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EPFO, the retirement fund agency, voted on Saturday to cut the interest rate on provident fund deposits for 2021-22 to an almost four-decade low of 8.1 percent, down from 8.5 percent in 2020-21. This is the lowest interest rate since 1977-78, when the EPF interest rate was 8%. In its meeting held on Saturday, the Employees' Provident Fund Organisation's (EPFO's) highest decision-making body Central Board of Trustees resolved to offer an 8.1 percent rate of interest on Employees Provident Fund (EPF) for 2021-22. In March 2021, the Central Board of Trustees (CBT) settled on an interest rate of 8.5 percent on EPF deposits year 2020-21. The finance minister confirmed it in October 2021, and EPFO provided instructions to field offices to credit interest revenue at 8.5 percent to subscribers' accounts for 2020-21. The interest rate on EPF deposits for 2021-22 will now be forwarded to the Ministry of Finance for approval after the CBT decision. The rate of interest is only provided by EPFO once it has been approved by the government through the finance ministry. EPFO decreased the interest rate on provident fund deposits to a seven-year low of 8.5 percent in March 2020, down from 8.65 percent in 2018-19. The interest rate on the EPF for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 percent.

Customers of State Bank of India (SBI) can use the bank's one-time password (OTP)-based cash withdrawal service at ATMs. The OTP is a four-digit number used to verify a user's identity for a single transaction. Customers of SBI can withdraw up to 10,000 from ATMs by inputting an OTP issued to their registered cellphone number, as well as their debit card PIN, each time. This plant has been operational since January 1, 2020. The OTP-based cash withdrawal mechanism operates as follows: -An OTP is required to withdraw cash from an SBI ATM. -An OTP will be sent to the phone number you provided when you select the withdraw using OTP option on the SBI ATM screen. -An OTP is a four-digit number that verifies a user's identity for a single transaction. -The ATM screen will display the OTP screen once you enter the amount you want to withdraw. -Now, in order to collect the cash, you must enter the OTP obtained on your bank-registered cellphone number on this screen.

Investing comes with a variety of options. One can pick how to invest in mutual funds in addition to which schemes to invest in. An investor can opt to make a one-time lumpsum investment in mutual funds or to spread it out over a period of time using a systematic investing plan (SIP). The manner in which one invests can have a significant impact on one's investment portfolio. Here's a primer on both investment options to help you get started. Understanding the differences between SIP and Lumpsum Investors can benefit from potential wealth building through mutual funds through both SIP and lump-sum investments. The main distinction between SIP and lumpsum investing is the frequency of investment. SIPs are a way to invest in a mutual fund scheme on a regular basis, such as daily, weekly, monthly, quarterly, or half-yearly. Lump-sum investments, on the other hand, are a one-time large investment in a specific plan. The minimum investment varies as well. SIPs can be started with as little as Rs.500 each month, whereas lump-sum investments usually require at least Rs.1,000. SIPs may be a better investment option for you if you have a little but consistent amount of money available for investing. Lump-sum investments may be more advantageous for individuals with a large investment amount and a high risk tolerance. SIP vs. Lumpsum - a comparison of the two approaches Most investors prefer SIPs to lump-sum investments because of the advantages they provide. The following are a few of them: 1. Investors do not need to keep a close eye on the market. Investors need to know when they are joining the market because lump-sum investments are a large commitment. When you invest in a lump sum during a market bottom, you get the best results. SIPs, on the other hand, allow you to invest at different times of the market cycle. Investors do not have to keep as close an eye on market swings as they would with lump-sum investments. 2. Less capital is required. As previously stated, SIPs can be started with as low as Rs. 500 every month. Lump-sum investments, on the other hand, require at least Rs.1,000, while most mutual funds in India set the bottom limit at Rs.5,000. SIP calculator is a tool that allows investors to calculate and estimate the returns on their SIP investment. 3. Costs on average The cost per unit is averaged out across the full investment horizon because SIP leads to mutual fund purchases over distinct market cycles. During a market low, more units are purchased, compensating for purchases made during a market high. This can help you weather market swings and keep your costs consistent. When the market is operating well, units can be sold. 4. Compounding's Power SIP investments earn interest, which is re-invested in the plan. The compounding effect aids in generating higher returns in this case. 5. Instills a sense of financial responsibility SIPs might help you develop a habit of saving regularly. You can set up an automated investing instruction with your bank at a frequency of your choice. When the Market Is At Its Lowest Identifying a market low and investing a lump sum amount in a mutual fund at the proper moment can yield substantial returns for investors who can understand market cycles. This is due to the basic investment philosophy of purchasing low and selling high. An ill-timed investment, on the other hand, could result in losses and a loss of confidence. This is because if an investor's lumpsum is losing money, he or she may be hesitant to invest again. Lumpsum investments might be beneficial to experienced investors with extensive market expertise. Other advantages of lump-sum investments include: For individuals with a long-term investing horizon, it can provide significant profits (seven to 10 years minimum). It can aid in the attainment of certain financial objectives, such as investing for a child's education fund or a retirement fund. It simply necessitates a one-time payment. Your decision to invest in a SIP rather than a lump-sum amount should be based on your specific needs. The path of investing must be determined by factors such as income, financial stability, investment goals, and risk capacity. SIPs, however, are superior in two ways, according to experts: they can help you weather market volatility and they can be a smart investment option even for inexperienced investors because they do not require daily monitoring of financial markets.

Green Fixed Deposits’ that gives you an opportunity to create a positive impact on the environment along with earning interest on your deposits. These deposits will contribute to development of projects which has a positive impact on our surroundings and the society at large. Most investors are familiar with mutual fund houses' ESG (environmental, social, and governance) funds. However, few people are aware that a similar, environmentally beneficial choice exists in the shape of green fixed deposits on the fixed-income side (FDs). HDFC, Union Bank, and IndusInd Bank are among the banks that offer such deposits. Objective IndusInd Bank will deploy proceeds from these deposits in organisations supporting the United Nations Sustainable Development Goals (SDGs). Mentioned below are a few sectors these organisations are involved in: Energy Efficiency Renewable Energy Green Transport Sustainable Food Agriculture Forestry Waste Management Greenhouse Gas Reduction Features & Benefits of Green Fixed Deposit Higher rate of interest up to 6.5% per annum Additional returns for the senior citizens of 0.50% per annu Deposits backed by insurance for up to Rs. 5 lac Low pre-mature withdrawal charges of only 1% Assurance certification from a reputed external consulting firm

What do you mean by Emerging Markets? Emerging markets are those that are rapidly expanding in size and scope, with the potential to be among the world's growth engines. MSCI, the world's largest index provider, has classed 25 international economies as emerging markets, including China, India, Indonesia, Korea, Brazil, Chile, Colombia, Russia, Saudi Arabia, South Africa, Turkey, and the United Arab Emirates. What are some of the benefits of investing in emerging markets? Emerging markets are those that are rapidly expanding in size and scope, with the potential to be among the world's growth engines. MSCI, the world's largest index provider, has classed 25 international economies as emerging markets, including China, India, Indonesia, Korea, Brazil, Chile, Colombia, Russia, Saudi Arabia, South Africa, Turkey, and the United Arab Emirates. What are some of the benefits of investing in emerging markets? Diversifying your portfolio by investing in emerging economies is a good idea. You'll also have the chance to invest in industries and themes that aren't available in India. What is the best way for me to invest in these markets? Emerging market funds are mutual funds that invest the majority of their assets in stocks, bonds, and other securities issued by nations categorized as emerging economies. These are either index funds or actively managed funds that invest in developing market assets such as those from India, China, Brazil, and South Africa. What EM funds are available in India? Edelweiss Emerging Markets Opportunities Equity Offshore Fund, HSBC Global Emerging Markets Fund, Kotak Global Emerging Markets Fund, and PGIM India Emerging Markets Equity Fund are the four emerging market funds available to domestic investors. What are the potential dangers? The volatility of emerging markets is higher than that of developed markets. EM funds are also subject to currency volatility, which means that your return will be determined not only by the price of securities but also by the value of your currency in relation to the currency of the market in which you have invested. Is now a good time to invest? Due to the epidemic and concerns about interest rate hikes, emerging market funds performed poorly in 2021. These markets may experience some volatility as major global central banks worry about inflation and prepare to raise rates. Long-term investors, on the other hand, may see this as an opportunity.

ICICI Bank Customers Alert: The bank said the additional interest rate will be applicable on fresh deposits opened as well as deposits renewed during the scheme period. The deadline for investing in ICICI Bank's special fixed deposit scheme, which offers higher rates to senior citizens, has been extended. Individuals can invest in the FD plan until October 7, 2022, according to the private lender. Individual investors over the age of 60 can invest up to Rs 2 crore in ICICI Bank's special senior citizen FD programmes. ICICI Bank Golden Years FD is the name of the bank's scheme. ICICI Bank said in a statement that resident senior citizen customers will receive a 0.25 percent additional interest rate for a limited time, on top of the existing additional rate of 0.50 percent per annum. Previously, April 8, 2022 was the last day to invest in the ICICI Bank Golden Years FD plan. Senior citizens, on the other hand, can now invest in a special FD plan until October 7, 2022. However, in order to benefit from the special FD programme, investors must commit their capital for at least five years. During the scheme's duration, the higher interest rate is offered on new FD deposits as well as the renewal of existing term deposits. It's worth noting that most banks give older citizens a 0.50 percent or 50 basis point higher interest rate. The ICICI Bank Golden Years FD scheme, on the other hand, offers an additional 0.25 percent interest rate, or 25 basis points, over and above the additional 0.50 percent rate, which is one of the main reasons why elderly citizens choose the scheme.

TDS on interest earned on excess contributions above Rs 2.5 lakh has been made effective from April 1, 2022, says EPFO. The Employees Provident Fund Organisation (EPFO) has released new guidelines on the taxation of interest received on EPF accounts with contributions exceeding Rs 2.5 lakh in a financial year. According to an EPFO circular dated April 6, 2022, interest received on excess contributions would be subject to tax deduction at source (TDS) beginning April 1, 2022. The tax will be deducted when interest is credited to the EPF account. If a final settlement or transfer is currently pending, the tax will be deducted at a later date during the final settlement. TDS on interest generated on excess contributions over Rs 2.5 lakh will be applicable in final settlements, transfer claims, or transfers from exempted organisations to EPFO and vice versa, according to the circular. They will also apply to transfers from one trust to another, as well as historical accumulation transfers and annual account processing, such as interest credit in EPF accounts. The TDS would also apply to all EPF members, including those who are members of exempted establishments or exempted trusts. If a member has made EPF contributions of more than Rs 2.5 lakh in a financial year, it will be applicable even if the person dies. According to the circular, it would also apply to international workers. In addition, if the EPF account is linked to a valid PAN, tax will be deducted at a rate of 10%, or 20% otherwise. Even in the event of a member's death, the TDS rate would stay constant. Tax will be deducted at a rate of 30% for non-resident EPF members and international workers, according to the circular. Cess and fee will raise the TDS rate even further. It's worth noting that, while interest is credited on an annual basis in EPF accounts, members' accounts are maintained on a monthly basis. If no transfers or final settlements are made throughout a fiscal year, tax is deducted when the interest is credited. From fiscal year 2021-22, only the portion above the threshold limit, i.e. Rs 2.5 lakh, would be considered when calculating interest and TDS, according to the EPFO circular. The non-taxable contribution account would also feature data of the opening amount, contributions below the Rs 2.5 lakh level, interest earned, and withdrawals made within the same time period. Similarly, the taxable contribution account would keep track of contributions over Rs 2.5 lakh, as well as interest and withdrawals. The interest earned in the taxable contribution account will be taxed at the member's marginal tax rate.

Under the Income Tax Act of 1961, home loan borrowers can claim tax benefits on both the principal and interest components of their loans. Existing laws allow them to claim an income tax credit for interest repayment up to Rs 1,50,000 per year.

If you want a steady monthly income, the Post Office Monthly Income Scheme (POMIS) is a good option because it is risk-free and offers guaranteed returns. Investors in the post office's monthly income scheme can earn up to 6.6 percent annual interest each month. A POMIS account can be formed individually or jointly, and a guardian (acting on behalf of a minor) or a minor above the age of 10 can open one in their own name. It's worth noting that non-individuals aren't allowed to have a MIS account. What is the maximum amount you can put in your POMIS account? A minimum of Rs 1,000 and multiples of Rs 1,000 are required to start this account. A single account has a limit of Rs 4.5 lakh, while a joint account has a limit of Rs 9 lakh. Each joint account holder has an equal investing portion in a joint account. The total deposits/shares in all MIS accounts of a person must not exceed Rs 4.5 lakh. A separate limit will apply to an account opened on behalf of a minor as a guardian in the case of a minor account. How is interest paid? From the date of account opening until the account matures, interest will be paid at the end of each month. It's worth noting that if the account holder doesn't claim the monthly interest, the interest will stop accruing. So, if you want to earn interest, choose auto credit into a savings account at the same post office or ECS. Monthly interest earned on MIS accounts at CBS Post Offices can be credited to a CBS Post Office savings account. If the depositor commits an overdraft, the overdraft will be refunded, and only PO Savings Account interest will be paid from the moment the account is opened until it is closed. The scheme does not provide Sec 80C benefits and the interest is taxable, despite the absence of TDS. Account closure and penalty if done prematurely Within one year of the deposit's expiration date, withdrawals are not permitted. If the account is closed after one year but before three years from the date of opening, the principle will be deducted by 2%, and the balance will be paid. If the account is closed after three years but before five years from the date of opening, the principle will be deducted by one percent, and the remaining balance will be paid. The stages of maturation and death The account can be terminated after 5 years from the date of opening by submitting a specific application form along with the pass book to the relevant Post Office. The account may be terminated and the monies refunded to the nominee/legal heirs if the account holder dies before the maturity date. Interest will be paid up until the end of the previous month, after which a refund will be sent.

For long-term investment, the Public Provident Fund is a preferable choice. There is a tax exemption on the money invested, the interest received on it, and the amount received at the end of the maturity period in a PPF when the proper interest is available. As a result, it is extremely popular among investors. PPFs have a 15-year maturity period. Some individuals believe that money invested in it cannot be withdrawn in the middle. His assumption is completely incorrect. Under some situations, a PPF can be closed before the maturity term has ended. Please explain the circumstances under which money can be taken from it in advance and the procedure for doing so. Money can be withdrawn first in these cases. In the event that a PPF account holder's spouse or children become unwell, the money can be withdrawn. Aside from that, account holders can withdraw the entire balance of their PPF account for their children's education. An account holder can close his PPF account even if he becomes a Non-Resident Indian (NRI). After 5 years, money can be withdrawn Only after 5 years has passed since the account was opened can it be closed by the account holder. If the account is closed before the maturity date, 1% interest will be withdrawn from the date the account was opened until the date it was closed. If the account holder dies before the PPF account matures, the five-year condition does not apply to the account holder's nominee. Before the end of the five-year period, the nominee can withdraw funds. After the account holder's death, the account is closed. It cannot be continued by the nominee. The procedure for closing an account If you want to take money out of your PPF account before it matures, you must fill out a form and send it to the post office or bank where you have a PPF account. A photocopy of the passbook as well as the original passbook are necessary. If the PPF account is closed owing to the account holder's death, the interest continues to accrue until the end of the month in which the account is closed. Interest rate on a PPF The current PPF account interest rate is 7.1 percent per year. In a financial year, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be put in a PPF. In his or her own name, a person can only open one PPF account.

In 2015, the Ministry of Electronics and Information Technology (MeitY) and the Digital India Corporation (DIC) introduced DigiLocker, a digital platform for storing essential documents online. People keep copies of crucial documents such as Aadhaar, PAN, and other important documents in the locker. The papers stored in DigiLocker are processed as though they were printed. DigiLocker provides 1 GB of free cloud storage, which you may use to save scanned documents and access them whenever and wherever you need them. How can I join Digilocker? Step 1: Go to https://www.digilocker.gov.in/ and fill out the form. Step 2: Select Sign-up from the drop-down menu. Step 3: Fill up your contact information, such as your phone number, Aadhaar number, and other information. Step 4: Click the submit button. Step 5: You've finished setting up your account. Note that the Digilocker app has an Aadhaar OTP option for access. A four-digit PIN number is required every time you connect into the Digilocker app. Your Digilocker account will be created as a result of this. How do I attach my Aadhar card to my Digilocker account? Step-by-step instructions: Step 1 : Log in to your Digilocker account first. Step 2: On the dashboard, click the link icon to enter your Aadhaar number. Step 3: Select the check box and enter the Aadhaar number. Step 4: Select 'Link Now' from the drop-down menu. Step 5: Enter the OTP that was sent to your phone. Step 6: Select 'Verify' from the drop-down menu. Step 7: Your Aadhar card and Digilocker are now linked.

Investors can suspend, amend, or cancel the mandate at any moment using the application of their choice. IDFC Mutual Fund has introduced UPI AutoPay, an industry-first innovation that allows mutual fund investors to use their existing Unified Payments Interface (UPI) applications to create an autopay mandate for their systematic funding plans (SIPs). UPI AutoPay is a National Payments Corporation of India (NPCI) programme that may be used with existing apps such as Google Pay, PhonePe, Paytm, BHIM, and Amazon Pay. Investors can initiate SIP registration on the IDFC Mutual Fund portal by entering their digital payment address (VPA)/UPI address, followed by a one-time validation of their UPI utility's mandate. According to the fund house, UPI AutoPay offers a slew of benefits to its users. After 5 calendar days of registering the mandate, the SIP instalment may commence. In addition, on the day of the payment, an instruction to debit the investor's account might be sent, allowing for the quick realisation of funds in the scheme account with the NAV of the same day. Currently, an investor can use UPI AutoPay to invest up to 5000 rupees each transaction.