What are the features of private banking?

The concept of private banking goes beyond the concept of day to day banking transactions in order to address a person’s financial condition. It is a complete amalgamation of providing financial solutions, retirement planning and ways to pass on wealth to the future generation. The idea of private baking has been gaining ground in the recent times owing to the benefits provided to high-end consumers.

What is private banking?

Private banking can be defined as personalized banking and financial services, meted out to the bank’s HNWI (High Net worth Individual) clients. HNWIs are people who have potentially secured more wealth than the average person. Thus, they have in plenty of what is needed to make alternative and conventional investments. In such cases, private banks make an attempt to provide individuals with the most suitable types of investments.

Private Banking Personalised Services

1. Customers availing private banking services are entitled to highly personalised services. Each customer is assigned a relationship manager or an account to adopt a customised approach to asset management. Therefore, in case the need arises, the customer can directly communicate with the management.

2. Any private bank in India lends out discounted services to the HNWIs on the grounds of the substantial assets that they hold. For example, there might be a reduction in the foreign exchange rate for customers who are into export businesses.

3. These banks often provide investment returns that surpass the benchmark indices. HNWIs can easily influence the investments by using extensive resources in their possession. For example, an HNWI might gain access to a hedge fund that is performing par excellence in the market, via an affiliation with a private bank.

4. There is a large section of private banks that do not carry FDIC insurance. Therefore, an aggressive approach towards the management can usually prove to be quite beneficial for the investors. It can also lead to a great deal of profit for fund managers.

Almost every private bank in India is known to follow an open product platform, through which they claim their services to be unbiased. They firmly believe that the client is provided with the best of what they can avail in the field. Since the concept of a private bank revolves solely around understanding the needs of the clients and providing a relevant solution for the same, only a few banks define their proposition value as required.

Reason why investing in bike insurance will benefit you

A motor insurance policy is a part of general insurance products in India. Nevertheless, there are a number of motorbike consumers who are not aware of the benefits of a two-wheeler insurance plan. Bike insurance covers a bike owner against unforeseen damages to the automobile or any unfortunate accident.

More than a necessity, the Indian government has made it mandatory for every consumer to have a legal two wheeler policy. Almost every standard insurance plan provides coverage for both natural and man-made calamities.

Personal accident cover

A personal accident cover is the most important part of a two-wheeler insurance plan. In this case, apart from the vehicle, the owner or the individual is also covered against any injury sustained during dismounting, mounting or travelling. If you have an additional cover, you get coverage for your co-passenger as well. The maximum amount covered for a rider within the age limit of 18 to 65 years is Rs.1 lakh. With the current progress in technology, you can even spare yourself from the hassle and apply for bike insurance online.

A list of important benefits that you can avail by investing in bike insurance will include:

Protection against natural disasters- Surprising as it may be getting bike insurance online or otherwise saves you a great deal of expense due to damage caused by natural disasters - earthquakes, fires, storms etc. In such cases, the policy bears the entire repairing cost.

Coverage for human-made calamities – A two wheeler insurance policy covers damages caused due to acts of burglary, theft, war or strike. As per the demands of the situation, the policy covers replacement charges or service costs.

Safeguard of legal interest – As per the Motor Vehicle Act, 1961, third party insurance is mandatory. This ensures the fact that the concerned vehicle is free from any kind of third party liability in case the insured vehicle is party to an accident in the future.

A sense of security – At the end of it all, you have a sense of security every time you or any of your family members hit the road. In fact, these plans often save you from imposed traffic fines: not wearing a helmet.

Two wheeler insurance is a worthwhile investment of your savings. The legal necessity of the same has made the Indian streets a more secure place in the event of accidents. You can seek for relevant assistance while buying or renewing a bike insurance plan.

Personal Loan Repayment: How repayment can affect your tenure

When it comes to taking a loan, banks provide you with a number of options to choose from. However, taking a personal loan is the easiest way as it can help you get a number of things done without much hassle. From a vacation that you have been dreaming of to dealing with an urgent financial crisis, a personal loan can come to your rescue at any given time. But personal loans generally have a higher interest rate than any other loan. You also need to be fully aware of certain factors which determine how much you pay back and within what timeline, before taking a loan.

Taking a personal loan is as easy as it can get. However, repayment of this loan can be quite strenuous if you do not make the right choice. You need to be ready to pay a higher interest amount than any other loan when it comes to personal loans. For instance, you should be careful about picking your plan. Certain plans can help you repay comfortably, with lesser EMI amounts but with higher interest which will eventually make you pay more. On the other hand, there are various other plans which are high on the EMI amount but will have you pay a reasonable amount as the interest and that too, within a shorter period of time. These plans are often advised as the payment will be over soon and you will not have to pay a huge amount of interest. In order to get over the mental and financial stress, plans which have a high EMI amount are often advised. However, if you are dealing with a serious financial crisis, then applying for a personal loan with a lower EMI rate can be more comfortable, given the situation.

Personal loans can be quite helpful when you are in an urgent need of financial support and have nowhere to go. You can easily apply for a personal loan and get it approved within no time. Make sure to check various plans before choosing the one most suitable for you. Your payment, therefore, depends on the tenure you want to take up. A longer tenure means you have to pay a higher amount overall but in a longer period of time, more comfortably. But with a short tenure, you can get away with a lesser amount to pay, but with a higher EMI amount.

Why should health insurance be on your list of financial priorities?

Penning down a list of things that you want from life is easy, not just for you but for many. But you find yourself in a fix when asked to prioritize them. With limited income and a never-ending list of expenses, the investible surplus left behind is minuscule. As you try to distribute this available amount, investing on your health should not be missed out. For all you know, your necessary hospital bills can leave a deep hole in your savings pocket!

Speaking of health insurance, the first question that pops up on your mind is, “Why do I need one?”.  Well, a simple answer to this is it covers a part or almost the entire expense of a person that he/she may incur when faced with a medical emergency.

Why should you invest in health insurance?

Due to abrupt inflation, the best of healthcare has turned into an expensive affair. Prolonged hospitalizations usually require lakhs of rupees that can prove to be quite a deal for a person earning a moderate living. It is here that health insurances come in handy.

A health insurance plan is a yearly insurance policy which means it is renewed every year. The policy covers hospitalisation due to accidental injury, and sickness, though in certain cases there are waiting for periods and exclusions, which are mentioned specifically in the policy plan. There are two ways to claim health insurance:

• Reimbursement
• Cashless

The benefits of a health insurance

Apart from covering the important medical cost, your insurance offers several other benefits as well:

Get rid of hospitalization charges – You can always avail cashless health insurance at hospitals in the network of the insurance company. The insurance company takes care of the costs incurred, relieving you from the burden of having to arrange for money immediately.

Cover for critical illness – As a pre-defined benefit, insurance companies allow a specific amount for critical illnesses like kidney failure, cancer, stroke etc. Irrespective of the medical bills, a major portion of it is settled through his/her health insurance plan.

Avail tax benefits – You can take care of unplanned medical expenses without having to dig into your savings. By paying health insurance premiums, you can avail several tax benefits in the long run.

Benefit during the period of recovery – Certain health insurances provide daily allowances during one’s hospitalisation period. In other cases, you are given a lump sum amount if the stay exceeds a few days.

Relevant awareness about health insurance policies is on the rise in urban India. With people becoming more aware of its necessities, it has moved on to become a priority in the financial plans of an individual.

Travel Insurance: Investing in pocket friendly financial protection

Almost all of us dream about travelling to exotic places, witnessing breathtaking views and gorging on the best dishes that are available there. People tend to meticulously plan their vacation to the last minute detail. They book the best flight tickets, book rooms in the hotel that provides the most captivating views and even plan what they are going to eat when they visit a place.

They generally want to live a dream. But there is no guarantee that there would not be any roadblocks while you are trying to live the dream. This is where travel insurance becomes so very important. Such an insurance policy helps to make travelling easier and hassle-free. A travel insurance policy is such a policy that generally covers the medical expenses, lost luggage, any accident that may occur during conveyance, any cancellations and any other loss that a person may incur during travelling.

The benefits of investing in a travel insurance online are:

• You are safeguarded against a range of complex and different issues that may cause you to face while you are travelling to an unknown place. A good travel insurance policy provides ample support in situations when you have lost your passport or have encountered any medical emergency.

• A travel insurance policy will make sure that you do not have to spend from your own pocket if you are hospitalized or if you have to visit a doctor or if you have to purchase any medications that you may have to take. It is important for a person to get to know the details of the insurance policy that he/she is purchasing. This will help them to take advantage of the different provisions of the policy.

•  Travel insurance will also pay for the monetary loss that a person will experience if the trip gets cancelled or if there is any problem with the hotel, train or flight reservation. Such an insurance policy will help to compensate for some of the losses that a person may experience due to these misfortunes.

• A situation may arise where your baggage may get misplaced during conveyance or the baggage may not arrive on time. A person may need to spend his/her own money to purchase the necessary things till he/she receives the baggage. Travel insurance will cover these expenses and make sure that you do not have to overspend.

Some of the travel insurance policies may also cover any unexpected additional expenses and also cover the emergency medical expenses of your travelling companion. A travelling companion may fall ill or he/she may have met with some unforeseen circumstances that require immediate financial assistance. You can purchase travel insurance online which will ensure that a person who has suffered from a permanent disability will continue to receive a payment for a period of 12 months after he/she returns from the trip.

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.