Benefits Of Using Mobile Banking Apps To Send Money

People are becoming increasingly reliant on mobile devices for different services. When Apple initially released the iPhone in 2007, no one had heard of the app. Over these years, the App Store has grown to nearly four million applications. Use them for anything from getting a taxi to buying groceries to learning a new language.

A smartphone without apps is difficult to imagine. They also provide hours of entertainment, with games accounting for about a quarter of all downloads. One of the ways that mobile devices encourage financial services is by making it easier for them to transfer and receive money. Since the entire procedure is safe and quick, banking apps typically make it smooth for ex-pats to money transfer from the US to India

Save time

The primary benefits of these apps are that it enables customers to send money whenever they need it, no matter where they are. Thanks to them, you can execute a transaction on your device from the comfort of your home. Once you download them, you need a decent connection to send money from the USA to India.

Suppose their native country offers the desired payment infrastructure. In that case, the recipient stores the funds in a mobile wallet, a digital replica that is easily accessible anywhere and sends them right away from their smartphone. If they do not, they show up at a bank to withdraw money.

The money transfer to India from the US via the app frees up time for the important things like spending time with closed ones or engaging in a hobby.

Simple and secure

Using a mobile money transfer app to send money to India. The apps are meant to be user-friendly, so use them even if you are not tech-savvy. Complete all your transactions within the app than on a third-party website. They are safe as well. Besides the PIN, think about other ways to secure your mobile device for peace of mind. If your phone gets stolen, they have difficulty getting access to it.

Keep a record

The banking apps assist in calculating and keeping track of funds you transfer. You see a history of your transactions within the app. This unique feature helps in managing your and the receiver’s funds. Track the amount you transfer money to India and increase or reduce it based on how much you can afford or how urgently you need the funds.

What are the features of an NRE Account?

 Once you become a Non-Residential Indian, managing funds in India becomes difficult. Sending or receiving money becomes a hectic task. You need to complete numerous transactional formalities. This could be time-consuming. To avoid this hassle, consider NRI Accounts. One such service is the Non-Resident External Account. It is a rupee-denominated account. This means your funds are maintained in Indian rupees.

An NRE Account specifically caters to NRI requirements. It satisfies your unique banking needs. But before you seek one, go through its features. Here are some:

Fund repatriation

NRE Accounts facilitate fund repatriation. They let you move funds freely. Through them, you get to transfer money to any other country. This ensures a smooth flow of funds.

Rupee denominated

An NRE Bank Account is rupee denominated. All your funds get sustained in INR. For example, you can deposit money in US Dollars and withdraw it in INR. This account is a Savings Account, Current Account, or Term Deposit Account. You can choose what type you want your funds in.

Remitted funds

NRE Accounts collect funds remitted from another country. They also obtain funds from another NRE or Foreign Currency Non-Resident Account. The funds may be in foreign currency drafts, cheques, remittances, etc. The accounts, however, are maintained in India. Once you ensure this, you receive funds freely.

Transactions

Sometimes, you may want to send funds to a Non-Resident Ordinary Account. You could also be expecting payment from the same. To help with this, NRE Accounts facilitate your transactions. They enable you to send and receive funds from NRO Accounts.

Tax exemption

The interest you earn on deposits is usually taxable. It eventually decreases your interest earnings. However, under NRE Accounts, interest earnings are exempted from taxes. As a result, your taxable income gets reduced.

Terms

To open an NRE Account, you need to obey some terms and conditions. For starters, you must be an NRI. Also, the Power of Attorney cannot open NRE Accounts on your behalf. This is impossible according to the account terms. However, they can make rupee transactions locally on the NRI’s behalf.

Account conversion

Say you are an NRI holding an NRE Savings Account. You have returned to India. You have also become an Indian resident. In this case, your account gets converted into a regular resident account.

Debits

NRE Accounts facilitate debit transactions. These include local disbursements, payments made outside India, etc. They allow transfers to other NRE/FCNR Accounts as well.

What are the different Debit Cards?

 A Debit Card is a plastic money that allows users to get cash from an ATM or pay for goods and services online or offline. However, did you realise that the Debit Card you use for purchases or ATM withdrawals is different from the Debit Card used by someone else?

A user chooses from a variety of Debit Cards depending on their intended purpose and transaction value. Now, before you apply for a Debit Card, understand the differences between the types of Debit Cards so that you can choose the one that best suits your needs:

Visa Debit cards

These are accepted worldwide, giving users financial flexibility for transactions inside and outside the country. Visa Debit Cards get issued by banks partnered with the International Visa Payment System Network. Offline, internationally, online, and over the phone, these cards provide quick, secure, and convenient access to a user's money. You apply for Debit Card online for this type.

RuPay Debit Cards

The National Payments Corporation of India introduced RuPay, an Indian transnational payment service. These are issued as part of the domestic Debit Card scheme and used for domestic purposes. They get used to withdrawing cash from ATMs or making online payments within the domestic boundary. Besides that, compared to Visa and MasterCard, these cards have a lower processing cost and time. Banking apps also let you apply for them.

MasterCard Debit

These are accessible anywhere in the world. They come in handy at ATMs and for online transactions. They allow you to keep a complete record of all transactions done each month. You can go for an online Debit Card to help you with online transactions.

Contactless Debit Cards

Such cards are famous because you need not input your PIN. Payments made with contactless Debit Cards are made simply by waving or tapping at the POS terminal. These cards work on the Radio Frequency Identification or Near Field Communication concept, equipped with contactless payment technology.

Maestro Debit Cards

They are comparable to MasterCard Debit Cards that are accepted worldwide. Users who have a Maestro Debit Card conduct online transactions inside and outside the country. Besides, they can use it as Debit Card worldwide.

Since there are so many Debit Cards, it is good to perform a thorough analysis of each before applying. The comparison parameters should be benefits, incentive programmes, security, processing fees, and other extra features.

Why is Personal Loan the best choice during financial emergencies?

 Emergencies are inevitable and require immediate funds. Arranging funds for the same gets tricky. Sure, you can dip into your savings. However, you run the risk of running out of the surplus funds that took time to accumulate. Moreover, savings fall short to cover hefty expenses like medical treatments, home renovation, big-budget purchases, etc. Hence, it is better to opt for financial assistance through Personal Loans.

They are a convenient option with a simple application procedure. Besides, you are not required to submit collateral. These aspects reduce stress during emergencies. Also, if you meet the eligibility parameters, the Loan gets disbursed instantly. You have the option to apply for a Personal Loan online or offline. The former is much more convenient and faster. Here are some other qualities that make it the perfect choice for emergencies:

Easy repayment terms

Besides easy access to funds, lenders also provide flexible repayment via equated monthly instalments. This allows you to think about the Loan burden after the emergency has passed. The flexibility depends on the tenure you choose. The longer the duration, the lower the EMI and vice versa. Hence, most people like to stretch the Loan term. However, you should check how this impacts the cost with an EMI calculator for an informed decision.

Freedom of end-use

The best part about availing of the Loan is its multipurpose nature. This means you get used to it for various purposes like a wedding, vacation, big-ticket purchases, medical treatments, etc. You need not specify the same to the lender. Hence, it acts as a sound solution to any financial requirement. An emergency means different things to different people. Also, you need not prove it to avail of the Loan. You only need to pass the Personal Loan eligibility criteria.

Competitive rates:  

We mostly end up taking rash decisions during emergencies. The lack of time makes us do that. But thankfully, you need not incur huge losses on Personal Loan interest rates. This is because lenders offer reasonable rates based on your application. The severe competition in the finance industry makes them give you lower rates. The only criteria are to meet their eligibility parameters. Also, comparing rates is easier with tools like EMI and eligibility calculators.

Quick approval

During emergencies, there is hardly any time to endure tedious procedures. Speed is a significant factor to consider, and that is what lenders do with Personal credit products. They prioritise your urgency and let you apply from their websites or banking apps. Since these are digital mediums, the verification time gets reduced. Also, the documentation process gets completed quickly in minimal steps.

Advantages of using Digital Banking in India

 Digitisation has been a means of improvement for various industries. It has helped them survive the competition and serve customers better. The same goes for the banking sector. Almost all public and private financial institutions have adopted the technology. From interactive kiosks to digital payment options, they provide a range of Digital Banking services. These make banking convenient as compared to physically visiting the bank.

You get it activated along with other facilities while opening the Saving Account. Once done, all central banking transactions take place over the internet. Whether transferring money, paying bills, or checking account balances, you only require your device. This eliminates the need for withdrawal slips and other paperwork. Therefore, you do banking in a hassle-free manner. If you want to start using Internet Banking, here are some benefits:

Total control

With digitisation, you get to carry the bank with you on your smartphone. Every transaction, product, or service is accessible at your fingertips. This saves time and the cost of visiting the bank. Also, you need not seek the assistance of a bank representative to perform tasks. Now, updating your passbook, issuing cheques, making Fund Transfers, etc., happens on your device. You have total control in initiating them and getting alerts with Digital Banking in India.  

24*7 access

The best part about using Online or Mobile Banking facilities is round the clock availability. Emergencies and other mishaps happen anytime. During such instances, it is not feasible to wait to visit the bank. This constraint gets eliminated when you open an online Bank Account. Here, you get access to Net Banking services that are accessible anytime from anywhere. Hence, you need not worry about making it to the bank to conduct transactions.

Efficiency

If you need to Transfer Money, check account balance, or perform nearly any other banking transactions, you will queue up in the bank. With digital services, these transactions get completed within clicks. You only must log in or banking apps, enter the passcode and access the Saving Bank Account.

Security

Contrary to popular belief, digital products get secured with advanced encryption software. This protects your Bank Account against fraudulent threats. You also get two-factor authentication with a one-time password, fingerprint, and passcodes. Despite these measures, safety depends on your operational practices. Hence, make sure to consider the security standards and avoid neglecting warning signs for safe banking.

Technology has made it easier to access convenient services online. Due to this, you get facilities like financial planning tools, Loan calculators, Investment platforms, banking apps, automated Bill Payments, online bank statements, etc.

FAQs About NRI Fixed Deposits

 A Fixed Deposit is a good investment tool for people who prefer conservative and safe means of investments. You need to accumulate a specific sum and deposit it within a specific tenure. Doing this keeps your investment safe while you earn higher interest rates on the deposit than parking the sums in the Savings Account.

Both Resident Indians and Non-Resident Indians can open FDs out of their savings. This article highlights the most common and frequently asked questions about NRI Fixed Deposit.

What are the different types of FDs NRIs can open?

You can open three different types of NRI FD: Non-Resident External Rupee or NRE Fixed Deposits, Non-Resident Ordinary Rupee or NRO FDs and Foreign Currency Non-Repatriable or FCNR Deposits.

How to open one?

If you choose to open an NRE or NRO Fixed Deposit, you can do it directly through Internet Banking. Choose the amount you seek to invest and the investment tenure. The FD gets opened instantly, and the bank assigns an FD Account number to you. However, if you want to open an FCNR Deposit, open the account and deposit the specific foreign currency. Once you have opened it, follow the same steps with NRE and NRO FDs.

In what currency can I create the deposit?

Even though you can only deposit foreign currencies in the NRE Account, the sums immediately convert to INR. You can deposit both INR and foreign currencies in NRO Fixed Deposit online that gets converted to INR. As such, both NRO and NRE FDs are Rupee deposits. Only your Foreign Currency FDs get opened in the foreign currency.

In what currencies can I open my FDs?

When you open NRO Fixed Deposit Account, your currencies are in INR. However, for foreign currency deposits, FDs are in USD, GBP, EUR, JPY, CAD, AUD, NZD, SGD, KHG and even SEK, DKK. However, check with your bank about accepted deposit currencies as a few banks only allow the basic currencies, i.e., USD, GBP, EUR, CAD, AUD, and JPY.

What are the interest rates offered?

The NRI FD interest rates on your deposits are not constant. It changes periodically by the Reserve Bank of India and the banks offering NRI services. Typically, the interest rates for NRE and FCNR Deposits are the same, whereas the interest rates for NRO Deposits for resident Indians are the same.

What are the minimum and maximum deposit terms?

The minimum deposit term for NRE and NRO Deposits is seven days, whereas the maximum term is 10 years. For FCNR Deposits, the minimum investment term is a year, and the maximum investment is five years.

How To Start An Online Savings Account With A Bank?

Are you looking for a safe investment alternative to invest your idle funds and earn interest on the same? A Saving Bank Account is the best option for you. Thanks to online mode, you can now open one online at your own comfort. It eliminates the need for you to visit the bank branch to open a Savings Account physically.

However, if this is the first time that you are online Saving Account opening, here are a few essential things you should know:

Opening process

You need to visit the bank's official website where you would like to open the account. Remember that the bank should have provisions for online Bank Account opening. Find the new account opening option on the website and submit the application form. You need to provide your identification proof, address proof, and a few other documents to process your application.

Choose the right account type

Most banks now have many different types of Saving Account to meet different requirements of the customers. When you open one online, ensure that you check the features offered by the different types to make the best decision. There are Savings Account for women, kids, and even senior citizens. Such accounts provide additional benefits.

Getting the account number

After deciding on an account type and submitting the necessary documentation, you can open a Bank Account. You get a unique account number for future transactions. Once your account is functioning, sign up for Digital Banking to start using your account on the go. You need to fill a form with your account number and other personal information for the same. Most importantly, choose a username and password.

Using the net banking portal

Once your account is active and you have received a confirmation, use your account credentials to access your account online. Consider the online account for many transactions. You can do transactions through RTGS, IMPS, NEFT, etc., to pay online bills, open an online Fixed Deposit, transfer funds, apply for a Loan, and much more.

Banking apps

Most of the reputed banks in India also offer mobile apps to enable banking on the go. If your bank has a banking app, download them to access your online account anytime and anywhere. Like an online banking portal, the mobile app conveniently provides different features to meet your banking requirements.

Why are Savings Account unique

Are you uncertain about holding a Savings Account? This article rubbishes off your hesitations. Today, as everyone solely focuses on improving their income, a Saving Account does not receive any consideration. With this account, compared to other investment alternatives like Mutual Funds, Fixed Deposits and Bonds, you do not receive high interest.

Although Savings interest rates are lower than other investment options, it provides many benefits that improve your finances. Here is how the account is unique:

Safety

You need not worry about economic unpredictability when you open a Bank Account. Even if you get higher returns from your stock market investments than a Savings Account, there are risks linked with the stock market investments. Such risks can lead to low returns or even losses owing to economic volatility. Your money with a Savings Account is secure always.

Convenient

It is easy to open and maintain. By going to the branch or the bank website, you can open an Account. You can track your balance by logging in to your Digital Banking Account. Often, the best alternative to save money is a Savings Account. You also can make or receive payments, easily withdraw funds through ATM whenever you want, or transfer funds to other Accounts. Savings Account also gets directly credited to your account.

Emergency fund

You never know when you will face an emergency, be it a medical problem, vehicle concerns, loss of employment, or financial crisis within the family. If you are facing such unexpected financial challenges, holding a Saving Account may be advantageous. Its liquidity facilitates you to access your money on the move.

Auto-debit facility

You can opt for this provision with your Saving Bank Account and comfortably make payments on time. When auto-debit gets set up, the cash gets debited directly from your account on a specific day. Many daily transactions can also get made using banking apps, such as electricity bills, phone calls, etc. If all your transactions are done directly from one single account, life becomes simpler.

Services offered with Savings Account

While not all the mentioned aspects are offered with every Savings Account, but banks ensure to provide most of these whenever you open an account:

• International Debit Card
• Cheque and passbooks
• Net and phone banking facility
• ATM cash withdrawal (from other banks as well)
• Value-added services such as Insurance, discounts, additional facilities to family members, etc.

Why Should You Open Minor Savings Account

One of the important ways to protect the future of your kids is to motivate them to save. You should ensure as a parent that the future of your child is secure. Most parents emphasise that they are saving for their kids. You can educate your child about it in several respects, including buying an Insurance Policy or opening an account through Digital Banking.

As banks allow you to open accounts for minors, you need not wait until your child turns 18 to use banking facilities. To plan their future from the start, open and operate the kids Saving Account.

Following are the benefits online Saving Account opening for kids:

• It shows the importance of money.
• They become disciplined with money matters.
• It helps them remain focused on objectives.
• Thanks to compound interest, they learn new skills.
• Saving teaches them how to save for future expenses.

Factors to consider before you open a Bank Account for minors:

Age

For minors, banks allow you to open two kids Savings Account, depending on your child's age group:

• Below ten years
• Between 10 and 18 years of age

Remember the age of your child before opening the Savings Account. If your child is under 10 years, open a Joint Account, of which the joint holder will be the child and one of the parents. In this case, you assist them in operating the account as it brings about a savings discipline. The account becomes inactive until your child is over 18 years of age, transforming into a Regular Savings Account.

Funds transfer

Check with the bank if you can transfer funds via National Electronic Fund Transfer or Real-Time Gross Settlement or Immediate Payment Service using banking apps when you plan to open a kid's Savings Account. The bank allows you to do so with ease if you want to move money from your account to a child's account.

Spending limits

There is a spending cap on these account types, and it varies from bank to bank. Some banks make it possible for you to spend Rs. 1,000 to Rs. 2,000 every day. When the account opening process gets started, banks issue debit cards. In the kid's Saving Bank Account, the banks often restrict the number of debits you make in a financial year.

How Is A Savings Account Unique?

One of the first accounts we ever open is Savings Account. Whether it is an account we open as a minor with our parents or as an adult, a Regular Saving Account helps inculcate a sense of financial discipline. It encourages us to save money while we are young. Yet, most use these accounts for basic transactions like cash deposit and withdrawal as they are unaware of its uniqueness, which are:

Easy, anytime transactions

The best part about modern-day accounts is they are anytime, anywhere. This attributes to the fact that all banks today offer Digital Banking services. You need to set up your Online Banking account and download the banking app. It lets you send and receive payments quickly.

Bill payments and online shopping

You can use your Bank Saving Account to pay all your utility bills. They get paid in cash, cheque, or online transactions. Use Internet Banking channels to pay for your online shopping orders, eliminating the need for cash. 

Debit and ATM cards

When you open a Bank Account, your bank sends across a welcome kit. This kit includes two things: your Online Banking details and a Debit or ATM Card. Those uncomfortable with online transactions use their Debit Cards to withdraw cash. Use it to shop online, and retail stores and the money gets directly debited from your account. 

Balance maintenance

This is a prerequisite you should know before an online Saving Account opening. Banks always decide the minimum amount to park in the account, failing which you get charged a penalty for non-maintenance. If you hold an account in a public sector bank, you may need to maintain up to Rs. 1,000. 

Private sector banks, meanwhile, require you to maintain a minimum balance between Rs. 10,000 to Rs. 1 lakh. There are also special Zero-Balance Accounts, called Salary Accounts, that do not require minimum balance maintenance. 

Interest rates

The savings parked in your account earn you interest. Depending upon the bank where you hold account, the amount parked, and the balance maintained, you make decent Savings interest rates on them. While the interest rate is not that high, banks still provide a bonus and disburse it once or twice a year. Generally, it ranges between 3.5% to 7%. 

Deposits and withdrawals

There are no specified limits on the money you can deposit in your account. However, banks have a limit on the withdrawal amount and the frequency of withdrawals. You can make up to five withdrawals a month. Also, there is a limit on ATM withdrawals wherein you use your bank ATM and other ATMs three to five times a month. If you use other bank ATMs over the free prescribed limit, you get charged a small fee for the same. 

The Saving Account is famous for these reasons. If operated responsibly, your account serves as the first investment instrument that boosts your corpus.

How To Open Savings Account Online?

That the world has become digitally connected. Today, there is nothing you cannot do online. From online shopping to market investment, everything happens online. Banks also offer Digital Banking facilities, through which you can send and receive money in your account within seconds. 

The banking sector has moved forward and started enabling customers to do online Saving Account opening. Here are the steps for doing so:

Research 

The provision to open an online Bank Account is relatively new. Not all banks offer this facility. So, before you can open one online, research about the banks offering this facility. A simple search helps you find banks that enable online account opening. Most private sector banks offer this facility, while only a few in the public sector currently have this provision. 

Decide account type

Once shortlisted, visit their website, and choose the Saving Account you want to open. Most banks allow you to open different accounts, including Joint, Minor, Senior Citizens, Women, Zero-Balance, and accounts under various government schemes. Choose the type you wish to open and then move to the next step. Note, you cannot open a Current Account online.

Account opening form

After selecting the type, fill the account opening form. This is a basic form where you add details like your name, address, contact details, PAN Card number, and account type you intend to open. Affix your passport size photograph on the desired section and submit soft copies of all the documents listed. These include your ID and address proofs. According to Government rules, submit a photocopy of your PAN card. 

Remember, select the Online Banking facility while filing the account opening form. Review the form and submit it

Bank evaluation 

Once submitted the form, the bank assesses your application for opening the Saving Bank Account. This process takes between seven to 14 days. If your account opening request gets accepted, the bank informs you about the same through the e-mail address you mentioned on the account opening form. They ask you to complete the e-KYC process

Complete e-KYC process

Get done with the e-KYC formality where you provide a photocopy of your ID, address and PAN card and self-attest it. Once your e-KYC details are submitted, the bank assigns your account details in the mail. You get a login ID and password to your account, through which you can access and conduct other financial transactions. The bank also sends your account opening kit featuring your chequebook, passbook, and ATM and Debit Card via post.

Online accounts are ideal for modern-day customers. If you find them convenient and comfortable, you need not opt for traditional means anymore.

What You Should Know About Zero-Balance Savings Account

We all need a Bank Account for parking your savings and operate other financial transactions. A Saving Account is the first account we open, through which we gradually build our life savings. People mostly have joint or minor accounts with their parents, which gets converted into a regular account by 18 years. However, a Zero-Balance Account is the first individual account you open. 

Here are some essential facts about the Zero-Balance Account:

Meaning and Definition

This Saving Bank Account, also called a Salary Account, is what employers open for you. The employer typically ties up with a specific bank to offer them and deposits your monthly income in it. The account gets credited with your salary on a specific date of every month. Besides your income, the employer deposits variable pay such as monthly incentives, year-end bonuses, cash rewards, and more in the Zero-Balance Account. 

Why Zero-Balance?

This account is called Zero-Balance Savings Account because there are no restrictions on withdrawing the sums parked. You can remove every rupee deposited by your company without worrying about maintaining an average monthly balance (which is a prerequisite for all other types of online Bank Account). However, check your bank’s daily withdrawal limits before removing the entire sum parked. 

Basic facilities offered 

Banks typically offer a host of facilities, like those provided with a standard account. For instance, you get a chequebook, passbook, and ATM or Debit Card. In most cases, banks offer an instant kit while opening such accounts. You also receive your Net Banking details in the welcome kit. Set up your Digital Banking account, post which you can access online facilities through facilities like NEFT, IMPS, RTGS, etc.

Additional facilities offered 

Every ATM or Debit Card comes with additional services, over and above the general facilities provided. For example, you get a Debit Card with higher withdrawal limits or a high daily shopping limit. You earn extra rewards and cashback for every transaction via Debit Cards. If you draw a higher monthly income in your account, the bank provides access to facilities like fuel surcharge, free airport lounge access, free movie tickets, and so on. 

What to do if an employer does not offer Zero-Balance Account?

Most companies that are relatively small do not have the facility of a Zero-Balance Account. However, suppose the employees wish to do an online Saving Account opening for salary deposits. In that case, they can approach a bank offering the same with relevant documents that include their income and employment proof. Log in to your preferred bank with your offer letter and your most recent salary slips. The bank also asks for a recent letter from your employer validating your designation and monthly income. Once opened, you can share your account details with your employer and start enjoying the facilities that come with the account

What is a Personal Loan EMI Calculator?

When you fall short on funds, borrowing is the only means. Amongst the many credit options, a Personal Loan remains the most sought-after. The reason for this is the minimal paperwork, instant processing, and collateral-free nature. It also lets you finance multiple needs. Moreover, lenders do not monitor its usage, resulting in liberty. 

Despite the flexibility, it is still a financial responsibility. You must repay it in equated monthly instalments. Hence, this is one of the primary things you should consider before opting in. If you are unsure of it, using an EMI calculator is the best way to decide. It helps you choose convenient loan terms with accurate estimates. Learn about it in detail to utilise the instrument aptly:  

Components: There are three key variables involved in the EMI calculation. They are the principal amount, interest rate, and loan tenure. They have correlated effects, and selecting them wisely is essential to increase loan affordability. Let us understand how it works: 

1. Principal amount: It is the borrowable amount that you repay along with interest. They are directly proportional to the EMIs. It means a higher loan amount results in a higher EMI and vice versa. Lenders usually sanction up to Rs. 25,000 as loan. It is subject to variation based on your eligibility. So, make sure to check the same before entering the variable to get accurate results.
   
   
2. Interest rate: This is the percentage charged on the principal borrowed. It influences the overall loan cost. Lenders have specific parameters for finalising the same, which they pre-adjust in the Loan EMI calculator. Hence, you get to select the rate and compare their offers.
   
   
3. Loan tenure: Unlike other components, the loan duration inversely influences the EMIs. A longer period leads to lower EMIs and vice versa. However, it is worth noting that a stretched tenure reduces the instalments but increases the loan cost. Hence, you should choose it after careful deliberation. 

Computation: Entering these variables in the EMI calculator online gives you instant results. It includes the break-up of the total payable amount for better understanding and shows a segregated figure for the monthly EMI, principal portion, and interest amount. This way, you get a precise idea of repayment distribution. Some tools also represent them through graphs, charts, and an amortisation schedule. 

Benefits: This is a free-to-use tool that lets you estimate the loan burden for informed decision-making. There are no restrictions on using the Personal Loan EMI Calculator. Hence, use it as many times as you like to try different possibilities. It also does not require your details except for the mentioned components. It enables you to plan your finances and manage EMIs with banking apps.

What To Remember When Picking The Best Savings Account For You

With so many Savings Accounts available, each catering to different needs, it gets tough to choose one that suits you the best. So, how to figure out which Saving Account is best for you? Following are some aspects to think about before deciding on the ideal account for you. While your demands and the characteristics are not a perfect match, start by examining the following:

Interest Rates

The Savings interest rates are the most important aspects to consider. The Reserve Bank of India (RBI) deregulated the interest rate system in 2011, allowing banks to set the rates at their discretion. Banks provide different rates on their account, which is approximately between 4% to 6.25 % yearly. Because the rates are conditional, this is the case.

Minimum Balance Criteria

Before you open a Bank Account, make sure it is a Zero-Balance Account or if there is a minimum balance to maintain. If the money deposited falls below the minimum amount, the banks generally issue a fine. If you are unsure of satisfying the minimum balance requirement, the Zero-Balance Account does not demand such. You can open this through banking apps.

Online Access

Check to see if the bank provides good Digital Banking services. In today's world, banking from home is the preferred option. Therefore, use your phone or computer to do basic operations like checking your account balance, moving funds, or opening accounts like Fixed Deposits or PPF.

Service Charges

Sift through the terms before the online Saving Account opening to see any fees linked with it. You have the option of ignoring costs for features that you use infrequently. Is there a fee for transferring money to the account in another country? Is there a monthly limit on free ATM withdrawals? Is there a limit on free online transactions you make with your bank?

When your account balance falls below the mentioned amount, the bank charges you an administrative fee. If you are sure, you can keep up with the minimum amount and opt for a bank that does not charge you for it.

Debit Card

Banks offer a slew of freebies when you open Saving Bank Account, including a free chequebook, Debit Cards, and discounts on groceries, restaurants, and movie tickets if you use the card, among other things. Examine whether these freebies are appropriate for you. It does not matter if you get these freebies or not if you have minimal need for dining or grocery discounts.

Things You Should Know About Debit Cards

The way we do things today vastly differs from the earlier days. Almost everything is getting replaced by technology. From ordering food to grocery shopping, you get to do all the mundane tasks online. Banks realising the importance of the same offer banking services on their websites, kiosks, and banking apps. 

A similar digital revolution was created with the introduction of a Debit Card. You get it when you open a Savings or Current Account. It does more than withdrawing money. It is now helpful in making online transactions with ease. While it offers convenience, you should know some essential aspects to use it properly. 

Fees: Banks offer enough flexibility to the card usage convenience. However, they still have some charges as they do for your accounts. It includes ATM fees for using non-bank automated teller machines. So, check for the norms on the same and plan your withdrawals carefully. Another prominent fee is for overdrawing or exceeding the free transaction limits. 

These details are mentioned on their website. Make sure to read them when you apply for Debit Card online. It also helps get clarity on any other additional bank-specific charges you might have missed. 

Offers: Digital banking offers convenience to both individuals and merchants. It reduces their overhead costs. They need not appoint a cashier or manually record transactions. Hence, they extend rewards to you for it. These include cash backs, vouchers, coupons, gift cards, etc. The same is applicable for shopping online and making bill payments. If you feel like you are missing out, you should apply for Debit Card. 

Security pitfalls: Your card comes with a chip and protection through a personal identification number. It also alerts you about each transaction. Still, being careful is crucial as anything is possible online. Most fraudulent practices become successful because of our negligence. Make sure always to hide your PIN. Also, verify each site you visit for either getting an online Debit Card or using it. 

Instant debit: Unlike Credit Cards, these cards access funds directly from your account. As a result, in most cases, debit happens instantly during payments. It is just like using your cash but digitally. Therefore, keep your spending in check and shop with caution. Make it a practice to review your transaction records regularly via banking apps. Also, pay heed to alerts you get on each payment. 

Uses: Internet banking has flourished in recent years. It has brought all banking activities to your fingertips. Hence, every other purchase or payment is doable 24*7 without any hassle. It involves paying peers, making bill payments, shopping, booking tickets, retail purchases, etc. But one thing to remember while using your card is not to store information.

What Are The Features Of Digital Banking?

Technology caused the biggest shift in the banking sector over the years. It changed the way they engage with customers and each other. The shape of established retail banks is changing, driven by the challenge of fast, focused digital new entrants capturing the market. They made processes and applications convenient to access for everyone worldwide.

Digital banking is the digitisation of all traditional banking activities and programmes historically available to customers when physically inside the branch. It includes money deposits, withdrawals, transfers, Bank Account management, financial product applications, loan management, bill payments, and other account services.

Features

Digital banking in India is accessible on PC, smartphone, or tablet. It is also far better than visiting the bank branch. There are several features you enjoy by adopting this method.

Online banking

It provides you with the luxury of banking anytime, anywhere. Website services offered are available 24*7. To facilitate online use, banks provide online banking apps with a host of high-quality technology solutions to make the banking experience easy and fast. Some services include account summary, transaction history, checking account statement and balance, online payments, and fund transfer.

Personal finance planning

There is lots of competition in the banking sector. Hence, they come up with advanced websites and processes to ease online Saving Account opening. Some features include loan calculators, premium calculators, financial planning tools, investment tools, budgeting, forecasting, and tax preparation. It becomes simpler for you to select the Bank Account and calculate the interest rates.

Mobile banking

It is a service provided by a bank or financial institution, allowing customers to conduct financial transactions remotely using a smartphone or tablet. Unlike internet banking, it uses software or an app provided by the financial institution for this purpose. Mobile banking is usually accessible anytime.

Unified Payment Interface

Nowadays, you make transactions from your mobile phone from any location. Thanks to the integration of UPI and online banking solutions, customers transfer money between accounts easily. UPI is an instant real-time payment system developed by the National Payments Corporation of India facilitating inter-bank transactions directly to the Saving Account.

Phone banking

It is famous for people with a primary phone without a data connection. The services include SMS, missed call, and USSD banking. Those who lack an online Bank Account use them from anywhere. They are free services offering cashless transactions.

Digital wallet

Mobile wallets are popular too. They are the best technological innovations and allow you to pay directly from your smartphone. Millions of people use them for payments. Some popular options are PayTM, MobiKwik, JioMoney, State Bank Buddy, etc.

The Procedure To Transfer Money From The UK to India

Funds are a source of living worldwide. You earn money to secure your future and fulfil your expectations while finding several growth opportunities in professional fields. Indians travel to foreign countries to live a bright future and secure their goals. You never forget your responsibilities towards your family and cultural values, even in a foreign land.

Several Indians travel to this country each year and improve their living standards. While you reside in the UK, you find several options to transfer money from the UK to India. The funds help your family in an emergency and for fulfilling urgent requirements.

Bank transfer

The convenient option to send money to India is banks. With the promotion of benefits of digital banking, most Indians own a Bank Account. Your recipient accesses the money from an authorised ATM or visits the bank to collect money.

Money agent

Sending cash is one of the quickest ways of money transfer to India from the UK. You need to meet an agent, hand over the cash to transfer abroad, and provide the recipient and sender details. The receiver collects it from a local agent. One of the things to consider is the size of the agent network in India. Since the receiver collects the cash personally, having a broad network is an advantage.

Mobile wallet

The majority of mobile phone users in India use a digital wallet to manage payments. It is an app you download on your phone which works similar to a physical wallet. It allows you to store money, pay, and send money directly to another person’s wallet or Bank Account. When you transfer money to India, the cash is readily available for the receiver to spend, pay bills, or withdraw.

Reasons to transfer

There are plenty of reasons you transfer money using your Bank Account or international money transfer operators. In India, it helps you pay for the rent of your flat or property. Additionally, you pay the tuition fees of your child and renew investment premiums periodically. Your family meets the necessary expenses without borrowing funds from others.

Weddings in India are a grand occasion. You initiate an online money transfer to India to help your family pay for the wedding expenses without running into debt. Since it is a crucial phase, you ensure it is memorable and pleasant. You prevent your family from facing financial burdens and reduce their worries.

Reducing costs

When you transfer money from the UK to India through your Bank Account, you pay a fee. If you also consider the exchange rates, the costs add up. Hence, find ways to reduce these fees and achieve superior exchange rates to save money while securing your transfer.

Always consider the time taken to reach the recipient, the convenience, and network facilities, among other factors, while transferring funds.

How Are NRI Account Interest Rates Calculated?

We all aim to excel and succeed in life. Whether it is academics or career, we have some expectations to meet. Some courses or job opportunities are not available in India. We collect and save money to travel overseas for fulfilling our aspirations. However, we must not forget our responsibilities towards our family in India.

Banks encourage you to open an NRI account for depositing foreign currency. As a non-resident Indian, it is safer to enquire about the NRI account interest rates before submitting the account opening application. They differ between banks and the facilities they provide. Some give an interest rate between 3% and 6% per annum to customers opening the account. All this information is available on their portal for easy access.

Payment

The bank pays you the NRI savings account interest rates every quarter or as decided. They calculate it on the available daily balance or as required by the regulator and bank. They are subject to change with time at the bank’s discretion or according to RBI’s directives.

Calculation

There are two categories of NRI accounts – NRE and NRO account. You calculate the NRE savings account interest rates depending on the end-of-day balance maintained in it. In case they change, the bank updates the information on the website.

Taxation

NRE interest rates are exempt from taxes in India, whereas the interest earned in an NRO account attracts taxes. Both the principal and interest earned are tax-free. You get the facility of repatriating interest and principal amounts anywhere globally with internet and mobile banking services.

Investments

The NRE account helps you invest in India across mutual funds. Joint account opening is possible with another NRI or Person of Indian Origin (PIO) and operated on either or survivor basis. Assign a Power of Attorney to transact on your behalf. However, they might have limited access to your account.

Payment frequency

You get the best NRE account interest rates. Every quarter, on 31st March, 30th June, 30th September, and 31st December, the payment frequency is subject to change.

Currency

The bank maintains funds in Indian rupees. Open it with a deposit of INR 5 lakh. The total relationship value within six months should amount to a minimum of INR 30 lakh. They calculate it by aggregating the average quarterly savings account balances and term deposits, insurance, investments, and mortgage loan outstanding. Thus, 40% of the loan’s net balance goes towards TRV computation.

Other accounts

As an NRI, banks also offer you attractive NRO savings account interest rates of up to 3% per annum.  The account helps you manage your Indian rupee earnings while residing abroad. They are the ideal choice for those who have some form of income in India while overseas, such as rental property, mutual fund dividends, pension, fixed deposits, or other similar sources.

Which Is Beneficial: Recurring Or Fixed Deposits?

India has long been a country that prioritises saving overspending. Therefore, most of us are aware of Fixed Deposit and Recurring Deposit concepts, mainly because they are two of the most preferred investment options. Let us look at some of the reasons why they are so beneficial.

FDs and RDs: Traditional investment opportunities

Traditional investing options such as fixed deposits and recurring deposits have been popular for years. Many modern investors put money into FD and RD regularly to offset the risks associated with sophisticated, market-linked instruments.

An investor can put aside some money into the FD for a specific time at a set interest rate. However, if you withdraw money before the minimum lock-in period gets completed, banks levy a penalty.

Monthly, quarterly, half-yearly, or annually, the interest gets either accumulated and added to the amount of the fixed deposit account or deposited to the investor's savings account. At the end of the investment term, the investor's collected interest is given to the principal sum of the FD.

You can make use of a fixed deposit calculator to know your maturity amount before investing. These are available on the banking apps too. On the other hand, a recurring deposit is a monthly investment of a defined amount at predetermined interest rates. The interest and maturity proceeds get credited in the same way as an FD.

If the interest amount for a financial year exceeds Rs. 10,000, the bank deducts a Tax Deduction at Source for both. Here, you can use a recurring deposit calculator to know what the maturity amount will be. So, you might wonder how an FD differs from RD.

Higher returns in FD

When an FD and recurring deposit are co pared, the former's maturity proceeds are likely to be higher. It is because the FD requires you to invest the entire amount at one go. As a result, the interest gets computed on a bigger sum, and the maturity proceeds end up being bigger due to compounding effects.

On the other hand, the RD account allows you to invest a set amount of money monthly. As a result, while the first instalment receives interest for the whole 12-month period, the second instalment only earns interest for the first 11 months. As a result, the interest earned here is lower than the FDs.

More flexibility in RD

FDs are the best option for you if you have significant money to invest. On the other hand, RDs are a great choice if you want to develop a safe pool of assets. In addition, with consistent monthly commitment, you can set specific, short-term goals, such as paying annual school fees or saving for a major family event.

A Detailed Guide On The Facilities Offered Under Online Savings Account

Today, all public and private sector banks offer savings account. You can use them for parking and growing your savings gradually. The moment you begin earning, you can open the account if you do not hold one. While some organisations do offer an account for depositing the salary, consider opening a regular one with which you can enjoy a host of benefits. Thanks to digital banking, you can open an account in minutes online. 

Here are some of the most generic facilities which banks offer on online saving account opening: 

Usage of account for daily transactions 

The essential feature of the account is it lets you conduct all types of daily transactions. There is no upper cap on the sum you can deposit in the account. Deposit the money through cash, cheque, or online transactions through various accounts. However, banks have a daily withdrawal limit on such accounts. Generally, the withdrawal limits are higher when you remove cash from the bank branch than the ATM. 

Provides ATM or debit card 

All Indian banks offer an ATM or debit card in the saving account welcome kit. The ATM card includes your name, a 16-digit code, and the expiration or validity date on the front, while the CVV number with the signature strip on the back. You use the ATM card for withdrawing funds from any ATM vestibule. However, you should check the number of transactions possible through ATM, be it home bank or otherwise. 

Besides withdrawing cash at the ATM, use the card for shopping at retail stores and online portals. You can use them for paying the utility bills as well. 

Net banking services 

You already have opened the account online. Now, you can explore more opportunities here. You can do transactions often, check your account balance, download the bank statement, transfer funds through NEFT, RTGS, or IMPS modes. You have the provisions to pay the utility bills, house rent, loan EMIs, and other monthly expenses directly through the account. You can even set up login details in the banking apps for on the move transactions. 

Earn interests on the savings 

Every bank offers savings interest rates on the balanced parked. The interest rates offered are generally not too high, but you can earn higher interest rates under the online mode. It is also applicable for those who have maintained higher deposits in the account, usually exceeding Rs. 1 lakh. The interest rates offered ranges between 4% to 7% depending on the bank and the savings. The interest pay-out also happens on a half-yearly or yearly basis. 

When you open the saving bank account, enquire about the different accounts you can open. Apart from the standard account, there is a joint account, zero-balance, accounts under various Government schemes, women, senior citizens, and minors.

How Is A Home Loan Beneficial?

A home is where you can relax and reside safely after a hectic day at work. It gives you peace of mind and ensures you get the freedom to perform your chores without any interruption. You aim to lead a secure and peaceful life with your family without worrying about insecurities and giving them utmost attention.

Banks and financial institutions are offering a home loan to every citizen of the country to fund the cost of the property. You can borrow a loan amount according to your affordability and repayment capacity and repay it with interest in equated monthly instalments. You can apply for a loan for constructing and renovating the house as well.

Tax benefits

To encourage more people to buy a house, the Indian Government provides a tax deduction on the principal and the interest payable on the housing loan. You are eligible to claim a tax deduction of up to Rs. 1.5 lakh on the loan amount and Rs. 2 lakh on the interest in a financial year under Section 80 C and Section 24 B of the Income Tax Act, 1961. The deductions are only available after the completion of construction.

Convenience

You can receive quick approval when you apply for home loan, even before selecting the property. It helps you arrange funds and pay the seller immediately without wasting time. You can also get attractive interest rates with affordable repayment options from the bank or lender.

EMI repayments

You can repay the loan from your bank account in affordable monthly instalments. Set the auto-debit feature by giving standing instructions to the bank and saving time. You can also avoid the hassle of signing and procuring cheques for the payment.

High repayment tenure

You get a high repayment tenure which can go up to 30 years even when you apply for home loan online. These days, you can visit the bank website or download the official banking app to access all their banking and finance products without seeing them personally. You can reduce the burden of instalments by extending the loan tenure.

Attractive interest rates

When you avail of a home loan in India, you get it at a low and attractive interest rate compared to other unsecured loans. Generally, the interest rate ranges between 7.35% to 8.50%, making it an affordable loan scheme.

Security

Buying a home is one of the biggest financial commitments. You need to pay the EMIs on time and ensure you have the repayment capacity to finance the loan. It gives you mental satisfaction and a sense of accomplishment. You can secure your future by applying for a home loan online and reducing the paperwork.

Tips For NRIs Interested In Buying A Home In India

Non-Resident Indians (NRIs) may use NRI home loans to finance their plans to buy a home in India. However, the mechanism should also ensure that the Foreign Exchange Management Act of 1999 (FEMA) and related RBI regulations get followed because of the cross-border remittance requirements. As a result, when applying for a home loan for NRI in India, NRIs must keep the following points in mind:

• Home loans are available for a wide range of residential properties, including new construction and ready-to-move properties. In addition, a home loan can get used to finance the purchase of a plot, building works, and maintenance and improvement costs. However, under current FEMA legislation, an NRI gets no permission to purchase agricultural land, plantations, or farmhouses, among other things.  

As a result, even if an NRI wants to be a co-borrower, no loan can be obtained for such a house. 

• According to RBI regulations, an NRI home loan can only get repaid with NRI accounts, like NRE and NRO accounts. Apart from debits from an NRI account, a foreign money transfer from abroad may get used to credit the Home Loan directly.
  
  
• An NRI should prepay their NRI home loans in the same way that residents can. However, credits into the home loan account must come from the borrower's NRI accounts or foreign remittances to meet the standard repayment conditions.
  
  
• Banks typically charge slightly higher credit spreads due to the higher risk perception of the person staying out of the region. As a result, the home loan interest rate for NRI is slightly higher than for locals. If an NRI returns to India with the aim of settling, the loan account must be converted to a residential home loan so that lower interest rates can get obtained.
  
  
• Compared to a standard home loan for Indian citizens, NRI home loans come with additional paperwork requirements. You will need to submit a copy of your passport and a valid visa along with the application form. A General Power of Attorney (GPA) will need in favour of a resident Indian with whom the bank can interact in India.
  
  
• Though NRIs may jointly purchase a property in the name of another NRI, this is not possible with a resident Indian or those who are not permitted to buy property in India.

Types Of Recurring Deposit Accounts In India

A recurring deposit is the most popular secure and low-risk investments in India. It offers an opportunity to invest without a lumpsum corpus. You get assured and fixed returns on such fund transfer. It is ideal for achieving your short-term financial goals.

Now, a typical RD account has a period ranging from six months to 10 years. You pre-decide the fixed instalments you make each month. Your RD interest rates get determined based on these aspects. However, different forms cater to needs. It is essential to understand them to benefit from them. Read on to find out:

Regular RD account: It is the most widely used form. It allows you to invest in monthly deposits for a pre-determined period. The recurring deposit interest rate you get is fixed and assured. It gets calculated as a compound or simple interest method based on the duration you choose. You can open it if you are aged 18 years or above.

RD account for senior citizens: These accounts provide additional benefits to the elderly. You can open it if your age is above 60 years. The main advantage is the higher recurring deposit rates compared to regular accounts. This rate gets compounded quarterly to result in higher maturity amount. An additional interest of 0.25 to 0.75% gets offered on this account. It is to aid the older citizens during retirement and in the absence of income.

RD account for minors:  Some banks also allow citizens under 18 years to open RD account. However, they get supervised by the minor's guardian or parents. The interest rate is either higher or lower than traditional RD schemes depending on the bank. It gets converted into a standard recurring deposit once the child becomes an adult. This scheme is to gather funds for children higher education.

RD account for NRI/NRE: Banks and financial companies also offer specialised RD schemes for Non-resident Indians. You can benefit from this by opening a Non-resident ordinary or Non-resident external account. The interest on the former is taxable at 30 per cent, while the latter does not allow taxability in India. It, however, facilitates account transfer to your home country. 

Flexi RD account: It lets you make investments in flexible instalments. You open the account with a core amount and add variables to it. This enables you to invest at your convenience whenever you have the availability of funds—failure in depositing the core amount results in a penalty. The same is not applicable for variables. You get the facility of tracking them through banking apps.