What Are The Benefits Of Priority Banking?

Have you ever thought about applying for private banking from your bank? Many banks offer "Priority Banking Solutions" to their customers who qualify for the eligibility requirements. A private banking client is handled in a more precise manner, and the priority is taken care of by the bank. Let us speak about it in-depth, and does it make sense to apply for priority customer banking for you as a client or not?

The first question that must be understood is, why do banks have a privilege banking model? The reason is relatively simple, being able to treat various customer groups differently. If you want to put it favourably, then it's just a way to maintain a separate list of high-net-worth individuals to focus more on them and service them better, as one private banking customer would give the bank 100 times more business/profit than a regular customer. A preferred banking client will have to meet a few eligibility conditions, usually related to his bank balance.

Similarly, to maintain a high balance in the bank savings account, other banks still maintain requirements. That basically means that the bank can get plenty of money to use on its own business, and they can manage these clients very well.

Facilities provided to Private Banking Customer

A priority banking customer has few advantages over regular clients and gets more features. There are some of these:

• Separate queue at the bank
• No Net Banking charges on NEFT and RTGS transactions
• Free cheque book payable at any branch of the bank throughout the country, so you do not have to ask for demand drafts
• Charges waiver for cancellation of DD, Cheque Return, Duplicate Statement Fees, Demand Draft Charges, Locker Charges discount
• Cheque pick-up facility
• If you are transacting at other bank ATMs in India, no fees on balance inquiries and cash withdrawals

Many individuals have simple banking requirements, particularly after the advent of Internet banking and mobile banking, your reliance on chequebooks, Demand Drafts, and any physical visits to banks have reduced.

Banking is just an insignificant part of their financial life for most people, and they only get most of the equipment and what they need from their simple banking account. For them, it does not make any sense to apply for preferred banking. However, most investors are actively involved in banking for their reasons or professional needs. A few features that come with Priority Banking may mean something essential for many of them. If you are one of them, you have to see how much you need and then take a call.

What Should You Know About Recurring Deposit

Recurring deposit schemes provided by banks are favourite investment choices for many people. Working people, as well as people with smaller incomes, choose RDs as their investment option. Under this scheme, a person must invest a specified sum of money for a fixed period each month and receive interest on their investment. Upon maturity of the RD, the principal sum is returned along with interest.

RD schemes are usually more flexible than FD schemes, which often benefit those who choose to set up an account to save money and build an emergency fund.

How is interest determined for recurring deposit?

To learn more about your investment, use the recurring deposit calculator

For most banks, interest for RD is calculated annually. The formula is:

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

In this,

M is the Maturity value

R is Monthly Instalment

N is Number of quarters

I is Rate of interest/400

Here are some details you need to know about Recurring Deposits:

• The minimum amount of investment required to be deposited each month in an RD scheme is as small as the INR 1000. This is a massive attraction for low-income individuals and wage-earners.
• Since the investor has to spend a portion of his income regularly, inculcating the saving habit is very beneficial.
• Payment may be made directly to one's RD account via the Savings or Current Account.
• You can connect an RD account to your Savings account. Hence it does not require any documentation work in these cases.
• Unlike fixed deposit schemes, where a lump sum amount is to be invested at once, Recurring Deposit does not drain the investor.
• Recurring deposits are the best investment option, especially for those planning to handle short-term financial circumstances such as financing money for a dream holiday or wedding, higher education costs etc. RD interest calculator can help you plan well.
• Most banks allow for the opening of recurring deposits in the name of minor children with the parent or legal guardian holding a joint account. This helps to build investments for future use of the minor.
• Most banks provide loan facility on the recurring deposit amount. This loan is granted up to 95 per cent of the recurring amount of deposit. You can get it in case of any emergency.

To help plan your monthly investment in a recurring deposit, it is advisable to take the help of an RD calculator to plan your investments.

You will find this instrument on your digital banking app as well. This way, banking is on your fingers.

5 Benefits Of Savings Account

Money is a resource which if saved today can benefit the future. It is the only saviour during medical emergencies and other urgent fund requirements. Nowadays, every process and facility requires money for initiation and completion. Without having enough funds and savings, it is impossible to fulfil even daily necessities. Remain prepared for any circumstance with the help of adequate cash and face all difficulties easily.

There are many services offered by banks to their customers, one of which is a savings account. It helps secure all the assets and cash of customers and offers them interest on it. They can also withdraw funds as per their convenience without the fear of loss or theft. Here are six benefits it provides:

1. Creates an emergency corpus: By online saving account opening, customers can prepare themselves financially to face any unplanned emergency during a financial crisis. Whether it is a broken major appliance, automobile repair, or medical emergency, they can always withdraw the funds from the account at any time as it offers lots of liquidity. The amount in the bank account is sufficient to cover the expenses and escape borrowing them from others.
   
   
2. Asset protection: The assets stored in a saving bank account is free from any impact from market volatilities. For instance, if people invest their funds in real estate, bonds and stocks, there are chances of getting higher returns on the investment than bank accounts. But they also risk losing money in unforeseen circumstances where they withdraw the money for a lower return or loss. There is no fear of forced withdrawal in a bank account.
   
   
3. International debit card: When individuals open a bank account, they get a kit from the bank containing the passbook, cheque book, a debit card for cash withdrawals at ATMs and other necessary documents.
   
   
4. Easy bill payments: One of the greatest advantages of having an online savings account is the freedom to pay pending utility, mobile recharge, credit card, and water bills directly from the bank. Customers must enter their bank account and card details on the website of the provider and pay the bill. They also receive an SMS and email alert of the transaction on their registered mobile number and email ID.
   
   
5. Hassle-free operations: Technology has changed the scenario of every sector, including banking. Nowadays, smartphones have become the prime mode of payments and banking with the help of a compatible mobile banking app. It offers 24*7 service and makes funds available at any time of the day. Users can download it and make emergency payments at a tap.

4 Banks Offering Online Saving Account Opening Facility In India

It is essential to earn and secure our future financially. People spend money to fulfil their desires and demands such as buying a house, a car, some gold and invest it in several financial products with secured and guaranteed returns. A penny saved today equals a penny earned for the future. It helps meet all emergency expenses and keep the funds safe and secure in bank accounts.

A savings account is the most remarkable financial product offered by several banks in India for customers to deposit their hard-earned money and relieve them from the burden of carrying it everywhere. They can also withdraw funds anytime and anywhere without any hassle from the ATM using the debit card linked to the account. The interest also gets deposited in it.

With so many options to open a bank account, it becomes challenging to choose which one of them is preferable. There are so many factors that determine the suitability, such as the interest rates offered, services, facilities, and much more. In India, multiple banks are offering various schemes to their customers to promote the habit of saving and investing. Here are popular ones offering this facility:

1. State Bank of India (SBI): It provides a wide range of banking products to the customers and is the largest bank in India. SBI saving bank account is one of the popular products in which individuals can deposit their money safely. When it comes to interest rates, the account offers exciting rates.
   
   
2. DBS Bank: It operates solely online. Opening an online savings account gives you higher interest rates as well. Download the app on the smartphone and fill the required details. With interest rate competitive, customers also get welcome benefits like INR 150 cashback on adding INR 10,000 in the bank account or spending INR 3,000 on the debit card.
   
   
3. Kotak Mahindra Bank: It has an extended range of facilities to help customers manage their money efficiently. They offer a fixed rate of interest on balance above INR 1 lakh. There are no transaction or monthly account fees to pay while opening an offline or online bank account. Individuals can choose an account that meets their needs from a range of options such as 811 Digital Bank Account, Edge Account, Sanman Account, Classic Bank Account, etc.
   
   
4. RBL Bank: It is one of the leading private banks of India that provides a wide range of banking products, including a mobile banking app. Customers can access the banking facilities from any corner of the world at any time. They also get higher interest rates along with zero balance facility.

6 Tips for NRIs To Manage Their Finance

Foreign countries have attracted Indians since forever, with them wanting to visit and probably settle in one of them permanently. For some people, this dream converts into reality, and they plan on becoming NRIs. It is a personal choice whether one wants to be an NRI or not.

The status of an individual as an NRI is different under the Foreign Exchange Management Act and the Income Tax Act. According to FEMA, they become a non-resident when they plan to move overseas professionally or for an indefinite period. They need to revise their bank accounts and convert them into an NRI account for easy transfer and access to money. Here are some tips to help manage your finance:

1. Revision of bank accounts: NRIs who still have income sources in India, for instance, income from ancestral property or a rented-out property, can keep the money in India by opening an NRO bank account.  Get all existing resident bank accounts redesignated to NRO accounts. Moreover, if there are multiple accounts, consolidate them and then convert them into NRO accounts.
   
   
2. Currency rate fluctuations: Those who wish to invest using their NRI bank account should make a note of the currency rate fluctuations which can affect the returns on the investment. A slight change in the value of Indian Rupee against foreign currency can have a significant impact on the rate of returns.
   
   
3. Redesignate Demat accounts: Before thinking of NRI account opening, consider liquidating the equity and investment portfolio or seek professional advice. There are many methods of doing so, including setting up a PIS account to continue gaining exposure even after becoming an NRI.
   
   
4. Mutual fund investments: The NRE account is non-taxable as compared to the NRO account, which is subject to tax as per the applicable rate. Update the KYC status after becoming an NRI and update the portfolio to avoid mismatches. The NRO account include taxes upon repatriation of mutual funds along with other restrictions.
   
   
5. Get a thorough knowledge of the taxation process: While opening an NRI savings account, all applicants should have a thorough understanding of the taxation procedure of both the countries. As an NRI, they need to abide by the tax laws of both countries: where they reside and in India. The tax deduction benefits in India are similar for both NRIs and the residents.
   
   
6. Get a Forex card: These are prepaid cards that individuals can use while making payments abroad. They have funds pre-loaded in them in the required regional currency. It enables users to withdraw cash in foreign currency, check the account balance, and shop. Also, check the NRI account interest rates on term deposits.

6 Advantages Of An NRI Account

People love travelling and exploring new things all around the world. They are always searching for better opportunities for growth and development. They aim at progress and prosperity in their lives. They have some goals and aspirations to achieve and try to make the best use of every chance in life.

When they settle abroad for work or even go there for a vacation, it is safer to be financially prepared. Emergencies and alerts come without warning, whether in India or any country in the world. They can always secure themselves financially by opening an NRI savings account to help them meet their expenses while they are away from their parents residing in India.

There are different kinds of an NRI account to guide Non-resident Indians of different residential statuses. They can open an NRE or an NRO account and enjoy the benefits they offer. According to the Indian government, an NRI is a person who has not stayed in India for a year because the primary source of income and employment is abroad.

Here are the advantages of opening the account:

1. Tax advantages: It is the most significant motive and gain of opening an NRE account. Interest earned on this type of NRI bank account as well on NRE fixed deposit exempts tax in India. They are not added up even in the taxable profits and helps in gaining revenue in India.
   
   
2. Repatriation advantages: Another advantage of NRE account is repatriation. It allows trouble-free movement of cash because it is possible to repatriate both interest and principal overseas. Cash amounts in NRE accounts are fully and completely repatriable.
   
   
3. Low balance required: Nowadays, most of the private and public sector banks have low balance requirement for NRI account opening. The minimum balance requirement is as low as INR 10,000.
   
   
4. Convenience: Another advantage of foreign currency account is handiness. Most of the banks allow individuals to open them online via the Internet. They need to fill a form online, take a printout, and affix the self-attested print of necessary papers and send to the bank in India.
   
   
5. Joint holding: The account allows individuals to apply jointly with relatives having a resident status. They must file a declaration of the status of the NRI and submit the necessary documentation as asked by the bank.
   
   
6. Accessibility: The saving account for NRI typically comes with an International Debit card. It gives convenience benefit of shopping globally, booking air tickets online, buying life insurance, and withdrawing cash abroad. They must also check the NRI account interest rates before applying for any term deposit scheme in the concerned bank. They can always use the bank’s website or app to apply for it no matter where they are.

What Are The Benefits And Challenges Of Private Banking?

Private Banking means personalised financial and banking services to the high net worth individuals. Usually, HNIs are those who own a business, acquire more wealth and therefore, require the private banking services with access to alternative investments. As such, private banks act as mediators and offer their assistance to such individuals regarding their investments. 

Priority banking includes exclusive investment-related advice, protecting, and growing assets in the present, offering specialised financing solutions, planning retirement, and passing wealth on to future generations. 

Benefits: 

• Privacy: The services offered via privilege banking are highly confidential between the institution and the consumer. Their approach is exclusive to their customers so that the competitors do not lure a potential client with a similar solution. 

• Customised services: Prominent banks make sure that HNIs receive tailor-made services based on the assets they hold. An account or relationship manager gets assigned to each who allows accessing mid-level upper management directly. This easy access minimises any obstacles for offering inputs regarding wealth management decisions, and the bank can strategise the decisions according to the client's financial decisions. 

• Incentives: HNIs are the main clientele for banks, solely because of the substantial assets they bring to the institution. They get rewarded with special private banking services like tax preparation and planning, traveller's cheques, or corporate checking at discounted rates. 

• High returns: Most of the HNIs receive higher returns from their investments that outperform the market. 

Challenges: 

• Regulatory restrictions: Regulations in India are not equipped to deal with the kind of products and services that private banks sell. Few investments are not regulated by an authority making it difficult for the investors to redress their grievances. Only a few have the liberty and control do so yet.
   
• Lack of expertise: Preferred banking requires financial analysts who build strong, lasting and trust-worthy relationships with HNIs. There is a shortage of experience and training. Hence, recruiting, training and retaining qualified professionals is a priority for most banks. Such services target keeping the customers when it should be focusing on teaching the right individuals. 
  
  
• Private Banking in India: Banks like  ICICI Bank, HDFC Bank, Axis Bank, DBS Treasures, and Standard Chartered are India's top private banks in which the majority of investments get undertaken by foreign investors even though management control are with Indians.

 

How Are Private Banking And Wealth Management Different?

For any high net-worth person, managing wealth is the most crucial prerequisites. Such people often seek services from private wealth management companies which offer specialised financial solutions. These companies also hire financial experts who lend their expertise to clients, helping them invest in different instruments based on their financial objectives and risk appetites. People often believe that these wealth management services also offer private banking facilities.

However, that is not the case. Here are how both the concepts are different. We shall look at some points that explain the same.

Services offered

While both wealth management and private banking services have asset management as its core, the wealth management companies provide consultation and advisory services. Prominent facilities offered by the wealth management firms include investment planning, portfolio development, asset structuring, tax, retirement, and estate planning, among other things. On the other hand, privilege banking offers banking features like brokerage services, asset management facilities, and essential tax consultation.

Difference in approach

Both banks and private wealth service provides unique products for their HNI and ultra HNI clients. However, both entities have a vast difference in their approaches. Such high-profile clients are provided with customised one-to-one models, wherein the bank representative handles all the banking needs. Such services include doorstep cheque collection, cash deposits, specialised current and savings account with high balance requirement, high-interest rates, and overdraft and loan facilities.

Wealth managers tend to focus on offering financial advice and concerned about maintaining, collecting, conserving, and compounding wealth. These experts primarily monitor their client evolution and assist them in achieving personal and financial goals over the years.

Different in options

The other aspect to focus on wealth management and priority banking is the opportunities offered to the clients. Banks can provide their clients with only a limited number of specific products under their portfolio. There is little room for delivering a host of options for such clients. However, wealth management has the opportunity to leverage and implement tailored solutions. Here, the manager recommends many products from different institutions, thus enabling their clients to select from those which suit your requirement.

Relationship with clients

Building a relationship is considered a virtue in the field of wealth management and preferred banking as well. The wealth manager needs to understand not only the client’s financial goals and aspirations, along with concerns. The wealth manager also needs to work towards offering a financially peaceful and comfortable life for the clients and their family, during and after the client’s death.

As for private banking, bank representatives are more invested in forging a personal relationship with the client. The facilities offered also need little time since they are packaged. The products are adapted according to the high or low-risk appetite, keeping the client’s asset volume in mind.

2 Types of RD Interest Rates

 One of the most popular and preferred investments in India are recurring deposits. They help people start earning returns every month throughout their tenure and inculcating a habit of saving in them. A lot of people trust banks and financial institutions for their products as they are safe, reliable and involve less risk. They are also providing guaranteed returns and allow investors to use their money for making more profit.

One can earn RD interest rates over a fixed tenure ranging from up to 5.2 per cent per annum on their RD account. They are like fixed deposits, but the flexibility of monthly instalments is a unique characteristic of this account. The minimum tenure for the deposit is six months and expandable up to 10 years.

The recurring deposit interest rates differ from banks and on various factors, including the investment category and tenure. Almost all banks have the facility of providing senior citizens with a higher rate of interest than regular customers. Banks offer a variety of interest rates, and apart from standard schemes, they also have additional ones reserved for people to achieve specific goals.

The following are the types of interest rates offered on RD by several banks in India:

1. Regular RD savings scheme: Indian banks offering recurring deposit schemes online through websites and banking apps have specific terms for citizens to follow. Only those individuals aged above 18 years can open this account. Customers can choose their deposit amount, which remains fixed for a tenure of six months to 10 years. The interest gets calculated on a simple or compound basis. They can withdraw the lump sum amount at the end of the deposit term.
   
   
2. RD schemes for senior citizens: Senior citizens can also benefit from a comparatively higher rate of interest from RD schemes. Moreover, there are also some schemes available that help them plan their retirement.

A person should be aware of the recurring deposit rates and choose the options to help them meet their investment goals. Smaller sums of money invested over some time multiply with interest and help them achieve specific goals. They are an ideal option for saving to spend on new gadgets, travel plans and other goals. It does not harm the budget at all and makes all the purchases economical.

These financial instruments help create goal-specific savings to help investors plan their budget. They also offer flexible payment facilities like daily, monthly, and quarterly payments which are accessible on the website as well as the app.

Overview of Wealth Management

 The highest level for financial planning services is wealth management. In addition to financial counselling, tax guidance, estate planning and even legal aid, wealth management typically requires extensive investment management.

Wealth management companies provide investment management and detailed investment advice. Wealth managers tackle complicated financial issues and coordinate on behalf of investors with financial experts.

The highest level for financial planning services is wealth management. In addition to financial counselling, tax guidance, wealth account and estate planning and even legal aid, wealth management typically requires extensive investment management.

The type of service a wealth management company provides is ideally suited to wealthy clients. But while you may not need wealth management now, over time, your needs are likely to shift. It might be time to look into wealth management at some point.

In general, investment managers direct their services at the extremely wealthy. They may have experience in the types of financial problems impacting the ultra-wealthy, such as how to avoid property tax. Sometimes, they arrange resources between various experts, such as collaborating on your behalf with a lawyer or an accountant.

Is it a good idea to have a wealth manager?

A wealth manager should be able to help with all your financial planning needs, including, for instance, the management of company income tax implications and the creation of a donor-advised fund for your charitable donations.

Financial advisors may provide wealth managers similar services, but they will also encourage you to buy services on an "a la carte" basis. For instance, if want to meet your retirement needs, some financial advisors will work with you to develop a retirement income plan and pay for that service alone.

If you need help with estate planning, advanced tax assistance or investment advice, securing and maintaining your assets later might be worth opening a wealth management account.

Wealth management vs portfolio management

Wealth management provides investment planning which is higher than fund management. It offers detailed advice on the financial position of a client, including, in some situations, wealth management account, estate and tax planning, accounting, retirement planning and even legal guidance.

Portfolio management involves a service or person who, on behalf of a customer, designs an investment plan. Portfolio management provides investment picking that minimises risk and maximises returns but usually does not include other resources for financial planning.

If those minimums of wealth management are more than you negotiated for, then you do not require one. Although some financial planners often concentrate on ultra-wealthy consumers, there is a rising community of financial advisors working for both affluent and middle-income individuals. Any of these consultants work online.

Advantages of Opening NRI Bank Accounts

 Banking services have evolved drastically today. Banks offer all kinds of accounts apart from the traditional savings and current accounts. Today, you can open online accounts, zero balance accounts, special account for women, children, and seniors and so on. Moreover, all your banking needs can be addressed without ever stepping foot in the bank.

Recognising the fact that more and more Indians are considering foreign prospects, banks also offer NRI bank accounts. These accounts enable Non-Resident Indians to conduct their transactions from any corner of the world. Here are the advantages of opening an NRI account.

Advantages of NRI bank accounts

There are two main types of NRI accounts in India. The primary benefits are –

1. Repatriation advantages

One of the most prominent advantages of NRI bank account is the repatriation advantage that comes with it. You can quickly repatriate and move funds from both, NRE as well as NRO accounts. You can repatriate both, the principal sums parked, and the interest earned on the deposits from your accounts while you are abroad. While the funds in the NRE account are freely and fully repatriable, you can repatriate funds from NRO account after paying the applicable taxes.

2. Convenience

Another essential advantage of these accounts is that they are very convenient. Most banks allow the customer to open online NRI accounts. You can be based in any foreign country and open your account remotely, only by filling the account opening form and attaching the necessary documents. You can use your net banking platform to open this account and avail all the features and benefits that go with NRI bank accounts.

3. Tax Benefits

Before you finalise your NRI savings account – whether an NRE or NRO, you should read up about the tax benefits that come with both accounts. This will help you select the right kind of account. In India, the interest you earn on both, NRE savings bank account and your NRE fixed deposits are tax-free. However, the savings parked in the NRO account and your NRO FD is subject to TDS by the Income Tax laws of India.

4. Minimal balance maintenance

Several banks offering NRI Accounts in India have reduced the minimum balance requirement to a considerable extent. Most banks require their account holders to maintain as low as INR 10,000 as minimum balance in their accounts. This has contributed to the popularity of NRE and NRO savings accounts among customers.

5. FCNR deposits

NRI Account holders can also book Foreign Currency Deposits. This is ideal for customers who to save their earnings in foreign currencies and earn interest on it. It is especially beneficial if you are earning in a currency that is higher in value as compared to INR, as it can promote higher savings. Moreover, the interest you earn on your FCNR deposits is tax-free in India.

Facts About FCNR Deposits You Should Know

 For creating a corpus, you need a good amount of savings and investments. You can place your money away in a bank fixed and recurring deposits or even invest in the share market. The idea s to plan the investments such that you accrue high returns and liquefy the investments when needed. If you are a conservative investor and prefer to park the savings securely, fixed deposits are the way to go. NRIs, too, can turn their foreign currency earnings into fixed deposits.

Yes, you can open a foreign currency non-repatriable deposit or FCNR account. But there are some facts that you should be aware of before opening one.

Not an account but a fixed deposit

Most NRIs think that FCNR is an account. But instead, it is a deposit. As an NRI, you can either open an NRE or NRO account. You can deposit foreign currencies in the former account and INR in the latter. Once you have adequate savings in the NRE account, you can create a fixed deposit of the same. These FDs are called as NRE fixed deposits, a term often used with foreign currency account.

Maintain deposits in different currencies

Many banks enable you to maintain the fixed deposits in different international currencies. Generally, the currencies in which you maintain the FCNR deposits include Britain Pound, Euros, Yen, Swiss Francs, Krone, and Krona. You can also maintain the FD in dollars such as American, Australian, New Zealand, Canadian, and Singaporean.

Be aware of tenure and premature withdrawal penalties

You can open FCNR account for a tenure ranging between a year to five years. A handful of banks offer 10 years tenure for such deposits. The best part is that they are risk-free and you need not worry about currency fluctuations. Also, the FCNR rates are in foreign currency where the FD gets maintained. You can also prematurely withdraw the FD before the term ends, but you need to bear the penalty for premature withdrawals. If you want to break the FD before a year, you may not be eligible for any interest rates on the deposits.

Open the deposit online

As an NRI, it might not be possible for you to visit the Indian banks and create a fixed deposit. Precisely why, all banks offering NRI facilities, enable you to open FCNR account online. It should consider account where the foreign currencies get deposited such as NRE or FCNR. You can easily create the FD by transferring funds from either of the account through wire transfers. You can create this FD while in India by depositing the travellers’ cheque or make foreign earning cash deposits.

5 Benefits Of Having A Saving Account In The Bank

 People have lots of aspirations and expectations to achieve in life. They want to live life on their terms and make it perfect. They wish to accumulate as many funds as possible to meet future requirements and fulfill their desires. They earn to live a brighter future and save for emergencies and other expenses that need priority. Youngsters, especially, have lots of passion for achieving their goals but require having sufficient capital to meet them.

Here is where the concept of a saving account comes in. Banks offer different interest rates on these accounts and encourage customers to open an account with them to save for unexpected emergencies and manage funds sustainably. They can withdraw the deposited money at any time and use it for other expenses.

Nowadays, every service and product is available online, so are banking facilities. People can opt for an online saving account opening to escape standing in long queues outside banks and operate from any place in the world. They can check their account balance, transfer funds, monitor transactions, apply for new chequebooks and loans, etc., using the mobile banking app. Smartphone banking is another trend that is becoming popular by the day.

The following are the benefits customers get by opening a bank account:

1. It helps create emergency corpus: Having a savings account helps create emergency funds during unexpected monetary crises. Whether it involves repairing a broken appliance or a medical emergency, the liquidity of these accounts enables account holders to withdraw funds easily at any time. It saves them from running into debts.
   
   
2. It helps protect assets: The assets stored in the account are free from any impact due to market volatilities and fluctuations. For example, money invested in real estate has a chance of delivering higher returns. But, at the same time, unforeseen circumstances may make it difficult to get instant money. Hence, it is safer to get immediate funds with an online bank account opening with zero balance.
   
   
3. International debit card: Having a bank account in India allows account holders to convert their debit cards for global usage and facilities. They can travel all over the world and use it at bank ATMs for transactions.
   
   
4. Easy bill payments: With the help of a bank account, people can pay their credit card bills, utility bills, mobile bills, DTH recharges, etc. directly. They can access the facility on their smartphones and PCs.
   
   
5. Easy account operation: It is effortless to operate a. One can easily open it by visiting the bank branch. Many banks even give the option to extend it online by logging into the website of the bank. They are beneficial for zero balance saving accounts for young people who want to start saving or learning how a bank works.

Mistakes To Avoid When Investing In SIP

 A Systematic Investment Plan is an investment process provided by various mutual funds in which investors are willing to make small sums rather than lump-sum periodic investments. The investment may be made at a weekly, monthly, or quarterly basis. Via compounding interest, SIP helps to grow capital, ensuring higher maturity returns.

SIP mutual funds are versatile, so investors can, anytime they want, choose to reduce, or raise the amount of investment or avoid investing in the scheme. For beginners and those not well-versed in the financial market process, the SIP is the safest and best investment option.

Mistakes to Avoid when Investing in SIP

In general, investors choose funds based on their risk profile, tenure of investments, and returns provided over the past five to 10 years. While these factors should be reviewed, a variety of other factors also need to be examined to prevent the loss of capital in a market crash.

The following are common mistakes investors make when investing in SIP:

• Choose the wrong fund: This is the first step in beginning to invest in mutual funds, so you need to select one or more funds to invest in your money. You must know your investment goal, expected returns, and risk appetite before you make the payment. Before beginning an investment, it is advisable to perform a comprehensive investigation and study. If you have long-term objectives, your financial goals might be destroyed by choosing the wrong fund.
  
  
• High investment amount: Since SIP mutual fund allows you to invest small amounts of cash in mutual funds, make sure that you do not select a sum of money. This way, you cannot invest in the remainder of the year. What you need to do is pick a sum that you can conveniently spend per month to reap the returns you initially aimed for.
  
  
• Short-term Investment: This is another standard error several SIP investors have made. The value of the investment is subject to the time it is invested for and not the sum of the investment. In other words, the longer the investment period, the greater the value of the investment would be.
  
  
• Having unrealistic targets: Immature investors are also seen setting unrealistic investment targets. It is advisable not to expect phenomenal returns from your current investment. You should expect average returns instead and proceed with your daily investment process.

Can a SIP be customised?

SIP investment is the most lucrative investment. You can invest in a SIP and take advantage of periodic savings along with earned interest instead of keeping your money idle in a savings bank account. The benefits of investing in a systematic investment strategy, however, does not end there. As per your requirements, you can customise a SIP. Even the best systematic investment plan in India allows you to do so if you want to adjust your fund options or make any other required changes.

How To Transfer Funds To An NRO Account?

Funding and finance are the critical aspects of living a peaceful life in any part of the world. Without sufficient funds, it becomes challenging to meet essential requirements such as housing, food, clothing, utility bill expenses, and others. Money helps people live a life they desire and allows them to access all the luxuries and amenities without any financial constraints. They are free to explore the world and fulfil all their demands and aspirations.

An NRO account is an abbreviation for a Non-Resident Ordinary account that allows NRIs to fulfil their banking needs while they are away from India. They enable account holders to receive funds within as well as outside India. Such accounts help them when they also need to receive regular funds from India. The sources of income include dividend income, investment income, rental income, etc. received through normal banking channels. If one is responsible for holding equity investments within India, the other must take care to provide the account as the default bank account for receiving dividend credits.

The utilization of the NRO bank account balance has no restrictions concerning withdrawing funds within India. If individual wishes to repatriate funds outside India, the principal funds can be transferred only up to specified limits. However, the interest earned can freely repatriate outside India. They allow flexibility when allowing joint operations with a resident Indian, unlike other accounts, which enable joint operations only with another NRI. Individuals can also opt for joint ownership with the parents and dependents in India while staying abroad.

How to open the account?

Individuals can open an NRO account by filling the application form providing all the details and submitting it to the bank online. After the submission, enter the mobile number along with a convenient time for the bank representative to contact and arrange for completing the required formalities, including funding details, undertaking the KYC compliance, etc.

Convert existing regular savings account into NRO accounts if the residential status has later changed into a non-resident. Submit a written application to the bank, stating the facts, including a change of residential status. The bank may require a copy of the passport, details of the new residential address outside India, along with documentary evidence for KYC compliance. For joint accounts, both the applicants must submit their KYC documents separately to the bank.

How to transfer funds into the account?

An NRO online account is flexible in accepting foreign currency remittances as well as rupee transactions. Individuals can transfer funds into it from any foreign bank account or any bank account within India. With the flexibility of joint operations and receiving the rupee credits, NRIs can apply to open the account conveniently using digital media.

What Is Investment Banking? What Are Its Benefits?

 Investment banking is about managing investments for a bank’s client towards whom these facilities are directed. The individuals who can avail of the investment banking services are HNIs, corporates, and the Government for planning and managing large projects, saving time, and money by identifying the risks associated with the project before moving forward.

They are highly specialised segments within the banking operations which help raise the capital and offer financial consultancy facilities concerning large, complicated financial transactions. Such facilities include thorough investigation, analysis, and informed recommendations about how much the company is worth. Based on the results, the trained investment bankers determine whether to create the deal. 

Investment bankers further structure an optimal deal to check if the client is considering acquisition or merger or sale. Most of the investment banking services involve prime brokerage and asset management, which is in conjunction with their investment research businesses.

The services are broken down to bulge bracket, middle market, and boutique market. The benefits of investment banking services are –

• The services involve investing the client’s funds in other companies for creating more value.
• It helps investors raise funds by underwriting or by acting as an agent in the issuance of securities for conducting the acquisition, merger, or sale.
• A thorough investigation gets conducted to make sure every compliance is met for the client’s deal, thereby minimising the risk of failure or loss of invested capital.

Now, investment banking services are aplenty. They are as follows –

• Mergers and acquisitions
• Corporate finance
• Equity research
• Sales & trading
• Asset management

What other services do investment banking offers?

The investment banking services may include the issuance of securities, underwriting, sales and trading of derivatives, equity securities, and fixed instruments, currencies, and commodities, facilities.

• Issuance of securities: It means raising capital for the client or business and creating documentation for the Securities and Exchange Commission. It is a prerequisite if the company plans to go public.
  
  
• Underwriting: It is practically the investment bank standing guarantee for the loan which is given to a business or corporate individual purely for business purpose. Investment banking also includes IPO underwriting, which assures that they have investigated the company’s credibility and is good to invest.
  
  
• Sales and Trading: This aspect of derivatives is a highly specialised skillset that offers accurate data, and its analysis comes handy for gauging the market stock price and its potential to grow or fall. These skills allow traders to either buy or sell stocks for their clients.
  
  
• FICC facilities: It involves handling fixed income instruments such as currencies and commodities, which, unlike the stocks carry lesser risk levels daily. Also, the percentage of growth is steadier.

Essential Facts You Should Be Aware Of Concerning NRI Banking

 Most of the Indian banks nowadays offer NRI account to their consumers living overseas. NRIs have the option to choose between three basic accounts – NRE, NRO, and FCNR accounts. These accounts make it easier to manage your savings seamlessly and conveniently. However, since all NRI bank accounts come with different features and benefits, here are some facts you should be aware of.

Types of accounts

As an NRI, you can open four different kinds of NRI bank account. These are –

• NRE account
• NRO account
• FCNR account
• RFC account

Salient features

Before you do the NRI account opening, you must consider your requirements. The basic features include –

• You will need an NRE account if you want to park your savings in foreign currencies. The funds parked in the accounts and the interest earned on the same are freely and fully repatriable.
  
  
• If you are staying overseas but have investments and a good source of income, you need an account where you can save funds in INR. In such scenarios, you should open an NRO account. In such accounts, you can only repatriate the interest earned on the savings, according to RBI limitations. Also, you need to pay TDS on the savings parked.
  
  
• If you hold enough savings in foreign currencies, you can open an FCNR account and earn decent interest rates on them without worrying about the currency fluctuations.
  
  
• If you seek to return to India at a later point and park the foreign currencies in the NRI savings account, you can open the RFC account for eliminating risks associated with currency fluctuations.

Opening of account

According to the NRI services, most prominent Indian banks allows the consumers to open their NRI account online. You can visit the preferred bank website, select the type of account you seek to open, fill the form, and attach documents. Some banks may ask to provide proof of the NRI status, which you get from the Indian Embassy of the country you are living in. You can also open this account by visiting your preferred bank with the essential documents whenever you visit India. While most banks offer these services, you should check if the bank has an RBI authorisation and the necessary license for dealing with foreign currencies. Open such accounts irrespective of the international country you reside in.

Facilities available

As an NRI, you can save your foreign earnings in any of the mentioned NRI bank account. You can conduct different transactions. Like with most of the accounts, you can NRI net banking facility which helps you do a range of online transactions. For instance, you can easily send funds to your family in India or make fixed deposits out of the savings through internet banking. You can seamlessly transfer money from one account to other and pay for the expenses in India or overseas through net banking.

How To Open A Saving Account?

Finance and funds are some of the essential requirements for living a comfortable and luxurious life. Not only do they provide mental satisfaction, but they also provide people with the ability to meet all their desires. Most importantly, families must learn how to use money sustainably so that they can start saving for the future. Nobody can predict emergencies and problems; hence it is safer to start saving from the current moment.

With the help of banks and financial institutions, people can start depositing and investing capital in various assets for higher returns in the future. They offer the facility of a saving account which enables customers to use their wealth wisely and calculatingly so that they do not exhaust their savings. Money can help people avoid so many problems like debts, poverty, dependability, and so on.

With the rise in people opting for employment, companies approach banks to help them with a zero-balance account opening online to deposit the salaries of all their employees at the end of each month. They can use it to their convenience and withdraw money whenever they desire. All account holders get a debit card, a cheque book, a passbook, and other documents necessary for tracking the finance from the respective bank.

Following is the eligibility criteria to open the account:

• The applicant should be a citizen of India
• The age should be 18 years and above
• Minors require their parents or a legal guardian to open an account for them
• The address and identity proof should be valid and approved by the Government

Documents required to open the account

With the invention and progress in technology, banks have started providing digital banking services for access to customers. The digital banking app helps them access services on mobiles and other gadgets anytime and anywhere. Whether opening a zero-balance saving account online or by visiting the bank’s branch, every applicant should submit some documents as proof. Following is the list of documents required to open this account:

• Proof of Identity – Passport, Driving Licence, Voter’s ID card, etc.
• Proof of Address – Passport, Driving Licence, Voter’s ID card, Utility Bills, etc.
• PAN card
• Form 16 (in the absence of the PAN card)
• Two latest passport size photographs of the applicant

The procedure to open the account

For accessing the benefits of online saving account opening, individuals must follow some guidelines to open the account. Following is the procedure:

• Download the application form from the bank’s website and fill it with the information in all the required fields to avoid rejection. Contact the executive of the bank for queries.
• Keep the documents mentioned above ready with the duly filled application form to upload on the bank’s website
• The bank’s executive will verify the information and provide the debit card and bank documents with details of the saving account

How Has Digital Banking Brought Changes In India?

Banking plays a fundamental part in financial activity today, and digital banking in India is highly advanced. Finding its roots, the word bank developed from the Italian word ‘Banca’ which means ‘bench’. The traders in the early middle ages would sit on benches where they would keep their coins for lending, exchanging, and trading. Chanakya, in his Arthashastra of the second or third century CE, mentions to dominant money lenders who lent money and kept deposits.

But currently, the new era is into internet banking. What is it? Digital banking, also known as online banking, provides its services online, and customers can access banking transactions, submit requests, and manage other banking activities online, it is called digital banking.

Indian banks were very hesitant to implement the changes brought about by technological advancement. Several factors brought about modernisation and digitisation in the banking industry in India. Putting in place standard cheque encoders was the first step towards digital transformation in banking.

Digital banking services allow funds to get transferred using different online modes such as RTGS, NEFT, and IMPS. Recent years have seen an increase in mobile banking services and other innovative services online.

Benefits of digital banking
Availability:
The customer can access his/her bank records anytime he/she wants, and several banking services are available to him/her 24/7. Transferring money is easier, faster, and secure.

No time constraint:
Several services require waiting for long periods. Banks have fixed times at their branches for different services. Even simply encashing a cheque takes time. But with digital banking, it is instant, with zero-time constraints.

Online bill payments
It is a feature that saves customers a lot of time and money. Customers no longer require carrying cash and wait in long queues to pay their utility bills or other bills.

The benefits of digital banking highlight its importance by themselves. However, the socio-economic conditions that surface add to the importance of digital banking in India. With the increase in crime rates and corruption, digital banking is a secure way to manage financial transactions.
Nowadays, even digital banking apps have changed the way banking is done in India. Almost every bank provides the same.

Advantages Of Priority Banking

Have you ever considered applying with your bank for preferred banking? Many banks give their customers something called "Priority Banking Solutions" which qualifies for the eligibility criteria.
Banks handle premium banking consumers in a specific manner, and they handle their priorities. Let us talk about it in detail, and if it makes sense for you as a customer to apply for priority customer banking.

You need to understand if the banks have a model of priority banking at all. If you want to put it positively, then it is a way to keep a different list of High Net-worth Individuals, concentrate more on them and serve them better, as one customer who's qualified for private banking would give the bank 100 times more business/profit than a regular one. A chosen banking customer would have to meet a few eligibility requirements, which gets linked to the bank balance.

Similarly, other banks also maintain criteria for high balance in the bank savings account. It means the bank can get plenty of cash for their business and can handle these customers well.

Facilities provided to Private Banking Customer
A customer of private banking enjoys few benefits over regular customers and gets more functionality. Some of these are:

• Separate queue at the bank
• No Net Banking charges on NEFT and RTGS transactions
• Free cheque book payable at any branch of the bank throughout the country, so you do not have to ask for demand drafts
• Charges waiver for cancellation of DD, Cheque Return, Duplicate Statement Fees, Demand Draft Charges, Locker Charges discount
• Cheque pick-up facility
• If you are transacting at other bank ATMs in India, no fees on balance inquiries and cash withdrawals

Most people have basic banking needs. Since the advent of Internet banking and mobile banking, your dependence on cheque books, Demand Drafts, and any physical visits to banks has decreased.
For most people, banking is a small part of their financial life, and they only get most of the facilities and what they need from their basic banking account. For them, applying for priority banking does not make sense.

Most investors, however, are actively interested in banking for personal purposes or their professional needs. For many of them, a few features that come with Privilege Banking may mean something very significant. If you are one of them, see how much of it you can need and then take a call.

Types Of Personal Loan Interest Rates

Every bank has a different method of functioning. There are different types of offers and benefits that they offer. They want to keep their customers happy. Hence, they choose to provide user-friendly services.

Interest rate is the rate at which interest is applicable on any amount borrowed from a bank or Non-Banking Financial Company (NBFC). Personal loan interest rates are the critical factors that determine the selection of a loan application. Thus, always compare interest rates from multiple lenders before settling on a loan offer.

There are two types of Interest rates applicable on a personal loan, these are:

• Fixed-Rate of Interest
• Floating Rate of Interest

1. a) Fixed interest rate: In this case, the rate of interest remains constant throughout the loan tenure. Consequently, the monthly EMI amount also remains fixed throughout the loan repayment period. It may help to plan long term monthly expenses.
   
2. b) Floating interest rate: It depends on either the limitation set by the lender or as current market conditions. As a result, the floating interest rate is liable to change periodically, which leads to an increase/decrease in loan tenure or monthly EMI pay-outs depending on whether the rates move upwards or downwards.

Interest Calculation Methods
A personal loan calculator, available on online banking apps, can be used to calculate interest in the following methods:

• Flat Rate method: The interest gets calculated on the total loan amount initially borrowed over the entire tenure of the loan.
  
• Reducing Balance method: As monthly EMIs are paid off, parts of the loan amount and the interest component are also reduced. Thus, the principal loan amount decreases. The interest is calculated on this decreasing loan amount and not the total amount initially borrowed.

Interest Rates for Different Applicants
Most lenders consider some factors when deciding the interest rate applicable to loan borrowers. The following are some points on personal loan interest rates differ depending upon the applicant type:

• Salaried and self-employed: Generally, salaried employees with a stable employment record employed with reputed organizations get the loan at a lower interest rate than independent professionals because they have greater job security and better repayment capacity towards the loan. Self-employed applicants who have stable sources of income can also take these loans from banks.

• Women: Certain banks and NBFCs provide a preferential rate of interest to women. It is to promote salaried women, entrepreneurs, and professionals to fulfil their dreams and be financially stable.

• Pensioners: Pensioners can get special personal loans at a relatively lower rate of interest from banks. Beyond the applicant type, the interest rate depends on the profile of the loan applicant. People with a stable income, decent credit history tend to receive a loan at a lower rate, irrespective of their category.

How do EMI calculators work?

Whenever people opt for loans, they pay it all at once or in instalments, also known as Equated Monthly Installments, as per their loan requirement and loan duration. It is vital to calculate the amount carefully and ensure there are no delays in the payment. Paying late EMIs is penalised, and nobody would want to risk it. However, EMIs make payment facilities organised and structured in a manner where the loan borrower can meet daily essentials without feeling financially helpless.

A simple definition of a personal loan EMI calculator is that it is a tool where loan borrowers enter the amount to borrow, the loan duration, the rate of interest and the processing fee. The calculator will calculate the estimate loan amount along with the amount required for the EMI monthly. Accordingly, the borrower will set a budget to create a balance between the income and the expense.

The device uses a simple formula to derive the loan amount: E = P x r x (1 + r) ^ n / ((1 + r) ^ n – 1).
Given below is the explanation of the formula:

E – It is the EMI amount that the borrower will pay every month
P – It is the amount that the individual will borrow
r – It is the rate of interest calculated monthly
n – It is the duration of the loan calculated in months
Given below are three reasons why loan calculation is essential:

1. Loan amount: It is advisable to borrow loans of amounts that one can pay quickly. People choose appropriate loan amounts depending on the loan EMI calculation so that repayment becomes less of a hassle. By maintaining a low ratio between debt and income, people can avoid defaulting on loan repayment.
   
2. Loan tenure: Shorter loan tenures mean higher EMI payments and lower interest rates. In contrast, longer loan tenures mean lower EMI payments and higher rates of interest. Calculate EMIs for different types of loans using a personal loan calculator designed especially for estimating EMI payments and suitable loan tenures.
   
3. Loan EMI: Loan borrowers with high debt-to-income ratios are at a higher chance of defaulting on the loan. Defaulting on secured loans, like car loans, force banks to repossess the vehicle and put it up for auction, to compensate the loan amount and other dues. Hence, loan amounts should not exceed more than 50 per cent of the borrower’s income.

Manual calculation of loan EMIs leads to human errors. With the advancement in technology, people can use an online personal loan calculator for free. Online banking apps have this feature to help others get accurate and instant results on any type of loan scheme.

Different Types of NRI Account in Indian Banks

An NRI account is opened by a Non-Resident Indian (NRI) or a person of Indian Origin (PIO) with the RBI-authorised bank or a financial institution.

Types of NRI banking Accounts 
It is quite reasonable for an NRI to get confused about what to do with the existing bank accounts. Especially for a person who already has three to four savings accounts in India and is moving abroad for some time, then comes the dilemma of what to do with the bank accounts. The banking services and operations for an NRI account is slightly different from that of regular savings bank account. The following are the different types of NRI banking accounts –

1. Non-Resident External (NRE) Account 
2. Non-Resident Ordinary (NRO) Account 
3. Foreign Currency Non-Resident (FCNR) Account 

Non-Resident External (NRE) Account: 

• An NRE account is opened in India by an NRI to save their foreign earnings. It allows you to transfer your foreign earnings instantly to India. 
• For this, you need to open an NRE account and deposit your foreign currency from abroad. 
• In an NRE account, you can deposit money in any foreign denominations and withdraw it in Indian rupee. At the time of deposit, the amount is converted into Indian rupee and credited to your account.
• The principal amount and the interest you earn from an NRE account is non-taxable in India. 

Non-Resident Ordinary (NRO) Account: 

• An NRO account is an ordinary saving account opened by an NRI.
• NRO account helps NRIs to manage the income earned in India and abroad. This includes rent, dividends, subsidies, pension, or any amount you receive.
• Both foreign and Indian currencies can be deposited in an NRO account, but the withdrawal can only be made in Indian Rupees.  
• Under this account, you can deposit Indian money and manage the services like any other savings bank account. 
• Interest income earned on an NRO account is liable for TDS (Tax Deductible at Source). 

Foreign Currency Non-Resident (FCNR) Account:

• If you are an NRI and wish to open a fixed deposit account in India, then the FCNR account is the preferred choice for NRI services. 
• An FCNR account is opened and maintained in foreign currency. The deposit in FCNR account is not subject to any exchange rate fluctuations. 
• You can open an FCNR account for a minimum of 1 year and a maximum of 5 years. You can withdraw the FCNR amount before completion of the selected term, but the premature withdrawals are subject to penalties. 

There are multiple of NRI banking services available for non-resident Indians to do their banking activities in India. Even NRI online banking is one of the famous banking services for an NRI. 

What are the NRI net banking services available?

Moving to a foreign country for a better standard of living and earnings, but confused about the banking services? This article will take you through the internet banking facilities available for an NRI.

Every bank considers NRIs as its premium customers and provides custom banking tools that fit their requirements. When it comes to banking, there are NRI banking services which extend to online, helping the NRIs to stay back at home (abroad) and do the financial transactions at ease.

NRI internet banking is one of the preferred and most beneficial banking services for an NRI. No more visiting the branch and clarifying the deposit and currency fluctuation rates when everything today is accessible at your fingertip. So, let’s have a look at the net banking services available for an NRI:

• Inquiries – be it an inquiry about your account or a mini statement, with NRI banking online, one can quickly get access to his/her account details, within no time. You can reach customer support for all your queries regarding your account.
  
• Fund transfer – one of the most useful and beneficial banking services of an NRI is the fund transfer. Gone are those days of visiting a foreign exchange centre to transfer the funds to India instantly. Today, the use of mobile banking or internet banking has made it easy for the NRIs to immediately send money, which gets credited in the NRI savings account within seconds.
  
• Requests – this includes chequebook/ DD request, Aadhaar number linking, changing the username or password, changing the two-factor authentication, blocking debit/credit card online, customizing the fund transfer limit, etc.
  
• Alerts – receiving important account-related alerts – including deposit and withdrawal, minimum balance alert, fraud risk management alerts, loan repayment alerts, service breakdown/ server upgrade warnings, etc.
  
• Bill payments – like the fund transfer, NRIs have benefitted a lot with the online bill payment. With a single tap on the mobile, you can pay your utility bills, electricity bills, telephone bills, insurance premium payments, online shopping bills, donations, tours and travels, hotel bills, fee payment, gas/ newspaper bills, etc.
  
• Security features – whether it’s a standard savings account or an NRI account, the security factors are the same for every account. Net banking allows e-security ensuring 128-bit encryption and using second-factor authentication for high-value transactions.
  
• Investment options – these days, every online banking platform provides investment options where an NRI can invest your foreign earnings in mutual funds or SIP or shares. You don’t have to come to India and visit an investment broker for investing in any options.
  
• Loan against deposit online – an internet banking NRI user can avail for a loan against their deposit at any time. The loan will be processed and opened instantly by crediting the loan amount within a day or two.

The online use of NRI banking services is pretty much simple. It has helped the NRIs all across the world to quickly transfer funds from abroad to India without any delay in processing. 

Benefits of Opening An Online Saving Account

Since years, people have been securing their money in the savings accounts of their banks. It ensures mental satisfaction and asset security for all account holders. Those who have a saving account earn interest on it and use it as and when required. They are easily accessible to the respective account holder and offer services like fund transfers from other accounts using IMPS, RTGS, NEFT, or even UPI, where account holders can earn interest on their deposits.

The applicable interest rates range between 3.5 per cent to 7 per cent per annum and differ bank to bank. Customers have the liberty to deposit or withdraw their money by submitting cheques or withdrawal slips. They can also take the help of ATMs to solve the purpose by applying for debit cards linked to their bank accounts.

The key features of saving accounts
A saving account helps customers track the inflow and outflow of money from their accounts. They enable banks to provide passbooks, debit-cum-ATM cards, cheque leaflets, internet banking facilities, bank statements, and even free SMS and email alerts for every transaction made. Bank account holders have unique and personalised account numbers with no limitation on deposits. Linking recurring deposits or even EMIs to the savings account is possible.

Types of accounts available
There are two types of accounts available:

• Minimum Balance Accounts: Initially, customers had to maintain a minimum balance in their account for the same to remain active. This policy varies, like the rates of interest offered by them. The account holder pays a fine for not following the rules and not maintaining minimum account balance.
• Zero Balance Accounts: With a change in banking services, zero balance accounts have also come in to effect. People convert regular saving accounts to zero balance accounts so that they avoid the penalties in future. Zero balance saving account services are also available.

The eligibility criteria
Those interested in opening accounts in banks need to follow some standard eligibility criteria laid down by banks.

1. The account holder should be a resident of India.
2. The age limit to open bank accounts is 18 years and above. Accounts are available for minors as well that are taken care of by parents/guardians.

There are many eligibility calculators online that can help users determine their eligibility to open bank accounts.

Benefits of opening online savings accounts
Technology has emerged as a winner for all the fields of business and banking. It ensures quick and safe connectivity within parties. The accounts used to save resources, such as income, can be tracked and used to make transactions via the internet or mobile banking apps. Online bank account opening with zero-balance helps increase accessibility by making themselves available on online banking platforms. Online documentation services are also available like KYC. Customers can contact helpline numbers through calls and emails for clarifications of queries or report of issues.

What Is A Savings Account?

In a situation where an individual has earned a surplus amount or got funds which they do not want to use and keep it safely, what are they to do? Stuff the funds under their bed? Keep it in a secure location that only they know about? No. Financial institutions and banks have a safe tool that is called a saving account. It is the most lucrative instrument offered by financial institutions and banks. In a situation where an individual has got surplus funds, and they wish to park it in a haven, a saving account comes handy.

The upside to holding an amount in a savings account is that the individual can earn interest on the amount and gets access to it any time they want. A saving account can be helpful in specific situations where imminent funding is required. It is a safe banking tool used by customers to make sure their money is always accessible. Funds can be deposited in the account through cash or cheques. As the name suggests, it is a great way to save funds for future.

One of the most famous by-products of a saving account is a zero balance saving account. Several banks have evolved with the ever-growing technological industry and provided their customers with the online option as well. These features have revolutionised the banking industry and made things easier than ever. Generally, these accounts are offered to individuals with weak economic backgrounds. A zero-balance account holder need not maintain any minimum balance. Primary KYC documents are required for opening these accounts.

Reasons why opening a saving account is a reliable option always –

1. Different accounts offered by these institutes nowadays come with desired features and provide links to pay bills, help in making secure transactions to the account holder as they log into their account.

2. Holding a saving account can quickly help an individual’s financial status as there is a limit on the number of transactions they can make with the account.

3. Generally, a saving account offers an interest rate which is slightly higher than the inflation rate for keeping the value of money stable.

4. Any unexpected situation that requires immediate funding can be dealt with if an individual has the account intact.

5. Financial institutions and banks have also customised the account depending on the specific types of usage.

Online saving account opening at the same bank as an individual’s primary account can provide many benefits, and it can be convenient for them. As transfers between accounts within the same bank or financial institution become convenient. A lot of banks also allow an individual to open more than one saving account that can be handy if they want to keep track of their savings.

All You Need to Know About A Pension Account

Savings account is the most basic type of bank account that banks offer. This account offers interest income along with moderate liquidity as well as a safe avenue to park funds.

Banks offer customised saving account for different types of customers. One type of saving account that they offer is called a pension account. This account is a special one for pensioners to receive credits for their pensions from their companies or from pension funds.

This account can be opened by:

• A Central Government or Civil Ministry employee who is covered under the Central Government Civil Pension Scheme. This scheme is operated by Central Pension Accounting Office, Department of Expenditure and Ministry of Finance
• Defence employees under Ministry of Defence (Army, Navy, Air Force) covered under Defence Pension Scheme of the respective Pension Sanctioning Unit i.e any retired or retiring Officer or Defence Civilian
• Employees working in an organization with 20 employees or more that is covered by Employees Pension Scheme.
• Existing members of ‘Members of Employees’ Family pension scheme.

A pension account is a zero-balance saving account. This means that the pensioner does not need to maintain any minimum balance in the account. The entire pension amount can be withdrawn without any fear of penalties. Generally, for a regular savings account, each bank has some minimum balance requirement. If this is not met, banks debit a certain penalty from the account. However, there is no such condition for a pension account.

Most banks provide regular saving account benefits to this account such as free cheque book, net banking and mobile banking apps, free ATM cum debit card. They also pay some amount of interest on the pension balance. It can be used to make bill payments as well.

The pensioner will need to submit the bank account details to the employer so that it can be added to the pension payment order. This PPO once filled will have to be submitted to the bank following which the pension will be collected. The bank will submit the request to the employer and pensions will get paid to the account every month.

However, this account can’t be opened at any time. It must be opened in the individual’s name after retirement or 6 months before retirement.

How to open a pension savings account?

It is possible to do zero balance account opening online. The account opening procedure is streamlined and once you fill up a form, the bank’s customer care executive will contact you to get your documents collected.

It is very easy to open zero balance saving account offline as well. You will need to go to the bank branch and fill up an account opening form and provide the required documentation. Once this application is processed, the bank account will be opened.

Documents required for a pension savings account

• Passport size photos
• Address proof (Passport, Aadhar card, Voter ID, Driving Licence, Electricity bill, Telephone bill, Gas bill, Lease rental papers, Purchase Documents, Home loan, Ration card)
• Identity proof (PAN card, passport, Aadhar card, Voter ID, Driving License)

This account can be opened in an individual name or jointly with the spouse. It is very easy to operate this zero-balance saving account and it can help the pensioners manage their funds post retirement.