6 ways to get the best travel insurance

When you plan your trip, the things that you generally search for on the internet are about the ticket and hotel charges, places to visit, cuisines to try, etc. We do not care much about travel insurance. However, if you are a wise traveller, do not ignore the same, especially if you are travelling abroad. You should be spending as much time you spend on the nitty-gritty of your holiday. Depending on the travel agent is not enough. You should be aware of the aspects of the insurance as well.

1) Look for a scheme based on destination:  If you are visiting countries like Italy or the United States of America (USA) or United Kingdom (UK), the visa rates, the ticket prices , vary. Similarly, the international travel insurance plans also differ from place to place. The medical charges in each country are different. Some might be affordable while others can get expensive. 

2) Analyse the duration and tenure of the trip: Choose a plan based on the length of your travel.   The longer the travel t  erm,  the higher the premium. Some travel insurance companies require a minimum duration or may include your trip only to a specified period.   So, go for a plan based on the length of your travel.     


3) Go for group deals: Discounts lure the Indian customers every single time. And nothing gets better than travel deals, even if it is an insurance plan. If you are headed for a family trip, you can opt for the family international travel insurance schemes. You get them for affordable rates than the individual plan. This plan is also perfect for employees who head for corporate trips.

4) Pick a plan based on your itinerary: Suppose you are travelling to New Zealand, you are bound to try the adventurous activities in the country. Now, what if you require medical attention when attempting one of the adventure activities? The expenses are high in a country like New Zealand. You will need an appropriate travel insurance for the same.   Thus, when purchasing the insurance, keep your itinerary handy.   

5) Take your age and health into account: Say if a middle-aged man is travelling to Switzerland with an itinerary that includes attractions such as Jungfrau or excursion through the Swiss Alps, the insurance lender will ask for the patient’s past medical records. If the middle-aged man is a heart patient, you might not get travel insurance or may receive lesser coverage. Similarly, you have to mention the correct age as well. 

6) Evaluate the policy thoroughly: After examining the above points, remember to check the premium and policy features carefully.    Your travel insurance premium is based on the following factors:   

- The insured sum
- The plan you consider
- Add-ons on the scheme
- Your health and age
- Your travel duration
- Your travel destination
Once the lender calculates the above aspects, he offers you  plans with best premiums.

In a nutshell, ensure to buy the international travel insurance from a reputed and trusted company. With the perfect policy, you will be able to enjoy your trip thoroughly.

All you need to know about NEFT transfer

There was a time when sending money from one country to the other, was a  lengthy process. It used to take an eternity to move the money from your account.  Today, it is done by just a click. Cash reaches to your near and dear ones  in a few minutes or maximum few hours . Banks are offering three kinds of electronic fund transfer facilities such as RTGS, NEFT and IMPS. This article, however, concentrates on how NEFT functions?

1) What is NEFT?

National Electronic Fund Transfers (NEFT) is used nation-wide that allows individuals, firms and corporates to transfer funds electronically from one bank branch to the other.  Remember, the transfer is permitted only within the country.

2) Are all banks part of the NEFT network?

Not all branches of the banks are part of the NEFT funds transfer network. To  use NEFT, you have to check which banks offer these services. 

3) Who can use NEFT transfer?

Any individual, corporate or firms having accounts with their bank can use the NEFT system. Individuals who do not have an account with the concerned NEFT-enabled bank can also transfer the amount. Such people are given a separate code in the NEFT system. Thus, without the need for a bank account, you can move cash swiftly.  
    
4) Who can receive funds through NEFT?

If the person, organisation or corporate office has a NEFT-enabled bank account, they received the cash. You can also transfer money to Nepal under the Indo-Nepal Remittance Facility Scheme. You can transfer the funds from any   NEFT bank branch regardless of the receiver holding a NEFT account.  
 
5) Is there a limitation on the amount?

One of the important  advantages of using NEFT is that there is no limitation of funds. However, those who do not have a NEFT-enabled bank account, as well as those remitting funds under the Indo-Nepal Remittance Facility Scheme,  have certain limitations.  

6) What are the timings for NEFT transfer?

NEFT functions on an hourly basis. There are around 12 settlements that begin from 8 AM to 7 PM on weekdays. On Saturdays, there are six settlements between 8 AM to 1 PM.

7) What does the NEFT system function?

Follow the simple steps to transfer money instantly to your near and dear ones:

1) Procure all the details of the receiver before transferring the funds such as name, account number, account type and Indian Financial System Code (IFSC)

2) Log in to your net banking using your customer ID and password

3) You will find many options on the screen such as ‘transfer within the bank’, ‘transfer via card pay’, etc.

4) Select one of the options and add the beneficiary’s details

5) Once you add the beneficiary's features, two more options appear on your screen:    ‘add beneficiary within the bank’ and ‘add beneficiary of another bank.’  

6) If your friend/family member is of the bank account, go for option one. Else, opt for the second one

7) The activation process takes few minutes or 24 hours. It varies from bank to bank

8) Once the activation process completes, you will receive an SMS

9) You can now send money with ease by merely adding the amount  and confirm
  
10) NEFT transaction charges are minimal. It mostly depends on the money  being transferred

Car loan EMI calculator – all you need to know

After the cycling era came the two-wheeler era. Almost every  middle-class individual owns a two-wheeler, be it a scooter or a bike. As the world is continuously progressing towards a modern lifestyle, there is a need for a four-wheeler.   That has led to the demand for car loans.  Car loans act as the best ally for those who do not have enough monetary resources. It also comes handy for those individuals who do not wish to invest their entire money in one go.   
 
When you decide to go for an auto loan, you can select the best investment through the car loan EMI calculator. This tool enables you to make a choice that is suitable for your needs. It assists you in planning your EMIs and works smoothly. You can find this tool on all the banks’ portals as well as on third-party loan websites. 

What are the advantages of an auto loan EMI calculator?   

1) An EMI calculator allows you to calculate your monthly instalments well in advance. It will guide on which scheme matches your affordability

2) It gives a comprehensive view of your loan repayment

3) It gives you a thorough understanding if you are eligible to get a car loan or no

What are some of the essential features of a   car loan EMI calculator?

1) Once you add all the details, the EMI provides all the information immediately. In case you want to compare various loans, you can make multiple entries

2) There are no chances of errors. You receive the exact value, and hence, it is completely reliable

3) You can do comparative analysis promptly as the auto loan EMI calculator allows you to calculate multiple times with different amount

4) You can also gauge the prepayment factor with the help of the EMI calculator. You have to provide the prepayment amount along with prepayment charges

5) You can calculate with as many variations as you wish in the EMI calculator tool

How does the car loan EMI calculator function?

The EMI calculator is based on three determinants:

1) Principal amount: It is the primary parameter. The amount plays a crucial role as this can make or break your EMI calculation
 
2) Tenure: The tenure of the loan also plays a vital role. The longer the mandate , the lesser the monthly instalments. However, the interest to be paid will increase if the time-frame is longer. Thus, go for a balanced scheme

3) Interest rate: Banks and financial institutes offer a different  interest rate on car loans. Based on the interest rate, you should use the auto loan EMI calculator to decide on your monthly instalments. If the interest rate rises, EMI will increase as well   
Now that you know every bit of car loan EMI calculator go to your bank’s website and choose the right plan.

What type of bank accounts can NRIs invest in?

Being an NRI has its plus points and drawbacks. While you do get to pursue your dreams and aspirations, you also have to ensure your family members are safe and sound not just physically but also financially. Indian banks have a plethora of investment options to offer  the non-resident Indians (NRIs) such as different bank accounts, investments in the forms of securities and debts, and investments in immovable properties like real estate.

Bank accounts are generally the safest options as you can either open them individually or in joint form. The types of accounts that NRIs can operate are NRE account, NRO account and FCNR account.

Let us learn in detail about each account:

1) NRE accounts: You can save money in rupees on this account.  You can also freely move your asset from a foreign  country to your home country through NRE accounts. They can be in the form of savings, current, recurring or fixed deposits. Since it is a rupee dominated account, you have to change your foreign currency to rupees before depositing. Also, whenever you wish to transfer the funds to your overseas account, you have to convert them to the respective country currency.

Some of the critical features of an  NRE account are: 
- You can freely move your NRE balances
- The balance held, and interest earned through NRE accounts are tax-free
- You can withdraw deposits prematurely from NRE accounts
- NRE accounts can be operated through power of attorney, although for a limited period, for the purpose of withdrawal and remittance

2) NRO accounts: This is also a rupee dominated account. You can invest in such accounts if you receive income in India such as rent, dividend, commission, etc. Such revenue cannot be deposited in   an NRE account. Unlike the NRE accounts, the interest earned through NRO account is taxable. Any NRI or Person of Indian Origin (POI) can open the NRO account barring people from countries like Nepal and Bhutan.  

3) FCNR account: The Foreign Currency Non-Resident (FCNR) account allows only foreign currency. It is similar to a fixed deposit on which interest is paid. You can open a joint FCNR account with other NRIs as well as with Indian residents. One of the significant   advantages of opening an FCNR account is that they do not have to bother about currency fluctuations. Moreover, the interest earned via FCNR account is exempted from tax. You can deposit the following currencies in the account:  

- US dollar
- Australia dollar
- British pound
- Euro
- Japanese Yen
- Canadian dollar
Some other investments options for NRIs include shares and real estates. Make a wise decision and be rooted in your country in a hassle-free manner. 

5 reasons why you should close surplus bank accounts

We tend to open different types of bank accounts for various reasons. It could be because you want to maintain your salary, savings, investments, etc. separately. There could also be an account for the various jobs you have done.  If you have worked in other cities, there are chances you have your accounts in those places as well. The question here is, ca n you keep track of these accounts?  Are they even useful?   

Often, we tend to forget to close these surplus accounts. This is a matter of concern. In the post-demonetisation era, it is necessary to close the bank account that does not serve any financial purpose in your life.  

Following are the reasons why you should close your surplus accounts right away:

1) Monthly balance: Every bank requires you to maintain a certain amount of balance in your savings account  on a monthly basis. In rural areas, the limit is around INR 5,000- INR 10,000. However, the limit is higher in urban areas, i.e. INR 20,000 per account. This can lead to financial stress. Even public banks have imposed monthly balance limit off late. If you have zero balance in your salary account, it will turn into a savings account. The transition takes place within three to six months.  Remember, banks can also charge a penalty for  non-maintenance of the bank account. 

2) Low interest: In continuation of the above point, handling several types of bank accounts could lead to you earning less interest. You can instead generate higher returns through mutual funds, fixed deposits, etc. To  avoid lower interest, you need to close your old accounts and turn the money in them into investments. 

3) Mis-usage of accounts: Before the fraudsters find a way to siphon funds from your account, you should shut the old accounts. People with multiple accounts usually do not pay attention to them regularly. And if any of the accounts have lump-sum money, it could turn into a loss for you.  

4) Tax filing confusion: Managing too many bank accounts could complicate your Income Tax Return filing  process. It is a task for the tax filer to go through all the bank account statements. If the tax filer finds issues with any of your accounts that even you are not aware of, it could lead you to trouble.  So, minimise your accounts. 

5) Impact on services: If you have not used your bank account for more than 12 months, they are deemed as inactive. And if it crosses beyond 12 months, then it turns into a dormant account. If your account becomes inactive, you cannot conduct any service with that concerned bank   such as ordering chequebooks, making any transactions, etc.
   
So, simplify your financial handlings and have a consolidated bank account in place.

5 factors you must consider before applying for a car loan

Owning a car is a major life goal for many of us. Most of us, aspire to gift ourselves a car when we start earning. Driving a car is one of the first steps we take as we enter adulthood. The best part is that buying a car today is easier than it has ever been. Car loans are processed by banks and non-banking finance companies (NBFCs) in a matter of minutes. With a few documents, a simple EMI plan and a low rate of interest, you can bring home your dream car. But before you apply for the loan, here are a few factors you must consider.

Compare the loan rates across all lenders: Depending upon the make and model of the 4 wheeler of your choosing, the interest rate on auto loans begin at 8.7% per annum. It also depends on your repayment capacity and the organization you are employed with. You should first begin by checking the interest rates offered by your existing bank since there is a high chance that as bank customers you could get special offers on the loan. You can also check with NBFC’s and dealer finance companies and then choose your lender.

Check if the EMI is affordable: Apart from the interest rate charges on the loan, your EMI depends on the loan amount and the tenure. You must check the EMI you can afford by deducting the necessary monthly expenses, insurance premiums, SIP contributions and other existing EMIs, if any. A higher EMI certainly lead to lower rate of interest charges, however it should not cost you your emergency funds or take a dip in other investments.

Consider a low loan amount: You will find many lenders who are willing to finance 100% of the car’s cost; it makes more financial sense to opt for a lower auto loan amount, if you wish to pay low interest rates. It is a good practice to first plan and come up with funds for down-payment before booking your car, but you must refrain from using your emergency fund to obtain the down-payment.

Opt for shorter tenures: Most lenders are willing to offer car loans for as many as seven years but that may not necessarily be in your best interest. Opting for a shorter tenure on the loan reduces you interest cost. While that is ideal, you should note that short tenures leads to higher EMIs so you must ensure that the loan tenure doesn’t affect your overall liquidity.

Read the fine print about processing fees: Lenders charge processing fees to cover the costs incurred when they evaluate your loan application. Opting for car finance during festive seasons is a good idea since a majority of lenders either reduce or completely waive off the processing fees. But you must check that they are not charging higher interest rate to make up for the loss incurred from reducing or waiving off the fees.

The differences between NEFT and RTGS Payments that you need to know

Internet banking is a blessing. It has brought with it, a world of convenience when it comes to conducting everyday banking transactions, from transferring and receiving funds to paying bills online. These funds can be transferred by using simple and effective payment systems like RTGS (real time gross settlement), NEFT (national electronic fund transfer) and IMPS (Immediate Payment Service).The Reserve Bank of India maintains all these systems, which are applicable for transferring money to any corner of the country. Here are some differences between NEFT and RTGS payment solutions that you should know.

Time taken to transfer funds: As the name suggests, under the RTGS system, funds are transferred on a real time basis i.e. at the time a transfer request is received. RTGS is one of the fastest modes of money transfer available through Indian banking channels, with the beneficiary receiving the fund credit within just 30 minutes. NEFT on the other hand, is also a swift mode of fund transfer but it operates on a deferred settlement basis and fund transfers are settled in batches in hourly slots, not in real time.

The need for a bank account: Both NEFT and RTGS transfer systems can be availed by customers who have a current or a savings bank account. While individuals who do not have a bank account cannot avail RTGS services, they can still deposit cash at bank branches that are NEFT-enabled. Note that such NEFT remittances are restricted to a maximum of ₹50,000 per transaction.

The minimum transaction amount: While there is no minimum amount of funds that can be sent using the NEFT payment solution, the RTGS facility is basically meant for transactions of larger values. As such, retail customers must remit a minimum of ₹2 lakhs on every RTGS transaction. Since RTGS was specially designed for large payments to and for businesses, transactions below ₹2 lakhs are not permitted.

The charges: On an average, you will be charged a small amount of ₹25, excluding the service tax on every transaction done via NEFT. However, for an RTGS transfer, you must pay approximately ₹55 with an additional service charge. Customers who use internet banking services for both NEFT and RTGS are typically charges a lower fee as compared to those individuals who carry out the NEFT transaction through the bank branches.

Option for stop payment: Both RTGS and NEFT payment solutions do not offer the option for stop payment instructions. Since the transactions in RTGS payment solutions happen on a real time basis and the settlement of funds takes place immediately in the books of the RBI, the payments made are considered irrevocable and final. While NEFT transfers are made in hourly slots, there is still no facility for the sender to giving any instructions to stop the payment, if the transaction has already been initiated by the bank.