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Why Investing in an FD is a Great Option?



Fixed Deposits (FD) are one among the best investment options in India when compared to other types of financial investment schemes. Through investments in equity and mutual funds may seem highly lucrative, let’s not forget that it comes with a high element of risk. This is not the case when it comes to FDs because they are also highly rewarding and come with almost nil risk.
Of course, the FD rates offered by most banks are not very attractive but let’s not forget that there are many Non-Banking Financial Companies (NBFCs) that offer a very high rate of interest.

Apart from this, there are many banks that offer tax saver FDs. This is an ideal way to park funds, save tax and earn an interest on the same. This is a wise option because an investor can claim up to Rs.1.5 lakh as a tax deduction under Section 80C of the Income Tax Act. All banks offer tax saver FDs and they usually offer a good rate of return and come with a 5-year tenure period. Some of the banks offering these term deposit schemes include ICICI, HDFC, State Bank of India (SBI), etc. At present, the SBI FD interest rates on tax saver FDs is 6.25%. SBI FD rates for senior citizens are much higher at 6.75%. On the other hand, ICICI offers 6.5% for all individuals and 7% for all senior citizens. HDFC offers a rate of return at 6%.

Features of Tax Saver FDs

  • Tax savers FDs offer the investor multiple benefits. The deposit holder can gain the advantage of tax benefit, while also saving money and earn a certain fixed percentage of interest on it
  • It is very safe, reliable and risk-free investment option
  • Tax exemption of up to Rs.1.5 lakh can be claimed under Section 80C of the Income Tax Act
  • All individuals and Hindu Undivided Families can invest in this scheme and gain a tax benefit
  • These types of term deposits come with a lock-in period of 5 years
  • One cannot avail loans or make premature withdrawals on such FDs
  • There is no compulsion on the amount that needs to be invested
  • Senior citizens are eligible for a higher rate of interest
  • Nomination facility can be availed
  • TDS will be applicable on the interest earned

Best Interest Rates for FDs

There are many new and small banks that are paying a much higher rate of interest when compared to traditional banks. For example, Suryoday Small Finance Bank is paying interest at the rate of 9%. ESAF bank offers 9%, while Mahaveer Bank offers 8%.
Bandhan Bank is offering an interest rate in the range of 8.25% to 8.75% per annum on FDs held for a period of 1 to 2 years. While Utkarsh Small Finance Bank offers interest at the rate of 8.25 to 8.75%.

There are many NBFCs that are offering a much higher rate of interest and for senior citizens, the interest rate is only much higher. Also, NBFCs usually do receive a credit rating and they are also not dependent on market developments and hence it is a rather safe and profitable type of investment., provided the ratings are good. There are many reasons to go for company FDs. Here are a few:

  • The interest rate offered is very high
  • Most NBFCs offer an additional rate of interest for those who renew their FDs
  • Provides a very high rate of return on investment
  • Can be withdrawn prematurely and can be closed at any point of time
  • These are safe investment options because they do not depend on market fluctuations
  • Offer flexible tenure ranges and interest pay-out options

Advantages of Investing in FDs

  • Higher rate of return: The interest rates on FDs are higher than those offered for savings accounts and hence instead of keeping money in a savings account, it is wise to move it to an FD. Apart from this, there are many NBFCs that offer a very high rate of interest which is greater than what banks offer.
  • Almost nil risk: When it comes to FDs, there is almost a nil amount of risk that is involved, unlike other types of investment where there is scope for losses. Then investment is safe and also interest rates do not depend on market fluctuations like in the case of stocks and shares.
  • Guaranteed returns: Customers can be assured that they can earn guaranteed returns on an FD. A said rate of interest income will be earned on the deposit in any case. Even if an FD is withdrawn prematurely, interest will be paid up to the date until which the deposit was held in the bank.
  • Flexible investment option: When compared to all other types of investments, FDs offer an investor the advantage of flexibility. A prospective investor can choose the tenure of his/her investment, the amount he/she wants to invest and also the type of interest pay-out option.
  • Highly liquid: One of the main advantages of an FD is that it is a highly liquid. Investing in an FD is almost equivalent to having liquid cash in hand because one can withdraw money from the FD account at any point of time. Apart from this, one can also avail loans of up to 90% on the deposit amount and also make use of the overdraft facility.
  • Encourages a saving habit: One of the main advantages of this type of investment is that it helps the investor cultivate the habit of saving for the rainy days of life.
  • Tax benefits: Tax benefit can be claimed for the investment made in tax saver deposits. The tax exemption can be claimed under Section 80C of the income tax act.
  • Helps build investment portfolio: Making investments in FDs helps the customer build a good portfolio. It is one of the best options for portfolio enhancement.
  • FDs are insured: The Deposit Insurance and Credit Guarantee Scheme of India offers all FD holders an insurance of up to Rs.1 lakh on both the principal and the interest amount. This will be provided to the customer in case the bank’s license has been cancelled. This is monitored by the Reserve Bank of India (RBI).

There are numerous benefits of investing in an FD. However, it is always wise to do your research and take into consideration all factors such as interest rate, tenure, the rate of return, interest pay-out options and credibility of the institution where you are putting your money. Be wary and make sure you take into consideration all your expectations before making a plunge. If your expectation is to earn maximum returns from an FD, then it is wise to go for the highest interest rate offered in the market. However, this does not mean that you blindly go for the interest rate, it is also important to check the reliability of the investment.



Why Is Accounting Important for Business?




Accounting is a study that allows you to have greater and better control over the operations of your business and helps to avoid tax events before tax inspections. It helps to maintain a good functioning in its accounts and financial trajectory to maintain any business.

It controlled a multitude of factors that guarantee its stability and continuity. It is one of the most important and necessary factors in any business model.

But before continuing to demonstrate the reasons that why accounting is necessary for any type of business, we must make clear what its meaning is:
From the moment in which the company is born, its board of directors or the individual owner, establish parameters that allow them to know what is the economic situation of the company at all times, its possibilities, benefits or expenses. 

This is done through studies and techniques provided by the science of accounting so we could say that without it we would not know practically any economic data related to our own business. For more business accountings follow

Business Accounting

In a business, there are different types of accounting, but for you, to have a clearer idea about the business accounting, we have gathered the main definitions of two different types of business accounting

•    Financial Accounting

This has the function of providing all the information necessary to manage the economic life of the business and know the current status of their accounts. Generally, this function is of an external nature, that is, it offers the necessary reports to bring all the financial steps of the company in a historical manner.

•    Administrative Accounting

Its main function is to accumulate and interpret all costs generated by production, purchase or distribution in the internal use of the company. Its application is practically universal, that is, it is used in all the businesses that currently occur to us.

Importance of Accounting

The accounting is an important source of information for the company, and within the infinity of its importance that this application contributes in the business world, for knowing how much accounting is important for a business we have selected some of the most important points which will clearly help you to understand accounting importance:

  • Thanks to accounts that we can know at any time how many exact amounts we owe in business and which ones are owed to us.
  • Allow differentiating the expenses created by the owners over those generated by the business itself.
  • Its study and application alert us of the general expenses and the investments we made for business development.
  • It helps us to know what is the production cost of a particular service or product allow us to find out the price for which it should be sold.
  • At any time we can know the money we are earning, or losing.
  • Thanks to the balance sheet and the income statement, that we can easily find out what our current financial situation is and how much progress we want to make for business development.
In short, accounting records are important for businesses because they track the flow of capital, without which it would be impossible to carry out productive activities. So important is your production and sales area, such as the accounting department that monitors the inflows and outflows of money and compliance with the company’s labor and tax obligations. 

Without all the ordered records of accounts receivable and payable, you would never know whether your business is making profits or it is really profitable. Do not neglect the numbers in your company and give them continuous follow-up. In accounting, you have the best tool to diagnose the health of your organization and make the decisions that lead your business success. 

Remember that your accountant does more than add and subtract. Analyze your economic data and be the first to alert you when your income is not rising at a healthy pace or not enough to cover your costs. Pay attention to their reports and attend to their observations can be the difference between staying in business or to declare bankruptcy.

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Why You Should Opt For SBI Flexipay Home Loan?




Without a doubt, State Bank of India (SBI) is the most popular and preferred public sector banks in India. The bank has thousands of satisfied & happy customers and offers numerous credit schemes for all lifestyle needs. SBI has over 16,000 branches across India and the bank has spread its wings into more than 30 nations.

Home Loans are one of the leading financial products of the bank which comprise of investment banking, finance & insurance, corporate banking and much more. Since its inception SBI FlexiPay Home Loan, with its flexible features, has gained instant recognition amongst the loan borrowers. Let us get to know more about FlexiPay Home Loan.

About SBI FlexiPay Home Loan

 SBI FlexiPay Home Loan is really beneficial for all those young earners out there. As per this home loan, you get to enjoy eligibility for higher loan amount, especially if you are a salaried individual. You have the provision of paying only the interest during the moratorium period (pre-EMI) period and afterwards pay moderated EMIs. 

Salient Features

    As per State Bank of India, your home loan eligibility will be up to 1.3 times higher than other home loan schemes.
      The loan offers longer repayment term of 25-30 years.
      As a loan borrower, the moratorium period is up to 36-60 months. During the moratorium period, you don’t have to make the principal repayment and only have to pay the interest. During this period, you only have to pay Pre-EMI.
      Both Loan-to-Value (LTV) and interest rates are same as the home loan schemes.
      You have the provision of opting for lower EMI in the initial 3-5 years.
      You can get 20% more loan than the maximum amount in a normal course.


      If you are a working professional, you can avail SBI FlexiPay Home Loan.
      You should age between 21-45 years.
      If you are a salaried individual with at least 2 years of experience.

Documents Required

If you want to avail SBI FlexiPay Home Loan, you will have to submit following documents –
      Duly filled application form along with 3 passport size photographs.
      Proof of Identity (Any One) – Driving License/Voter ID Card, PAN.
      Proof of Residence (Any One) – Recent copy of Telephone, Electricity, Water Bill/Driving License/Aadhaar Card/Passport.
Property Papers
      Permission for construction (where applicable).
      Occupancy Certificate (if it is a ready to move property).
Plan Copy and registered development agreement of the builder, conveyance deed (in case of new property).
  Payment Receipts or bank account statement showing all the payments made to the seller/builder.
Account Statement
      Bank account statement (individual) of last 6 months.
      If you have taken any previous loan from a bank/lender, then loan account statement for last one year.
Income Proof for salaried/co-applicant/guarantor
      Income tax returns for last 3 years.
      TDS Certificate (Form 16A, if applicable).
      Balance Sheet & Profit & Loss account for last 3 years.
      Certificate of qualification (in case of doctor, chartered account and other professional).
      Business License Details (or equivalent).

Interest Rates & Fees

Interest rates for SBI FlexiPay Home Loan are as follows –
Above Rs. 20 Lakhs & Up to Rs. 75 Lakhs
Above Rs. 75 Lakhs
8.60% p.a.
8.65% p.a.
8.65% p.a.
8.70% p.a.


Processing Fees
      0.35% of the loan amount.
      Minimum amount will be Rs. 2,000
      Maximum amount will be Rs. 10,000
      Valuer’s fee for valuation report.
      Advocate’s fee for conducting property search and title investigation report.  
      You need to pay stamp duty for the loan agreement and mortgage.
      Property insurance premium.
      CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) registration fee of Rs. 50 + Service Tax for up to Rs. 5 Lakh limit and there is Rs. 100 Service Tax for limits over Rs. 5 Lakh.

Is SBI FlexiPay Home Loan For You

There is no doubt that FlexiPay Home Loan is one of the innovative loan products in the arsenal of State Bank of India. It definitely caters to the requirements of a certain section of borrowers. 
This home loan will be suitable for you –
      If you are looking to own a bigger house, but the EMI of the home loan is more than your monthly savings.
      If you are looking to have a greater home loan, but the current savings are not apt for the margin money.
      If you have a stable job such as government job.

      If you are in a need of a house but you can’t afford the EMI. 

Author Bio – Ankita Dixit
She has written about home loans, personal loan, credit cards, credit repair and other financial topics.

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5 Often Overlooked Credit Card Insurance Benefits




Unlike credit card rewards, cashback or miles, many of the best perks of a credit card are rarely mentioned by credit card issuers. Instead, they are often buried under the fine print or overlooked. You might not know but your credit card might help in making life’s little emergencies a lot easier to handle. If the next time, you lose your luggage at the airport, drop your phone in swimming pool or discover an unauthorised transaction on your card, just know that your card could help you in ways you did not expect, provided you go by the rules. It’s always worth your time to go through the welcome kit of your new credit card or terms and conditions of your desired card to know the significant perks offered by that card.  Most of your credit cards offer insurance covers such as zero lost card liability, lost luggage insurance, purchase protection, rental car damage insurance, trip cancellation insurance, travel insurance cover and much more.

The type of insurance benefits you get depends on your specific credit card, but here’s an overview of the standard insurance covers offered by various credit card issuers that may be available on your card.

Read Also: Tips To Resolve Your Credit Report Disputes

1. Travel Accident Insurance: 

You can consider it as a miniature of a life insurance policy, which you get for free when you book your tickets with your credit card. If you meet with any accident, your credit card provides disability and death benefits to you and your survivors, whichever the case may be. But, don’t confuse accidental insurance with medical cover. For example, if you were to break your ankle during a skiing accident, your credit card issuer won’t be providing you with medical coverage.

So, before going on a trip, check what kind of coverage is provided by your credit card issuer. However, consider this only as a back-up as having a travel insurance policy is a must!

2. Zero Lost Card Liability feature:

Most credit cards offer Zero Lost Card Liability policy for fraudulent credit card charges. If your card gets stolen or lost, then by claiming lost card liability, you will not be held liable to pay for any transaction made on the card on a condition that you report the incident within 24 hours. If you notice unauthorized transactions on your account, then you can simply inform your card issuer and file a claim. In most cases, the bank issues a new credit card and conducts an investigation.

3. Rental car insurance 

Many credit card companies offer rental car insurance as well so that you need not pay extra for damages, if any, out of your pocket. Most credit cards offer cover for your collision repair provided you don’t exercise the rental car company’s insurance. For example, if you get a dent in your rental car and submit the claim along with all the paperwork, then your credit card company might reimburse you in full for your damage. Usually, most cards offer secondary coverage which only pays for what your car insurance company does not cover. The extent of rental car insurance coverage offered by various credit cards differs from card to card. Some cards offer secondary coverage while some offer full damage coverage. The fine print on your credit card might be tricky,  therefore, it’s important to contact your card issuer and verify the coverage policy in advance. Credit card companies have their own set of restrictions and they often refuse to pay some types of charges which are levied by the car rental companies.

4. Lost Luggage Insurance 

If your checked-in luggage goes missing for good, credit card issuers will reimburse you for the items in your suitcase, on the condition that you book your tickets from their issued credit card. Usually, credit card companies offering this benefit maintain a bizarre list of items which they won’t insure including, traveller checks, glasses, and cameras. Hence, it is crucial to read the fine print carefully. You can simply call on the number given at the back of your card and depending upon your situation, your credit card company would put you in touch with an emergency travel assistance representative.

5. Purchase Protection 

Suppose you are making a big-ticket purchase, say a mobile, then it is helpful to choose a card which could cover for the unexpected mishaps (such as dropping it in a pool) to your newly purchased goods.

Credit card companies offer purchase protection in the following ways:

  • Price protection: If your credit card company offers you price protection then they’ll refund you the difference of the amount at which the product was bought initially and the reduced amount of the same product within a certain period of time. 
  • Purchase protection: If you have bought an item with your credit card and it gets stolen/lost/damaged then your credit card company will cover that item. This insurance is valid for a limited time period from the date of purchase. 
  • Extended warranties: With this feature, you can add up to a year of warranty to a product, in addition to the warranty provided by the product manufacturer. 

So next time, when you choose a credit card then look beyond the rewards and joining gifts. This might take some extra research and time, but it can be worth it if you find an ideal credit card with features that will make your life easier.

Read Also: Top 6 Credit Cards for Fuel Purchases

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