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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.



5 Reasons to Create a Retirement Investment Plan



When you enter the retirement phase of your life, the first thing that you will realise is that you do not have a regular income from your job anymore. At this stage, you will have to meet all your lifestyle and emergency expenses. Using the funds you have saved all through your employment years.

Though you may be getting income from other sources like rent on a property you own. Planning your finances is important to ensure that your golden years as are comfortable as possible. So, while you are working, dedicate sufficient funds from your monthly income. This will help you to create a substantial corpus that will help you finance your retirement.

Look at important reasons why having a retirement investment plan is important.

It Helps You Put Your Savings to Good Use and Save on Taxes

Having a detailed investment plan for your retirement means that you will get more organised about preserving and increasing your wealth. This will help you curb current expenses and be more aware of the need to save for the future. The key to a good retirement plan is to choose from high-earning investment schemes and safe options too.

For example, if you already have a nest of savings. You can make the best use of them by investing in a mix of options such as fixed deposits, equity, and mutual funds. Divide your savings and invest in these devices based on your risk appetite. Be sure to lock-in your investments for at least 3 years for increased earnings. Continue reinvesting until you need to access the funds after retirement. In the meantime, you can get tax deduction benefits on these high-interest yielding savings plans.

It Helps You Fund Your Lifestyle Post Retirement

Your responsibilities and financial liabilities are not going to alter drastically post retirement. Thus, including them in your retirement plan and investing to fulfil these needs post retirement. This will help you build a substantial corpus through your regular income. These needs may be finances for daily living, funds to pay monthly rent or your home loan EMIs, money for travel or to pursue your passions, or funds to educate your grandchildren or take care of regular medical needs.

One of the schemes you can choose is to invest in a cumulative FD for years until your retirement. You can use the maturity funds post retirement to reinvest in a non-cumulative FD. This will allow you to access the high interest payout on your invested sum regularly. You can use this fund for your daily needs. Choose Bajaj Finance Fixed Deposits as an option to allow your invested sum to gain high interest of up to 8.20% through the entire tenor.

It Helps You Create a Reserve For Emergency Expenses

Creating an investment plan allows you to choose the right options that will come handy when you face emergencies post retirement. Whether it is a sudden hospitalisation for you or your spouse, a wedding in the family.  You can then use these funds to meet any such urgent requirements.

One way that you can plan to meet such needs is by parking some cash in your savings account to build an emergency corpus. Alternatively, you can plan on starting a senior citizen FD using your gratuity money. FDs are one of the safest and most secured investment options for you as a retired person.


It Helps You Beat Inflation

Rather than keeping your savings in a savings or current account, creating an investment plan for retirement. A vest Plan helps you invest in options that will offer earnings to beat inflation. The best by choosing instruments that offer high gains to maximise earnings in the long term. This way you can be sure that the money you invest grows over time beating the reducing value of money over time. Mutual funds, stocks, commodities, and currencies are good investment options for you as a retired person.


It Helps You Lead a Financially Independent Life

While planning your retirement, it is important to consider the fact that you need to be financially independent during your retirement years even in the absence of a regular salary. Remember that during this time, borrowing a high-interest loan to secure urgent cash would only be a burden. So, adjust your investment portfolio in such a way that it allows you to stay financially secure so you do not have to rely on your children once you retire.

A strong retirement investment plan will allow you to maintain the same lifestyle that you have been enjoying now, in your golden years too.

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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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