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One of the most popular long-term investments for those saving for retirement is the Public Provident Fund. It has high interest rates and a slew of tax perks, tax exemptions, and capital security. The interest and returns earned are not taxable under the Income Tax Act. In recent years, it has become one of the most tax-saving strategies. PPFs pay a high interest rate and come with a slew of tax advantages. PPF offers a greater interest rate than most other fixed investment programmes of similar nature. PPF investments can be made in a flat payment or over a period of up to 12 instalments. For each financial year, the lowest investment is Rs 500 and the highest is Rs 1.5 lakh. The present interest rate is 7.1 percent per year, and the PPF account has a 15-year term. Interest income is tax-free , which implies that interest generated on the fund is tax-free. When it comes to bank deposits, the interest generated is taxed. As a result, if you are in the highest tax rate, you are likely to pay a significant amount of tax. In reality, other instruments' post-tax returns will decline considerably, making the PPF a smart investment decision when compared to other choices in the same category. PPF offers further tax benefits under Section 80C of the Income Tax Act, in addition to tax-free interest income. This indicates that an annual investment of Rs 1.5 lakhs qualifies for tax advantages. The PPF's one drawback is that it has a 15-year duration, making it a long-term investment. You can withdraw the money after 5 years, however there will be a 1% interest charge taken from the day the account was opened.

Travel insurance is a kind of general insurance that protects you against a variety of difficulties that might occur while travelling or even before you depart. Travel insurance relieves the stress of travelling by offering a variety of medical and non-medical advantages, including as compensation for medical expenditures incurred due to illness or accident, as well as reimbursement for delayed luggage, missed flights, and other mishaps. However, due to unforeseen circumstances, we are occasionally obliged to cancel our travels. As a consequence, getting Travel Insurance coverage is an essential while planning a trip, particularly if you want to travel internationally. Policy regarding cancellations Travel Insurance allows you to be compensated if you are unable to travel on your trip for a legitimate cause as established by the insurer, such as: A medical emergency, such as the sickness of a family member; Work-related reasons, such as unauthorised leave; or, A natural disaster or terrorist assault hits your vacation destination. A Travel Insurance Policy offers cancellation benefits based on the amount covered in the case of a trip cancellation to compensate for financial losses suffered due to a sudden cancellation. You may claim reimbursement for pre-paid and non-refundable expenses such as airline tickets and hotel bookings if your trip is cancelled before the planned departure date. Complete cancellation The insurance provider may terminate the policy and reimburse the premium amount to the policyholder after subtracting the minimal expenses in the event of a total trip cancellation. Partial cancellation An insurer may terminate the existing plan and reissue the policy without any deductions in the case of partial cancellation, such as a change in travel duration. How do you make a claim on your insurance policy? Insurance companies allow consumers to cancel their policies and obtain a refund within 10-20 days of purchase as long as the insurer has not gone on vacation or filed any claims. Proof of not travelling, on the other hand, is necessary. If you need to cancel your trip, call your Travel Insurance Company's 24-hour customer service line for assistance. They'll help you through the steps of submitting a claim and gathering the relevant documentation. In most circumstances, you will be able to complete the claim process online. They will refund you after your claim has been examined and settled. When purchasing Travel Insurance, read your policy document carefully to ensure that you understand the terms and conditions, as well as the coverage's exclusions and restrictions. This will tell you what your insurance coverage covers. Also, bear in mind that, depending on how the Travel Insurance Policy is created, the actual Travel Insurance Plan may vary from policy to policy and insurer to insurer.

Your employees' provident fund (EPF) statement will now show two accounts inside your provident fund account beginning this fiscal year. According to a Central Board of Direct Taxes (CBDT) announcement, one will capture the non-taxable portion of the employee's EPF contribution, while the other will contain information regarding the taxable component. "For the purpose of calculating taxable interest...separate accounts within the provident fund account should be kept for taxable contribution and non-taxable contribution made by a person during the prior year 2021-2022 and all subsequent preceding years," the circular added. However, this does not always need the creation of two different accounts; your EPF UAN (universal account number) will stay the same. "At the moment, the yearly provident fund statement shows your contribution, interest gained, employers' contribution, and amount reserved for employees' pension scheme" (EPS). Finance Minister Nirmala Sitharaman said in the Union Budget 2021 that interest generated on employee contributions to their provident fund in excess of Rs 2.5 lakh per year will be taxed. The administration claimed that the change would affect less than 1% of taxpayers at the time. That is, high-earners with a base yearly income of more than Rs 21 lakh (Rs 1,73,612 a month). This EPF contribution level is greater for government employees, at Rs 5 lakh. This will take effect in the fiscal year 2021-22. (assessment year 2022-23). Every month, your employer deducts 12% of your basic pay as your EPF contribution, adds a matching amount as their contribution, and deposits it with the EPFO. If the amount deducted as your contribution in a financial year exceeds Rs 2.5 lakh, the interest generated on this excess amount would be taxed at the appropriate slab rate. It will also be taken into consideration if you make any additional, voluntary contributions during the year. The PF statement may give detailed data. To collect the information, the IT department has created two accounts within your PF account.

When a policyholder is admitted to the hospital or is confronted with a medical emergency that requires a lump-sum payment, a health insurance policy contributes. If the medical expenditures are covered by the Health Insurance Plan, a Health Insurance Claim is said to occur at that moment. In the case of a medical emergency, a Health Insurance Claim reimburses the insured for medical expenditures. The claim is paid without the use of cash whenever a policyholder receives care at a networked hospital. The Insurance Company pays the hospital right away if the medical treatments are performed at a networked hospital. A Reimbursement Claim occurs when the insured pays his or her own medical expenditures and then obtains reimbursement from the insurance company. The following are the steps to getting a cashless claim settlement: If you want to seek treatment, notify your insurance company ahead of time. Before being admitted to the hospital, you should provide at least 3 to 4 days' notice. It is necessary to fill out and submit pre-authorization papers to the insurance company. If the policyholder is taken to the hospital due to a medical emergency, the Insurance Company should be alerted right once, and the pre-authorization documentation should be given within 24 hours of admission. Once the pre-authorization form is submitted, the Insurance Company examines the request and allows cashless claim payments. The insured may then obtain the services they need without having to pay for them. All medical bills, reports, and other medical paperwork should be sent to the insurance company. If there are additional expenditures that are being covered, original written verification of such charges should also be given to the Insurance Company. Health Insurance Claim Reimbursement The following are the stages to obtaining a pre-paid claim settlement: To get treatment, the policyholder must be admitted to a hospital that is not connected with the Insurance Company. All official medical records and receipts should be kept by the insured. Medical expenses should be covered by the insured as well. After being released, the policyholder should get a Discharge Certificate from the hospital where treatment was obtained. This Discharge Certificate, together with a fully filled Claim Form, original medical reports and invoices, and any other necessary documentation that the Insurance Company requires, should be sent to the Insurance Company. The Insurance Company must next investigate the claim, the supporting evidence, and any further charges. The funds would be returned after that.

Home loan is the first step in realizing your goal of home ownership. The distribution stage of the loan procedure is the last step. So, what is the definition of disbursement? It is the stage at which the lender (the housing finance business) pays the loan proceeds to the seller (in the event of a resale property) or the builder (in the case of a new house), depending on the conditions of your home loan agreement with the lender. Process of Disbursement Following the completion of the following processes, the home financing firm will distribute the loan amount: 1. The property has been assessed in terms of its technical value; 2. All legal paperwork has been finished; 3. You have put your whole contribution into it (i.e. made the down payment). You may then make an offline or online request for payout. To make an offline request, you must go to the home financing company's office or branch. To make an online disbursement request, go to the housing finance company's website, enter in with your user ID/loan account number and password, click on the 'disbursement request' page, upload your 'own contribution' data (upload receipts), and change the property's status (ready or under construction). Fill in the information of the construction stage and submit the appropriate papers, such as the builder's demand letter, architect's certificate, and so on, for an under-construction home. Simply include the demand letter date for ready property. The payment information (payee's account details) must then be entered; in the case of an under-construction property, this would be the builder; in the case of a 'resale' home, it would be the seller. You may request a payout online from the convenience of your own home or workplace. Stages of Disbursement Depending on the degree of building completion, the loan will be granted in parts or in whole. The loan agreement will specify the distribution timeline. The lender will only take into account the building stage, not the builder's instalment payment schedules. If you get a complete disbursement, your EMI payments may begin the month after the month in which you received the full disbursement (check the EMI schedule in the home loan agreement). In the event of a partial disbursement, you may be required to pay 'pre-EMI' interest until the complete disbursement has been paid, at which point EMI payments will begin.

Credit should only be used in a responsible manner. Otherwise, you may find yourself unable to pay your EMIs (Equated Monthly Instalments). You will be charged a late fee as well as punitive interest if you miss or postpone any EMI. If you have a collateralized loan, such as a house loan, auto loan, or loan against property, the bank may seize or take over your asset in the worst-case situation. Not to mention the unfavourable influence on your credit score and history, both of which may have long-term consequences. Penalty save You may avoid the penalty or late payment fee that banks impose by paying your EMI on time. Typically, the penalty is a percentage of the EMI amount. This will put you in a worse financial situation. Positive credit score effect Paying your EMIs on time keeps your credit score high and helps you build a favourable credit history. This factor is given the most weight in determining a borrower's credit score. It shows that you are creditworthy and timely with your payments as a borrower, making borrowing simpler in the future. When you apply for a new loan or credit card, the bank will take your better credit score into account and may approve your loan sooner or for a larger amount. Top-up loans are easier to get by. If you pay your house loan EMIs on time, getting a top-up home loan is simpler. When compared to an unsecured personal loan, a top-up house loan has the same interest rate as a home loan, making it a cost-effective means of borrowing for any purpose.

How much credit do you have on your cards? When banks issue you a credit card, your salary is one of the factors they evaluate when determining your credit limit. Your earnings will increase as the years pass. However, despite an increase in your income and regular card payback, credit card firms may refuse to extend your credit limit. If this is the case, getting a new credit card with a bigger credit limit makes sense. Do you use more than 30% of your credit limit on a frequent basis? The amount of credit used in comparison to the total credit card limit is known as the credit usage rate. The credit card use rate should not surpass 30% of your credit card limit, Overspending may have a negative impact on your credit score, which is undesirable. If that's the case, getting another credit card to spread out your credit use is a good idea. You may maintain your credit usage rate for all of your cards low by spreading your spending over many cards. Are the new credit cards more rewarding in terms of points and rewards? New credit cards may sometimes come with attractive bonuses. Assume the new credit card offers you up to 4% cash back on gas purchases. Disadvantages of having too many credit cards: It's incredibly simple to get into a debt trap. Cardholders may be tempted to abuse their privileges. Furthermore, excessive spending lowers the credit usage ratio, which has a negative impact on your credit score. Having numerous cards means keeping track of multiple due dates. And if you miss to pay your bills on time, it will have an impact on your credit score. On new credit cards, hidden charges have a tendency of creeping up on you. Annual fees, late payment costs, and other fees are examples. Before you agree to a new card, be sure you understand everything. Lenders may consider a consumer as credit-hungry if they see that he or she has applied for many cards. They may refuse to approve large-ticket loans in the future, such as house and vehicle loans.

The golden years, often known as retirement, are the second half of your life. Planning and investing are essential if you want to retire comfortably. And the sooner you start, the higher your chances of building a solid retirement fund. You enter the asset distribution phase when you retire or become close to retiring. During this period, the money you've saved will be used to cover your retirement needs. As a result, you'll need to move your money from high-risk investments (such as equity-oriented mutual funds) to lower-risk investments that will provide you with a steady income once you retire (to take care of the regular expenses). This is required in order to protect the wealth that has been produced. SWP from Mutual Funds - If you've been investing in mutual funds, you've probably built up a sizable retirement fund. To build a cash inflow stream from this corpus after retirement, opting for the Systematic Withdrawal Plan (SWP) is an excellent choice. An SWP allows you to withdraw a certain amount of money from a mutual fund plan on a regular basis (monthly, quarterly, half-yearly, or annually) while still having the opportunity to earn profits on the remaining assets over time. It not only provides you with a steady stream of money, but it also teaches you how to spend it wisely. Bank Fixed Deposits (Interest Paid Monthly or Quarterly) – A bank fixed deposit has historically been the favoured option for risk-averse investors and older persons. However, if you want to make a consistent income, you'll need to choose the right strategy. You'll be able to meet your liquidity and cash flow retirements only then. Pradhan Mantri Vaya Vandana Yojana – This is a Government of India programme (in the form of a pension insurance) offered by the Life Insurance Corporation (LIC), with a minimum entrance age of 60 (and no maximum entry age). This programme allows you to invest up to Rs 15 lakh in a flat payment (called the purchase price) and earn a guaranteed annualised return in the form of a pension throughout the policy's 10-year duration (paid monthly, quarterly, half-yearly, or yearly). The government sets the interest rate, which is reset every year. Senior Citizen Savings Scheme (SCSS) — This is a government-run savings programme for senior citizens. This is another government-backed small-savings plan for retirees aged 60 and over, and deposits may be made in single or joint names with a spouse for a 5-year period. An SCSS account may be opened by anybody between the ages of 55 and 60 who has retired on superannuation or under the Voluntary Retirement Scheme (VRS). Individually or jointly with a spouse, a SCSS account may be formed. The capability of nomination is provided both at the time of account opening and thereafter. SCSS allows for a maximum lump sum deposit of Rs 15 lakh and a minimum deposit of Rs 1,000. Investments in SCSS are eligible for a deduction under Section 80C of the Income Tax Act, 1961 (up to Rs 1.50 lakh per year). The interest generated is compounded yearly and credited quarterly to your savings bank account throughout the 5-year maturity term (payable on the first working day of April, July, October and January). If the interest amount is higher than Rs 50,000 per year, TDS will be deducted, and tax will be deducted according to your yearly gross total income.

Non-Resident Indians eager to increase their wealth are flocking to India to invest. You'll need a bank account as an NRI in order to conduct smooth investing transactions. If you're unsure whether you should create an NRE or NRO Savings Account or invest in an NRE/NRO Rupee or FCNR Deposit, keep reading to learn about the differences and which is ideal for you: Non-Resident External (NRE) Savings Account Currency — It's a rupee-denominated account where you can keep your foreign earnings. The deposit of foreign currency into this account is converted to Indian rupees at the current foreign exchange rate. Permitted credits: The interest generated on the account is referred to as permissible credits. Maturity proceeds of investments transferred from another NRE Savings Account or FCNR(B) Account, provided that the investments were made from this account or through inward remittance. Rent, dividends, interest, pensions, and other sources of income Permitted debits:: Payments in rupees, such as utility bills, are permitted debits. Transferring funds from one NRE Savings Account to another Investing in India and sending money out of the country Repatriable/Non-repatriable — It is fully repatriable, which means that both the principal and the interest earned can be transferred to another country. In addition, the interest earned is tax-free. Non-Resident Ordinary (NRO) Savings Account Only rupee deposits are permitted. Currency - Use it to manage your revenue received in India. Credits that are permitted: Dividends, interest on savings, rent, pensions, and other sources of income produced in India. Assets, including immovable property, purchased with rupee/foreign currency funding or as a legacy/inheritance are sold proceeds. Money was transferred from other NRO accounts and remitted from outside India. Debits that are permitted: Payments in rupees are made locally, including payments for investments in India. Transfer to another NRO account Remit money outside of India up to USD 1 million each financial year (total across all NRO accounts). NRO money, on the other hand, cannot be used to open an NRE account or invest in FCNR Deposits. Repatriable/Non-repatriable — While you can freely repatriate or transfer interest overseas, you can only repatriate the principal within specified limits. Furthermore, the NRO Savings Account interest is subject to Tax Deduction at Source (TDS). Consider creating an NRO Savings Account if you want to keep your India-based earnings in India. Similarly, if you want to relocate outside of India, you can convert your existing resident savings accounts into NRO savings accounts before you depart. Foreign Currency Non-Resident (Bank) Account The FCNR (B) account is a term deposit that can only be opened in freely convertible foreign currencies. 1 to 5 years of tenure. Both the interest and the principal are freely repatriable, and the interest on the deposit is tax-free. Individual deposits of less than USD 1 million are eligible for withdrawals from the FCNR Deposits without penalty. Premature withdrawal of FCNR Deposits is also possible; however, keep in mind that interest will only be paid if the deposits are kept for at least one year. On a 'former or survivor basis,' NRI and NRO accounts, as well as the FCNR (B) deposit, can be kept in joint names of NRIs/PIOs with a resident Indian.

Before making investment, you should consider the following rules. You might have more time to invest. The calculating date for maturity in most financial investments begins when you open an account or make your first payment/deposit. The 15-year lock-in term for PPF, on the other hand, is computed from the end of the financial year in which it was opened. This practically means that if you start investing in the middle of a fiscal year, you may receive more time. For instance, if you deposits on May 20, 2021, lock-in period begins on March 31, 2022, and account matures on March 31, 2037. As a result, you will receive an additional 11 months from the date of first investment. You can time your deposit to get a higher rate of return. The interest calculation on the amount placed in a fixed deposit account begins immediately. The balance amount considered for interest calculations in PPF accounts, on the other hand, is the lowest between the 5th and the month's end. If you want to make monthly contributions to her PPF account, you should do so before the 5th of each month. This will result in a bigger balance in account, which will be used to compute interest, giving a higher return. Otherwise, interest will be computed on the sum from the previous month, which will be smaller, and would earn less. This may appear insignificant on a monthly basis, but over the course of 15 years, it might make a significant difference. One thing to keep in mind is that interest is only paid out at the conclusion of the fiscal year, in March. As a result, you must keep these dates in mind while depositing funds into her account. You have the option of borrowing as well as making partial withdrawals. Despite the fact that PPF accounts have a 15-year lock-in period, investors can make partial withdrawals and take out loans against them. All you have to do is keep certain requirements in mind. For example, can take a loan up to the seventh year, but will be charged an interest rate that is 1% more than the PPF interest rate. You will be eligible for partial withdrawals beginning in her seventh year, but not for a loan. Even if you are an NRI, you can manage your PPF account. A PPF account can be opened and operated by any Indian citizen. NRIs are not permitted to open new accounts. However, if they have an existing account that they started while in India, they can continue to use it, i.e. make regular deposits, until the 15-year maturity period has passed. Your PPF money is only accessible to you. One of the best aspects of a PPF account is that it is protected from debt collection. Even if a court orders the seizure of assets to satisfy a debt owed, a person's PPF account is exempt from such orders, ensuring that he or she has some income.

A Public Provident Fund (PPF) account is a government-guaranteed Small Savings Scheme. It pays a fixed rate of return (now 7.1%) that is declared every quarter. Under Section 80C of the Income Tax Act, it exempts investments up to Rs 1.5 lakh from taxation. Furthermore, both the annual interest and the maturity amount are tax-free. Simple steps to create a PPF account The PPF account has a 15-year lock-in term. However, you can withdraw funds from the account for a variety of reasons, including a medical emergency, your children's education, the construction or purchase of a home, and so on. A borrowing against your PPF account is also possible. However, these services are only available to active accounts who make a deposit at least once a year. What happens if you fail to make the required PPF contribution? Your account will become inactive, but the PPF rate of interest will continue to accrue. However, if you want to take use of the other advantages listed above, you must activate it. Let's have a look at how to do it. What happens when a PPF account is inactive? Every financial year, they must deposit a minimum of Rs 500 in their PPF account. If you don't do so, your account will become inactive. How do I reactivate a dormant PPF account? You must submit a written request to your bank or post office branch where your PPF account is located. Following that, you must deposit Rs 500 for each year the account has been inactive, as well as Rs 500 for the current financial year. You must additionally pay a penalty of Rs 50 for each year that has passed. Along with the application, these deposits must be made at a bank or post office branch. The bank or post office branch will verify your records when the application and cheque deposit are completed. The account cannot be renewed after the 15-year lock-in term has expired. Also, if your current PPF account is inactive, you will not be able to register a new one in your name. PPF is one of the greatest long-term investing options for long-term goals like saving for your children's education or establishing a retirement corpus. Regularly invest in the PPF and take use of the maximum tax exemption limit of Rs 1.5 lakh to get the most out of it. Axis Bank has been granted permission by the Indian government to provide PPF account services to its customers.

Doing a graduate or post-graduate programme overseas can be an exciting proposition for sure. But One Thing That Plays On Your Mind Always Is The Money Aspect. “Is it going to be exorbitant to eat outside?”, “Will I be able to save up any money for going out with friends during weekends or shopping?” are some of the questions that are likely to bother you. Expenses such as tuition fees, lab fees, library fees, etc, are usually taken care of either by an education loan or a scholarship. But you also need to plan for living expenses which include accommodation, food, entertainment, travel, medical emergencies, etc. However, there’s a smart way to spend money when studying abroad. Here are some money-saving tips you can put to good use. 1) Find affordable accommodation This is a high-ticket item and easily one of the greatest worries of international students. Ideally, you should be living close to your university. Sharing accommodation helps you divide the rent and provides an opportunity to meet new people and make friends. Some other ways you can save money is by staying in a hostel or a dorm. Choose your phone service carefully If you are not careful, your phone bill will skyrocket very quickly. While there are apps for free online calling, these require mobile data or Wi-Fi which may not always be available. Choose your service carefully as there are many options available that allow you to choose what you want to pay, so you never go overboard. Opt for prepaid plans that are easy to top up and eliminate monthly contracts that are too binding. This will offer flexibility and help cut down costs. Avail student discounts Some companies offer discount cards that are recognised by universities the world over. These offer savings on tourist attractions, museums, public trains and metro services, bus and airline transportation, and various other tourist spots. The discounts may even be guaranteed in some cases and even pay your insurance deductibles. Check with your university office for details about such services. Carry your student ID everywhere and do not be embarrassed to ask for a discount from vendors and cashiers. Shop during Black Friday or garage sales Don’t rush to do all the shopping as soon as you reach your destination. Buying things like furniture or other knickknacks at flea markets or garage sales instead of regular stores will save you tons of money. As for your day-to-day living, buy stuff in bulk at stores like Costco or Walmart. The best option is of course shopping at seasonal sales like Black Friday, Boxing Day, Cyber Monday, etc. You will be amazed to see the kind of deals you can get. Search for free entertainment options Having fun does not mean that you have to necessarily spend money on movies, parties or clubs. Almost every city offers many types of free entertainment options. It just needs a little bit of work to find. Your go-to option? The internet! Start with websites like timeout.com where you can find all kinds of activities, free of charge. There are many clubs, cinemas and theatres that offer discounts for students. These may not always be advertised so it’s best to just ask. Universities also organise a variety of entertainment options that are easy to afford. Join the students’ club for easy access to such benefits. Cook your meals This is probably a life hack, not just one that helps you save money while you are a student. It will keep you in good stead not only with your finances but also with your health. Plan in advance, to avoid the daily stress of organising meals. Shop for groceries in bulk to get discounts. Cook in large quantities on weekends to sort out your dinners for the following week. Buy second-hand goods Another great opportunity to save money is buying used items from graduating students. Spend some time at the charity shops around your university looking for second-hand goods, and you may be surprised at the treasures you find – high-quality clothes, furniture, books, vintage accessories, and interesting little ornaments– all for a bargain price. Don’t be afraid or embarrassed. The staff are usually very friendly and since the money’s going to a good cause, you can spend without feeling guilty. Draw up a budget Plan for all your expenses like rent, food, and travel expenses. And keep a little buffer. This way you end up saving money which you can then use for any unplanned expenses or medical emergencies that may come up. Book in advance You may need to travel to universities in other cities for seminars and so on. These are good opportunities to network with people from academia or the industry, which may come in handy later on when you start your job search. Or you may want to travel for sight-seeing. In such cases, book your travel tickets and accommodation well in advance. This will help you get good deals and save money. You can easily book using your Axis Forex card, as it can be used for online transactions. Choose a credit card wisely Many students are tempted by credit cards to buy now and pay later, but this is an unhealthy habit that may lead to overspending or huge bank debts. But a credit card is a good tool in case of an emergency, provided you pay back in time to avoid interest charges or penalty fees. If you are going to use a card, choose one that rewards you with cash, points, or air miles that you can ultimately redeem for cool offers that help you save money. Bike or walk around Buying a car is an expensive option. First, there’s the initial purchase cost. Secondly, there are recurring expenses like fuel and maintenance, insurance, and road tax. Hence, we recommend walking or biking. It is good for your health, good for your wallet and will give you a chance to experience things with a new and closer perspective.