Sukanya Samriddhi Scheme or Sukanya Samriddhi Yojana (SSY) was notified in December 2014. The scheme is part of the Beti Bachao, Beti Padhao Scheme The scheme offers attractive guaranteed interest rates. The Government sweetened the deal by making Sukanya Samriddhi Account part of Exempt-Exempt-Exempt (EEE) tax regime. The motive of the scheme is to encourage the savings in … [Read more...] about Sukanya Samriddhi Yojana Account Rules: Comprehensive Information Guide
Case 1: You invest Rs 1,000 per month for 15 years and earn a return of 12% p.a. Case 2: You invest Rs 2,000 per month for 15 years and earn a return of 10% p.a. In which case, will you end up with a larger corpus? Let’s find out. Do note the rate of return is higher in the first case while the amount invested is higher in the second case. In case 1, you will end up with … [Read more...] about When it comes to compounding, Amount invested matters too
When we invest in a bank fixed deposit or a corporate fixed deposit, the aspect that we focus most on is the interest rate. What about the frequency of compounding? For instance, what do you think of the following three options? 8% p.a. compounded annually 8% p.a. compounded semi-annually (or quarterly) 8% p.a. compounded quarterly Are these three options the … [Read more...] about How the Frequency of Compounding affects returns?
Your Aadhaar card is gaining greater and greater prominence in your everyday life. You need Aadhaar card to open bank accounts and make mutual fund investments. You need Aadhaar card to file your income tax returns. You need Aadhaar card to take benefit of various Government Schemes (say LPG subsidy). Therefore, it is critical to keep the information in your Aadhaar card … [Read more...] about How to Update Information in your Aadhaar Card?
In this post, I will discuss an aspect of NPS about which I have received quite a few queries. What to do if you have two NPS accounts? Based on the number of queries that I receive on the issue, having two NPS accounts is not very uncommon. They got one through their employer. Subsequently, when they read about exclusive tax benefit of Rs 50,000 for investment in NPS Tier-I … [Read more...] about What to do if you have two NPS accounts? How to close the second NPS account?
In an earlier post, I had discussed how you can open NPS account online using your Aadhaar card. In this post, we will look at how you can contribute your NPS account online. If you have opened your NPS account through a bank or any other Point of Presence (PoP), you can simply make a contribution online from the net-banking portal. Alternatively, if you have opened through a … [Read more...] about How to invest in NPS account online?
Are you struggling to get a loan because of a poor credit score? Well, you are not alone. A large number of people have to go through a tough time trying to get a loan without a good credit score. Many people give up when they find out that their score is below-average. However, truth is that you can always improve your score, no matter how bad it is. If you want to improve … [Read more...] about How to improve your Credit Score?
There are two broad categories of mutual funds viz. Open ended mutual funds and Closed Ended Mutual Funds. What are Open-ended and Closed Ended Mutual Funds? In case of an open-ended mutual fund, you can enter and exit fund scheme whenever you want i.e. you can buy units from the fund house and sell the units back to the fund house whenever you want. All the popular mutual … [Read more...] about Avoid Fixed Maturity Plans (FMPs) in your Mutual Fund Portfolio
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?