Cash or Forex cards: what should travellers consider?

While travelling abroad, one constant worry that people have is how much money to carry with them. Since you cannot withdraw money as and when you need while holidaying abroad, it is important to convert enough money to last for the duration of the trip. This can be difficult to comprehend, which is why forex cards have become so popular among tourists.

What are forex cards?

Forex cards are similar to debit cards, where you need to load funds so that you can withdraw the same money later. However, in the case of forex cards, the money you load on the card is converted into the local currency of the country you visit. Therefore, you do not need to carry cash with you on the travel. You can use the forex card at an ATM in any foreign country to get local currency.

Benefits of using forex cards

Now that you know what forex cards are, here is a look at the benefits of using them on your foreign trip.

1. Accepted widely
Forex cards are not only useful in hotels and restaurants but are convenient to use for the payment for transportation as well. Furthermore, if you are planning to travel to just one country, you can opt for a single destination currency card.

2. Safe to carry
Carrying cash over long distances is always risky. Due to theft or loss, you may lose a large portion of the money you are carrying. Not only does it lead to financial liability, but can also interfere with your plans for the trip. However, when you use a forex card, the risk of theft or loss of the money is restricted.

3. Cheaper than a credit card
If you use a debit or credit card issued in India for transacting in foreign countries, you would have to pay an additional 3-5% of the fee on the transaction. Most Indian banks levy this currency conversion markup for all foreign transactions. With a forex cards, you can avoid this additional expense.

4. Cheaper than buying foreign currency
Due to logistics and other intricate reasons buying converted currency is always more expensive than getting the same fund through forex cards. Even though the difference in prices between the two is limited, you should always prefer the least expensive option.

Keep these benefits in mind while planning a foreign trip, so that you opt for a forex card instead of relying on cash.

Things to consider before buying a health insurance policy

Living in 2018, you must have heard and come across the term ‘health insurance’ very often. This is because everyone recognizes the importance and necessity of having a health insurance policy. That is why they are choosing to invest their hard-earned money in these plans. However, before you also do the same, make sure that you consider the following factors-

1. Claims process- Before you buy a health insurance policy, make sure that you know how the claims process works. The claim process must be swift and easy to deal with, for ensuring that you get your money as soon as possible. Additionally, the claim settlement ratio of the chosen insurance company must be impressive; otherwise, you may have to face a lot of hassle to get your claim settled.

2. Sum insured- The most important part of buying a health insurance policy is to decide the sum insured amount. While selecting this amount consider your age, current medical condition, and medical history, and go for an amount accordingly. The younger and fitter you are lower will be your sum insured. Another component that you should consider is your current monthly income so that you select a sum insured that will be easily affordable.


3. Lifetime renewability- As you grow older, you tend to become more vulnerable to medical complications and ailments. It is during this time, that you will need medical and financial coverage more than ever. Hence, when you are scouting for a health insurance policy, look for one with the lifetime renewability option.

4. Waiting period- Almost all the insurance providers these days impose a waiting period for pre-existing diseases, which normally range from 2 years to 5 years. However, this varies from one insurer to insurer. If you purchase a health insurance policy when you are young, there are considerably fewer chances of you filing for a claim, and you will be able to clear the waiting period in no time.


5. Maternity benefits- Insurance providers have understood the importance of including maternity benefits in health insurance policies due to the increasing medical expenses during pregnancy and after childbirth. Before you finalize a policy, consider the sub-limits and the waiting period for claiming maternity benefits. The policy must also provide coverage for outpatient expenses.

6. Network hospitals- When you are going through several health insurance policies check the list of network hospitals. Network hospitals are those hospitals where you can avail cashless hospitalization and treatment. You will just have to show your health e-card at the hospital desk and your insurance provider will pay for the expenses directly. You will not have to pay a single dime.

Even though health insurance is necessary for ensuring stability, you must do proper research before buying one. If you end up buying a policy in a hurry and without checking it first, then you will be wasting your hard-earned money.

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