase the EMIs for the loan along with the increase in income. This will aid you in the long term, by reducing the interest that you have to pay by the end of the loan repayment term.

3. Use extra income for debt payment
Most people make the mistake of spending their bonuses and extra income in other places rather than using the same to pay a portion of the debt. Remember that as long as your loan repayment period continues, you are essentially paying a significant amount of interest on the same. Most loans can also be pre-paid, in order to reduce the burden.

4. Clear credit card dues as EMIs
Credit cards act as instant loan option, which you can pay back within 50 days of the expenditure. However, most companies charge around 3-3.6% interest on the amount outstanding. This means that you may have to pay an interest of around 36% to 44% in a year. Paying such an amount may prove difficult, which is why it is recommended that you pay credit card debt through EMIs. Talk to your credit card company for help regarding this matter.

5. Use income from existing investments to repay debt
If you have invested your money, use the interest rate from the same to pay for the loans that you have taken. The interest on your investment is an extra income that should be utilized for repayment of loans.

Follow these tips to ensure that you can repay the loans in a simplified and stress-free procedure.

How to transfer funds using the NEFT payment option?

NEFT stands for National Electronic Fund Transfer is a specialized form of electronic transfer of money. In this transaction, you can transfer money from your bank account into the account of the receiver, irrespective of the bank that he/she is affiliated to. However, just by knowing what NEFT is, you will not understand what purpose it serves.

Here is a look at how to transfer funds using the NEFT procedure.

Steps to conduct NEFT transactions?

To initiate a NEFT transaction, you need to first visit your nearest bank branch.

Step 1. You need to ask for an NEFT application form when you reach your bank branch. Once you get the form, fill out the details of the beneficiary, including details of their bank account, bank name and other relevant information. The IFSC information will also be needed. Once the form is submitted, the bank will issue the transfer into the account of the beneficiary.

The procedure can also be completed online if you have net banking activated in your account. Some banks also allow NEFT transactions through their ATMs. However, if you do not have an account in the bank from which you wish to conduct the NEFT transaction, you would have to provide your phone number and address details, so that the bank can refund your money in case the payment does not go through the beneficiary’s account.

Step 2. The bank where you apply for the NEFT payment prepares a specialised message and sends the same to pooling centres, which are also known as NEFT service centres.

Step 3. The pooling centre sends the same message to the Reserve Bank operated NEFT clearing centre in Mumbai. As the message arrives, the clearing centre in Mumbai is given the clearance to include this transaction during the next batch.

Step 4. The clearing centre prepares for the funds to arrive from the originating bank and it also prepares to send the same fund over to the beneficiary’s account. Once this is complete, the messages regarding the remittance of the amount is forwarded from the NEFT service centres to both account holders.

In this manner, a NEFT payment is completed. Note that these transactions can be conducted during fixed hours each day. A charge is also levied on these transactions. The amount levied depends on the amount being transferred. However, these charges are limited and do not substantially affect the procedure of transaction.

The guide to finding your ideal credit card this 2018

Credit cards are useful forms of the transaction in a cashless method. These cards offer you the ability to take a small loan to pay for the products and services that you purchase. This added facility is not available through normal debit card transactions. However, choosing a credit card is vital, and you need to look into a number of factors to ensure that you select the best credit card in the market.

Here is a look at some of the factors that determine the quality of the debit card and your ability to get the same.

Credit score

Credit scores have become quite common and essential when you apply for a credit card. This score is essentially the measurement of your ability to repay a loan or credit. To improve your credit scores, take small loans from banks and repay these loans in a timely fashion. If you have a prior credit card, make sure that you pay your bills every month without default.

A good credit score is vital for you to get the best credit cards in India. Banks will check your income and your credit score before offering you a particular card. Usually, a credit score of 750 is considered to be good. Anything above this mark is even better for your reputation.

Facilities offered by credit cards
Choose the credit card on the basis of credit offered and also on the basis of how much you would be comfortable in paying. Do not blindly sign up for a credit card and assume that you would be able to pay the bills associated with the same. Perform a thorough calculation of your budget and select the card accordingly.

However, each credit card also offers certain added discounts or offers on certain brands or stores. Keep these in mind while applying for a credit card as well. For instance, if you shop for clothes a lot, sign up for a card that offers discounts on major apparel brands.

Seek the advice of experts
Even if you perform thorough market research regarding the best credit cards in India, you should still consult experts on the matter. Several online sites provide this service and helps you better understand the intricacies and hidden charges behind your credit cards. Taking the advice of such entities can be very handy and useful in determining which credit card suits you the best.

Different credit cards are designed for different needs. So, a card which is suitable for your friend might not be the best suited for you. This is why researching on the matter is of the utmost importance.