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Tax Savings

Top Tax Resolutions For 2022 Which You Should Consider

Are you worried about taxes? Then this article is for you! There are a few common tax-saving ways known to everyone. But there are a few non-popular ones too. In this article, those points are discussed in detail. The conventional methods are: Tax-saving Fixed Deposit. HRA. Provident funds. PPF. Deduction against home loan interest. In this article, we’ll discuss both the common and the less popular ways. Use them while ITR Filing and save taxes. [B-01] What are the ways of Saving Tax? Re-route your investments through parents (Senior Citizens) Senior citizens have several tax benefits. These benefits are mentioned in the income tax rules. Anyone can gift money to their parents tax-free. The parents have the privilege of re-investing that money. They can invest the funds in schemes for senior citizens. Someone can use this option to re-route their earnings for investment. However, they need to ensure that their parents have low incomes. Otherwise, they will have to pay taxes for this. Increase Contribution to National Pension System: If someone is an NPS subscriber, then they get a few benefits. Then they can do the Income Tax Planning accordingly. Under Section 80CCD(1B), they can get an extra INR 50,000 deduction in one financial year. This deduction is in addition to the INR 1.5 lakh deduction. According to Section 80C, the INR 1.5 lakh deduction is allowed. For expenses against internet and telephone, one can save tax: Under Income Tax Rule 3(7) (ix), employee telephone reimbursement is tax-free. If someone’s work requires using such facilities, they can save tax on it. However, the original bill needs to be submitted to the employer. Only then can they enjoy this benefit. Save tax on parents’ health and insurance payments: For paying health insurance for family and self, anyone can get an INR 25,000 deduction on tax. This is mentioned under Section 80D. Hence one must do Tax Planning accordingly. Anyone can also be titled to the extra tax deduction. They get an additional removal if they pay for their parent’s insurance. This, too, is mentioned in Section 80D. You can claim INR 25,000 if your parents are below 60. And claim a deduction of INR 50,000 if the parents are 60 or above. If someone’s health insurance does not cover their parents, they get an extra deduction. They can claim up to INR 50,000 in a year for medical expenses. Save Tax on donations and charity: You can claim a deduction during ITR Filing if you donate to charities. On specific contributions, you can claim a 100% deduction. And on others, you can claim a 50% deduction. It is eligible for deduction if the donation is made in cheque or cash for up to INR 2000. It is mentioned in tax2win. Fixed Deposit for Saving Tax: While in Tax Planning, one can invest in fixed deposits since they are tax savers. Like this, they can have a tax deduction. It is mentioned under Section 80D. Up to INR 1.5 lakh can be claimed to be invested on tax-saving fixed deposits. There is a tax on the earnings due to the interest. And one gets a lock-in period of 5 years. The interest usually is between 5.5%-7.7%. PPF (Public Provident Scheme): One can consider PPF for tax savings. It is a long-term savings option and is also an investment option. One needs to open a PPF account for this. They can do so in a post office. One can do this in their respective branch of private or public banks. One can claim a deduction of INR 1.5 lakh in a financial year. Section 80C mentions this explicitly. Life Insurance: It is the primary job of the bread earner to get life insurance. It plays an important role in their financial portfolio. On the premiums paid, it offers tax benefits to the policyholder. Insurance can be both traditional and market-linked. Keep this in mind during ITR Filing. It is covered under Section 80C. There are several plans, like: 1. Money Back Plans. 2. Term plan. 3. ULIPs. 4. Endowment plan. Regardless of the nature of the plan, policyholders can have tax benefits. Mutual Fund for Tax savings:It is also known as ELSS (Equity Linked Savings Scheme). This is suitable for investors ready to take a medium to high risk. The money is invested in the stock market or among other such assets. The period for which the investment is locked is three years. Section 80C covers this plan, and up to INR 1.5 lakh is eligible for deduction. How can you plan for tax savings for the year? 1st April marks the beginning of the financial year. It is also the beginning of the tax-saving season. It is the same for both self-employed and salaried persons. One should start tax planning right from the start. Other than deductions, tax-saving investments also help to earn tax-free income. It is wise to invest in the early quarters. It is so that one gets time for Income Tax Planning. Section 80C mentions most of these investment plans. According to it, the taxpayers are eligible for a deduction of up to INR 1.5 lakh. [B-02] Conclusion Here in the article, we discussed various ways to save tax. These measures can help one during ITR filing. This article also talks about the process of having a tax-free income. The different ways of investing to save taxes provide different options. One can choose any one or multiple options based on their needs. If you need help with finances, you can always reach out to a financial expert like Piramal Finance. We will suggest what’s best for you and help take care of your personal loan requirements if any.
08-11-2023
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Other

What is Meant by Account Balance, and How to Check it?

Are you going to the bank to check your account balance? Is it not tiring? With advanced technology, banking is possible at your fingertips! What is this all about? Let’s know in detail. Your account balance is the amount of money in your bank account. The total amount of money deposited in the account minus the total amount of money withdrawn from the bank account will give the balance in the account. But how do you check the balance? Let’s dive into the article to learn how to check the balance. [B-01] Different Ways to Check the Account Balance The Traditional Way of Banking People have visited the banks in person since the banks became functional. You can approach the bank and update your passbooks to check all the account transactions and balances. The banks also provide a detailed account statement upon your request, which contains a detailed list of every transaction in your account. You can request your account statement for a month, a quarter, a year, or a custom range of dates. You can track all your transactions and know the balance after every transaction. So, this option is challenging and takes a lot of time to see the balance amount. Just a Call for Balance Check The banks moved a step closer to helping people without internet connectivity. Phone banking is the new, more innovative way to bank. If your mobile number is linked to your bank account, it is easy to get the balance. As a part of the Know-Your-Customer campaign and making it mandatory, the RBI has issued guidelines to have customers’ mobile numbers, ID proofs, and address proofs linked to their bank accounts. This move made banking a step closer for people living in areas without internet connectivity. With just a missed call, you can check your bank balance. Based on the bank, the number used is different. If you have a State Bank of India account. Make sure the mobile number you are using is linked to your bank account. Give a missed call to 919223766666 from your registered mobile number. Wait for the message from SBI that displays your account balance. This also shows the last five transactions in your account. For customers having an account in Punjab National Bank. Primarily, register your mobile number with the bank account. 1800-180-2223 is the number you have to call to report a missed call from your registered mobile number. If the number provided above does not work, you may try giving a missed call to 0120-230-3090. The message received from PNB displays the account balance. For Indian Bank customers. After registering your mobile number with your concerned bank, leave a missed call on 8108781085 to perform the balance check. This drops a message with the bank balance on your phone. Customers who have Union Bank accounts. Union Bank also offers missed call services for customers who register mobile numbers. A single missed call to 09223008586 will provide you with your bank account balance. Similarly, every bank provides you with a specific number to find your balance in your bank account. SMS (Simple Way) Same as the above, you can also send a single SMS to the specific numbers mentioned on the bank’s official website. For exact keywords to perform the balance check, see the details below. In the State Bank of India account. Register for SMS banking by visiting the nearest branch of the state bank. Send SMS “BAL” to the same number used for the missed call, as mentioned earlier. Alternatively, send ‘MSTMT’ to the same number to obtain a list of your five most recent transactions. It also shows the balance in the account. If your account is at Punjab National Bank. Send an SMS with the message BAL<space>Your Account number or send MINSTMT<space>Your account number. This delivers the message containing the balance in your bank account to your phone. For customers with Indian Bank accounts. Indian Bank has a unique system in place that makes it stand out. The customer needs to register for mobile banking and generate an MPIN. Anywhere 94443-94443 offers a lot of services. Before that, reach out to the bank nearby to learn more about MPIN and mobile banking. Internet banking: Everything in one place The easiest method to check your account balance is by accessing internet banking. After visiting the nearest branch of your bank, register for the internet banking facility. Once registered for internet banking, all you have to do is activate and log in to your account. With the internet banking facility, you can check your account balance and statement, perform fund transfers, do a balance check after the fund is transferred, and many more things. The only disadvantage is the lack of high-speed internet in most locations. Therefore, find which is more suitable for you from the above ways. Internet banking will suit you if you live in an area with good internet connectivity and the internet is reasonably priced. Mobile banking is far more convenient if you live in a location with poor internet facilities. Hence, finding the bank balance also depends on your accessibility. [B-02] Becoming smart: knowing the account balance Knowing the above information makes it very clear that understanding the balance in your bank account is not difficult. The information above lets one quickly find the total money in their account. Contact Piramal Finance for more information on all banking services. We offer complete banking information, including personal loans and customised financial guidance, with all the leading banks in the country.
08-11-2023
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Stocks Markets

Things to know about the International Stock Market

Making investments in the Global Share Market does not have to be scary. Here is a guide to help you understand the stock market and things to remember while investing your money. Putting money in stocks, properties, and financial schemes to yield a profit on the principal amount is known as investing. Another popular term that has become synonymous with investing is ‘stocks.’ A stock, in simple terms, is your share or ownership in a company. Thus a stock market is where people buy and sell stocks and other financial instruments. In today’s world, investing is one of the fastest and most sought-after ways of generating passive income. It is always a viable way to build one’s passive income. While it is profitable, it is also risky. Although everyone wants a piece, most people do not know what to expect. This article will help you understand the International stock market. [B-01] What is a Stock Exchange, and what makes up the stock market? A Stock Exchange is where investors and companies meet to trade their stocks. When many such exchanges happen, it makes up a stock market. Things to Know It is diverse. There are many stocks from around the world. It offers a variety of options that otherwise would be unavailable in your country. Almost anyone can invest in the stock market. All you need is some money and a stockbroker. It is prone to risks. The performance of stocks is affected by politics, natural calamities, and economic disturbance. It is adaptable. Over the years, the S&P 500 has shown resilience in times of despair. It has managed to bounce back quickly from any slight disruption in the market. This is due to the diverse set of investors participating in these exchanges. It is one of the best ways to diversify your portfolio. The stock market is not just a place for buying or selling stocks. You can even buy equities and bonds. Besides, diversifying your portfolio also helps you cut down on many risks. How can you invest in the Global Share Market? First, a share represents a portion of ownership of the company. How’s it different from stock? Companies can sell shares directly, but this is not possible with stocks. A share market is where the trade of these shares takes place. The Global Share market is gigantic and promising. But despite the opportunities it might present, you will need someone to help you find the way. Open a trading account with the help of a broker. After this, the broker will help you open a Demat account. Here, you will be able to hold your securities and stocks. Once these two accounts have been set up, they will be linked to your bank account. Congratulations, you are now ready to invest in the global share market. What to invest/ buy in the Stock Market? You can buy and invest in equity shares, bonds, mutual funds, derivatives, and exchange-traded funds. How to become a good investor? Analyze your current situation and decide your risk appetite. The bigger the risk, the bigger the return. But this is not always the case. Look at your current situation and assess the liabilities in your head. Do not take risks if you do not have surplus money to spare. Test the waters before diving into the deep end. Become a regular investor. It is like planning a budget and setting aside sums of money. Keep some funds for your investments. You could buy stocks or set up a SIP to grow your money. Work on your portfolio. It is ideal to not invest in one stock but buy shares of different companies. This is a smart move as it would help you lower risks. Should you buy International Stocks or participate in the Global Share Markets? Stocks and bonds of different countries have different levels of risk. Although it’s a bit of a gamble, it’s worth it. When you buy international stocks, you also get a few tax incentives. When you buy International stocks with domestic shares, you diversify your portfolio and gain exposure to new patterns and competition. Risk Factors to keep in mind while investing in the International Stock Market: Always keep the currency risk in mind. There is a high possibility of the currency weakening. In times of crisis, foreign investors run to pull their money from the market. This has a detrimental impact on the market. Finally, you might face some complications when it comes to paying taxes. Thus before investing in the International stock market, research well and seek advice from stockbrokers. [B-02] Conclusion Investing is a skill these days. Knowing where to put your money and multiplying it is commendable. And the best part is that with some help, anyone can do it. Despite its significant risks, trading in the Global Share Market increases your knowledge, risk appetite, and experience. Keep in mind that diversification is essential. Investment is an asset for wealth creation. You can easily navigate the market with the help of a stockbroker. Understand all your risks and invest accordingly; you will be rewarded. To learn more about investments, markets, and finance, visit the Piramal Finance website. Help yourself to the knowledge of wide-ranging financial products and services, especially all things stocks and personal loans and business loans.
08-11-2023
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Mutual Funds

A Complete Guide To Investing In Mutual Funds

Mutual funds are one of the easiest ways to enter the financial markets. They help you build wealth. They are a great option for wide-scale investment. Skilled mutual fund managers manage them. Hence, you can invest without examining the depths of the financial markets before investing your money. You can easily pick the best mutual funds to invest in with little effort! What comes next is taking the benefits of investing in these funds. Do you want to invest in the best mutual funds in India? Here is everything you need to know about starting your investment journey in this domain. [B-01] Types Of Mutual Funds Broadly speaking, there are three types of mutual funds. It is done based on investment in major instruments. Let us explore the difference between them. Equity Mutual funds in this category majorly invest in equity stocks. Based on market capitalization, these funds are further subdivided. The best-performing equity mutual funds can help you build wealth if you invest for the long term. While they offer higher returns, they also carry a risk of fluctuation in the short term. Debt You can find some of the best mutual funds in India in this category. These mutual funds mostly invest in corporate bonds, government securities, and other similar investments. They are similar to fixed-income returns. And they carry a low-risk profile. They are a clear choice when you must meet your short-term goals while preserving capital. Hybrid As the name suggests, these schemes combine the elements of both equity and debt mutual funds. A good fund manager designs a likeable ratio between the two. It helps achieve the benefits of both types of mutual funds. At the same time, it offsets their downsides. Accordingly, you will find hundreds of the best mutual funds in India. They are regulated by the Securities and Exchange Board of India (SEBI). How Do Mutual Funds Work? An Asset Management Company manages and operates a mutual fund scheme. Every scheme has a different objective and investment needs. So, every mutual fund works by pooling funds from like-minded investors. The funds are divided between different financial instruments. It is based on the fund’s objective. This includes bonds, securities, stocks, gold, etc. The goal is to earn the best returns on the fund investments. At the same time, they divide the income among the investors. This happens on a proportionate basis. But what merits the search for the best performing mutual funds? Let us find out their benefits. What Are The Benefits Of Mutual Fund Investments? Mutual funds offer several benefits, which make them a handsome investment option. Let us take a look at some of the best benefits of mutual funds: Investing in mutual funds brings the benefit of professional collaboration. Your money is managed and invested by qualified mutual fund managers. They hold extensive knowledge of the markets and strive to earn maximum returns on the fund portfolio. Seeking the best mutual funds is the best way to benefit from their expertise. It is beneficial when you do not have the time or skills to rage the move of the market yourself. It can be very convenient to invest in mutual funds. The process of purchasing mutual funds is seamless and paperless. You can complete the formalities of investing in the best-performing mutual funds from the comfort of your home. Investing in mutual funds paves the way for you to enter the financial markets. This is beneficial when you do not have much money to commit. You can even start investing with as little as INR 500 a month. Moreover, you can choose the frequency of investment in a year. And you can tune it according to your income. Another reason to find the best mutual funds to invest in is diversification. Mutual funds help to minimize risk and losses to the investor. And they do so cost-effectively. You can obtain tax deductions by investing in mutual funds. According to Section 80C of the Income Tax Act, you can claim a deduction on investments made up to INR 1.5 Lakh. Things To Consider As A First-Time Investor In The Best Mutual Funds Before starting your journey as a mutual fund investor, it might be worthy of considering the following: Always have a goal in mind before parking any funds in mutual funds. Lay down your goals, time horizon, budget, and risk capacity. Accordingly, you can set aside a fixed sum of money each month for investment in the best mutual funds. Market capitalization is another way to categorize mutual funds. To make the right pick, it is necessary to examine the fund and your position as an investor in mutual funds. A good way to assess the performance of a mutual fund is to check how it has performed in the last five years. You can check factors such as expense ratio, track record of the AMC, and exit load. They play a vital role in deciding whether a mutual fund is ideal for investment. Do not look at mutual funds solely as a tax-saving device. Mutual funds help to learn about investment discipline and build wealth over time. The ideal time frame for mutual fund investments should be long-term, not short-term. You can invest in mutual funds through a lump-sum investment or Systematic Investment Plan (SIP). As a new investor, SIP may be the best route to enter the world of mutual funds. [B-02] Conclusion The world of mutual funds holds many benefits for investors. Returns in mutual funds are not always assured. Yet, investing your money in the best mutual funds will bring many benefits to you. So, there is no point in remaining a mere spectator in the face of trending mutual funds. It is an attractive option to begin your investment journey with mutual funds. You can begin by finding the best mutual funds to invest in. Get the best advice regarding all financial products, mutual funds, and personal loans from your well-wisher and financial expert, Piramal Finance. Visit us now!
08-11-2023
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Schemes

Which is Better: Difference between PPF &amp; NPS Calculator

People use PPFs and NPSs to invest in the long term. PPF is only a way to borrow money. On the other hand, NPS is a way to invest linked to the market. The centre tells you the PPF rate of interest every three months. But when a person has an NPS portfolio, their money is exposed to stocks and bonds. The interest rate on the PPF is 7.1% right now. Let’s say a person chooses a 60:40 risk split between debt and equity in an NPS account. On their investment, they should expect a 10% NPS interest rate. [B-01] What is A PPF Calculator? The PPF calculator is a website-based application. It lets you figure out how much your PPF contribution will be worth as an investment over time. PPF is an investment plan backed by the government that has many benefits. It is a way to put money away for a long time. It has been locked in for 15 years. Because of this, higher returns are given. PPF also lowers the taxes you have to pay while you work. You can use a PPF calculator online. The calculator will use the PPF method to figure out what to do. The method will figure out how much your whole investment is worth. This is done when a certain amount of time and the rate of interest on the PPF account are given. You could also make plans for your retirement with the help of a PPF portfolio calculator. With the PPF’s features, you can save for retirement in a structured way. Let’s say you already have a retirement fund. You can figure out how much you need to spend over a certain amount of time to reach your retirement goal. But you can only put Rs. 1.5 lakh into a PPF portfolio every year. What is the National Pension System (NPS) Calculator? The National Pension System is a retirement plan set up by the government. It’s a system based on contributions. This system’s number of pensions is based on the corpus size. The NPS calculator can tell you how much money you will have saved when the plan ends. And the amount you expect to get each month from your pension. The amount invested and the profits made will determine how much money is in the corpus by the time the person retires. The NPS calculator can be used by people who can join the plan. According to the rules of the NPS, any Indian citizen between 18 and 60 can join. You must follow KYC rules before you can start investing in the plan. Difference Between PPF and NPS Calculator The PPF rate calculator lets you figure out how the interest rate changes every month. The NPS calculator makes the tricky task of figuring out the retirement corpus easier. It also makes other facts about NPS retirement funds easier to understand. The PPF calculator lets users figure out how much interest they will earn. They might get back a certain amount of the money they put in. The NPS calculator is a tool that is run by a computer. It helps investors figure out what their NPS returns will be. Depending on different scenarios and estimates of how much the NPS contributions will add to the fund, The tax savings are shown on the NPS Calculator. NPS participants would get under Section 80C. The PPF calculator will save money on your taxes. The PPF calculator determines how much will be invested over a fiscal year. The NPS calculator helps with overall financial management by estimating your retirement income. After that, investors can focus on their other financial goals. Is NPS A Better Investment Than PPF? From what’s been said, it’s clear that both of these ways to invest have their pros and cons. PPF gives a fixed income a fixed return. But equity pension plans under NPS might give better long-term returns. So, investments in the PPF are less risky than investments in the NPS, which depend on the market. Also, if you have a high tax rate, joining NPS will help you build a retirement fund that will save you money on taxes. Let’s say you have less than fifteen years until you can retire. You might not want to use your PPF. But NPS could help you set up a retirement fund that keeps your money safe. Because of this, there is no clear answer to the first question. You can choose any of the above products, depending on the type of investment and what you want to do with it. Rate Of Interest & Returns on NPS & PPF Here is a table that summarizes what was said about NPS vs. PPF. The table below shows many other factors affecting the NPS and PPF interest rates. FeaturesPPFNPSRates of interest7.1% in Q2 Financial years 2020-2112% to 14%ReturnsDecided by the governmentMarket-linked interest ratesWithdrawal in partFrom the seventh year forward, it is permitted. After creating an account, you can also obtain a loan during the third and sixth fiscal yearsAfter 10 years, people can choose to get all or part of their money early. If a member wants to quit before they retire. He must use 80% of his money to buy insurancesInvestment strategyFixed under government requirementsWhen engaging in NPS, one can pick between equities funds or govt. securities funds, & fixed-income instrumentsAnnuityThere is no compulsion to purchase annuitiesIf the NPS balance exceeds 2 lakhs, an annuity must be purchased with a 40% of the NPS amount after retirement. [B-02] Conclusion If you want to put more money into your retirement fund, you can do so through PPF and NPS. Contributions to the PPF can be used as a portfolio’s fixed income source. NPS investments, on the other hand, can lead to market-linked profits. Anyone with a smartphone or desktop computer that can connect to the internet can use the online NPS calculator. Suppose you put in the right amount for the deposit and the type of investment. The PPF calculator returns accurate results. So, now that you know everything there is to know about NPS and PPF calculators, you can start using them. You can now apply for either or both of these financial tools. In that case, check out the services and products on the website of a financial expert like Piramal Finance. Learn about easy business and personal loan solutions with them.
08-11-2023
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Bonds

How safe is investment in gold bond?

The current economic situation is precarious. Thus, for wealth creation, an asset with minimal risks and the greatest benefits is ideal. Gold is a tangible, inflation-resistant, flexible asset with excellent liquidity. Thus, it is an ideal investment option for almost everyone, especially ‘newbies.’ But gold is also volatile. It is a physical asset that you must store in a locker. Also, do you know that investing in gold coins might not fetch you favourable returns like the SGB? How? Let us find out! It’s a good thought if you want to invest in gold. But concerns about the storage of physical gold are genuine. Hence, in today’s hustle culture, Sovereign Gold Bonds (SGB) are your best friend. Sovereign Gold Bonds are Government Securities bonds that the RBI can issue in India. These gold bonds help you capture changes in an asset’s price (here, gold). Likewise, you also get a fixed interest income like what you get from your fixed deposits in a bank. Do you want to know the possibilities a gold bond holds for you? If yes, then read ahead! [B-01] What is a Sovereign Gold Bond? Simply put, a Sovereign Gold Bond is a government security (G-Sec) issued by the Reserve Bank of India. You get a fixed income due to the gold interest. It’s generated twice a year. In addition, you also receive the redemption of cash units on the maturity of the gold bond. A Sovereign Gold Bond has gold as its denominator. So, you can invest in multiples of 1 gram of gold. Thus, the smallest investment in a gold bond is 1 gram. According to RBI, each investor can only buy SGbs of 4kgs per Financial Year. In other words, the premise of a gold bond is that the RBI issues you units of gold in grams. You then receive an assured return for the units of gold you paid for. SGBs are allocated via banks, brokers, post offices, and online platforms. Yet, they are available for buy only at specific times of the year, usually from October to March. The interest for gold bonds is around 2.50% per annum. You can pay. Furthermore, the tenure of an SGB is eight years. You can also exit from the interest payment dates in the fifth, 6th, and 7th years. The Indian government launched the Sovereign Gold Bond Scheme under the Gold Monetization Scheme. The scheme is an alternative to purchasing physical gold. The SGB scheme is less risky, convenient, and held in a Demat format. Sovereign Gold Bonds provide more benefits vis-à-vis physical gold or Gold ETFs, such as – A semi-annual extra interest rate of 2.5% No making charges when compared to gold coins and jewellery Less or zero maintenance cost Great safety It’s perfect for people wanting minimal risks and maximum returns. Now that we know the basics of the SGB let us see if it is the proper investment bond for you. Is a Sovereign Gold Bond the right investment option for you? Many market expert believes that in today’s Indian Market scenario, investing in Sovereign Gold Bonds is optimal. SGBs are a pretty profitable investment scheme. They are perfect for many people as they have many advantages and fewer restrictions. If you have a low-risk appetite and want to focus on the safety of your investment, but are looking for a large return, then an SGB might be your best bet. Investors looking to diversify their investment portfolio can opt for gold bonds. Individuals who want to buy gold for investment purposes, not preservation value, should consider Sovereign Gold Bonds instead of physical gold. People looking to earn a regular passive income from their investment should purchase gold bonds. After discussing the many aspects of an SGB, let us answer the looming question about the safety of gold bonds. How safe is it to invest in a Gold Bond? Gold investment bonds are one of the safest investment options in the current market. Priced at INR 5198/gm at the time of writing, gold bonds have increased in value by 99%. Moreover, as the government issues a gold bond, its credit risk is zero. However, there is an inherent risk of loss if the market price of gold falls below its cost price. But, it is not an SGB-specific risk. It is a risk applicable to any form of investment. The best part is that the Reserve Bank of India assures that you will never lose the quantity of gold that was allotted to you as an investor. You can get returns from gold bonds in two ways – 1. Capital appreciation, as the bond price and gold price are linked 2. As regular interest income Furthermore, gold bonds have a ready market. You can trade them at the prevailing prices without any hassle. There is no transaction cost to exit from the scheme. Moreover, you receive cost savings in other ways, such as the absence of storage expenditure, insurance for loss or theft, etc. Additionally, the Sovereign Gold Scheme offers an exemption from capital gains tax during maturity. So, it becomes way more profitable to investors. Lastly, you can use Sovereign Gold Bonds as collateral for loans from banks, financial institutions, and more. [B-02] Wrapping It Up! In a nutshell, the risks associated with Sovereign Gold Bonds are minimal. But, like any other asset in the market, no investment promises a risk-free return. Hence, you should check your investment preferences and the scheme details before opting for a gold investment bond. Lastly, if you want to know more about SGBs and other investment instruments, visit the Piramal Finance website. It will help you know their products and services, especially credit cards and personal loans.
08-11-2023
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Other

What is a Demat Account: Basics, Types &amp; Benefits

As the world is advancing, trading is becoming more popular. Now with Demat accounts, you can simplify trading to monitor your holdings effortlessly. For starters, opening a Demat account is key to ease of investment. Also, this keeps you updated on the current state of your portfolio. Now, you might be curious about what a Demat account is. It’s also possible that you are somewhat aware. Still, you might further wonder what it has to offer. Or maybe, you want to know how the entire system works. In that case, you will be pleased to know you’re in the place! So, let’s dive in, shall we? [B-01] Demat Account Meaning: The Fundamentals The question of the hour is, “Why the Demat account?” You need not scratch your head, allow us to walk you through this! For the record, a Demat account helps you store your investments in electronic form. Like a regular bank account, a Demat account holds your assets digitally. So, in a way, it eliminates the risk of owning any physical certificates. In turn, a Demat account gives stock trading a digital edge. So, you can now keep track of your investment profile on the go. Furthermore, you can access and transfer shares at your convenience. If you were clueless about the Demat account meaning before, now you can get started with ease! If you’re currently holding shares physically, you must first transfer them into the digital form. Then, you can add them to your Demat account. How does a Demat account work? Online trading requires you to link your Demat account to your trading account. Also, remember to link your bank account to your trading account. Then, you can transfer funds into your Demat account and place an order to buy shares online. Next, the availability of shares is confirmed owing to the current market price. Lastly, the exchange processes your order. If T is your order execution date, the shares will reflect on your Demat account in T+2 days. NOTE: A similar process applies when you sell shares from your Demat account. What are the types of Demat accounts? It’s a no-brainer that there are a bunch of Demat accounts available. Each type serves various classes of investors: Regular Demat Account Investors who just require a digital space to store their shares can pick this one. In this, your shares will be added to the account as you purchase them. Similarly, they get debited if you sell some of your holdings. So, that’s pretty much what you can do with a Regular Demat Account. Basic Services Demat Account This option is relatively recent. It encourages newbies to get accustomed to stock trading. For the most part, these accounts don’t carry the hassles of maintenance charges. In reality, zero maintenance charges only apply if your holdings are below Rs. 50,000. Still, the charges you need to bear if your holdings are over Rs. 50,000 to Rs. 2,00,000 is pretty nominal. Repatriable Demat Account These accounts are typically meant for non-resident Indians. If you invest in foreign stocks, this is for you. However, note that you must remove your regular Demat account. It’s a must if you want to switch to a repatriable one. Non-repatriable Account This type of Demat account is also meant for NRIs. However, there are major differences between repatriable and non-repatriable accounts. The latter doesn’t allow you to transfer earnings from India to an overseas account. So, repatriable accounts provide more flexibility if you trade on foreign stocks. Why should you open a Demat account? Now that you know the types of Demat accounts, let’s check their benefits: Ease of holding shares digitally If you’re an experienced trader, you know about the lengthy paperwork involved in physically holding shares. This undoubtedly increases the risk of theft, damage, and forgery. Demat accounts help you in digitalizing shares. As a result, they are relieving you of all this stress. Status of all online holdings at a glance Just like you handle your bank account online, Demat accounts offer more or less the same functionality. Also, you can use your mobile or PC to access your Demat account anytime. The convenience of storage and transfer We know that a Demat account allows you to store all your shares in an organized fashion. Also, it frees you from the burden of holding physical documents. Furthermore, an online transfer also leads to faster transactions. It significantly reduces the physical transfer processing time. A reservoir for different investments For the record, Demat Accounts don’t just store shares. Instead, they serve you as a storage channel for bonds, mutual funds, government securities, & ETFs as well. Assigning a nominee Just like bank accounts, a Demat account allows you to pick a nominee. In such circumstances, your Demat holdings will be transferred to the nominee’s account. Automatic reflection of bonus stock splits There are frequent fluctuations in companies’ stocks that issue shares. Cases like bonus issues and stock splits result in changes in your holdings. Such changes will automatically reflect in your Demat account. [B-02] Final Words Maintaining a Demat account for your holdings is crucial to a hassle-free investment journey. Also, now you know the convenience of bearing no risks of physical certificates. We hope that this piece has cleared your doubts surrounding what a Demat account is. If you want to dive in further, do check out Piramal Finance. This will give you further insights into all things Demat, financial products, personal loans and business loans. So, what are you waiting for? Get started with your Demat account to facilitate easier trading today!
08-11-2023
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Cards

Does It Make Sense to Have Multiple Credit Cards?

Credit cards are good sources for seeking temporary credit from banks. Yet, many financial experts believe credit cards harm their owners. Credit cards are often responsible for high spending patterns. For this reason, debit cards are generally recommended over credit cards. But credit cards are perfect for those who earn enough to pay off their bills on time. There are several advantages to credit cards and online credit cards. Thus, people are often tempted to have not one but multiple credit cards. Often, users get confused about whether to get a new credit card. So, if you’re wondering if having a lot of credit cards is a good idea, we’re here to help! [B-01] Can a person have multiple credit cards? Having several credit cards could be a boon if taken care of. You must meet certain eligibility requirements to own multiple credit cards. All banks allow their customers to own more than one credit card. Each application for a credit card gets considered with the utmost care. Hence, each of the applications has a chance of getting approved. Few individuals have a good track record and credit score. Several banks approve many of their credit card requests. Different credit cards have different eligibility criteria. Different credit cards have different kinds of perks. For example, a travel credit card could help pay off all your travel expenses. But a Sodexo card can help pay for groceries. Having different cards with different benefits helps users. A few things you must know An individual can handle 2-3 credit cards only if each of the cards has a unique benefit. Having more than three credit cards is not recommended. But a responsible person can own them. If managing a single credit card seems difficult, then do not apply for many credit cards. Banks do not care about the number of credit cards an individual has if they are paid on time. For entrepreneurs, separating personal and business credit cards is a must. You can have better financial modelling and distribution. But how? By having separate cards for business and personal expenses. The number of credit cards affects creditworthiness. Hence, they can seek a loan from the bank by decreasing the amount. Suppose an individual cannot pay off the bill for one of the cards. Then he/she can pay off the bill of one of his/her cards with another card. This helps avoid unnecessary delays, deadlines, and fines. The Benefits of Having More Than One Credit Card Have a look at the benefits of having more than one credit card. It’ll increase the credit usage score The credit utilisation score is the score given based on credit utilisation. Every credit card has the largest credit limit. Using more than 90% of a credit limit lowers the credit utilisation score. But using a credit card with up to 50% of the limit helps raise your credit utilisation score. It helps increase your credit score Some individuals have more than one credit card. It ensures that they pay the bills on time and boosts their credit score by a great margin. Having multiple credit cards can help boost your credit score. But many credit cards come with the responsibility of paying the bills on time. Increases credit limit Some individuals have high monthly expenses. We recommend owning many credit cards. Often, the expense cannot be covered with the liquid funds available. For this reason, having many credit cards could be an added advantage. A credit card can cover all the expenses. But you must ensure that you pay off the amount on time. Higher rewards and cashback Credit cards come with several benefits and rewards. There are several types of credit cards, such as travel cards and grocery cards. These help you get cashback, discounts, and perks. The more credit cards you own, the greater the benefits you enjoy! Disadvantages of having many credit cards Here are the disadvantages of having too many credit cards: It’s difficult to handle so many credit cards Having more than one credit card requires careful financial planning. One needs to track the billing cycle of each credit card. Individuals with many credit cards would get flooded with bills at the end of every month. Keeping track of each bill and paying it off without delay could be a hassle. Unnecessary debt accumulation Having many credit cards gives the owner the freedom to spend too much. Overspending can result in a vicious cycle of debt. Online credit cardholders must ensure that they do not spend too much. To improve your credit, how many credit cards should you have? This is a personal decision about what you can afford. To begin building credit, you actually only need one credit card. Using your main card for regular purchases is a great way to steadily and consistently build credit over time. It may be helpful to add several cards if you have plans for heavy investments or purchases soon and know you want to establish your credit quickly. This is especially true of cards with specific loyalty programmes because you can keep track of them in a more organised and categorised way. With annual fee cards, you have yet another chance to pay off the debt on time and regularly. [B-02] Final Words Are you someone who excels at fund and credit management? Then having multiple credit cards could be a benefit. Many credit cards come with the responsibility of paying the bills on time. Are you sure that you can pay off the bills without getting fined? Then a credit card would provide a sense of financial security. Are you planning to have many credit cards? Then consider all the benefits and risks associated with them. Also, ensure that you make a wise, well-informed decision. If you have any doubts, consult a financial expert like Piramal Finance. We offer customised solutions for business owners and professionals and help you avail of easy credit card and personal loan solutions.
08-11-2023
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Banking

How to Check Your Bank Balance: 6 Easy steps

Checking your bank balance is important to know how much money you have in your account, which helps you plan out your finances and assets. Checking your bank balance is a good thing. It’s a way of keeping tabs on your money and what might be coming in or going out. If you see an unexpected transaction, it can be a sign that something is wrong with your account and that you should contact the bank or credit union immediately. [B-01] Why is checking your bank balance important? Checking your bank balance can be a tedious task. It’s important to do it regularly because it allows you to keep an eye on how much money you have stored up for emergencies. If you don’t check your bank balance often enough, you might run out of money before you need it most. This is when it pays off to ensure that your savings are in good shape. What happens if you do not check your bank balance? If you don’t check your bank balance regularly, you may be surprised by fees or other charges applied to your account. Additionally, you may miss opportunities to save money or make wise financial decisions. Not knowing your bank balance can also lead to overspending, which can put you in debt and cause financial stress. It’s important to be aware of your bank balance to avoid these consequences. Checking your balance often can help you stay on top of your finances and make smart money decisions. How To Check Bank Balance Safely and Securely? Your bank balance is one of the most important parts of your financial life. It’s how you pay your bills, how much money you have to invest, and how much you have left over after all that. A quick check of your bank balance can be a great way to ensure everything’s going well. Here are six steps to check your bank balance: Through Net Banking: Open the app and log in with your username and password. Select “My Account” from the left menu, and tap “Balance.” You’ll see your current balance and any pending transactions from the past few days. Mobile App: Download the mobile app for your bank, which will give you a similar view of your account activity. Accessing an ATM: You can also check your account balance using an ATM. By going to an ATM nearby, you can put in your ATM or debit card and follow the on-screen instructions. You can check your ATM balance by following the steps listed below. Swipe your debit or ATM card. The pin for your ATM (four or six digits) From the drop-down option, select “Balance Enquiry Option.” Finish the transaction. SMS: If you do not have a smartphone or a tablet with Internet access, then SMS is another option to check your account balances through text messages sent through mobile phones. You will receive a text message with information about your account balance. There should be an automatic activation of the message notifications. You will be immediately alerted if a financial transaction is on your account. Using missed call services: Banks provide balance update notifications when customers use one of their registered mobile numbers to make a missed call. However, the following details are necessary to receive updates on your missed call balance: The requirement that you have a registered mobile phone number is the most important requirement for this process. You get balance updates only if the bank has your phone number on file. The phone number must be active to make a missed call or receive an SMS. You should be able to use this service through your bank. Call your bank: Call your bank’s customer service line and ask them to check your balance. Although you might only be able to reach a live person during specific hours, most banks offer automated systems that provide account information around the clock. So, if you don’t know how to check your balance, these are the six ways to check your bank balance easily. Tips for keeping on top of your bank balance If you’re like us, you have a lot of worries. We worry about the weather, our next vacation, and how to pay for that new sofa when we finally get around to buying one. But none of those things is as important as worrying about keeping your bank account in check. Here are some tips for keeping on top of your bank balance: 1) Make sure you’re always paying your bills on time. If you need to pay an extra month or two, ask yourself if those payments will be worth it in the long run. 2) Do not touch the money in the bank unless necessary (like getting a loan). If possible, put any extra money into a savings account so that it doesn’t tempt you into spending it before it’s earned interest. 3) Pay off debt as quickly as possible—this is one of the best things you can do for yourself! [B-02] Conclusion Checking your bank balance is a good way of keeping tabs on how much money you have and what might be coming in or going out of your account. Not checking your balance often can also lead to overspending and financial stress. Make sure you always pay your bills on time and don’t spend money unless necessary. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and help take care of your personal loan requirements, if any.
08-11-2023
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