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.