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A bank is a financial institution. Since its inception, the fixed deposit, or term deposit, has always been a popular financial option. Fixed Deposits are popular among investors of all ages, income levels, and risk tolerance levels. As a result, FDs provide a sense of financial security since they provide guaranteed and consistent returns, provide adequate liquidity (if tenure and plan are carefully selected), meet unforeseen demands, aid in saving for financial objectives, and even reduce tax. What happens to your taxes when you have a fixed deposit at a bank How does an FD contribute to tax savings? It is possible to deduct up to Rs 1.5 lakh from one's gross total income by investing in a 5-year Tax-saver FD, as stated in Section 80C of the Income Tax Act, 1961. A 5-year tax-saver FD pays the same interest rate as a standard bank-issued fixed deposit. It can't be removed until the lock-in time is complete. However, the five-year lock-in is a terrific strategy to build money. It is suggested that you carefully consider the reinvestment (cumulative) plan vs the pay-out plan (monthly, quarterly, or half-yearly) when managing your liquidity requirements. How to compute the interest on an FD In order to calculate the interest due, the interest generated on long-term bank fixed deposits is added to the principle on a quarterly basis. Short-term deposits (less than six months) earn interest at a rate dependent on the number of days in the period. Fixed Deposit calculator from Axis Bank is useful here! A look at how dividends are taxed However, keep in mind that the interest received on a bank FD, whether it is a standard deposit or a 5-year tax-saver deposit, is taxable. The interest you make on your bank FDs is taxable, according to current tax laws. Your income tax bracket will determine the tax rate you pay. If your bank (payer) pays you interest, it will first subtract any applicable federal, state, and local taxes from your payment. If a PAN is provided, the rate of Tax Deduction at Source (TDS) is 10%, and if not, TDS is 20%. This base cost includes no additional fees or charges. Your bank FD's total interest for the financial year is used to calculate your TDS for tax-saver bank FD interest. TDS-avoidance paperwork In order to avoid TDS, you must submit Form 15G to the bank throughout the financial year if you are under 60 years of age and your total yearly income is less than Rs 2.5 lakh. If your total income is less than Rs 3 lakh, sending Form 15H to the bank for the financial year will help you avoid TDS on interest income of more than Rs 50,000. It's important to keep in mind that whatever TDS the bank has taken from your FD will be subtracted from the ultimate amount of tax you owe when you complete your tax return. Choose the right term and plan carefully to maximise the compounding potential of your bank FDs. Avoid making early withdrawals, which will impede the compounding process. Your liquidity needs will be met, interest rate swings will be averaged out, and your cash will be safe and secure if you adopt an FD laddering approach.

Ideal weekend getaway: In spite of the fact that their two-bedroom flat in Mumbai, was roomy, it was plagued by the normal challenges of a major metropolis, including pollution and traffic. The couple and their two tiny children couldn't afford to buy a home in a Mumbai gated community where they could have their own space. They had chosen a property, on the other hand, for their weekend retreat that was remote enough from the city to still be easily accessible. The couple could afford it because of the vast areas and the pool. This would allow the family to spend quality time together on the weekends, and the children would be able to run about in a safe and secure environment. Capital growth: The property's value would almost certainly rise because it was so close to Pune. As a result, the value of their second property may appreciate in the future. Affordable loan for constructing a long-term asset: Interest rates on home loans are at an all-time low, making them the best option for long-term investments. The couple's salary and credit history make them eligible for a loan with a 6.5–7.5 percent interest rate. A long-term asset may be built at the lowest possible cost using this type of loan. Tax benefits: The couple could no longer take advantage of the associated tax break now that their former house loan had been paid off. The only exception is if they were to secure a new house loan in order to buy a weekend property, which would allow them to keep the tax break of up to Rs. 2 lakh each year (B) Regular earnings: Having the home rented out may provide them with a steady source of money that would augment their family's income. Retirement home: A young couple may retire to the weekend house in roughly 15 years. For example, they may cash in on their Mumbai home, which is expected to appreciate, invest the money prudently, and then follow whatever hobbies they like without having to worry about money.

Xpress Credit will offer personal loans up to Rs 35 lakh to qualifying customers. SBI salaried customers will no longer be required to visit a branch to obtain a personal loan under Real-Time Xpress Credit. The State Bank of India (SBI) has announced the launch of Real-Time Xpress Credit, a new service for salaried clients on its Yono platform (RTXC). Xpress Credit will offer personal loans up to Rs 35 lakh to qualifying customers. The State Bank of India's Xpress Credit personal loan product for salaried consumers will be offered digitally. According to SBI, eligible consumers will now be able to receive personal loans up to 35 lakh through YONO without having to fill out any documentation. SBI salaried customers will no longer be required to visit a branch to obtain a personal loan under Real-Time Xpress Credit. The bank noted that credit checks, eligibility, sanction, and paperwork will now be done digitally in real-time.

Electric vehicles are becoming more common on our roads, especially as India's federal government aspires to achieve a 100% electric transportation system by 2030. According to industry analysts, e-vehicles' popularity is growing, and it will certainly continue to grow in the future as consumer awareness grows and stronger pollution laws are adopted. Even though electric automobiles are more expensive than conventional cars, they have their own set of advantages. E-Cars, for example, do not contaminate the environment and do not produce any noise. Most importantly, they help you save money on diesel and gasoline. However, as the cost of an electric automobile climbs, so does the cost of protecting it. Choose insurance based on the vehicle's pricing Experts advise that before buying insurance, one should figure out how much the car for which coverage is being acquired is worth. Insurance should be provided based on the genuine value of the vehicle. You should also check to see if the insurance provided is adequate, so that your share of the claim payment is kept to a minimal in the event of an unpleasant event. When purchasing insurance for an electric vehicle, keep in mind several unique characteristics of the vehicle. Electric vehicles operate in a different way than traditional automobiles. As a result, think about these unique challenges before acquiring an E-vehicle insurance policy. Electric automobiles typically have a range of 100 to 150 miles before needing to be recharged. The majority of electric automobiles take between 5 and 10 hours to charge. Electrical failures of the battery, power supply unit, and electronic and mechanical components should be insured by obtaining appropriate warranty items to cover losses, according to experts. Optional Coverages Keep an eye out for the insured declared value (IDV), which is the maximum sum assured set by the insurer and equal to the current value of the vehicle, the kind of plan to choose, and the availability of add-on choices when obtaining insurance. Look for the company's track record and history, as well as the cashless option and CSR (Claim Settlement Ratio). Insurance with no depreciation Because these cars are costly to maintain and purchase, zero depreciation add-on coverage is advantageous. During the course of a claim, the insurance company calculates the car's depreciation value, which is then deducted from the claim amount. You will be able to get the claim amount without any depreciation deductions from the insurance company if you have zero depreciation add-on protection. Separate add-on covers are required for battery charges These E-cars are built using cutting-edge technology, which necessitates the use of highly trained technicians. Because the cost of the battery and specialised parts is so high, it's best to have separate add-on covers. While add-on covers are necessary for an e-car, due to the variations between battery-powered vehicles and standard fuel automobiles, add-ons such as engine protectors, which are available with complete car insurance, may differ. Optional coverages should include loss from battery leaks, battery charger, transportation of the car, and giving on-the-spot assistance. Electric vehicles are more expensive than gasoline-powered vehicles, but they can save money in the long run. People may consider obtaining E-vehicle insurance to safeguard their automobile and themselves from financial damages that may arise as a result of an unexpected incident involving the insured vehicle because it is a one-time investment.

Policyholders can file complaints against insurance companies with the Insurance Regulatory and Development Authority of India (IRDAI). Here's what you need to do to get your complaint resolved. Complain to your insurance provider You can initially contact the insurance company's Grievance Redressal Officer (GRO) by lodging a written complaint. Within a fair length of time, the GRO is expected to settle the complaint. The IRDAI can be contacted if the GRO does not respond within 15 working days. The toll-free number 155255 is for the IRDAI's Grievance Redressal Cell. If you have any supporting documentation, please send it to complaints@ irdai.gov.in. Send a letter of complaint to the IRDAI Grievance Redressal Cell at Gachibowli, Hyderabad 500032 in writing. Use IRDAI's IGMS online complaint system to file a formal complaint. Processing It is the insurance company's responsibility to respond to complaints lodged with IRDAI in any of these ways within the timeframe specified by the insurer. Further escalation It is possible to take your complaint to the Insurance Ombudsman if you are dissatisfied with the resolution supplied by the insurance provider. Points worth noting Getting a formal acknowledgement or reference number for the complaint recorded is essential for any future interaction with the company. Complaints may be tracked through the IGMS, which makes it easy to see how the issue is progressing.

All banks, ATM networks, and White Label ATM Operators (WLAO) may now offer interoperable card-less cash withdrawal at their ATMs, which may come as a comfort to ATM consumers. The Reserve Bank of India, India's central bank, said on April 8 that it planned to allow interoperable cardless cash withdrawals across all bank ATMs in the country. In his remarks following the monetary policy announcement, RBI Governor Shaktikanta Das stated that this may be accomplished through the Unified Payments Interface (UPI) service. Only a few banks now offer cardless cash withdrawals using ATMs. When you went to your bank's ATM to withdraw money, you may have observed that the ATM machine offered the option of cardless cash. When you went to your bank's ATM to withdraw money, you may have observed that the ATM machine offered the option of cardless cash withdrawal. Until date, only existing customers of certain banks have been able to withdraw cash from their own bank's ATM network without a card. This will change once interoperability is introduced, since users will be able to utilise the UPI capability to withdraw cash from any other bank's ATM in their area. Customer advantage According to the RBI Governor, the service would not only be handy for users, but it will also reduce the opportunity for fraud. Because the real card will not be utilised to withdraw cash, the risk of frauds including skimming, card cloning, and device manipulation will be reduced. How will it function? While not all banks currently offer UPI-linked cash withdrawal, some do. Consider this scenario: you have a City Union Bank savings account (CUB). The bank allows customers to withdraw cash from ATMs by scanning their UPI QR codes. Users must select the cardless withdrawal-QR-UPI option and enter the amount they desire to withdraw before moving to the next page when withdrawing money from such ATMs. (At the moment, the bank has set a limit of Rs 5,000 for UPI withdrawals.) Next, use the BHIM, GooglePay, or PayTm apps to scan the QR code on the ATM, or use your CUB UPI scanner in the mobile app to scan it. To proceed, enter the pin and click pay. Finally, in the ATM machine, select the 'press here' tab for cash option and collect cash. What if a withdrawal at an ATM that uses this service fails? In such circumstances, the user must immediately notify their bank. Within seven working days, the funds will be credited to your bank account.

NEFT (National Electronic Funds Transfer) transactions are settled every half hour, with the first batch beginning at 12:30 a.m. and the last batch, the EOD batch, ending at midnight. Real-time gross settlement (RTGS) transactions are settled immediately. These services are available 24 hours a day, seven days a week, 365 days a year. The Department of Post has made the NEFT and RTGS facilities available to Post Office savings account holders. PO savings account customers can now send money electronically. In a circular released on May 17, the CBDT stated that the NEFT facility will be available to POSB clients starting May 18, 2022. PO saving account customers, on the other hand, will be able to use the RTGS service starting May 31, 2022. Customers can now effortlessly transfer funds from other bank accounts to POSB accounts in DoP-CBS, thanks to the debut of the service (Department of Posts - Core Banking Solutions). According to the CBDT, "This is in regards to the NEFT/RTGS facility for POSB accounts, which will be available to POSB account holders on May 31, 2022. The following documents are attached: Standard Operating Procedure for Payment Channel Division, Bengaluru (Annexure l), Standard Operating Procedure for Post Office End Users (Annexure ll), and Standard Accounting Procedure (Annexure lll)." The department then released a clarification, stating that RTGS functionality is now being tested and would be available by May 31, 2022. "The NEFT rollout date can be read as 18.05.2022. Before the rollout, a separate SOP for RTGS will be distributed "it added. What are NEFT and RTGS? RTGS stands for Real Time Gross Settlement, whereas NEFT is for National Electronic Funds Transfer. These services are available around the clock, 365 days a year, regardless of post office or bank holidays. Both are electronic money transfers, however NEFT transactions are settled every half hour, with the first batch beginning at 12:30 a.m. and the last batch, known as the EOD batch, ending at midnight. RTGS transactions, on the other hand, are settled in real time. Through NEFT transactions, the money is delivered the same day or the next day to the recipient. For NEFT remittances, the minimum and maximum amounts per transaction are Rs 1 and Rs 15 lakh, respectively. Outward NEFT using eBanking and mBanking channels has a transaction limit of Rs 2 lakh per transaction. The maximum number of transactions per day is 5. Outward NEFT transactions initiated through eBanking and mBanking services have a daily transaction limit of Rs 10 lakh. For eBanking and mBanking, there is a time variable transaction capping to limit the risk of fraud. As a result, from 8 p.m. to 8 a.m., the maximum transaction limit for outward NEFT initiated through eBanking/m-Banking is Rs 2 lakh. How to File a Complaint Customers can file complaints about their NEFT transactions using any of the following methods: a. Call the India Post customer service line at 1800 2666 868. b. Website's complaints section: https://www.indiapost.gov.in/VAS/Pages/ComplaintRegistration.aspx Select NEFT as the type of savings bank service under the financial services category. c. In any post office branch using SAP-CRM. d. End users of post offices should file complaints in SAP-CRM under the financial services-Savings Bank category. e. A UTR number is required to file a complaint for any NEFT transaction-related issue. f. Post Offices and circles can contact the Bengaluru Nodal Office for operational assistance and crucial situations. (postatm@indiapost.gov.in) e-mail

Banks in India have begun giving attractive loans to encourage citizens to switch to electric vehicles. One such bank is the State Bank of India (SBI), the country's largest state lender, which encourages consumers to apply for EVs through their Green Car Loan scheme in order to reduce their carbon impact. With India's encouragement to cut carbon emissions, an increasing number of individuals are opting for electric automobiles. This is consistent with the government's goal of achieving a 100% electric vehicle country by 2030. Banks in India have begun to take steps to encourage citizens to switch to electric vehicles by giving attractive loans. One such bank is the State Bank of India (SBI), the country's largest state lender, which encourages consumers to apply for EVs through their Green Car Loan scheme in order to reduce their carbon impact. SBI's Green Car Loan Program With effect from May 15, 2022, the State Bank of India offers an interest rate range of 7.25 percent to 7.60 percent for loans for electric vehicles. The repayment period can be as short as three years and as long as eight years. For loan approval, borrowers must be between the ages of 21 and 67. SBI further reduces the relevant rate of interest by 20 basis points for all clients who take out standard car loans. Its profit margin can reach 90% of the on-road price. SBI offers three types of electric vehicle loans. 1- Regular personnel of Central Public Sector Enterprises (Maharanas/Navratnas/Miniratnas) fall into the first group. Customers and Short Commissioned Officers of various Defence organisations receive the Defence Salary Package (DSP), Para Military Salary Package (PMSP), and Indian Coastal Guard Package (IGSP). For government employees, the bank has a minimum income requirement of Rs 3 lakh. The public lender will lend up to 48 times your net monthly income against this revenue. 2- The second group is for income tax assesses who are professionals, self-employed, businesspeople, proprietary/partnership firms. The income criteria for this group include a net profit or gross taxable income of Rs 3 lakh per year. After depreciation and repayment of all existing loans, the bank offers a maximum loan of 4 times net profit or gross taxable income as per ITR in this category. The person involved in agricultural and related activities falls into the third category. The minimum income requirement for this section is Rs 4 lakh net annual income. The maximum loan amount is three times your net annual income.

Trip cancellation and interruption coverage, compensation for expenses incurred as a result of significant travel delays, missing connections, emergency money and baggage worries, and medical emergency coverage are all included in travel insurance policies. One of the most crucial factors to consider while planning a trip is travel insurance. Your medical expenses, travel dangers, and aircraft delays are all covered by a travel insurance coverage. Because of the variety of dangers it covers, travel insurance is especially important when travelling internationally. In terms of coverage, today's travel insurance packages are rather extensive. A decent travel insurance policy acts as a safety net to protect you from financial troubles while travelling abroad. Trip cancellation and interruption coverage, compensation for expenses incurred as a result of significant travel delays, missing connections, emergency money and baggage worries, and medical emergency coverage are all included in travel insurance policies. It is critical to understand the scope of coverage provided by a policy. It's worth noting that most businesses offer a variety of travel insurance options in terms of covered areas and countries. As a result, you must be certain that the travel package you choose matches your needs. Also, keep in mind that the money insured under the insurance must be sufficient to cover any medical emergency in the destination country you will be visiting, since medical prices vary widely. The reason of travel determines which travel insurance package is appropriate. Medical expenses spent abroad owing to hospitalisation due to illness, sickness, or disease should usually be covered by your travel insurance plan. Personal Accident, Passport Loss, Trip Cancellation/Delay, Checked Baggage Delay, Home Burglary Insurance, and more advantages are also available. The policy's other characteristics include worldwide coverage, simple claim settlement, single/multi-trip coverage, and round-the-clock help.

The Reserve Bank adopted a rule on Thursday that allows people to withdraw money from any ATM without a card. National Payments Corporation of India (NPCI) has been instructed to integrate UPI for this facility. RBI announced on April 8 that this facility would be available soon. People can now withdraw money from any ATM in the country without a card under the new rule. Apart from that, the bank will provide services to any consumer, regardless of which bank they are affiliated with. The new service will carry the same fee as an ATM card. There were no additional fees. Apart from that, the withdrawal limit will be the same without the card as it is with the card. She also stated that customer interest rules will be the same as ATM interest rules. The bin card withdrawal function is currently only available to its customers. The RBI's goal is for banks to provide this service to all of their customers. What advantages does this facility provide to customers? The card will no longer be required for cash withdrawals under this new rule. Card cloning, card skimming, and other bank frauds will be decreased as well.

Riskier than not investing at all is a haphazard investment in any instrument. Investing, like most other endeavours, needs a disciplined approach. The wrong way to invest is in every new mutual fund released on the market since its net asset value (NAV) is equal. In order to make an investment choice, there are well-defined procedures and methodologies. Setting an Aim: When it comes to investing, We need to know why we're doing it just as much as knowing our goal before we leave the home. An investment aim might range from something as long-term as retirement to something as immediate as a family vacation or the education and future marriage of one's children. We can select our funds based on the length of time and the amount of money necessary to attain these objectives. Selecting an equity-oriented programme that invests the majority of its corpus in stocks is preferable for long-term financial planning. Because of the fund's longer duration, investors won't have to be concerned about market volatility in the short term. Equities, as an asset type, have historically provided superior returns over a longer time horizon. A better risk-adjusted return should be sought while investing in a mutual fund (Sharpe Ratio). Furthermore, one should choose funds that give a better rate of return for the same degree of risk. Consider long-term investing in funds with a greater beta. However, a high beta indicates that these funds will rise and fall in tandem with the benchmark index to which they are tied. A high beta fund would, on the other hand, provide a stronger return in the long run as indexes rise. Selecting a Type of Investment: With equity funds, there are several subcategories to choose from.  A direct or regular plan must be selected. Because there is no middleman in the direct plan, the fund house may use the whole money invested without deducting any fees. If the purpose of this investment is long-term, it's wiser to invest in a growth plan to get the full benefits from compounding. It's all about the Numbers: For long-term investors, a fund's performance and the reputation of a fund house important." Investing in a fund firm with a good track record is preferable. A high-performing fund suggests that it has weathered numerous market cycles and done well. In his opinion, the fund manager is well-versed in dealing with the various stages of the market. Expense Ratio: Asset management companies (AMCs) charge investors a fee for their services, known as the expense ratio. Few funds are able to outperform their benchmark index returns, therefore paying fund houses additional charges is unnecessary. In the long run, investing in passive funds makes more sense than in actively managed ones. In the long term, little commissions each year eat away at a greater amount of the profits. The same holds true for the charging of both entrance and departure loads. A good rule of thumb is to choose funds with the lowest expenditure ratios and fees, but at the same time they need to be leaders or even leaders in terms of performance.

A tax cut is always a good thing! Investment in tax-saving instruments is a primary goal for tax-savvy individuals. Savings, on the other hand, is a personal decision. The amount of money saved, the time horizon, the motive for saving, and other factors influence the type of savings instrument a person chooses. It is possible for investors to avoid paying income tax under the Income Tax Act of 1961. Taxpayers can also save a large amount of money each year by taking advantage of Section 80C of the legislation. Investing during a five-year lock-in period allows investors to take advantage of four tax-saving investment options. Section 80C Tax-saving options for individuals and HUFs in India are most widely available under Section 80C of the Income Tax Act, which includes several investments and costs from which you can benefit over time, up to a maximum of Rs. 1.5 lakh in a financial year. Included in the activities in Section 80CCC and Section CCCD are a variety of different types of activities. If you plan to utilise some of your income for these activities in the past fiscal year, you can claim the amount as a tax advantage from your taxable amount. 5 Year Bank Fixed Deposit It has long been a popular way to preserve money because fixed deposits (FDs) provide a fixed interest rate at maturity, are not affected by market fluctuations and have a predetermined maturity date. Depositary receipts (FDs) are an investment option offered by banks and other financial institutions. Over a period of time, investors would deposit large sums of money into this account. Customers would get a set interest rate for the duration of the investment in exchange. Interest rates on FDs are significantly higher than the interest rates on traditional savings accounts. FDs with a five-year lock-in period are the greatest choice for reducing taxable income under section 80C. Section 80C. A financial institution's CRISIL rating is an excellent place to start before buying in an FD from an NBFC. National Saving Certificate (NSC) The National Savings Council (NSC) is a government-endorsed tax-deductible investment that attempts to encourage small and medium-sized savings. It is supported by the Indian government and can be obtained at any Post Office. Because the Indian government is funding the programme, the danger is thought to be quite low. NRIs and HUFs are not eligible for the plan, which is only available to Indian citizens. The annual interest on the plan is credited when the certificate matures and is compounded each year. Invested returns are automatically re-invested because of interest compounding. Consequently, deductions of up to Rs 1.5 lakh are allowed. Unit-Linked Insurance Plan (ULIP) A ULIP is a type of investment vehicle that can be used for both insurance and investment purposes. It's a popular choice for tax-savvy investors. In order to use this product, customers must make recurring premium payments. A portion of the premiums is used to cover insurance costs, while the remainder is invested in stocks, bonds, or a combination of the two, together with money from other policyholders. Section 80C of the Indian Income Tax Act, 1961 allows for a deduction of up to Rs 1.5 lakh per financial year for ULIP premiums. The amount you receive at maturity is exempt from taxation under Section 10 (10D). Senior Citizen Saving Scheme (SCSS) For those over the age of 60, this Post Office savings plan offers good returns with no risk. The Post Office and certain banks provide this arrangement. The subscriber must be at least 60 years old at the time of signing up for a SCSS account. Certain groups of people can, nevertheless, benefit from a lowering of the retirement age. Savings of up to Rs 15 lakh in the SCSS account earn interest every three months. Section 80C of the Internal Revenue Code allows investors to deduct their contributions to the SCSS from their taxable income. The interest earned on SCSS is subject to taxation if it exceeds Rs 50,000 in a single financial year, according to the Post Office's official website.