Monthly Archives: August 2013

Savings Plans Available In India

Savings are an integral aspect of our lives and existence.  The Indian money market is a market for both short-term as well as long-term funds with maturity that could be merely overnight to even one year; having a number of financial instruments. 

This Indian money market consists of the unorganised sector (indigenous bankers, money lenders and chit funds), the organised sector – the Reserve Bank of India, public and private sector banks, development banks as well as other n on-banking financial companies (NBFC’s). This market is part of the financial market where various instruments of high liquidity as well as short-term maturities are traded.

Banks across the country offer a number of savings accounts where people can safely deposit their money without any fear of it being lost. With individuals having different budgets and savings amounts, banks understand the varying requirements and needs of people. When a person deposits money into a savings account it is one of the first steps towards financial empowerment.

Some of the popular savings accounts include basic/regular savings accounts, money market accounts and Certificate of Deposit (CD). These accounts offer different rates of interest as well as have different minimum balances which are required for the accounts.

It is important to remember that the fees as well as the features of the account are an important component of your savings strategy. While choosing a savings plan, regardless of the age group it is very important to keep in mind one’s individual needs and that you are getting the best return for your money.

Individual needs may vary according to the age and thus there are different plans offered by banks to suit these needs and requirements.  In today’s times it is very popular for many people to buy savings plans online where there is a plethora of options for a person to choose from. Not only is it a convenient method to buy the policy where a person does not have to visit the bank branch, but it also saves allot of time.  With just a few clicks of the mouse customers can apply for this type of account as well as manage their online savings accounts. Bank websites are known to have a user-friendly interface so that users do not face any sort of trouble while applying.

People can compare savings plans from different companies on a single platform, thus helping them gain insight into what’s exactly available in the market.

There are a number of savings plans available in India. Some of them popular savings options for people include direct stocks, mutual funds, life insurance coverage plans and fixed deposits.


Is Child Education Plan Ideal for Your Child?

A wise mother had once said. “Your child will keep building castles in the air; you better start buying bricks for the castle today”.  This is one of the most popular sayings indicating the importance of future planning that a parent must do to secure a child’s future.

your child in future

Child insurance policies and plans are absolutely essential to ensure the financial security as well as health of a child. These policies or plans are often coupled with investment at times and are attractive options to parents seeking financial security for their children. These are permanent life insurance policies which insure the life of the minor and also serve as a very important means to protect a family against any sudden or unexpected cost that may arise in case of a child’s funeral or burial.

These insurance cum investment plans serve two purposes, one is to financially secure the child’s future and the second is to finance any turning points in his/her life such as for higher/further education or even marriage.

Child insurance plans are popular insurance-cum-investment plans that are offered by insurance companies. These are very similar to ULIP’s and provide a number of benefits such as waiver of premium, etc.  ULIP’s are basically investment cum insurance products which are known to be a very popular amongst insurance buyers.

The early years of a child’s life are usually the most important and critical years of growth. These are the years when a child learns life skills and most importantly is educated. The importance of education is enormous in a child’s life and may begin as early as 1 or 2 years old when he first learns how to talk. School is the first place where a child receives formal education and parents may start saving for this right from the time when the child is born.

Child education plans are those insurance plans which provide all the benefits of life cover and build up a corpus of for the future needs of the child.

While buying such policies it is always important to compare quotes from different companies as the rates may differ depending on the interest rates as well as the service charges, etc.

Although these plans are beneficial in their own way and provide tax benefits, a person can get the same tax benefits by availing for a term insurance as well as mutual funds. Also, term insurance policies as well as mutual funds are known to be cheaper than the cost of children’s plans.

This week in adulthood: health insurance and back to school

health insurance and back to school

Navigating Adulthood

This week started out with a new milestone of adulthood: My own health insurance card! AND dental insurance. They were waiting in my mailbox when I came home from work yesterday along with my internet and credit card bill. Woo adult mail!

I also had to call AT&T again because they can’t understand that it’s over between us. I cancelled that service over a month ago and they keep sending me mail. Not just junk mail, but 2 bills. Both times I have called & told them that “We are never, ever, getting back together!” Just kidding. Luckily both times they’ve told me that I [of course] didn’t have to pay the bills, but it’s such a bother having to call them and going through the automated robot & listen to the annoying waiting music just to be reassured that I don’t need to pay said bill.

This week is…

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Tax Benefits And Fluctuating Home Loan Interest Rates

In today’s time and age, buying a home has become far easier than it used to be. Various banks and other financial institutions offer a number of home loans to customers so that they can purchase the house of their dreams. This has not only led to an increase in the demand for properties in the country, but also a sharp rise in the standard of living. More and more people are able to full fill their dreams of purchasing their homes, even if they might not have the sufficient funds at the exact moment.

home loan interest rate

Prices of properties are not only determined by the location, type of flat opted for, etc. but also by the constantly inflating rise of the cost of land.  This price is also determined by the current exchange rate of the Rupee. These prices are not only determined by the cost of the property but also by the cost of the land. With both prices constantly on the rise, many people make use of home loans so as to finance the purchase of their homes.

Anyone can apply for a home loan and it is relatively easy to apply for these as a number of banks offer their services online. All a person is required to do is fill an online application form and submit certain key information about themselves.   They can also, if they prefer visit the branch of the bank and submit the relevant documents and fill a form out for the same.

Home loans differ according to their tenures and many customers opt for home loans from different providers owing to the different home loan interest rates that they offer. This is one of the most important factors while availing for a home loan. Home loan seekers are able to compare different interest rates from different providers all on a single platform online. This helps them to make a wise and informed decision.

Housing loans are available with various tax benefits under section 80C for the repayment of the principals. Those who have applied for home loans can claim up to INR 1 lakh along with various other permissible instruments such as NSC, ELSS, PPF, etc.