Internet Banking: Why you need eBanking apps today

The banking industry has responded amazingly well to the ascent of smartphone technology. Now any individual can access his/her bank account and monitor the account on the mobile device. Internet banking does not only facilitate this access but lets you make vital decisions in regard to your finances. No longer do you have to queue up before the bank or make appointments with your bank representatives- an e banking app allows for maximum efficiency at any given time. Here are a few reasons why you should opt for the ease of internet banking today:

Paying Bills
It cannot be emphasized more how efficiently bills can be paid by means of an e banking app. An irksome chore that used to drain you of all your energy is now a minutes-long process. This function has made all the hassle completely redundant. In fact, you could even set an automatic payment system through your bank website and if that is not feasible for you, use your bill payment app to connect to your biller’s website. Regardless, internet banking is the best method through which you can fulfil your billing requirements.

Tracking Transactions
Perhaps one of the most frustrating things about having a bank account is the relentless activity that occurs on any given day. With an e banking app, you will be able to view your statements and thus plan your expenses or savings accordingly. Moreover, getting message alerts for every transaction will also allow you to detect suspicious activity or confirm the success of your purchases. Ultimately, being able to track your transactions paves the way for greater financial judgment.

Portability
In the matter of emergencies, it might not be possible for you to visit a bank or an ATM, so a mobile application provides instant access anywhere you would like and at any given hour. Gone are the days when you would have to schedule your time for a particular visit to the bank or call a teller for the most basic functions. If you are able to master internet banking, you become the sole operator of your bank procedures.

Cost-Effective
Since you will be saving time and money by avoiding the lengthy and oftentimes hectic trips to the bank, this e banking app will already be worth your effort. Furthermore, you do not have to issue cheques as you can pay bills and transfer money through internet banking. The service charges associated with digital transactions have also been reduced considerably, so people are persuaded to make the most of internet banking.

Reasons why IMPS transfer makes a good option for emergency fund transfers

The question of money is a bare necessity; no one knows when there might be a financial emergency and you will need to fall back upon a large sum of money to solve some crisis. Think of a situation when your loved one or child is staying or studying in some other city or country and there is a need to send a considerable sum of money immediately.

How do you make this quick transaction possible? With the help of IMPS money transfer service of course!

Immediate Payment Service or IMPS, for short, is a service that can be made use of with the help of one’s mobile phone. The receiver will be credited with the transferred money right away. The only thing is that both the accounts need to be IMPS enabled. No more standing in long queues in the pouring rain of the monsoons or sweltering heat of the summers. Get your money transferred from the confines of your comfort space at the snap of a finger.

More and more people these days are turning to IMPS emergency fund transfer. The reasons are as follows;

• Always Available

Unlike most other money transfer services, IMPS enjoys being one of these rare few that are available round the clock. Not only is it open for money transfer service 24*7 but also during the dreaded bank holidays. This is a huge benefit when you have to send off money suddenly and urgently.

• The Range is High

The IMPS money transfer service enables you to transfer money anywhere between one rupee to two lakh rupees in Indian currency. On a daily basis if there is end-to-end encryption, which will be provided to you by the bank, then the bank can allow a transaction amount of up to Rs. 50,000 and if there isn’t any end-to-end encryption then the bank will allow a transaction amount of Rs.1,000. 

• Low Processing Fee

The transaction speed of this service is super fast, not to mention that the processing charges are really low.

The IMPS money transfer service can only be carried out online and through internet banking. Other services such as NEFT and RTGS are available not only online but also offline. When you are carrying out the money transfer all that you will require is a MMID pin that will be provided to you in seven digits. In order to get hold of this MMID pin you will need to navigate yourself to the banking option on your mobile phone, choose the required bank account, choose the Insta FT option and finally click on the MMID option and you are set!

Why travel currency cards are the new travel currency

Travel currency cards are introduced to enable you to spend your vacations and travelling time in a smart way. There are many risk factors involved when you travel and carry hefty cash. With the implementation of these travel currency cards now you don’t have to carry cash on you. All you need now is a smart card, a travel currency card, a card that secures all your finances on the go. Now you can access your funds anywhere and anytime on the go.

Travelling currency cards are usually prepaid cards which are available in various denominations of worldwide currencies. These cards are usually prepaid, which means the cash that you withdraw on the go is deducted from your bank account where you deposit funds. The travel currency cards are linked with various international companies.
However, the maximum amount that you can carry in your currency card depends on the guidelines issued by RBI (Reserve Bank of India).

BENEFITS OF TRAVEL CURRENCY CARDS

 Security
The travel currency card is protected by using the system of biometrics. The funds are secured on the go and there is minimum chance of theft. The travel currency card also allows you to withdraw funds anywhere and anytime, thus, you don’t have to carry huge denominations of cash where you are going.

 24*7 Services
The financial institutions always provide excellent customer care support 24*7. During any emergency, the financial institutions will provide their best of services as necessary.

 Duty free shopping
Travel currency cards also provide you with duty free shopping facilities at airports of various locations. With the use of these smart cards, now you don’t have to pay extra charges for any souvenirs that you bring for your loved ones.

 Travel insurance
The financial institutions ensure that your finances are secured when you are on international tours. They offer 360 services and insurances that always comes in handy when you are on the go.

 Convenience
No matter which country you visit, these travel currency cards ensure that while you withdraw funds in any country, the cash that comes out are completely in denominations of that respective currency. There are minimum conversion fees and totally hassle-free.

 Instant activation
Now you don’t have to go to third parties to secure your foreign exchange. You can go to your respective bank account branches and apply for a travel card which gets activated instantly. There is no waiting period or long procedures for foreign exchange so you can have a tension free journey.

Thus, travelling currency cards are the new travel currency. However, one must know the exchange rates and conversion fees according to which you will withdraw money from your own account.

How can you take advantage of the NRO account

NRO means Non-Resident Ordinary account which is savings or fixed deposit accounts for Non-Resident Indian in a bank which is situated in India. This is basically an Indian Rupee account where the interest which is earned is taxable. The account may or may not be jointly opened with an Indian resident. Another important thing about NRO accounts are that the interest earned in these accounts is non-repartriable, which means all the funds that are deposited can only exist in Indian currency and cannot be converted to foreign currency.

Thus a nonresidential Indian can send money to their family members who are Indian residents via these NRO accounts. The interest rates offered by the financial institutions are catered to the needs of the customers and there are minimum additional costs to maintain this account. Thus, NRO accounts enable the nonresidential Indians to transfer funds to their hometown in a hassle free manner.

KEY ADVANTAGES TO AVAIL FROM NRO ACCOUNTS
 Low cost and hassle free money transfer
NRO accounts can be availed through numerous online and offline modes at flexible exchange rates.

 Minimum balance required
NRO accounts can be maintained at minimum monthly account maintenance as low as 10,000 rupees.

 Interest
INR balances on or above 50 lakhs can give you up to 4% interest per annum and 3.50% for account balances below 50 Lakhs.

 Easy transfer
The money in NRO accounts and the interest earned after deducting tax can be repatriated till one million USD for all bonafide purposes.

 Can also serve as Fixed Deposit accounts
NRO accounts can also serve you as fixed deposit accounts with all the benefits that a fixed deposit account might have and also allowing deposition of funds from overseas.

 NRI advantages
There are various additional benefits that a NRI will receive. These benefits cater to the needs of the individual who travel home and abroad simultaneously.

 Joint account holding facilities
The NRO account can have joint holders. This means that more than one individual can operate this account just like any other savings or deposit account.

 Bank benefits
Various financial institutions offer different offers for these NRO accounts. You need to do some research to find which bank provides you with the best of facilities at minimum cost. There are also benefits like free mandate card and cheque book for your family members in your home country which gives them extensive access to your account.

 Flexibility
You can change your savings account or fixed deposit account to and NRO account which helps you to maintain uniformity and gives you better access to all the facilities with just one single bank account.

What are the changes in FD interest rates after the Budget 2018

Every year the budget does a reasonable job to ensure that the public are served well. They ensure that prices do not rise by a drastic level in comparison to the last fiscal year. Similarly this year, Budget 2018 have come up with many positive changes in the fixed deposit rates as well.

Fixed deposits are accounts where you deposit a certain sum of money for a particular period of time and then you receive a high interest each year. These fixed deposits are usually redeemable after 3 to 5 years for which you get back your principal amount along with the interest as well. It is an efficient mode of savings for common people in India.

The Budget 2018 made several changes to the FD interest rates Banks are likely to raise Deposit (Fixed Deposit) rates because of the following reasons:  

 Incremental credit
Till January 5, 2018 the fiscal credit stagnated at Rs 2.02 lakh crores, which have increased from Rs. 1.27 lakh crores. The banks are thinking to increase the interest rates to attract customers to have more fixed deposits with the banks. The banks want customers to deposit funds so as to improve their credit creation amounts which can edge out many undesirable fiscal deficit.

 Edging out treasury losses
By offering more FD interest rates, the banks will be able to generate more capital to avoid fiscal deficit. Thus, this capital would be used to generate incremental credit with respect to reducing excess Statutory Liquidity Ratio (SLR). Statutory liquidity ratio is the minimum reserve that any commercial banks needs to keep in the form of cash, gold, bonds etc.

 To reduce excess CWP
CWP is known as currency with public. Having excess currency with public means that they are not willing to look for investment opportunities which can take an adverse toll on commercial banks and various financial institutions. By increasing the rates, the public might look forward to investing as higher interest rates often act as bait.

 Benefits to Senior Citizen
The budget 2018 proposes that tax deducted at source (TDS) is no longer required under section 194A. TDS rates have now been increased from Rs. 10,000 to 50,000.  Therefore, there are no taxes charged on the interest which they receive on fixed deposits till Rs.40, 000. Whereas earlier the taxes were charged from Rs.10, 000. And senior citizens will also receive additional benefits for recurring deposit schemes as well.

Know Your NRE Account: 7 Top Features That Are A Must Know

NRE or Non-Resident External account is a type of bank account that is maintained by an NRI or Non-resident Indian. This kind of a bank account is instrumental in remitting the earnings received from abroad. The NRI can maintain this account both in his/ her home country and in an account situated in a country somewhere off-shore. The guidelines for maintaining an NRE account is pretty similar to that of any rudimentary account. There are a number of features of an NRE account that you should be informed about. Some of these are-

• Tax- Free: The NRE account does not impose any charges even if the quarterly balance is not maintained. Further, the balance that is kept in the account is free of any wealth-tax.

• The Perks of Repatriation: If the NRI account holder wishes, he or she can repatriate the complete credit balance outside of India, whenever he or she desires. And the process is very smooth as well.

• Interest Rate: Generally the NRE account offers a really high-interest rate. However, this rate can vary between different banks. Often the interest is calculated based on the closing balance every day, and the interest is often paid on a half-yearly basis in the months of June and December.

• It’s Convenient- The convenience factor of opening an NRE account is huge. It is extremely easy to open this sort of an account. All you need to do is go online, fill out a form which you will find on the respective bank webpage. Take out the printout, attach this printout version with your other document copies and mail it to the concerned bank in the home country.

• Joint Ventures: The NRE account features allow you to maintain this account jointly with another NRI, for example, your spouse or your kids.

• Further Benefits that Investment Brings: The NRE account gives you the privilege of investing in mutual funds by linking your savings account to the investment savings account.

• Benefits of a Mandate Holder: Another very unique feature of an NRE account is that you can appoint a mandate who will be in charge of operating your account on behalf of you. This mandate is allowed when written authorization is provided to a particular person to manage the said account on behalf of the primary holder.

Listed above are some of the features that are unique to an NRE account. In case you have been debating about opening a NRE account for a while one, read these features, think about the benefits you can enjoy and open your NRE account today!

Loans: A financial necessity in today’s time

Loan is the process of lending something to an individual/group of individuals, entity or an organization at a specific rate of interest and a promissory note which specifies the principal amount/thing borrowed, the interest rate and the duration of loan. Loans are an essential instrument for finance. Many financial institutions offer secured loans to gain interest; thus, loans benefit all the stakeholders.

It doesn’t always mean that financial institutions have to give loans to individuals or groups of individuals. We also have a “rich uncle” phenomenon. We often see others acquiring instant loans from friends and family where the terms of loans are much more flexible.

In the 21st century, where urbanization is occurring at a rapid rate, many business organizations and individuals make the most out of it. Businesses look to expand their current operations and individuals might look for better homes, better cars and what not. You might face problems sometimes to save money even though you have a stable source of income. This is why we need the financial institutions to help us out with loans. Both parties benefit from this as the debtors can get their job done and creditors can have a secured return.

WHY ARE LOANS A FINANCIAL NECESSITY

 Flexibility
When we acquire instant loans from financial institutions, we can choose the mode and method of repayment by virtue of a number of EMI schemes. These installment payments help you to get your job done and return the amount to the institution in a flexible manner.

 Fixed interests
Loans that are taken from financial institutions have a fixed rate of interest imposed on them. Therefore the debtor is aware of the installments that they need to pay and keep aside the funds for repayment. There is no fluctuation of interest rates.

 Tax benefits
Bank loans are a tax deductable expense. Therefore if any entity or individual has a bank loan, they need to pay fewer taxes.

 A sense of security
The financial institutions who give loans may ask for some collateral against the loan amount. This is because if you fail to pay the full amount, the bank retains the security against the unpaid amount. The applicants of loans also know that the loans that they are acquiring are from a reliable source which will benefit them.

TYPES OF LOANS

 Student loans
 Mortgage loans
 Auto loans
 Personal loans
 Business loans
 Pay day loans
 Consolidated loans
 Cash advances