Saturday, December 13, 2014

Does Interest on NRE Fixed Deposit is Taxable?

In short, No, interest earned on NRE fixed deposit is tax-free in India. If you are an India working abroad and earning in foreign currency, you have a couple of more investment options available than to a resident customer. If you keep your money or some part of your money in India, NRE fixed deposit is the best option for you.

Friday, November 21, 2014

Difference between Public and Employee Provident Fund - PPF vs EPF

People often mistook Public Provident Fund or PPF for Employee Provident Fund or EPF, though both are provident fund and backed by the government of India, they are independent of each other. The main difference between PPF and EPF is that former is totally controlled by you and only you can make a contribution on that account, on the other hand, EPF is for both you and employer to contribute money.

Friday, November 14, 2014

Can You Invest more than one lakh in PPF Account?

TL;DR: You can now invest more than 1 lakh rupees on your PPF account, thanks to increased limit in 2014 budget. Earlier this limit was only 1 lakh but now it is raised to 1.5 lakh and so without doing any extra trick, as shown in this article, you can now invest more than one lakh in your personal public provident fund account.

Saturday, September 6, 2014

Best Bank to Open NRI Savings Account India - HDFC vs Kotak vs YES Bank

Recently I was doing some research to open an NRI Savings account in India, and given their is  so many banks, both public and private sector are providing NRI services, I thought to do some quick checks on the best NRI savings account I can get this moment. One of my friends suggested me to open your NRI Savings account in HDFC bank, other suggested that he has an account in Kotak Mahindra and very happy with their services especially rather offered on their remittance service click2Remit.

Saturday, August 30, 2014

Why Should You Invest Some Money on Equities, Stock or MutualFund

Many people ask me whether they should invest money in stocks or mutual fund or not? I say, you should invest at least some part of your money into equities because it is the only investment which can beat inflation in the long term. It's not that investing in equities will guarantee superb returns because there are periods and even extending up to 5, 10, 15, 20 and even 25 years where equities have delivered negative, no returns or very poor returns. For examples in Japan, Equities has not really been the best performing asset class in last twenty years. Nikki, index of Tokyo stock exchange was around 39K on December 1989 and where it is now, around 15K, after touching lows like 7K and 8K during 2001 and 2009. What this mean, if you have invested in Index you would have one-third of your money by now, forget about getting any interest.

Wednesday, July 9, 2014

Difference between Public Provident Fund (PPF) and Fixed Deposit (FD) for Long term

In this article, we will understand the difference between two of the best investment option of conservative investors, PPF or Public Provident Fund and Fixed Deposit, known as FD. Both PPF and FD provides the capital guarantee and considered the safest investment. PPF is even backed by the government while FD is backed by banks and RBI, but which one is better for long term investment. Where should one put his hard earned money for long-term growth with a guarantee, we will find it for this post?  

Friday, May 23, 2014

Does it Right time to Invest in Indian Stock Market?

I was thinking is it right time to invest in Indian Stock Market? As no one can predict equity or time the market, for long term investor, every time is the right time. Looking at what happening at the moment in India, as it just got a stable government with everyone from common people to the corporate world is hoping no non-sense governance, things really look very attractive. Indian stock market is in a roll from March, stocks like SBI has gained almost 100% or doubled within three months.

Saturday, March 1, 2014

Pros and Cons of Public Provident Fund (PPF) Account for Tax Saving

If you are an Indian, I am sure you must have heard about Public Provident Fund or PPF, one of the most popular long-term saving scheme backed by the government of India. If not about PPF, then definitely about EPF, Employee Provident Fund, it's big brother. Since EPF is sort of mandatory and your employer deduct some portion of your salary apart from his contribution, it's not something you worry about. By the way, if you want to check your EPF account balance, you can see it here. PPF investment is a similar product for any citizen of India through NRI can not open PPF account in India, it's only for residents of India. PPF allows you to save some money, reduce your taxable income and grow your investment with safety guarantee from the government on India. It also gives you a decent interest rate of 8.7% per annum, compounded annually.

Wednesday, February 12, 2014

Yes, Transfer Money form NRO to NRE Saving Account, FCNR is Allowed

Not many NRIs (Non-resident Indians) knows that, from May 2012, NRI can transfer fund from NRO account to NRE account in India. Earlier this was not the case though you can transfer funds from NRE to NRO account, the reverse was not allowed. The only way to fund your NRE saving account was through your offshore income earned in foreign currency.

Saturday, February 8, 2014

Can I break FCNR Fixed Deposit before Maturity?

It depends on the bank to bank, most of the bank doesn't allow you to break your FCNR fixed deposit if it's done for more than 3 years, but you can do premature withdrawal if its done for less than 3 years. Most of the bank including ICICI, HDFC and Kotak Mahindra doesn't pay any interest if you break your FCNR term deposit within a year. If you break your FCNR FD after year, you will likely get less interest rate than promised, mostly what is equivalent to the period money remained in the Bank. So, make sure you check with your relationship manager about premature withdrawal penalty before opening an FCNR fixed deposit.

Saturday, January 18, 2014

Difference between NEFT and RTGS or IMPS Interbank Fund transfer

NEFT and RTGS are two main ways of electronically transferring money between two banks in India using net banking accounts. Suppose you have a resident, NRI or NRO account from ICICI bank and want to transfer money to your family member or third party, which has account in HDFC bank, then you can either use NEFT (National Electronic Funds Transfer) or RTGS (Real Time Gross Settlement) depending upon, how much money you want to transfer. A third way, rather new way of money transfer between banks is IMPS (Interbank Mobile Payment Service or Immediate Payment Service) was introduce in 2010 by the National Payments Corporation of India to empower customers to transfer money instantly.

Friday, January 10, 2014

10 Tips to Save Money and Reduce Expenditure to Boost Savings in Long Term

Someone has wisely said that "one penny saved is one penny earned" while I also believe that one should not compromise on things that they love e.g. spending on family, holidays or smartphones, you can still save a lot of money by following these saving tips. People often say that inflation will eat your money, but there is a bigger threat to your money than inflation, it's unnecessary expenditure. Inflation will take years to erode your money value, but spending can take your money in seconds. Humans are very fickle by nature and given today aggressive advertising campaign then often end up buying stuff, they don't really need. Our focus is to minimize that expenditure to boost your savings.