Saving Bank Account
Opening a saving bank account is very easy. These days, there is no such thing as minimum balance as the Reserve Bank of India has advised all banks to open saving accounts with “NIL” balance. This is called a Basic Savings Bank Deposit Account. One just needs to fill up the account opening form with a latest photograph and submitting documents to comply the “know your customer” (KYC) norms, i.e., proof of our identity and residence. The account can also be opened on the basis of the Aadhar Card. Persons not having above documents may open the account under relaxed KYC procedure based on the MGNREGA job card or self certification. Some of the other features are that banks will not charge fees for deposit of money any number
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Recurring Deposits do not carry risk like mutual funds and equity and thus they are the ideal solutions for short-term goals in life in which investors looks for guaranteed returns.
Using Recurring Deposits for Short term goals in life
Let us say a person wants to buy a new LCD TV in the next 6 months. Let us say the person cannot pay for such a TV in one lump sum. A recurring deposit account can prove very useful in such a situation.
One can open a recurring and contribute some money every month to the account. At the end of the tenure, the account holder gets the deposit along with the additional interest.
Other features of Recurring Deposit:
1. There is no TDS on recurring deposits, but the interest income is fully taxable.
2. A recurring deposits can be liquidated any time before maturity with some penal interest.
3. Some Banks offer flexible recurring deposits also, where the amount of deposit can be increased.
4. There is Nomination Facility, so benefits will be passed on to the nominee in case of death.
5. Loans can be taken against recurring deposits up to 80-90% of RD worth
6. The only disadvantage of a recurring deposit is that the money can be drawn at any time. They are not as liquid as a savings bank
Goodrich pays a fixed interest of 11.2% + 1% = 12.2% a savings of 20
Overdraft Loans (also called "bounce protection" plans): In exchange for covering account overdrafts, banks charge returned check fees per transaction. Some banks also charge a per day fee until the cons...
The next advantage is the bank will get a fixed amount of repayment and charges from penalty fees, late fees or over-the-limit fees. With banks and same institutions, a major source of non-interest income is the fees according with the management of customer accounts. For instance, a financial record may be organized to permit a little charge to be charged from the client's record on a month to month premise. It is also called an administration charges, is use to return for such assignments as presenting charges and credits on the record and supplying the client with a month to month articulation of record.
Due From Banks – Int Bearing – These funds are primarily FHLB deposits. The budget reflects a decrease in the balance by $100M per month during the entire year. The decrease is due to servicing interest on the advances netted against security interest payments.
Now assume that you will earn 10% from now through the end of your retirement. You want to make 20 end-of-year deposits into your retirement account that will fund the 30-year stream of $20,000 annual annuity payments. How large do your annual deposits have to
Even though the bank has the customers cash (deposits) on hand it is treated as a liability as the money is owned by the customer and could be withdrawn by the customer at any time. While there are investment opportunities for banks whilst holding customers money (deposits), the bank does have limitations on its investment options and how long these investments options can be made. All of these factors make bank operations and their balance sheets different to a traditional commercial (non-financial) company’s balance
One might know that time is one of the most valuable assets in our lives. In the financial world the value of money is linked to time, primarily because investors expect progressive returns on their cash over periods of time, and they always compare the return from certain investments with the going or average returns in the market. Inflation on other hand erodes the purchasing power of money causing future value of one dollar to be less than the present value of a dollar. This paper will examine time value of money and the applications that determine successes or failures. An examination of the different vehicles that can be used to generate financial security for corporations and individuals will be provided. After defining the applications that generalize time value of money, an explanation will be offered regarding the components of interest rates by expanding on the concept that interest rate equates the future value of money with present value.
they use before the inflation. Financial planning also becomes difficult as the value of money
From the customer’s perspective, round the clock accessibility of Online banking throughout the year, without physically visiting a bank’s branch, facilitates a convenient and effective approach to manage personal finances, no matter where the location is (Rotchanakitumunai & Speece,
In the account opening department I work for two weeks as account opening is the main and important work of bank are based upon the work of accounts and the bank account shows the deposit and then bank provide their best services to their customers. If someone need money or he want to deposit an amount in the bank then firstly he need to open an account in bank. Also during my internship period I work to open many individual accounts. For account opening purpose I learn that there are some documents that are needed for opening an account. These documents are mentioned below:
At present , the total Internet users in the country are estimated 9 lakh. However, it is expected to grow exponentially to 90 lakh in 2003. Only about 1 % of Internet users made online banking in 1998. This increased to 16.7% in March 2000 . The growth potential is , therefore , immense. Other incentives offered by banks discourage customers from visiting physical branches , and therefore are 'hooked ' to the comfort of the armchair banking. The ease of access to their accounts from anywhere in the world using a personal computer with Internet access, is particularly fascinating for High Networth Indians and non-resident individuals who have several bank accounts.
period of time and, in return, may receive a "bond". The bond issuer agrees to a fixed rate of
In order to understand how to deal with money the important idea to know is the time value of money. Time Value of Money (TVM) is the simple concept that a dollar that someone has now is worth more than the dollar that person will receive in the future, this is because the money that the person holds today is worth more because it can be invested and earn interest (Web Finance, Inc., 2007). The following paper will explain how annuities affect TVM problems and investment outcomes. The issues that impact TCM will also be discussed: Interest rates and compounding (with two problems), present value, future value, opportunity cost, annuities and the rule of '72.
Saving money will help someone in the future b providing the feeling of security. Usually someone will save money for a certain goal in life. Therefore the first step is test goal for the certain amount on money you need to save. Setting goals can be short-term goals can be usefully can analysis the amount you have to pay at the moment. Saving money doesn’t mean refraining from buying what you love. Are you wanted to buy new clothes or even a house doesn’t hesitate to make that purchase. However take in to account the down payment and compare costs. Being able to plans and set goals on certain can help save a small amount thus accumulating over time. Long –term saving can be a little harder and takes dedication and time. Saving an up a certain a...