All you need to know about forex cards

Travelling has become part and parcel of everyone's life nowadays. Be it for business or leisure purpose; travelling is no more an arduous journey fraught with peril. While the travel category is keeping pace with technology and convenience, the way you pay your expenses overseas has also changed over time. Enter forex cards. 

What are forex cards?

Also known as prepaid cards, is slowly becoming a fad amongst the frequent travellers. A forex card is just like a debit/credit card that you can swipe and use at any merchant as well as ATMs abroad. These cards are loaded with multiple currencies that differ from bank to bank. It is a successor to travel currency cards. You can apply for a forex card online as well.

There are two different kinds of forex cards:

1) Single-currency forex card: You can only preload one particular currency in the card. You can reload the card as and when required.

2) Multi-currency forex card: You can preload the card with multiple currencies. There are different cards available under this category that banks, other institutions and travel agencies offer to the customers

Some of the forex card benefits are:

1) They are cheaper than exchanging currency. Even banks enjoy the perk of supplying a forex card as the customers receive better conversion rate

2) In this case, you need not share a great rapport with the bank. You can choose from an array of forex cards  as per your suitability

3) They are safer than carrying hard-cash. These cards come with  inbuilt pin and chip. Forex cards are also not connected with your bank account. So, it is a secured means of finance as well

4) One of the important forex card benefits is that if the card gets stolen, you can use the extra card given to you  by the bank via the kit. However, you first have to file a report of theft post which you can use the spare card  

5) Forex cards are universally accepted and recognised

6) You can block the card as you return from your trip. You can then unlock it when you travel to another country. This is done free of cost

7) You have dedicated customer care assistance in case of any query

When applying for forex card online or offline, you have to have the following documents handy:

1) Application form
2) Passport original as well as a copy
3) Visa copy (if you are travelling to many countries)
4) Copy of the air ticket
5) PAN card

A forex card is a boon for travellers who are looking for a fitting  and secure way of making payments abroad.

What is health insurance? 5 advantages of taking a health insurance policy

Today, we are constantly running to earn money, become a wealthy person and lead a fulfilled life. But in this rat-race, we ignore our health. This negligence takes a toll on our body and the next day we find ourselves in the hospital. With hospitalisation comes the tension of expenses. Thus, to avoid last-minute loan and borrowing money from near & dear ones, people are opting for a health insurance plan.

What is health insurance?

It is a policy that protects you from unforeseen medical costs that you or your family member may require. All insurance compani  es offer health insurance in Indi     a. They reimburse the medical expenses incurred by you when you fall ill. You also get repayment of the amount in case of surgeries, common diseases,   or anything that take you to the hospital.     
         
There are different types of health insurance plan available catering to various segments such as senior citizens, women,  minors, family, personal, and others. They are, however, dependent on factors such as age, amount, etc. The mandate for a health insurance scheme is usually 1 year. You can also buy a plan for 2 or 3 years, based on your requirement and budget.
 
What are the benefits of  health insurance in India?

1) Protection: The most significant advantage that you receive by taking up   health insurance in India is protection. Apart from safeguarding your body, it also pays your health debts and provides additional benefits like counselling, body check-ups, etc. These other coverages are  free of cost.     

2) Savings: Many times we have to use our savings and monthly salary to cover our hospitalisation costs. That becomes a burden on our home budget. If you seriously fall ill, the price may seem burdensome.   This is where a health insurance plan comes as a saviour. You will get complete treatment, without worry about the expenses.  

3) Monetary aid: At the time of emergencies, we generally look up to our family members and friends for some financial help.   But the insurance companies offer cashless treatment so that you or your family member get the attention on time. You do not have to wait until the cash accumulates to take care of the urgent situation.   

4) Top-up plans: These are like additional covers that you can use to settle the remaining hospital dues once your initial sum exhausts. To avail of the top-up schemes, you have to pay extra premiums. It is better to get them when you apply for your primary   health insurance plan.  

5) Critical illness: Some health insurance in India also provide coverage for dangerous diseases like cancer,     paralysis, kidney-disorder, diabetes and others. The insured is free from the stress of hefty costs. Again, these require you to pay extra premiums.
 
These are certain benefits that may guide you to opt for the right health insurance plan. Remember, do not compromise on your health.

8 unknown facts about NRO accounts

When you settle abroad, the question that arises is what you will do with the existing accounts? Usually, any savings account that you held in India would be ineffective as your foreign earnings cannot be stored in these accounts. So, how will you protect the  hard-earned cash that you have got in India and where will you save your upcoming income? The only option that you have is to opt for the non-resident Indian (NRI) accounts that the banks offer. 

These accounts are of two kinds:

1) Non-resident External (NRE) Account 
2) Non-Resident Ordinary (NRO) Account

What is an NRO account?

It is similar to a current or savings account. It is the best account to vouch for to save your incomes in India. You can either open an NRO savings account, NRO current account or an NRO recurring account. Some banks also offer debit cum ATM card for NRO accounts. The type of cash that you can keep in the NRO account are:

1) Rental costs
2) Investment interests
3) Pension
4) Dividends

The interest that you earn on an NRO account is  subject to tax. Unlike an NRE account, you cannot repatriate until a chartered account provides a certificate for the same. You can, however, open a joint account with an Indian or an NRI. You can open the account with an Indian resident only after submitting a letter of authority.

Some of the unknown facts and NRO account features are as follows:

1) The account follows only Indian currency policy.
The sole credit allowed in an NRO account are:  

- Rupees coming from a non-resident account
- Remittances in acceptable currency coming from outside India via regular banking   
- Valid dues of the account holder like rent, pension, interest, etc.

2) An NRI can withdraw cash from the NRO account. The amount should not exceed USD 1 million per annum. 
3) You cannot repatriate the balance in the NRO account without prior permission from Reserve Bank of India (RBI)
4) You can opt for the nomination policy under the NRO account
5) You or the third-party person are subject to loans by the banks against the fixed deposits. The terms and conditions may vary from bank to bank
6) Facilities such as net banking can be availed of for an NRO account
7) You have to maintain a minimum balance of INR 10,000 per annum in the account
8) You can get lower tax rate on this account by submitting the Tax Residency Certificate

You have to handle your finances well before leaving abroad for employment. It helps your family members to access the income during an emergency.

7 features and benefits of mobile payment apps

Since the demonetisation took place on November 8, 2016, there has been an increase in the usage of mobile payment app. Many apps have emerged as the biggest gainers during the demonetisation period. They have built a stylish interface, have made them more user-friendly, and are constantly updating their apps with new features. The mobile apps are adding over 1 million users each day after the demonetisation event.

But what makes these payment app unique and stand out from the traditional banking experience? Following are the benefits and features of using them:

1) Accessibility: A mobile payment app is really easy to use, for starters. All you have to do is go to your phone’s app store and download the desired e-wallet. You then have to create a user ID and password to login to the app. You can then transfer funds, pay utility bills or recharge your phone, on the move.

2) Moving of funds to bank account: Apps like Payzapp, allows you to transfer funds in 4 simple steps. You have to:
- Click on pay/send option
- Select the bank icon
- Enter the recipient’s account name, account number, IFSC code, amount and account type
- Your payment is made in just a click

3) Reloading cash: It is also easy to reload some money using the net banking, credit card and debit card. You can also store these details in your mobile payment app, which makes the process hassle-free for further use. You can also make a transaction instantly that way.

4) Split bill: Some payment app has the split the bill feature. You have to enter the amount, the reason and the phone numbers of the people with whom you will split the bill. A payment link will be sent to the number of people you have added, and they can pay it off through their app.

5) Flexibility: The best part about mobile payment apps is that you can recharge your DTH, mobile phone, broadband, buy air or bus tickets, etc. You can also use the apps at your Kirana shop for purchasing your day to day things. Indeed, mobile payment apps have come a long way.

6) Chat messenger: You can also chat with the customer care via your payment app. Some are also connected with WhatsApp and Facebook Messenger. That makes it easier for you to transfer money through your WhatsApp contact list. The format for it is: type ‘150FC’ to the concerned beneficiary’s number and INR 150 is transferred to the person.

7) Incentives: Another important benefit of a mobile payment app is that you can avail of the discounts and deals which the app runs on a regular basis. They also have cashback offers in association with some banks. Make optimum use of the promo codes.

With hosts of benefits and features, there is no second thought on why you should not have a payment app on your smartphone!

5 unknown facts about educational loan

Studying abroad is a dream of every child. Given a chance, they would love to go to their favourite university overseas. Scholarships and grades do come in handy in reducing the cost of the university fees. But what about the remaining amount?  Your savings would not help here, considering the value of the education has  increased manifolds over time. Educational loans can only bail you out from the scenario. 

What is an educational loan?

Educational loans are given to meritorious and deserving candidates, generally. They are offered by banks and non-banking financial companies (NBFCs). With the help of the loan, students can pursue their undergraduate, graduate, post-graduate, professional and doctoral courses efficiently. Unlike the personal loans, you can start repaying educational loans once you start earning.

If you want to take an  educational loan for abroad studies, you have to be aware of certain facts concerning the loan. They are:

1) Covers additional expenses: There is a common misconception that an educational loan takes care of only the tuition fees. False. An educational loan also manages your costs regarding accommodation, books, flight tickets and even day-to-day expenditure.    

2) Subsidised loans: In case your family's annual income is INR 4.5 lakh, then the government provides a subsidy.  The moment you start paying your equated monthly instalments (EMIs), the government pays the interest on your behalf. So, you only have to pay the actual loan amount. However, there are some points to remember in this situation:

- It is not an interest-free loan as the bank still earn the same amount of money

- The subsidy service is applicable for only students who wish to study in India

3) The overseas factor: If you have taken an educational loan for abroad studies, there are chances you will find a job and start earning in dollars in that country. This way your credit gets cheaper as  the depreciating value of Indian rupee will work in your favour. 

4) Tax-benefits for parents: Most of the educational loans come with tax benefits. As per the Section 80E of the Indian Constitution, you can earn a tax deduction  for a total equal to your interest amount. It lightens the load of your parents’ shoulder. Note that you can use this deduction only to pay off the interest and not the principal amount. 

5) No pre-payment charges: The best part about an educational loan is that no penalty is levied on pre-closing the loan amount. However, you can do so only after a stipulated period, i.e. after 6 months.

Now that you are aware of the benefits you earn from educational loans; the following are some points to keep in mind before applying for one: 
 
1) Always look for loans that have zero margin
2) Since you can apply for loans online, check the interest rate offered by other lenders
3) Look out for universities that are linked with certain lenders
4) Repay your educational loan after accessing your future earning capacity

A one-stop guide to the international travel insurance policy

Travel makes you live and enjoy your life to the fullest. Let us admit; travelling makes us happy. However, there is one hindrance. You or your family members may be at risk, especially when you travel abroad. Someone could meet with an injury or a deadly accident. You could lose your belongings. This could turn your dream holiday in a different country into a nightmare. You will have to take necessary measures against them. Therefore, there should be no second thoughts on getting travel insurance.

When you purchase travel insurance, you should be well-versed with its policies. This article explains every aspect in detail.
 
What are the eligibility criteria to get international travel insurance?

Whether you opt for an individual or a family floater plan, the following conditions should be fulfilled:

1) Senior citizens: Those who have completed 85 years, can insure themselves under this policy
2) Students: If you are an aspirant heading for further studies abroad, you should be 16 to 40 years to avail of student international travel insurance plan
3) Primary travel insurance  : If you are looking for business or family holiday, you should be 3 months to 60 years old to apply for a regular travel insurance plan
  
Agents, generally, offer you 3 types of travel insurance policies:

1) Student travel insurance: If you are heading overseas to pursue your studies, you subscribe to this plan. It will cover your accommodation and day-to-day purchases

2) Business travel insurance: All your business travel requirements will be covered under this scheme

3) Holiday travel insurance: This scheme protects you and your family from accidents, theft, etc.

What are the benefits of going for an international travel insurance  policy?

1) Cancellation: In case you have to cancel the trip due to certain circumstances, the insurance company pays the expenses incurred in planning the trip. The travel insurance company also bears the bills that were paid to  third-party company. 

2) Baggage loss: If you lose your baggage, the insurance company pays the entire amount. You also receive compensation if there is a delay  of baggage. You get an allowance to purchase essential stuff  as may have been mentioned in the insurance's terms and policies. 

3) Loss of travel papers: You have to keep your documents such as passport, etc. securely in the foreign land. You will fall in trouble if you lose them. In this case, the insurance company assist you by providing new travel documents.

4) Accident: If you face injury or death due to an accident, the insurance company will compensate for the same. Your nominee will get the financial benefit.

5) 24*7 assistance: You can reach your travel insurance company at any point of time  on their customer care number. The staff members will sort out your issues by either speaking the country’s language or help you with the local conditions. 

In a nutshell, an international travel insurance policy is affordable and comes with hosts of advantages. You can avoid losses and overcome your stress concerning finances by opting for the best insurance plan.

NEFT fund transfer – everything you need to know

There was a time when sending money from one account to the other was a tedious task.  Whether in the same or another city, you had to take the cheque with the desired amount and put it either in the drop box or get it done manually through a bank representative. And the movement of money took an eternity.  Fast forwarding to 2018, transfer of funds is just a matter of minutes.  All thanks to a money transfer system called – National Electronic Funds Transfer (NEFT).

What is NEFT?

It is an electronic system by which you can move money from your account to any other bank account in a safe and hassle-free manner. All NEFT transfer is done batch -wise. You can send money to any bank that is NEFT-enabled. Not just individuals, but also firms and corporates can move funds with the help of NEFT.

For using the NEFT system,  you have to enter specific beneficiary details:  
        
- IFSC code
- Payee name
- Beneficiary’s account number
- Bank branch

A step-by-step process of NEFT: 

The NEFT transfer is done only online. You have to follow the procedures:

1) Login to your net banking site using your customer ID and password
2) Click on the ‘transfers’ option on the homepage. You will find 3 choices here: transfer within the bank, transfer to other bank and transfer via card. Choose the desired option
3) Include all the deta ils mentioned  above of the  receiver. Post that you will get a one-time-password on your phone to confirm the beneficiary’s details   
4) Generally, it takes 24 hours to activate the recipient’s account
5) Select the NEFT mode and enter all the recipient information again inclusive of the amount and the reason for transferring cash
6) Confirm and submit. The recipient will receive the amount in 1-2 working days

What are the timings  for NEFT transactions?

All NEFT transfer is done on an hourly basis.  Usually, 6 and 8 batches operate on a weekly basis. However, they are done within a specific time: 8:00 AM to 7:00 PM (Monday to Friday) and     8:00 AM to 1:00 PM on Saturdays (except for the second and fourth Saturday of the month). This NEFT money does not get credited on bank and public holidays as well.  
    
What are the NEFT charges associated with the transaction?

If you are transferring an amount below INR 10,000, no charges apply  to the  sender. However, if it goes beyond the said amount, the following are the fees:
      
Note: These charges are subject to change

Transaction Amount
Amounts up to INR 10,000
NEFT Charges
INR 2.50 + Applicable GST

Transaction Amount
Amounts above INR 10,000 and up to
NEFT Charges
INR 1 lakh INR 5 + Applicable GST

Transaction Amount
Amounts above INR 1 lakh and up to
NEFT Charges
INR 2 lakh INR 15 + Applicable GST

Transaction Amount
Amounts above INR 2 lakh and up to
NEFT Charges
INR 5 lakh INR 25 + Applicable GST

Transaction Amount
Amounts above INR 5 lakh and up to
NEFT Charges
INR 10 lakh INR 25 + Applicable GST

To know more information about NEFT system, you can visit the Reserve Bank of India (RBI) website.