Yes, your age at the time of purchase affects the return that you earn in investment and insurance combo products such as traditional life insurance plans and ULIPs. Everything else being same, lower the age at the time of purchase, better will be your returns. It is best to understand this with the help of examples. Let’s first start with a traditional plan. How your age … [Read more...] about With Traditional Life Insurance plans and ULIPs, your Age affects the returns
SBI cut interest rate of saving bank account from 4% p.a. to 3.5% p.a. in July 2017. After SBI, a few other banks have followed suit and cuts savings bank interest rate to 3.5% p.a. What should you do? Relax. There is nothing you can do. Learn to live with it. Frankly, resisting this change may not be worth your time. In the informal discussions, I was part of, people … [Read more...] about Savings Account interest cut to 3.5% p.a. What should you do?
If you read personal finance section of business newspapers or personal finance magazines, you will realize the mis-selling is rampant in Indian financial services sector. Product suitability is conveniently sacrificed to earn high commissions. Poorly structured upfront incentive structure is one of the foremost reasons behind mis-selling. Sales target or income pressure is … [Read more...] about How Written or E-mail communication with Banks and Financial Institutions can help?
In this post, let’s discuss the new developments in National Pension Scheme (NPS). Introduction of Karvy as CRA A CRA does not back-office work and performs administrative and customer service operations. In addition, it interfaces with different entities in NPS system. Earlier, NSDL was the only Central Record-Keeping Agency (CRA). In January 2017, PFRDA allowed Karvy as … [Read more...] about NPS Updates: A new CRA and Shift to eNPS is now allowed
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in May, 2017 to provide a long term income option for senior citizens in the country. This assumes importance in the wake of low interest rate scenario we find ourselves in. Fixed deposits are getting renewed at lower rates. This poses problems to those senior citizens who rely on interest income to meet regular … [Read more...] about All you need to know about Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Did you know that your credit report alone can compel a lender to turn down your loan application? Banks are becoming increasingly reliant on credit scores as part of their loan sanction process. And why not? A good credit score is an indicator of credit worthiness of the borrower. It does not end there. Banks have started to even link loan interest rate to your credit score. … [Read more...] about Checking Credit Reports: What to Look For? How to Fix Anomalies?
Last week, the interest rate for PPF, Sukanya Samriddhi Scheme, Senior Citizen Savings Scheme, NSC and other small savings schemes were cut by 0.1% p.a. Let’s look at what the rates are. Latest Interest Rates for PPF and other Small Savings Schemes I am copying a snapshot from Ministry of Finance notification dated June 30, 2017. Here are the latest interest … [Read more...] about Interest rate for PPF and other Small Savings Schemes cut by 0.1%. What should you do?
There is no standard nomenclature. The nomenclature may differ across banks. I call these step-up home loans because EMI increases after a few years. Let' dig deeper. What are Step-up home loan products? Under such loans, there are two types of repayment periods. Moratorium period (let’s call it that): It can be 3-5 years depending upon the loan product. During this … [Read more...] about What are Step-Up Home Loan Products?
LIC Jeevan Umang is a non-linked participating whole life traditional life insurance plan. The meaning of whole life is almost literal. The plan matures when you turn 100. Let’s look at at some salient features of the plan and how LIC Jeevan Umang makes for an insurance and investment product. Salient Features of LIC Jeevan Umang Policy Maturity: At the age of 100 years (I … [Read more...] about Review: LIC Jeevan Umang
Met a cousin at a wedding in the family a couple of months back. He is a bright young boy, still in his teens. He had vague idea about what I did for a living. As it usually happens at family weddings, most of us have to bide time till the evening when the real festivities begin. There is never enough space to stretch your legs and sleep. With nothing to do, he began asking a … [Read more...] about How much do I need to Invest per month to accumulate Rs 1 crore?