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KEY FEATURES OF SENIOR CITIZEN FIXED DEPOSITS

Making investments is not restricted to age. Most people commit to saving funds and making returns on investments in their early work life to accumulate funds for their future milestones. However, it is never too late to invest for rainy days or fulfilment of desires. As senior citizens, there is an opportunity to make returns on savings by opening a senior citizen Fixed Deposit account. These Fixed deposits are especially for senior citizens who wish to park their excess money, where they can earn a sizable interest without risking the principal investment. A senior citizen FD is a great way to provide oneself with an additional source of income.

Senior Citizen Fixed deposits function just like a regular fixed deposit. However, the main difference is that banks offer special senior citizen fixed deposit interest rates which are higher, making them a highly lucrative investment option.  Here are a few key features and benefits of senior citizen FDs,

Lucrative interest rates – As mentioned above, banks offer special senior citizen fixed deposit interest rates to older patrons, ensuring guaranteed returns that can help them add a source of income. Senior Citizen Fixed Deposit Interest Rates is paid on the fixed deposits for a set term, which tends to be up to around 0.5% more than the regular FD rate per annum. Thus, the senior citizen fixed deposit interest rates range from 4.50% to 8% pa. Moreover, the interest earned is compounded and can be credited to an account or added to the maturity value of the FD. Thus, the interest earned can make life comfortable without cutting corner for older investors.

Safe and secure investment – Senior citizen FD are a low-risk investment similar to regular FDs. The principal amount is safe from many market fluctuations.

Periodic interest payment option – Many senior citizen FDs have the option of choosing either monthly, quarterly, half-yearly or yearly interest payouts. Thus, the FD interest rates for senior citizens can be an income to fund desires and live independent lives.

 Withdrawal and Loan options– The account can be closed at any time. Senior citizen fixed deposits allow the account holders to make a premature withdrawal. However, a penalty may be levied. Moreover, they also qualify for loan facility on the balance of the account as collateral, to fund travel and other emergency needs.

Nomination facilities – The holder of the senior citizen fixed deposit, can declare a person as nominee for their account for added security.

 Eligibility for Senior Citizen FD

Opening a senior citizen fixed deposit account is simple and can be done online for most reputable banks. However, to open a senior citizen fixed deposit applicant’s need to be a resident of India and above the age of 60 years at the time of opening the fixed deposit to qualify. The eligibility may vary from bank to bank and are subject to specific terms and conditions.

Documents required to Open a Senior Citizen FD

Eligible candidates need to submit, valid proof of age and residence, such as Passport, Aadhaar Card, PAN card along with a recent photograph to open a senior citizen FD. Accounts can be opened at bank branches or online with ease.

 There are multitude of benefits that can be gained from opening senior citizen fixed deposits. The lucrative fixed deposit rates for senior citizens is a great means of having a peaceful and secure life with steady earnings.

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Online Fixed Deposit Accounts – All You Need To Know

In today’s exorbitant society, a Fixed Deposit is a necessary personal investment. Most of the leading banks in India offer Fixed Deposit schemes that help conservative investors make a return on their deposit based on the Fixed Deposit interest rate offered. Thus, Fixed Deposits are a highly popular investment vehicle for people in India.  

Why open a Fixed Deposit Online?

Ease of Application and Maintenance:

Reputable Banks offer many Fixed Deposit schemes to choose amongst and owing to the variety one can be confused. Hence, having access to correct information on the same is vital. Thus, when opting to open a Fixed Deposit online, not only can an applicant gain all the information required to help clear their queries, compare products using a Fixed Deposit calculator, but also help busy individuals make an online application and maintain the Fixed Deposit remotely.

Simple Application Process:  These days, it is almost effortless to apply for a Fixed Deposit online, as many banks offer the facility to customers through ease to navigate websites. All one needs to do is fill out an online application form on the bank website and submit the relevant document to open the Fixed Deposit. After approval one can transfer fund using net banking, debit cards or cheques as per their convenience.

Additional Perks: Some banks offer customers who open Fixed Deposits online with many additional benefits, including loan facilities on balance in case of emergencies and insurance options.

What Types of Fixed Deposit Schemes To Avail Online?

Reputable banks offer customers the option of choosing amongst various types of Fixed Deposits online,

Simple Fixed Deposit:

In this type of Fixed Deposit Scheme, Fixed Deposit interest rates vary depending on the bank, but generally, the Fixed Deposits minimum tenure is five years.

Tax Saving Fixed Deposits:

As the name suggests, these types of Fixed Deposits help account holders gain maximum benefits on taxes under Section 80C. However, a Tax Saving Fixed Deposit is offered for only five years. Secondly, the interest earned on a Fixed Deposit account is taxable.

NRI Fixed Deposits:

A Type of Fixed Deposit scheme that can be opened by Non-Resident Indians and Persons of Indian Origin (PIOs) solely or jointly with Indian residents. The principal amount and interest earnings are completely repatriable. Moreover, the Fixed Deposit Interest income is exempted from income tax in this type of Fixed Deposit account. NRI applicants can choose a tenure from 1 to 5 years based on their needs.

There are many benefits of opting for the low-risk investment option that allows the investor to optimise their savings over a fixed period. However, it is best to compare the Fixed Deposit interest rates offered by various banks using a

Fixed Deposit calculator

to ensure the most benefit.

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Personal Banking: A Guide To The Various Products and Services

A highly generalised word, personal banking encapsulates most of the products and services that banks offer to individuals and families looking to meet their most fundamental financial needs.

Most banks in India offer personal banking services and products to the general public, with specialised services to cater to the needs of adults, retirees, students, children; who may be citizens, residents and non-residents.

Thus, personal banking in India, encompasses a wide variety of products and services, which includes,

·       Savings accounts – A common personal banking account which allows users to withdraw savings, transfer funds and make deposits. A savings account is offered by most banks in India to customers at a monthly fee. Savings accounts offer decent interest rates on the account balance adding to the savings account holder’s funds, making them popular in India. Holders of current and savings accounts can avail debit card products for ease of withdrawal and payment using the balance linked to the user’s savings account.

·       Fixed deposit accounts (FDs) – A Fixed deposit is a popular investment product with conservative investors. The funds in a fixed deposit are placed for a defined period of time, unlike savings accounts. Hence the interest rate earned by the account holder is relatively higher than a saving account.

·       Loans on Residential and Commercial properties – A substantial mortgage, banks offer  loans on residential and commercial properties as a personal banking finance option to borrowers. A secured loan, home loans and loan against property are prevalent loan options owing to their competitive interest rates and loan repayment tenure.

·       Car loans – Borrowers who wish to purchase new or used vehicles can opt for car loans offered by banks. One can choose to refinance existing car loans to benefit from lower car loan interest rates.

·       Credit cards – A highly handy finance option, credit cards are a greatly used personal banking product. The high-interest rates charged on most credit cards make it a lucrative source of interest income and fees for the issuing bank.

·       Forex Exchange and Remittance services – Owing to the rise in international remittance of funds, most banks offer both online and offline money transfer for clients. Customers can avail favourable exchange rates for global currencies at most bank branches.

Personal banking customers can also avail Wealth management and Private banking services through major banks in India. These are usually requirements of high-net-worth individuals when dealing with banks.

Thus, personal banking products include, savings and transaction services, such as Currnet and savings accounts, fixed deposit accounts, money transfer services, debit cards, in addition to debt facilities such as personal loans, property mortgages and credit cards for the ease and benefit for customers.  

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3 Steps To Apply For A Forex Card Online

Nowadays, travellers are increasingly opting for forex cards when travelling abroad for work or leisure. A forex card is a prepaid travel card that can be topped up with the foreign currency of the country of travel with ease. The popularity of Forex cards is much deserved, as they offer many advantages over cash and traveller's cheques when travelling abroad.

Forex cards can be swiped merely at check out like other credit or debit cards, without the fear of currency conversion fee on every use, which is common in credit cards. Moreover, forex cards are loaded with an amount in foreign currency at a fixed rate, ensuring no effect of the fluctuation of the currency rate on the same. Thus, travel forex cards are undoubtedly the best means to carry forex abroad.

Travellers can avail single or multicurrency forex cards by simply applying for the same online, adding to the availability and convenience.

How to apply for a forex card online?

Owing to the vast demand for forex cards, reputable banks have made the process of applying for a forex card online relatively hassle-free and straightforward. The application process for a forex debit card online can be done in a matter of minutes. No need to travel to a bank branch and complete the application process. Here is the stepwise procedure to apply for a forex card online,

Step 1: Simply visit the forex travel card application page on the chosen bank’s website and fill the application form for the same. If one is an existing bank customer, he or she may be required to enter their existing customer ID. Enter the type of card (single or multicurrency forex card), amount of forex, and other required details.  

Step 2: The application form will prompt for travel details such as Aadhar No, Passport, Visa, Pan Card, Airline tickets and more. This information will be required at the time of loading and purchasing the forex card online.

Step 3: The final step involves making the payment of the required calculated amount, which includes the cost of needed forex and forex card charges. Upon completing the forex card online application, savings account holders can settle the payment through their bank accounts or pay via a chosen credit card for the same.

Voila! It is as simple as that. The forex travel card will get delivered at one’s doorstep in three to five working days.

Hence, prepaid travel cards are gaining popularity owing to their many benefits and ease of access. The forex debit card application online has not only made the process of availing the prepaid travel card simple and hassle-free, but it has also given card seekers the option of comparing forex card charges and the forex rates to avail the most benefit.

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What You Need to Open a Current Account Online?

In today’s busy times, the facility to get bank work done online is invaluable. The impenetrable connectivity and widespread penetration of smart devices make it possible to achieve most banking tasks online. Giving customers the options of transferring funds, pay bills online, and much more, without physically visiting the bank, hence saving both time and effort. This facility saves busy individuals numerous trips to a bank branch to submit and sign forms.

Once considered a tedious task, customers can also open their current accounts online effortlessly. After opening a current account online offer businesses access to a range of banking services through their online current account, such as the ability to,

•  Deposit and withdraw cash

•  Pay bills online or through cheque

•  Remittance of money

•  Setting up purchase orders and direct debit facilities, amongst other services.

•  Competitive current account interest rates on trade services and on conversion of foreign currencies.

To those looking to apply for a current account online, here is a look at a few things that one requires to apply for a current account online.

Personal Details - To open a current account online one needs to provide personal information to the bank, which they will use to verify the applicant’s identity. To apply for a current account online, customers must fill the online personal information form available on the bank portal. The form usually contains Full Name, Age, Address, Type of current account, mobile number, Existing Customers ID (if any).

Documentation Required: Once the form is submitted, a representative from the bank will contact the applicant looking to apply for a current account online to send/upload documents to validate the form.  

To validate the information filled in the current account opening form, one needs to submit proof of personal information and address, such as,

1. Identity and Address proof for Owners & Authorised Signatories, such as Passport/ Driving license/ Permanent Account Number (PAN) Card / Voter’s Identity Card / Job card issued by NREGA duly signed by an officer of the State Government /Aadhaar Card (including eAadhaar Card) issued by Unique Identification Authority of India.

2.  Proof of address such as, Passport /Driving license/ Voter’s Identity Card / Job card issued by NREGA duly signed by an officer of the State Government /Aadhaar Card (including eAadhaar) or Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.

The documentation required for opening a current account online may vary as per financial institutions. Hence, one must check the bank website for more information.

Funding Detail -

Most banks often require a minimum balance to be maintained for businesses looking to apply for a current account online. To get your current account opened you may have to submit proof of the business ownership, revenue and other documents depending upon the bank requirements.

Once a customer provides the information above, some banks require an e-signature or physical signature on any legal agreements to start using the current account almost immediately.

The above information is required to apply for a current account online, which is a quick and easy way to gain access to banking services, without the hassle of visiting a bank branch.  

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Benefits of Availing Portfolio Management Services

Organisations and high net-worth individuals often look for investment opportunities to create wealth. However, with market risks related to investment in stocks and bonds, such investors require a systematic approach to investment portfolio management, to ensure they capitalise on the changes in the market. Managing a portfolio involves time and effort to ensure resources are allocated as per a carefully devised investment strategy.

What is Portfolio Management Scheme (PMS)?

Investment portfolio management schemes, also known as PMS, are dedicated investment vehicles for investments. An expert portfolio manager invests the funds of the client in shares and other securities and manages the created portfolio after scientifically analysing the pros and cons of the various options.

Organisations and high net worth individuals can add funds in investment portfolio management scheme, wherein an expert portfolio manager constructs, manages and revamps the portfolio as per the investment strategy to ensure the highest benefit from the market. The funds are managed by trained fund managers with experience and skills to maintain the funds smartly. An existing investment portfolio can also be transferred in a portfolio investment scheme to benefit from sound portfolio management services.

While competent portfolio management services come at a cost, the benefits of portfolio management services outweigh the costs. Here is a look at some of the benefits of opting for professional portfolio management services,

Professional Money Management –

Actively managing an investment portfolio requires skill sets and experience, to create and monitor the investment. On the other hand, Investment portfolio management service providers hire portfolio managers to manage the client’s investments. These teams follow the performance of various portfolio investment schemes and advice the client on the performance regularly.

Dedicated Fund Managers –

As mentioned above, the allocated funds in a portfolio are managed by experienced fund managers, who invest the money smartly and keep a constant eye on the investment. Moreover, the fund managers ensure the investors gain optimal tax advantages of owning stocks or other securities.

Hassle-free Control and Transparency –

Portfolio management service providers offer investors web access to their investments, which enables complete portfolio transparency. Thus, investors have direct access to the portfolio investment scheme to ensure control of the investment without the hassles of administrative effort, making PMS a hassle-free way of investing in the capital markets.

Risk Management and Mitigation

Risk management is a vital aspect of managing an investment portfolio, as it involves identification and mitigation of viable risks. Reputable portfolio management service providers have much experience with diverse investment portfolios. Thus, portfolio management professionals are equipped to identify the risks and offer investment solutions.

Thus, based on the above-mentioned factors availing investment portfolio management services is highly beneficial for investors who wish to make investments with reduced administrative effort.

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Features of A Recurring Deposit Account

A Recurring Deposit (RD) is a term deposit scheme offered by banks that ensure assured returns along with the flexibility of withdrawal. In this scheme, one deposits a fixed amount every month for a specific period and receives interest + principal when the period gets over. This younger cousin of fixed deposit is known to be highly popular among investors.

A recurring deposit account offers a host of advantages, and if one is looking for an investment product that is free from market risks and which also guarantees decent returns, then a recurring deposit account is an option worth considering. Here is a look at the features of the recurring deposit account that make it favourable along with the factors that should be checked before opening a recurring deposit account.

Features of a Recurring Deposit Account

Recurring Deposit Account is a term deposit scheme that offers a fixed interest on an invested sum at specific intervals till the end of the term of the plan, i.e. till maturity.  All reputable banks offer recurring deposit account schemes, but the recurring deposit interest rates differ from one bank to another.

Recurring deposit rates – Recurring deposit interest rates are almost equal to the rates offered by fixed deposit schemes. The current recurring deposit rates in the market are between 6-7.85%pa.

Withdrawal – Recurring deposit account holders are not allowed before maturity or in the middle of the deposit tenure, but the account can be closed before the end of the term, which may lead to a penalty.

Tenure – Tenure of deposit can be anything between six months to ten years, and the depositor can choose the period according to their needs and convenience.

Minimum Deposit – A minimum amount limitation exists in the RD scheme, but it differs from bank to bank. Also, the RD can be used as collateral to get a loan from the bank.

Important Factors to consider before opting for a Recurring deposit account -

Find the best recurring deposit rates - Before investing in an RD scheme, one should check out the recurring account interest rate offered by different lenders, as they are not uniform in every bank. One must note, medium-term recurring deposit rates are higher than short and long term recurring deposit rates.

Choose an appropriate tenure - The tenure of recurring deposit is also essential and must be chosen to yield the highest returns from the deposit. A typical tenure ranges from six months to one year (short term), one year to five years (medium term), and five years to ten years (long term).

Thus, a recurring deposit account is a beneficial scheme for people hoping to save regularly to inculcate good financial habits along with decent accrued savings.

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Points to Consider Before Opening A Savings Account

Savings accounts are a time-tested and trusted deposit scheme that has been the primary saving option for people for years. Every individual, irrespective of their income bracket, keeps their money in a savings account. For many, it is the primary account which they use for making payments and financial transactions.

Despite the savings account interest rate hovering in the modest range, they offer several benefits which attract more and more people to open savings accounts every day. However, before opening a savings account, one should be aware of several aspects to reap the most out of the scheme. Here is a look at the same,

1.         Check savings account features

One should look for a savings account scheme with depositor friendly features. For instance, it should offer convenient ways to access funds, such as, online access, ATM withdrawal, mobile access and more. One should also receive a fair savings account interest rate to add to their savings. Moreover, it should be easier to transfer money to other accounts through the savings account. One should ensure that there are sufficient ATMs of the bank, so that one does not have to withdraw from another bank ATMS at an additional cost.

2.         Savings account insurance

It is also important that the bank where one is opening a savings account are insured is to safeguard the money even if the bank fails. In India, the banks that are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC) offer insurance up to an amount of 1 lakh (including principal and interest).

3.         Savings account fee

Since the savings account interest is not very high, one must see to it that the account does not charge any additional fees or charges a nominal fee for operation. The minimum balance fee, maintenance fee, transaction fee, and more, should be figured out before opening the savings account, as ignoring the same could end up in a cost for the account holder.

4.         Savings account interest rate

Different banks offer different savings account interest rates. One should check out the savings account interest rate as they can add up to the amount in a significant way. As the balance increases, the savings account interest accumulation also grows and benefits the depositor.

These are the essential aspects of a savings account of which one needs to be mindful, to land up with the best savings account scheme for the most benefits and smooth financial operation.

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Must-follow Tips When Applying For A Loan against Property

During the course of life, one may face a grave need for financial backing, which may be intended for funding a business or personal desire. In such cases, a personal loan can be highly expensive and limited, owing to its unsecured nature. However, to aid such a need for finance, a loan against property is an ideal option.

A loan against property is a secured loan that is offered by banks and finance companies against a piece of land, residential, or commercial property. It is highly easy to avail a personal or business loan against property provided the applicant satisfies the loan against property eligibility criteria. Moreover, the loan against property interest rates are highly competitive as valuable collateral is pledged against the credit.

However, there are different personal and business loan against property schemes floating in the market. Thus, loan seeker has numerous options to choose amongst to find the best loan against property interest rates. However, the overwhelming loan against property offers and luring loan against property interest rates can confuse the loan seeker enticing him or her into picking a scheme that is less favourable. Thus, here are some helpful tips that can help one land the best loan against property deal for their need.

Opt for shorter tenure

Whether one chooses a home loan against property or business loan against property, it is in the loan seeker’s interest to opt for a shorter tenure. This is because a longer tenure means paying more interest which adds to the cost of the loan. The sooner one clears the loan the lower is the total amount payable to the lender. Even though, a loan against property offers a long tenure of up to a maximum of 15 years, one should choose a shorter loan tenure after carefully considering their repayment capacity.

Borrow the needed amount

While borrowing a home loan against property or business loan against property, one should be very careful when deciding the loan amount. One should not go overboard with the loan amount, irrespective of their loan against property eligibility, as it would be difficult to repay the same. The amount should be sufficient enough to finance the requirement, and it should be within one’s repayment capacity. If one does not carefully figure out an appropriate amount, he or she may end up borrowing greater than their repayment capacity, and consequently face the risk of default. A LAP loan default may result in the Bank or NBFC seizing the pledged collateral. Hence, a thumb rule to follow in this regard is that the LAP loan EMI should not be more than 60% of one’s monthly income/salary.

Opt for LAP to repay costlier loans

A loan against property can be availed at lower interest rates than personal loans, and thus, it is an excellent way to repay other debts that have higher EMIs. It makes for a smart idea and eases the finance load on the borrower.

Read the loan documents carefully

Many loan seekers find the fine print in loan documents to be tedious and difficult to understand and hence, avoid going through it. However, it is imperative to read the loan agreement as the terms & conditions are contained in the loan against property documents. Before signing any loan against property documents, one must read and evaluate all expenses and clauses to avoid hassles in the future.

A loan against property, undoubtedly, is a beneficial finance scheme to fund any immediate personal or business needs. However, one should be careful and follow the above tips to make the most of the loan against property.

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Four Must-know Benefits of Online Banking

Online banking or internet banking is increasingly being adopted by people owing to its many advantages. The rising penetration of the internet coupled with increasing smartphone users has aided the growth of online internet banking. The government’s “Digital India” initiative is also doing its bit in encouraging people to adopt internet banking services.

Today, almost all banks offer online banking services and also exhort their customers to embrace the trend. With online internet banking gaining momentum, here is a look at four benefits of using internet banking.

1. Online bill payment

One can use online banking to pay one’s utility bills such as electricity, water, and other types of payments. This saves time, money and energy. Moreover, one has to fill out the information about the beneficiary only once. During subsequent payments, users simply need to choose the profile to make a payment almost instantly.

2. View transaction history

Online banking lets the user see their previous transactions anytime and anywhere. This feature helps one use online banking services for financial planning by allowing users to keep an eye on the transactions made. Users can also check if a transaction has been cleared or is still pending and monitor their account to detect unauthorised transactions or catch errors quickly.

3. Quick money transfer

With internet banking, it has become straightforward to transfer money to another person’s bank account anytime anywhere. There is no need to go to the bank and stand in queues, as online banking allows instant money transfer from the comfort of home, work, or even on the move. However, one should ensure to have sufficient funds in one’s account and know the limit to the transfer before using the online banking service for money transfer.

4. Mobile banking

A part of personal internet banking, mobile banking allows user access to banking services on their smartphones. All one has to do is download the mobile banking app of the bank and use the many services right from one’s smartphone.

Thus, online banking services offers numerous advantages to its users making banking easier and efficient. Slowly yet surely, internet banking, is becoming a necessity in these digital times to make banking accessible and convenient for the masses.

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All You Need To Know About Home Loan Eligibility

Applying for a home loan requires wading through many home loan offers, which can be overwhelming for loan seekers. The fact that most lenders offer lucrative features and make big claims makes a choice even harder. However, before one starts comparing and picking loan offers, he or she must evaluate their housing loan eligibility, which may vary amongst lending institutions. It is essential to check one’s home loan eligibility to ensure a loan aspirant may attain a successful home loan in India.

Here is an insight into the different aspects of home loan eligibility and its calculation.

What is a home loan eligibility calculator?

With the advent of digitisation, one can calculate their home loan eligibility using a home loan calculator online. A home loan eligibility calculator is a free online tool available on most lender websites. Using the tool, a loan seeker can determine their eligibility for the home loan. Based on the amount one wants, his or her monthly income, expenditures, current debts and age, the calculator estimates the amount one is fit to borrow.

Importance of home loan eligibility calculation

The income of a person and their repayment capacity are significant in finding out whether one is eligible for the home loan or not. Using the home loan eligibility calculator, one can find his or her suitability for home loans in India. The calculator, considering the income and repayment capacity of the loan seeker, determines the home loan amount that one may borrow successfully.

This helps borrowers not only skim through loan offers but also get a clear overview of their affordability before selecting their home. Thus, by entering a set of required inputs, the calculator can help one not only figure out if the loan applicant is qualified to apply for a home loan of a particular lender but also figure out their financial capacity to buy the chosen property.

How does a home loan eligibility calculator work?

The eligibility calculator is very simple to use and user-friendly. All one needs to do is feed the necessary information that includes age, the city of residence, net monthly income, the preferred tenure of the home loan and the total amount of any EMIs one is paying at present, then click on the “check eligibility” option. The calculator performs the tedious mathematical calculations using the input and estimates the loan amount one can successfully apply as a home loan from the chosen lender. However, one should use the calculator from a credible site to ensure that the information they are receiving is error-free and correctly calculated.

A home loan seeker can find multiple housing loan offers with different home loan rates in India to find the best deal. However, one must note, home loan eligibility calculators are an indicative tool, that may give a fair idea of what one can afford. Thus offering a fair idea about an applicants affordability to ensure an informed choice