Cheque Truncation System (CTS) - 2010, New Cheque System to make transactions easy

Cheques play an important role in banking transactions. Not only from being treated as an alternative to cash, cheques are used as instruments of guarantee to the loan taken and other similar multifarious functions. With such noticeable functions cheques perform, they are also prone to large scale frauds. Not only to curtail these frauds, but also to get instant cash, new cheques system CTS 2010 came into existence from 1^st January 2013.

Revised Interest Rates on Savings Schemes and Fixed Deposits

Small investments occupy special importance in personal financial planning. Confidence in their security and guarantee in the returns on the investments is the main reason for it. Some investments may be for getting income tax exemption. Many people like to invest in Public Provident Fund (PPF) and National Savings Certificates (NSC). Over a period of time, they encourage for long term savings in future.

However … from now on, the return gets reduced to some extent. From the next financial year i.e., from April 1, 2013, there are slight changes in the interest rates in these schemes. Basing on Shyamala – Gopinath Committee recommendations, the interest rates on these schemes will be periodically reviewed and changed according to the changes in the interest rates in the market. The rate of interest will be announced at the beginning of the financial year.

Details of Changes in Interest Rates from 1^st April, 2013

How to Make Long Term Investments to Lead a Secure Life?

Long term investments in share market show rewarding results; they help to fulfill the set goals. To achieve them, what are we to do? Design appropriate plans to accomplish them.

How much money we need to have by the time you retire to lead a peaceful and unencumbered retired life?  A residential home, children’s education, their marriages – for fulfilling these tasks how much time you can wait? In the process of achieving them, are you prepared to bear the risk of loss?  What is the percentage of investments in your gross savings, in Mutual Funds, Fixed Deposits, Bonds and fixed assets?  These are the questions generally an investor faces and put him in a fix. To get proper answers to them, one should have precision in understanding, which in turn helps to get good returns in long term investments. 

Warren Buffet - Principles that Made Him Top Stock Market Investor

Warren Buffet – the Grand Master in Share Market

Warren Buffet is at the top-end of the list of the richest persons in the entire world. He is a role model to Stock Market investors. To scale such heights, what could be his strategies to become a successful investor? What principles he followed? Let us get to know about them.

It is impossible to predict the wavering trends of stock markets. Warren Buffet is the person, who has practically proved that priceless treasures of prosperity are hidden in the wavy trends of Stock Markets and that enough if one knows the tricks to extract them.Every word comes from out his mouth is a path finder to the investors. Know the plans he followed…follow at least some of them…you will be transformed into a successful investor!

Stock Market Down Trend - How to keep your losses low and profits high?

Stock Market…

Presently, Stock Market is facing severe ebb and flow in its index. Caution is not the only way out; investors have to know what to do to safeguard their invested money, study the trends to know the risk of incurring possible loses and learn how to face and withstand them.

Returns from investments in high security schemes will naturally be less. High risk coupled with high return schemes doesn’t guarantee security. Therefore, investors, who are prepared to accept losses, can expect to get more than normal profits. For example, there will be security to the investment and the income from it in fixed deposits. Income from it will be just around 9%. If it is invested in the Stock Market, there is the possibility to get higher amount of income from it and at the same time, the risk of losing a part or whole of the investment cannot be ruled out. However, it is not that difficult for investors, who keenly observe and understand the share market movements and effectively face the odd ones, to get good returns on their investments.

Stock Market - How to choose a Brokerage House to open an Online Trading Account

Online Trading – wisely open a Demat Account

Stock market Trading is quite easy nowadays compared to earlier times. Allotting time to go to the broker, handing over a cheque to him…in case of need, again going to him for getting cheque… for trading in shares, ring up and wait – these are the routine tasks for people dealing with share market these are the things of past. To avoid such teasing moments, there is a way out and it is Online Trading. More and more people are availing this online trading facility in Stock Market.

Brand New Schemes for Tax Exemption

Reliance ETF for tax saving!

Reliance Mutual Fund has released a new scheme R*Shares CNX 100. Investments made in this scheme get tax exemption under Section 80 CCG (Rajiv Gandhi Equity Scheme) of Income Tax Act. This is an open-ended index exchange traded fund. The lock-in period in this scheme is 3 years. This fund will be invested in nearly 100 companies spread over around 38 different segments and therefore, it is a perfect diversified investment.

Types of Mutual Funds and How to Choose a Suitable Fund to Invest?

Choosing Funds is challenging!

For those, who do not have any knowledge about direct investment in share market, investment in Mutual Funds is quite comfortable for them. With a view to penetrate into rural areas, recently SEBI has facilitated the Fund Management companies with some concessions. In this background, it would become easy for us to know about the available types of Funds, Funds that suit our requirements and then to choose the best of them.

Is it better to invest in Gold and Silver?

Red-hot Gold prices – equally blazing Silver

Widespread speculation for further acceleration of this trend in future too.

Then what to do – will it be wise to invest in silver and gold?

Be bullish or bearish or stay neutral – in a fix!

Talk making rounds that gold and silver price may touch double their current prices within the next 2 or 3 years. It is making common man to spend sleepless nights. For people, who wish to buy gold and silver as a hedge against inflation for future needs are in a deep dilemma?  Such people have to think twice and take a sensible decision before they go in for investing in these precious metals. Most important of all is that the present state of economy is to be studied; otherwise no right decision can be taken.

Type of Insurance Policies NRIs should buy to secure his family future

Do you have plans to go abroad?

Before you go, make sure to have a plan to provide for your financial stability by the time you return to your country. How to make investments here to achieve your goal? What precautions are needed to be taken? Did you plan to provide for financial protection to your near and dear, who depend upon you?

It is natural aspiration for people to go to developed countries, secure a job there and make good earnings.  Nowadays, it has become a routine for Indians to go and do jobs in foreign countries. With the standard of expertise and commitment, Indians are the most sought after in the entire world. But the million-dollar question is that how long can we stay with our job there? It is very difficult to predict the timing and which country would sink into which type of economic depression. At the same time the growth rate in India is stable with 6 to 7% per annum. In this background, people getting employment opportunities in foreign countries should so plan to get a good yield by the time they return, simultaneously taking care to see the dependent parents are economically supported. Our Bank deposits give higher returns than foreign Banks offer, which is the main attraction for our NRIs to invest in fixed deposits in our country.

How much Insurance you should buy to live a relaxed life?

How much really you need insurance on your life …

Enough to cover. Ten times your annual income – these are the interpretations generally financial experts suggest for insurance. Then what is ‘enough’? How to calculate it? When going for insurance, what basic points you need to take into account. Let us explore the matter.

If you are asked whether you have life insurance policies, instantaneously you will say “Oh ! I have four or five of them”. In fact only a few people analyse whether they do have sufficient life coverage. Generally people go in for insurance for getting Income Tax rebate or just to satisfy a friend’s suggestion or pressure exerted by somebody. For getting sufficient financial protection to the loved ones in the event of happening of an unfortunate incident, as a person owning such responsibility, one will have go in for adequate insurance. The sum assured in a life insurance policy depends upon a number of factors. Age, annual income, number of dependents, expenditure, housing and vehicle loans, other loans, savings, investments, way of life, amounts needed for future contingencies – when such of these numerous facts are taken into account, then only one gets clarity as to how much life insurance to be bought.

How to use Credit Cards? How to improve your credit score?

Credit Cards tell your History

Buy now – Pay later… Credit Card users get used to this behavior  Cautious use of it gives plenty of benefits; otherwise it puts you in unimaginable trouble. Its influence on your Credit History and Credit Score is immeasurable.

“At least now I wish my credit score is good, because I need to have a Credit Card” – these are the words of the famous American Mathematician John Nash in the context of his getting Nobel Prize in 1994. Even though it is surprising, in fact its importance in deciding Credit Score is indescribable. Credit History and Credit Score play a very important role not only for getting Credit Card, but also for getting any type of loan.

Car Loans - Things to be considered

Car Loans – The Procedure and precautions

Car manufacturing Companies are extending warm welcome with hands wide open to potential car buyers. In tune with this, Banks and Non-Banking Financial Institutions are coming forward with different types of vehicle loan facilities. Before we get attracted to the welcomes or facilities, some important pints are to be taken into consideration.