How Does A Wealth Account Manage Your Money The Right Way?

Money holds immense value in our lives. It determines your standard of living and financial security. Very often, money is considered a status symbol. It is a harsh reality. The amount you hold largely depends on your investments and how well you manage the returns reaped. Many fail to manage their wealth the right way. Opting for a Wealth Account opening allows you to handle money quickly and efficiently.

A Wealth Account is primarily curated for wealth creation. It enables you to make profitable investments and securely park returns from them. Following are the different wealth products and services it offers that manage your hard-earned funds rightly:

A dedicated account

When you make investments, you generally link them to your Savings Account. The investment returns are credited to the account periodically. Since Savings Account is most used to meet daily banking requirements, it could be possible you could end up using all the returns. With a Wealth Account opening, you have a dedicated account. All your investment returns can be parked here. This ensures you do not use your investment returns over unnecessary spending.

Gain exclusive market insights

This is a great wealth solution offered by the account. Here, the most experienced investment gurus prepare market reports. They help you understand the best stocks to invest in and predict future market standings. Though market standing is unpredictable, these reports are helpful to brace for the impact and make appropriate investment decisions.

Having an investment expert on board 

Do you wish to make high-valued investments but lack the time and expertise to do it yourself? You can channel your money to profitable investments by signing up for wealth management. Here, you have a team of dedicated investment experts to help you with your investment journey. They understand your financial profile and investment objectives. Based on this, they recommend the most suitable investment options.

They also monitor and modify your investments whenever required. This often takes some burden off your shoulders. So, sit back and enjoy your investment returns to the fullest.

Access to a range of wealth products

The returns you reap largely depend on the wealth product you invest in. If you pick the right wealth product, your investment journey becomes easy. Choosing the right product is not easy as many wealth products are available today. With the account, you can access a range of Wealth Management products like Fixed Deposits, Mutual Funds, Private Equity, Real Estate Funds, and many other beneficial products.

Consider your investment goals and risk profile to determine the best wealth products for investment.

How Does Income Impact Personal Loan Approvals?

Whether a planned or unforeseen expenditure, a Personal Loan meets all your financial requirements. Personal Loans are unsecured credit. This means you need not pledge your assets as collateral to secure the Loan amount. Apply for Loans at competitive interest rates and flexible repayment tenure. These factors collectively make Personal Loans a good financing option for salaried individuals.

You can apply for a Personal Loan for salaried online within minutes. Before you start, you should know the factors influencing the Loan approval. The bank primarily checks your credit score, repayment history, and salary for Loan approval. Let us understand how your salary and work profile impact the Loan approval.

Income influence

From qualifying for the eligibility criteria to Loan approval, your salary has a significant say over your Personal Loan application. To apply for a Personal Loan, you need to be a minimum of 22 years and a maximum of 60 years. Both salaried and self-employed applicants can apply for this Loan. You need a monthly income of at least Rs. 20,000. Your salary helps the bank determine your repayment capacity.

A higher in-hand salary translates to a better repayment capacity. Given your high salary, you have a significant amount in hand. This makes the bank confident that you can repay the applied Loan amount without defaults. Banks even readily offer pre-approved Personal Loan to applicants with a good salary. Your income determines the maximum Loan amount you can apply for.

With a higher salary, you can request a higher amount. The bank approves such a request as they are aware of the repayment capacity you hold. Your income influences Personal Loan interest rate too. When you portray a solid repayment capacity, the risk associated with your Loan request is significantly low. Due to this, the bank might offer a Loan at a lower interest rate. You also get a free hand in choosing a flexible repayment tenure.

Debt to income ratio

Now, you may think you have a reasonable income, and there is no way the bank will reject your Loan request. The bank still compares the salary with your debt obligations. This is called the debt-to-income ratio. A higher debt-to-income ratio negatively impacts your repayment capacity and overall profile. A debt-to-income ratio of 40:60 is considered reasonable. This way, you get a chunk of your salary to make other repayments.

This also ensures a considerable burden is off your shoulders. Think wisely before applying for a Personal Loan. You can now apply for one through a Banking app. Download the bank’s mobile app and apply for the Loan instantly. 

How To Land With The Best Personal Loan Interest Rates Online?

Personal Loans are unsecured and considered multi-purpose, offered by every bank and financial institution. They are the best way to tackle your immediate financial needs. From financing your child’s wedding to booking a holiday, you can bankroll all your desires with this Loan. You find several options online.

But it is essential to get competitive Personal Loans interest rates as it allows you to make repayments easily. You need to assess your repayment capacity, compare banks and lenders, and check your eligibility before applying. The following are the best ways to get the best Loan interest rates:

Credit ratings

It is necessary to maintain a good score as it shows your creditworthiness depending on how you managed the Loan earlier. A score of 700 or 750 is ideal for Personal Loans. As a rule, the higher your score, the better Loan options you get. Lenders decide on the repayment terms, amount, and interest rates based on your credit scores. A higher score means you can negotiate the terms offered.

Ensure to compare

A little research goes a long way when applying for Personal Loans. You can compare lenders with the desired interest rates and features. It takes time but ensures you make a wise decision. You need to check your Loan eligibility for the bank to disburse the amount in your account within a couple of hours.

Seasonal offers

All banks notify their customers about special offers via SMS or email notifications. Check them for applying for Personal Loans affordably. These offers allow you to get limited period discounts on the interest rate. Often, they are available when you apply for Loans online during the occasions.

Professional reputation

If you earn a high salary and work in a reputed organisation, you are considered a stable candidate for the Loan. Use this to your advantage for negotiating the lowest Personal Loan interest rates with lenders. Your company’s reputation helps you get a lower rate since the lender gains assurance of your financial stability and the ability to repay the Loan on time.

Things to remember

Nowadays, banks offer attractive terms on Personal Loans. However, it is safer to conduct detailed research before applying for Loans offline or on Banking apps. Before deciding on the lender, compare various aspects like interest rates, processing fees, repayment flexibility, prepayment charges, etc. It helps you settle for a Loan that best suits your needs. Using the EMI calculator to plan your monthly budget, you should calculate the Loan EMI beforehand.

Ensure you opt for a Loan with an affordable instalment amount, interest rates, and tenure to reduce the financial burden.

Equity Mutual Funds And Their Benefits

Equities are pooled investment that draws money from various investors to garner a considerable corpus to invest in various stocks. Thereby, they are also called stock funds which are witnessing rising popularity as no investment avenue can generate as good returns as equities. Fund managers select the stocks to invest in, considering the objective.

The Equity Funds manager collects money from several investors and invests it in various investments to form a portfolio. The multiple benefits make it a profitable avenue for you to put your money:

Diversification

Equity funds offer diversification in many ways. They invest in several stocks, various sectors, and other asset classes. As an investor, you can own a share in equities of companies across multiple capitalisations and pan sectors. You benefit from the profits and reduce the risk with even fund distribution. Also, the presence of fixed income securities and other money market instruments further diversifies and balances the investment portfolio.

Professional management

Analysts with experience and expertise in fund management manage Equity Mutual Funds. They research and analyse the various stocks and market trends and aim to outperform the benchmark indices. They generate superior returns than the market indices for their investors. Thus, many investors who lack the skill, willpower, or time to track the market or predict the stock performance should invest in Mutual Funds.

Risk mitigation

Owing to diversification, where the fund corpus evenly spreads over various stocks, it also spreads the associated profits and risks. When one stock underperforms, the other picks up. Similarly, if one sector falls, the other balances the portfolio, reducing the loss incurred.

Wealth creation

Equities generate the highest returns among all kinds of investments. They can offer inflation-beating returns to help investors create a good corpus in the future. If you have long-term goals of capital generation, invest in them. They involve risks but bounce back if you hold them for a long duration. However, you can also invest in Debt Funds like CPs, CDs, Corporate Bonds, Treasury Bills, Government Securities, etc.

Cost-efficient

Investing in equity schemes is cost-efficient. You can be a shareholder in various companies through small investments without a high capital requirement. As the fund size grows, the amount spreads over more fund units, making the cost cheaper. You can invest in a lump sum and SIP investments with an amount as low as Rs. 500 on the Mutual Fund app.

Liquidity

The sale and purchase make online Mutual Fund highly liquid. Similarly, investors can quickly redeem the units whenever desired. Once redeemed, the money equal to the unit value when sold gets deposited in your account within a few days.

Dividend income

Under a dividend plan, you get dividend income either monthly, quarterly, bi-annually, or annually. A dividend is the cumulative profit of all stocks. The profits earned from an Equity Fund are divided among all investors as per their unit holding after deducting applicable charges.

7 Benefits Of Investing In Mutual Funds

Today, you get access to various financial instruments to start your investment journey. The market has countless emerging avenues ideal for effective wealth growth. One of them is Mutual Funds. Such schemes utilise your invested money in financial assets like stocks, bonds, debentures, and other securities.

A Mutual Fund Investment pools money from different investors with a common objective. It distributes your funds in varied asset classes based on your chosen scheme. Your role is to select a basket of securities that best suits your financial goals. Here are some benefits of investing in them:

1. Financial discipline

You must focus on expanding your earnings to ensure a financially stable future. These schemes help you do just that. They follow a simplistic structure and offer promising returns. This way, you develop a healthy investment habit and reap gains with minimum effort.

2. Power of compounding

When you invest in a Mutual Fund, you enjoy the perks of compounding. The more money you invest, and the longer it sits, the more compound interest you earn. For example, you invest Rs. 500 with 10% interest yearly. Now, your principal amount will be Rs. 500 and the earnings at the end of the year will be 10% of Rs. 500.

3. Portfolio diversification

As an investor, you should spread your investment across different assets. This practice enables you to mitigate the risks associated with holding one investment. It preserves your capital and increases your risk-adjusted returns. Mutual Funds make this task more manageable. Since they deal with varied assets, you need not worry about concentrated threats to your capital. Besides, you also get the option of managing your portfolio through any Mutual Fund app.

4. Transparent trade practices

These investment vehicles are handled and monitored by professional fund managers. Such individuals hold extensive experience and knowledge of the market. They ensure transparent trade practices and safeguard your confidentiality.

5. Variety of types

Such investment schemes come in different types. Some of the most popular ones include SIP Plans, Hybrid Funds, Equity Funds, Debt Funds, etc. Each meets a unique investment requirement. As a result, you get to choose one that satisfies your needs the best. For example, if you do not have enough funds to invest, you can opt for a Systematic Investment Plan. This scheme lets you invest as little as Rs.500 at regular intervals.

6. Higher liquidity

An online Mutual Fund Investment offers excellent liquidity to investors. This works in your favour when you have sufficient funds for short-term investments. It lets you use liquid funds in the future in case of urgent cash requirements.

7. Easily accessible

Nowadays, you need not even step out of your house to invest in a Mutual Fund. You can find numerous fund houses online with a simple button. These websites provide straightforward application processes and minimum documentation.

Answering The Most Common Questions About NRE Interest Rates

Whether you become or already are a non-resident Indian, you need to open an NRI Account on priority. Operating through an NRI Account fulfils your legal obligation and is advantageous. The types of NRI Account you should open depends on your banking requirement. Non-Resident External or NRE Account is apt if you wish to park your foreign earnings and make seamless remittances.

When opening an NRE Account, pay attention to its interest rate. A higher interest rate works in your favour. Let us understand more about the account and the NRE Account interest rates through FAQs.

What are the NRE Account interest rates offered?

This depends on how you choose to hold the account. There are three ways you can hold an NRE Account: Savings, Current, and Fixed Deposit. A Savings Account is ideal to meet your daily banking needs. A Current Account is typically used for business transactions. FDs are perfect if you wish to secure and grow your savings. These options have a different interest rate offerings.

Savings Account offers a reasonable interest rate that allows you to keep your money working. However, the interest rate is lesser than that of an FD. Invest in an NRE Deposit to earn competitive interest returns.

How to get the best interest rates?

NRE Account interest rates vary for each bank. The only way to get the best rate for your account is by exploring the market. Do not open an account without doing thorough market research. Run a search online before opening an NRI Account. Check the interest rates. Open an account with banks that offer the highest interest rate and a host of other benefits. You can easily find information on the bank portal.

How are NRE Savings Account interest deposits calculated?

Like every other Savings Account interest calculation, this one depends on the balance you maintain. The closing day balance in your account is considered to calculate the interest earned. A higher balance attracts a higher interest rate and vice-versa.  Generally, most banks follow a quarterly interest payout.

However, they may choose to change the interest payout policy anytime. Watch for updates on the bank’s website to know about NRE Savings Account interest rates changes.

What are the tax implications on the interest earned?

Interest earned on your NRE Account deposit is tax-free. You can also entirely repatriate the interest earned to your country of residence at any point. The tax implications apply to interest earned from an NRE FD as well. However, if you transfer the interest earned from your NRE Account to your NRO Account, you must pay taxes.

Points To Note Before Beginning The Wealth Account Opening Process

Savings forms an essential part of achieving wealth growth. However, it does not pertain to merely accumulating capital. You also need to know how to put it to good use based on your financial goals. Several investment instruments are available for this purpose. The key is to choose them carefully depending on your risk appetite, flexibility needs, and investment horizon.

Not all are equipped with adequate knowledge to make these decisions. Hence, several mediums help with Wealth Management. You get them in passive forms, like blogs, market insights, tutorials, books, etc. But if you need active assistance that addresses your investment concerns, a Wealth Account opening is a good idea. It provides you with bespoke wealth solutions. Check these aspects to begin the process smoothly:

Qualifying requirements:

Maintaining a high balance with the bank makes you eligible to open the account. This gets calculated through your Total Relationship Value (TRV), which typically amounts to Rs. 5 lakh. Additionally, you must build this TRV to Rs. 30 lakh over six months after opening the account. This makes you eligible to enjoy its benefits and access Premium Banking products.

Beneficial aspects

Managing wealth is an elaborate process that requires consideration of various aspects. Hence, you get to choose from a wide range of products after the Wealth Account opening. They include Mutual Funds, Remittances, Fixed Deposits, Insurance, Structured Products, etc. Assess how they fit into your portfolio to meet your financial goals for creating an apt combination. A balance of short- and long-term instruments is ideal for proper financial planning.

Charges

Like any other Bank Account, this account attracts maintenance changes. The amount is slightly higher than a Regular Savings Account as it offers Wealth Management services. Such charges may differ from bank to bank. Some of the standard ones include an annual fee for Debit Card usage, penalty on local currency cheque returns, transfer cost, etc. Look into them to set your expectations right.

Convenience

Today, you get to access almost everything at your fingertips. So much so that you expect it from every service you interact with. Banks understand this and offer the needed convenience for Wealth Account opening. They let you carry out the process through banking apps and web portals. This eliminates the need to visit the bank physically to complete the formalities. Moreover, the opening procedure gets done within a matter of minutes.

Management rules

Opening the account is the first step to getting started on your Wealth Management journey. Once done with the formalities, you need a calculated approach to manage your funds in it effectively. Thankfully, this is not a struggle as you get assigned a dedicated relationship manager. They regulate your investment decisions and account maintenance. Such expert opinions add value to your wealth growth journey.