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The Life Savers Called Online FDs

June 10, 2018 4 Comments

wealthymatters The one good think about fixed deposits is the absolute predictability of returns, as long as they are not closed prematurely. Add to this that unlike a lot of other fixed income instruments, fixed deposits are available for all tenures upto 10 years, and you can now use fixed deposits to design your own financial products.

The only drawback is the extremely low deposit insurance in India.The Deposit Insurance and Credit Guarantee Corporation provides insurance to each customer of a Scheduled Bank for deposits up to Rs 1 lakh in case of bank failure. This limit is applicable across all the deposits, including savings, current, fixed and recurring. This limit remains Rs 1 lakh even if the sum of all deposits (including accrued interest) exceeds the same. Worse, non-scheduled banks ,companies and other institutions offering fixed deposits don’t provide this small comfort either. Of of what use is predictability of returns if basic security and return of capital is not guaranteed ? Read more of this post

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Axis Pay

January 12, 2017 Leave a comment

wealthymatters

Like PayPal and similar payment systems that you can operate without giving out or asking for other people’s bank or credit card details? A PayPal-like service with no fees? A PayPal-like service that allows instant money transfers and receipts ?

Now you have Axis Pay.Axis Pay is an easy to use app which you can link to any bank account, even those not with Axis Bank, to send or receive payments to anybody instantly and securely, with just your name. And all for free !!!!

Axis pay is powered by the UPI. UPI stands for Unified Payments Interface which is a platform provided by the NPCI ,i.e. National Payments Corporation of India, to facilitate inter-operability among various banks. It’s a one stop solution for multiple bank accounts ,in various banks, accessible via one app. It allows all account holders to send and receive money using their smartphones with a single identifier called virtual payments address(VPA) .VPA is a unique ID which a person must create and link to any of their bank accounts to make secure payments. This unique ID can be yourname@axisbank or mobilenumber@axisbank etc which is easy to remember. Each VPA is unique to a particular user. So there is no need to know the payee’s or payer’s IFSC code, bank account details, etc. and this makes the process less taxing on the a person’s memory. Read more of this post

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Bank Fixed Deposits

April 4, 2011 4 Comments

A bank FD is a savings instrument where you deposit an amount with the bank for a fixed duration.You earn a fixed rate of interest on this investment. The interest rate is fixed at the time of the investment – even if interest rates change during the tenure of the FD, the interest that you earn on your FD remains fixed. A FD is also called a Term Deposit at times, as it is an investment for a pre-defined term.

All banks have their own rules on minimum deposits.Most nationalized banks will start a FD with just Rs.1000.

The tenure of a FD can be anywhere from 15 days to 10 years.The rate of interest offered on a FD depends on various parameters: the prevailing interest rates, the duration of the FD, the amount of the FD, your age, etc.Usually, the longer the tenure of the FD, the higher is the interest rate.However,when the economy has a liquidity crunch,banks do offer higher rates on short-term deposits too.They also come out with Special Term Deposits of more unusual tenures such as 555 days, 1001 days etc.Most banks offer a different rate of interest on FDs of more than a certain amount, usually Rs. 15 Lakhs.Also, most banks offer an extra 0.5% per annum to Senior Citizens.Some banks also offer different rates for Trusts and Societies. Read more of this post