5 ways to organise and save more

Saving is an important habit to inculcate regardless of your earnings. If you cannot save money, you will end up broke at one point or another. However, if you do manage to save your hard-earned funds, you will be able to achieve all your dreams quite easily. If you are trying to save more, here is a look at some simple tricks that will help you in this endeavour.

1. Open savings account
Most people rely on their salary accounts, also known as current accounts, for all their banking needs. However, this is not a good idea. While the company you work for will likely open a current account in your name, you still want to maintain a savings account for conducting personal transactions and savings. With a savings account, you will be able to keep a track of every intricate expense of the month and stick to a budget.

2. Follow an airtight budget
Many people fail to meet their savings goal because they do not employ a good and strict budget. A monthly budget helps you keep a tab on your expenses and aid you to meet the monthly goal for savings. Furthermore, you can quickly identify useless expenses and stop spending money on such things. This bolsters your savings and makes it more organized.

3. Increase your income
One of the simplest means to save more is to earn more. While this may sound like a difficult prospect, investments and other avenues of side income should be explored if you are trying to save more. Just remember not to spend all of your extra earnings on books, clothes and jewellery and save a part of it for better things.

4. Make savings goals
Savings is generally easier if you have a goal to follow. For instance, you would be able to save more efficiently if your goal of saving is to fund your post-retirement life. Apart from the goal think of how much money, you would need for the same. This would greatly motivate you to save more and achieve your plans.

5. Do not use credit cards
Using credit cards can lead to huge debts, which in turn will increase your expenses and dwindle your savings. Credit cards allow you to spend money that you do not have in hand. Furthermore, greater interest rates will force you to pay huge bills. Therefore, make sure you use debit cards and cash so that you do not end up in debt.

Keep these pointers in mind to ensure that you achieve your saving goals. Furthermore, never rely on your current account and open a savings account immediately, if you have not opened one already.

What are savings accounts? Its types and benefits

Having a savings account has become a necessity in life. There is not a single bank, which does not offer such accounts. Due to the skyrocketing costs of goods and commodities these days, it has become more important to save money for future needs and emergencies. However, before you open a savings account you will need to have a clear idea about it.

What is a savings account?
A savings account is a type of account in which you deposit money with the intention of accumulating it and saving it for future purposes and needs. These types of accounts are interest-bearing deposit accounts by nature i.e. banks provide a considerable amount of interest.

What are the different types of savings accounts?
Prior to opening a savings account, it is imperative that you know how many types of account are there. This will help you decide which type is best suited for you and your requirements.

1. Salary based- Normally, big companies, who need to distribute multiple salaries every month opt for salary-based savings accounts. On the day of salary disbursal, the respective bank withdraws money from the company’s account and distributes it among the employees’ salary accounts. Keep in mind that there is no minimum balance requirement in such cases.

2. Minors and children- You can also open a savings account for your minor children in order to inculcate the habit of savings from a young age. The minor’s legal guardian or parents will operate these accounts until the child turns 10 years old. After this, the concerned minor can be responsible for the savings account. Additionally, when he/she turns 18 years old, the account will become a regular saving account with a minimum balance requirement.


3. Regular savings- A regular savings account is just used for storing money. When it comes to regular savings accounts, withdrawals are not that common as the money is deposited with the intention of saving rather spending.

4. Senior citizens- As the name suggests, these savings accounts are best suited for senior citizens with certain functions and benefits. A senior citizen savings account works just like a regular savings account, but with extra banking privileges and higher interest rates.


5. Women savings- Such a type of savings account is made solely for women to operate, offering benefits such as a waiver on demat account charges, low-interest loans, and discounts of specific purchases.

What are the benefits of a savings account?

The benefits of a savings account are as follows-
• Most of the banks these days offer a few attached benefits with savings accounts such as covers for death and personal accidents
• If you are able to maintain a minimum quarterly balance, then you will be eligible for discounts on locker rental facilities
• Savings accounts at any nationalized banks are very safe in nature
• If you open a savings account, then you will also earn a considerable amount of interest. You will earn more interest and save more money the fewer withdrawals you make.

A savings account can go a long way in helping you save a substantial amount of money, for future. In case, you come across any unforeseen emergencies you can easily fall back on your savings account to help you through it.

Gold loan V/s loan against property: which is better?

Unforeseen situations may arise at any moment in your life and it may put immense stress on your personal finances. If you are not careful, it may leave you in huge debts, which you would not be able to repay easily. The simplest way to avoid such stressful situations is to take secured loans, instead of unsecured ones. For instance, gold loans and loan against property are easier to handle for the borrower than unsecured loans, such as personal loans.

While picking between gold loans and loan against property, you need to determine the best one. Here are some factors that you need to consider in order to understand which of these two loans suits you better.

1. Collateral
Gold loans and loan against property are secured loans because you need to keep an asset as collateral for taking the loan. If you are unable to repay the money borrowed, the lender recovers the outstanding amount from the collateral that you keep with them. In the case of gold loans, the collateral is any gold items and jewellery that you possess. Similarly, in case of loan against property, you are required to use a property or house that you own as collateral for the sum borrowed.

2. Rate of interest
When you take a loan, the very first thing to consider is the rate of interest. For gold loans, the interest is fixed, while for a loan against property the rate can be either fixed or floating. A fixed interest rate is better since there is no risk of having to pay more due to the appreciating rate of interest.

3. Eligibility criteria
The next thing you have to determine is whether you qualify for a particular loan. For gold loans, there are hardly any requirements. If you own gold, you are eligible for such a loan against the said gold articles. On the other hand, lenders will want extensive documentation of age, income, property papers, stability and credit history, if you apply for a loan against property. Therefore, the procedure for gold loans is more convenient and fast. Furthermore, online gold loan application has made the procedure even simpler.

4. Repayment tenure
Repayment tenure refers to the duration that the lender allows for repayment of the loan. In the case of gold loans, this tenure is limited to just one year. However, for a loan against property, you can opt for repayment tenures of up to 20 years. Keep in mind that lower tenures will result in greater monthly instalments, and vice versa.

Keep these factors in mind before taking one of the loans. You need to consider your requirement and specific situation before taking a decision. However, gold loans are better if the amount is limited, while loan against property is recommended if you need a large chunk of money.

7 types of forms required to open a PPF account

Having a public provident fund account is one of the best things you can do for your finances. This is because it ensures that your hard-earned money is in safe hands and with full transparency. However, in order to open an account under the PPF scheme, it is important that you understand the different types of forms that come with it. Listed below are all the forms necessary for opening a PPF account.

• Account opening form- This type of form is used for opening a public provident fund account. You will have to state your name, residential address and the amount of the initial cheque for opening a PPF account. In case you are opening an account for the minor, you would have to state the relationship you share with the respective minor. Additionally, you will also have to provide a declaration that you do not have any other public provident fund account, except for the minor’s account.

• Contribution form- In this type of form, you will have to mention the account holder’s name, the PPF account number and the amount of money that is supposed to be credited. Additionally, you can use this form to pay late fines or fees, loan interest, and a loan you have obtained against the PPF account.


• Partial Withdrawal form- In order to make partial withdrawals, you will have to mention the respective account number and the amount of money that you are looking to withdraw. You will also have to state the number of years that have passed since the expiry of the year of opening an account under the PPF scheme. This is due to the fact that, you can only make partial withdrawals post 5 years of opening the account. If the account is for a minor, then you will have to provide a declaration of the amount and submit the passbook with the form.

• Loan form- If you wish to get a loan from the PPF account, then you will have to submit a PPF loan form. You will have to mention the loan amount and the PPF account number, and provide with undertaking that you will pay off the loan with interest within 3 years. Additionally, you will have to submit your PPF passbook with the PPF form.


• Change of nomination- Nomination forms are used generally for modification, cancellation or change in nomination. Make sure that you state your name and your nominee name, your PPF account number and the date of the original nomination in the cancellation form. Additionally, state your nominee’s date of birth, address and if the nominee is a minor. This is important because, if your nominee is a minor then, you will have to mention the address and the name of the person who will receive the minor’s amount, during his/her minority.

• Claim form- The claim form is used for making claims for the PPF account. If you are the nominee, then you will have to submit the succession certificate, letter of indemnity, letter of disclaimer on the affidavit, death certificate, PPF passbook and the affidavit along with the PPF form. You will also have to sign a receipt of acknowledgement and attach a revenue stamp of Re 1 to the form. In case, there are no nominees, then legal heirs can also claim the PPF amount.


• Extension form- An extension form is used to expand the amount of the PPF, once it has the attained maturity of 15 years. After you have submitted the form, you can continue contributing towards the account and earn interest on new contributions. The expansion is done once in 5 years, and in case you do not submit the form within a year of maturity, then you will be unable to make new contributions.

Once you have a clear picture regarding what you need to do for opening a PPF account, the whole process becomes a lot easier. Hence, make sure that you are well informed about all the aspects of the PPF forms.

4 tips before taking an education loan

Many people are unable to afford the best courses and education even though they may be good at studies. Lack of money is no reason to stop your education mid-way and this is precisely why banks offer educational loans to deserving candidates. Even though these loans are greatly useful, you should follow the tips mentioned below, if you want to enjoy a stress-free lending and repayment procedure.

1. Compare the different lenders
Each lender offers education loans of varying nature. Not only does the amount of loan differ, but also the interest charged and the duration of repayment may differ from one lender to the next. You need to compare the offers from the reputed banks and determine which one suits your situation and condition the best. This comparison will ensure that you do not end up with a loan that you cannot repay.

2. Borrow only as much as you need
The worst mistake you can make while taking an education loan is to borrow a hefty sum, even though you may not require as much for the course you are about to pursue. Keep in mind that higher loans will also result in higher monthly payments during the repayment period for the loan. Paying excessively high loans can be a burden and can prevent financial security. Therefore, try to borrow just the course fees and the accommodation costs (if you are planning to relocate for the course). For all other expenses try to rely on stipends and/or money you make through internships and part-time jobs.

3. Follow instructions precisely
Taking an education loan involves a lot of paperwork and submission of documents. If you are unsure about the things you would require, clarify with the bank. Follow the instructions relayed to you, if you want to ensure the entire process is smooth. Similarly, keep in mind when you would need to repay the money and make sure you pay the loan back in a timely fashion.

4. Check before signing loan papers
Do not blindly sign the educational loan papers presented by the bank. Instead, read the paper thoroughly, so that you are aware of all the terms and conditions related to the loan. Make sure that the bank sticks to the agreed upon stipulations before signing. If you spot any errors in the papers, make sure you bring it to the notice of the bank, so that they can issue fresh documents.
Education loans are useful and can help you achieve your dreams. However, keep these things in mind, so that the entire process of borrowing money is smooth

Prepaid credit cards: its function, benefits and types

Credit cards are very useful in some cases, especially during emergencies, when you require a large sum of money. Furthermore, in the absence of cash, credit cards are an effective way of handling transactions. However, if you own a credit card, it is very easy to go overboard with your expenditures and land up in huge debt to your bank. This is why prepaid credit cards have become so popular in recent times.

What are prepaid credit cards?

Unlike conventional credit cards, prepaid cards use the money that has been pre-loaded into them. On the other hand, in regular credit cards, the money you spent is actually borrowed from the bank. You need to repay this money to the bank within a stipulated time.  However, prepaid credit cards use your own money, so there is no risk of being debt-ridden.

Benefits of prepaid credit cards

• The biggest and most important benefit of prepaid credit cards is that there is no risk of debts, as you would be spending your own money and not the money lent by the bank.
• Prepaid cards are available to all irrespective of credit rating, income and age, all of which would be required to attain a normal credit card.
• Prepaid credit cards can be acquired through the online application. Furthermore, there is no hassle of paying bills and no stress of late payment penalties.
• Unlike conventional credit cards, prepaid credit cards allow you to set the spending limit for the card. Therefore, such a card guarantees that you would stick to the budget.
• Some prepaid credit cards can be used to withdraw money from ATMs, just like a debit card.

Types of prepaid credit cards

• Open looped prepaid cards
Most merchant outlets accept the most common type of prepaid card present in the market today, open looped prepaid cards. Furthermore, these cards can be used to withdraw cash from ATMs.

• Closed loop prepaid cards
Closed loop cards are those cards, which are accepted at limited vendors and merchants. For instance, gift cards are valid example closed-loop prepaid cards.

• Semi-open looped cards
Semi-open looped cards are those prepaid cards that work across vendors of a specific outlet or company. For instance, certain prepaid cards offered by your convenience stores will work across all outlets of the same organization.

• Reloadable cards
Most prepaid cards are reloadable; wherein you would have to load money once the preloaded sum is exhausted.

• Non-reloadable cards
These prepaid cards cannot be reloaded once the preloaded sum runs out. For instance, most gift cards fall under the category of non-reloadable cards.
Once you have all the information regarding prepaid credit cards, contact your bank to avail one and enjoy all benefits of a credit card, without facing the risks normally associated with credit cards.

International debit cards and top banks offering them

When you travel, you do so because you want to get away from all the chaos of daily life or maybe to relieve the workload. In order to ensure a problem-free trip, carrying a debit card is the best option. More so because carrying multiple wads of cash can be an inconvenient and risky affair. However, did you know that there are international debit cards designed especially for foreign trips? Read on to know more about that and which banks offer the best international debit cards.

What is an international debit card?

As the name suggests, an international debit card is used for making financial transactions outside the country, including cash withdrawals from ATMs. Almost all the major banks in India offer international debit cards.

Which banks offer international debit cards?

Listed below are some of the major banks that offer international debit cards, which you should

1. YES Bank (Silver and Gold)
YES Bank Gold Debit Card and World Debit Card do not ask for any extra charges if you buy fuel with your Yes Bank Debit Card. The daily shopping limit is Rs.75,000 in case of Gold Debit Cards and Rs.25,000 in case of Silver Debit Cards. However, keep in mind that your debit card must have the MasterCard logo. In case of transactions made with your debit card, you will get regular and immediate updates.

2. Axis Bank
The benefits of having an Axis Bank debit card are reward points program, fuel overcharge waivers and privileged access to the lounge. The daily cash withdrawal limit is Rs.2 lakhs and the online and retails shopping limit is Rs.6 lakhs, in case of Privee Debit card and Burgundy World Debit card. The different debit cards offered by the Axis Bank are Privee Debit card, Burgundy World Debit card, Priority Platinum Debit card, and Wealth Debit card.

3. ICICI Bank
You can withdraw money for up to Rs.15,000 per day with ICICI Bank debit cards. The ICICI Debit card can be used to carry out financial transactions on a global basis at Foreign ATMs. Any person having a Current account or a Savings account will be provided with a debit card. The retail and online cashless shopping limit is up to Rs.25,000.

4. HDFC Bank
With the EasyShop Platinum Debit card offered by HDFC bank, you will be eligible for a Free Accidental Cover up to Rs.10 lakhs and fuel overtaxes waivers. The cash withdrawal limit is Rs.1 lakh and the shopping limit is up to Rs.2.75 lakhs. Additionally, you will also get 1% cashback if you use your debit card.

With HDFC EasyShop Imperia Platinum Chip Debit card, your daily withdrawal limit and shopping limit will be Rs.1 lakh and Rs. 2.75 lakhs respectively, along with a fuel overtax waiver. You will also get 1% cashback up to Rs.750 monthly if you shop with the debit cards. The yearly fee for this debit card is Rs.750 with additional GST, which will be subtracted if you are a participant of the HDFC Bank Imperia Premium Banking Program.

Lastly, with HDFC EasyShop Titanium Royale Debit Card, you will be eligible or a Free Accidental Death Cover up to Rs.10 lakhs and you will also get 1% cash back if you shop with your debit card. The limit for daily withdrawal of cash will be Rs.75,000. Along with Fuel Overcharge waivers, you will also be eligible for accountability for damage/loss.

In order to ensure that you have a relaxing trip while travelling abroad, you must have an international debit card with yourself. This will make the financial aspect a lot easier and non-problematic for you.