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.