Recurring deposit and its benefits

A Recurring Deposit (RD) is one of the type of deposits where a fixed amount is invested every month for a   pre-decided period. The interest on the deposit is calculated monthly. If you invest in a recurring deposit, you can take advantage of the compounding effect. A recurring deposit is like a fixed deposit, where the same principle is spent every month. Each deposit plus the interest matures at the same time.        

The minimum tenure for a Recurring Deposit is 6 months. The maximum mandate is 10 years. The tenure increases in multiples of 3 months so that a   Recurring Deposit account can be opened for 6 months, 9 months, 12 months and so on till 10 years.  

The minimum investment amount starts from as low as INR 100 per month. The maximum investment goes up to INR 14,99,900 per month. You can open an RD with whatever amount you want to invest with, as long as it is within the investment limits.

An RD has other standard features of fixed deposit, such as nomination facility, renewal facility etc. You can also avail a loan against a recurring deposit.  Like a fixed deposit,  a recurring deposit account can be opened by resident individuals, Hindu undivided families (HUF), companies, trusts and societies. 

The benefits of a recurring deposit are:

1. Encourages monthly saving habit:
In a Recurring Deposit account, you invest a fixed sum regularly for a predefined number of months. This puts a commitment to your finances and encourages a minimum amount of savings for the month. For small investors, or people who don't have too many savings, investing in an RD account is beneficial since they can put in amounts regularly as compared to a lump sum amount at one time.   

2. The benefit of compounding: 
A Recurring Deposit earns interest on each installment. The interest is also added to the principal amount and earns additional interest in the following months. Thus, the account is a great way to take benefit of compounding.

3. No TDS if interest is under Rs. 10,000:
Interest on Recurring Deposit account is subject to TDS rules. But to ensure this does not hit small investors, the limit for TDS is set to INR 10,000. This will ensure that people who invest small amounts do not get hit unnecessarily by a tax that they are not liable to pay anyway.  

4. Low minimum contribution:
The Recurring Deposit is meant for people who have small monthly savings. Since the minimum monthly contribution amount is set as low as Rs. 100, it is possible for people of all sections of the society to invest in a recurring deposit account and build savings.

Demat account: How do you apply for one?

Are you thinking of investing in the stock market? Or maybe park some funds in mutual funds? Some of the requirements for investing, such as a functioning bank account, PAN card, are common among investors. But you need one more thing to ensure your investment transactions go through safely: a Demat account.

What is a Demat account?

The shares that are traded on the stock exchanges are in electronic form. This means that, unlike earlier times, when companies used to hand out share certificates for share purchases, all your purchases will now be online. The account to consolidate your investments is called a Demat account.

The word Demat stands for a dematerialised account. Dematerialization is the process to convert physical shares into electronic form. Most of the companies have now wholly converted their physical shares into electronic form, which makes it convenient to trade. 

A bank account and a Demat account share similar concepts. It keeps track of the instruments purchased and sold. You can get a balance statement, which shows the shares, mutual funds, and other devices you own as on a particular date. This makes it very convenient to keep records and to access them at any time. 

How to apply for a Demat account?

It is possible to open a Demat account both online and offline. The procedure for both is almost similar. The company who you will open a Demat account with is called a depository participant (DP). In India, two depositories maintain records for the investors: National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Each DP is affiliated with either NSDL or CDSL. 

Depending on the Demat account charges and services, you first need to select the DP you want to open an account with.

In the online application, you can apply on the DP's website, and someone from the DP will contact you to collect your documents and to sign a power of attorney (POA). A power of attorney is necessary because it allows the depository participant (DP) to make transactions in your name.

The DP will need documentation from you to fulfil Know Your Customer (KYC) norms. These documents are:

• Filled KYC application form
• PAN card of the applicants 
• Address proof for the applicants
• A recent photo along with the form
• A cancelled cheque for bank account details

Once the application form is collected and processed along with the documents, the DP will issue a Demat account number.

One important point to remember is there are Demat account charges, for account opening, purchase, sale, annual maintenance, and other costs. Reading about these charges before opening a Demat account is essential. 

What factors affect personal loan EMI calculator?

What is a personal loan?

A personal loan is an unsecured loan that can be availed to meet fund needs. A personal loan does not come with any conditions attached to it. The funds from a personal loan can be used for any purpose, i.e . business or personal.

But how can you check the installation costs that will result from a personal loan? To find out the monthly repayment burden, you can use a  personal loan EMI calculator. There are many such EMI calculators available online. A personal loan calculator is usually free of cost to use, and there is no obligation to take a loan from the company for using their loan calculator.  

How does a personal loan calculator work?

The formula for calculating EMI is:

P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]

Where:

P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of the investment in years  

A personal loan EMI calculator does not display the formula to calculate EMI. You have to input the loan amount, the tenure in years, and the rate of interest on the loan. The calculator automatically computes the EMI and returns the answer.    

Thus, by using a personal loan calculator, you can find out the monthly payout for a personal loan within a matter of few seconds.

The EMI depends on two factors:

• Principal or Loan Amount
• The rate of interest on the loan 

These factors depend on:

• Individual need
• Credit score
• Repayment capability,  i.e. income earned by the applicant 


Principal or Loan Amount:

Most lenders give out loans up to INR 20 lakh. Some lenders even give out loans up to INR 30 lakh. The final loan amount disbursed depends on the income earning capacity. If you have a higher salary, the chances of you getting a higher loan approved are higher.    

A  personal loan EMI calculator is helpful even when you have not decided the loan amount. The calculator will show the monthly payout, and a repayment schedule, bifurcating between interest paid and principal repaid. This can help you plan the loan.     

The rate of Interest: 

The rate of interest for unsecured loans ranges from 10% to 20% depending on the lender, and the repayment capacity. If you have a greater ability to service the loan, you can negotiate with the lender for a favourable interest rate.         

The personal loan calculator will show the change in EMI depending on the change in interest rate. This is helpful while finalising the loan.   The interest component in EMI is higher in the initial months, and at the end of the period, the principal element of EMI is higher.  

Gift card – who offers them and smartest ways to use it

Gifting something as per his/her taste is the most daunting task. No, seriously. If we do not find anything suitable, we zero down on offering cash. This scenario is prevalent, especially during weddings. Again, the question arises how much of money is enough money? Thanks to the invention of gift cards, a considerable pressure is eased off from our shoulders.

What is a gift card?

The rectangular card has prefilled amount that can used at single or multi-chain stores. A gift card is available for every product from movie tickets to branded shops to travel and so on. Also, you can buy either the physical or a digital variant of the card. You can buy gift card paying via net baking, credit/debit card and cash. It is recommended to purchase gift cards with longer validity and of smaller value so that they can be used in instalments. Gift cards are usually valid anywhere between 1 to 3 years.

Who offer gift cards?

1) Single retailer gift cards: Such cards are bought at a particular branded store. For example, Shoppers Stop offers either vouchers or physical card for certain amount that cannot be redeemed against all products. Retailers provide gift cards anywhere between INR 250 to INR 50,000.

2) E-commerce gift cards: These are highly popular and almost every e-commerce portal offer gift cards, either in digital or physical form. Myntra, Amazon give away cards for special occasions such as weddings, birthdays, anniversaries, etc. Even coupon websites like Grabon and Woohoo provide e-gift voucher that are purchased extensively. E-commerce website gives e-vouchers for the range of INR 10 to INR 20,000.


3) Bank gift cards: Banks such as HDFC Bank, ICICI, etc. have their set of gift cards. A bank gift card is prepaid that comes with a PIN. For acquiring the gift card, you need not be their customer. You have to load a minimum amount of INR 50 that extends up to INR 50,000. Just like credit/debit card, you can check the balance in the card. However, you cannot withdraw money. They come with a restriction: you can use the gift card only at Visa, and MasterCard enabled outlets.

Smart ways to use a gift card:

1) Spend sooner than later: What if the store shuts down due to uncalled circumstance? Or the retail shop is going under loss? It is advisable to use the gift card as soon as possible.

2) Can regift/resell the card: If you feel the gift card is of no use or there are stores around your area, you can get rid of it by reselling/regifting. Sites like cardpool.com and so on allow users to resell their gift cards online.


3) Do not overspend/underspend: Just because you have gift card that has balance of INR 30,000 does not mean you purchase items that hold no value to you on a day-to-day basis. Best way is to plan what you require and approach retail shops when they have promotions/sales running.

You do not have to go through the question ‘what kind of gift I present him/her?’ anymore. Go to any e-commerce website or retail shop or bank and buy gift cards for your near and dear ones today! 

Best taxi booking apps in Mumbai

Flapping your arms and calling for a taxi, it is a been there done that moment for all of us. Who knew we would reach a stage where cabs will arrive at our doorstep by reaching out to our pockets. Be it running late for work or being plain lazy; there is a taxi for every occasion. Taxi companies like Ola, Uber, have left Mumbai’s ‘kaali-peeli’ way behind in the game.

There are several taxi booking app that enables you to reach your destination in a jiffy. In fact, we are spoilt for choices. It has also become easier to make price comparisons especially with variants like pool (sharing cabs), on the go cab (solo travel), SUVs (family cab), etc. in the offering.

So, which are the apps to consider in order to book taxi online?

1) Meru: They have been the face of online cabs in India since 2007. One of the best features of Meru is their timely service. While people nowadays complaint of time management followed by taxis, Meru cabs arrive on time most of the time. It is sophisticated and safe, especially for those travelling in the night to/from airports.

2) Uber: They are considered to be direct rivals of the ‘kaali-peeli’ premier taxis. Uber is the most favoured taxi booking app for its range of services. If an affordable ride is what you are searching for, Uber Pool and UberX are accessible. Meanwhile, luxury car lovers can opt for Uber Black. 

3) Ola: User-friendly interface and instant communication are the USP of Ola. In fact, they are available at affordable rates, giving a stiff competition to Uber. What's more? Ola has also started providing Ola kaali-peeli and Ola auto-rickshaw services off late. And if you want to listen to your kind of music, there are radio and selected music on their mini TV. These are the primary reasons why the office goers consider Ola to be the most preferred taxi app.

4) Taxi for sure: They offer point to point travel services and are mostly found around the airports. Taxi for sure app is the ideal solution for in-city tour. It is available across metropolitan cities such as Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Pune, Indore, Chandigarh and so on.

5) Tab Cabs: There was a time when Meru and Tab Cabs owned the streets until Uber and Ola entered the fray. Be it bulk booking or regular ride; Tab Cab app is the one to go for.

There are currently 1.6 billion licensed cabs operating in India. In fact, even women cab drivers have started making their way onto the streets. Keeping in mind women’s safety, the ladies can book taxi online via Priyadarshini, Viira or Womencabs services.

5 points to remember before shopping grocery online

Gone are the days when people went to a vegetable/fruit seller and bought the best ones’ home. With the advent of technology, every and any product is available online. The user-friendly online grocery websites such as Big Basket, Grofers, Nature’s Basket or online portals such as Amazon offer groceries online and at competitive price rates.

You need not dread to visit the supermarket anymore. All the items such as fresh produce, frozen food, dairy products, pre-made gourmet meals and even eggs can be bought online. Consumers are finding online grocery shopping to be reliable and convenient.

However, there are some points to remember before making the payment on the go:

1) Safety first: Before you get started, find the best grocery store online. Security should be a priority on the list. Metropolitan cities have more options for purchasing products online. However, it is advisable to get reviews and opt for a reputable online grocery store. Always remember, you will be providing your payment details on these websites. As the saying goes, ‘looks can be deceptive.’ In this scenario, brand name can be deceptive.

2) Reliable customer service: One of the crucial aspects of online grocery shopping is the arrival of the products in excellent condition. For example if the item is damaged, ensure there is an appropriate customer care service available to address your grievances. This service is useful even if the products have not arrived or the order needs to be changed.

3) Fee structures: Online grocery websites have a different fee structure in place. Some allow you to make payment online, some follow cash on delivery policy, and some follow unlimited delivery for the set subscription period. Look out for these payment policies as they can save those extra money.

4) Coupons and codes: The primary reason people opt for the online mode is the comparison of prices and deals. While websites like Amazon and HDFC PayZapp runs offer every month, official sites provide deals periodically. Some of these stores have mobile applications as well. Grocery shopping app provides further discounts than the portals. Watch out for those deals before you start your shopping.

5) Crosscheck the order: Imagine a scenario where the delivery guy hands over your products. One of the iterm is missing out from the list. You blame the delivery guy for the mishap. And you realise you forgot to add that particular product in the cart at the time of shopping. To avoid such circumstances, always crosscheck your order, maybe twice or thrice.

Apart from the above steps, always remember to do online grocery shopping from a website that will deliver to your area. Shopping has never been so easy, right?

Top 4 DTH recharge portals

In a world of smart technology, everyone is opting for the online procedures. It is hassle-free, convenient and simple. Recharging mobile phones, DTH, paying utility bills are only a click away. It saves time and the effort of walking up all the way to your mobile store or electricity/gas connection office. 
With almost nil usage of cable networks nowadays, DTH networks have gained immense profit. To make life simpler, these networks associate themselves with online recharge portals such as Paytm, Freecharge, HDFC PayZapp, etc. to provide lucrative DTH recharge offers to the customers. 

Some of the frontrunners in the DTH recharge field are:

1) Paytm: It is one of the leading portals in India that enables users to recharge and pay bills instantly. Now, you can also make safe bank transactions via Paytm. It has coupons, deals running almost every day that are not available offline. For example, they have various dish tv recharge offers presently such as 100 per cent cashback up to INR 50 on bill payment for first-timers. They also have the ‘lakhpati’ offer for dish tv users where you can win up to INR 1 lakh on recharge or bill payments. The customer will receive INR 60 cashback on DTH, mobile postpaid and electricity.

2) FreeCharge: Another leading portal, FreeCharge, has several offers on DTH recharge such as INR 75 cashback if paid with UPI using code UPI75. They are offering 100 per cent cashback up to INR 75 for the first-time users. Meanwhile, Axis Bank users will receive INR 100 cash back on first transaction.

3) Mobikwik: By making use of Mobikwik’s secure digital wallet, you can avail several offers and discounts. From the plethora of offers on DTH recharge, Mobikwik users can choose any of the deal from their portal. They have a special cashback offer running through which the customers receive 10 per cent SuperCash by recharging for INR 100.

4) Indiancashback: One of the benefits of online recharge is comparing the deals and opting for the best one. Indiancashback.com allows you to do just that. Users can check for best offers on DTH recharge under one roof. They provide the best deals from Mobikwik, Paytm, FreeCharge, etc. to bail you out from confusion. The customers will be given promo codes to reduce your payment.

Stop wasting extra energy and money by standing on long queues. Just like we make optimum use of the sale for branded clothes, start using the DTH recharge offers online to save those extra expenses.