Choose a Savings Plan That Fulfills Your Actual Demand

Think practical and instead of going for risky investment plans that fetches nothing to your monthly financial struggles, why not choose a savings plan that fits your actual demands?

You might be following the “rat race” and investing your hard-earned money as every other individual these days are doing – investing in equities, mutual funds etc. But, did you know that most of the profitable investors do not rely on risky and complicated plans to attain wealth.

That may sure sound as a little surprising, but why does successful investors earn profitably on their investments? Well, for one good reason, they actually stick with guaranteed, plain vanilla products and don’t let market swings effect their money or determination. On the contrary they pay more attention to smart savings plan/ savings bond which can nick good returns over time.

Given today’s stock valuations and the unpredictable market highs and lows, it would be safer to invest in savings bond that promises high rate of interest as assured returns. Registered Non-Banking Financial Companies provide investment plans that offers 1.5% - 2% rate of interest monthly – which is definitely a means of boosting the growth of your money like never before. These types of savings plans are one of them which is highly recommended and are of the type which would be chosen by successful investors very luckily.

Thus, don’t get swayed away with the things that everybody else is doing. You too can earn impressively if you choose to be risk conscious. Instead of taking high risk in the expectation of getting higher returns, you invest in savings plans that have low risk attached to them and offer 100% assured returns.

Fixed Deposit And Tax Deduction at Source

FixedDeposit is truly a very useful product offered by finance industries that allow an investor to earn fixed rate of interest over a fixed time period. Fixed deposit is one of the most sought after and popular form of investment option in India.  

When you open a fixed deposit plan with bank or any other financial institutions like a Non-Banking Financial Company, then you are lending money to that particular financial institution and in return it pays you with interest. Applicable interest rate is generally mentioned as on the date of receipt of the funds by the financial institution and is fixed for the specified duration. And interest that is earned on fixed deposits is taxable in the hands of the depositor.  Tax or TDS is deducted by the financial institution, after a threshold. This article throws light on Taxation aspect of Fixed Deposit Plans.

Tax Deduction at Source:

As per the norms if the aggregate Fixed Deposit Interest Rate that you’re likely to earn from all your deposits is greater than Rs. 10,000 in a financial year you are liable to tax deduction at source. In addition to this, tax is also deducted on interest accrued at the end of the financial year. For example, if an investor has earned Rs. 20,000 as interest in one year, then the bank would deduct Rs. 2000 and pay you only Rs. 18,000 as the amount exceeds the limitation of Rs. 10,000. A consolidated TDS certificate in the form of Form 16A is issued in the month of April during every financial year. Form 16A id designed to specify valid Permanent Account Number (PAN) of the deductee, Valid Tax Deduction Number (TAN) of the branch, Challan Identification Number and receipt No: of the quarterly statement. Challan Identification Number means BSR Code of the branch where the tax has been deposited in your name. 

How is TDS Liability Calculated:

TDS liability is calculated on the first applicant’s name. Even deposits held by minors are also eligible for TDS. However, in this case the interest income will be clubbed under the income of the person in whose hand the minor’s income is included. Some investors are also of the habit of taking fixed deposit interest rates in the name of a non-earning family member such as spouse or mother. In this case the rule is that the person has to submit a declaration saying his/her income is not taxable. Nevertheless, if the income is calculated, it would be charged from the donor or the earning member.

3 Habits Which Investors Should Avoid at All Cost

This may sound ironical, but it’s true. Many professional and entrepreneurs start investing early and instead of being richer than their peers they tend to face a bad financial life. According to investment companies in Delhi/NCR this happens mainly because investors do a lot of mistakes when they start, which can be minimized by avoiding the 4 fatal mistakes.

Mistake #1: 

Taking Investment Plan Only for “Tax Saving”

As soon as the tax season is round the corner, most of the individuals get busy discussing with agents about raising some investment proof to escape tax rather than investing their money for gaining good rate of interest. Only after the passage of sometime people realize that they have not done a good thing to their money in the name of saving tax. So, if you’re a new investor please do not get carried away and only think about tax saving before ROI.

Mistake #2: 

Waiting For the Right Time to Invest

Every other person in India including you has wasted some time in waiting for the right time to invest. After getting a job or earning sufficiently, many professionals starts spending too much on expenses and will happily keep waiting for a time to come when they will have extra money to invest. They keep waiting for the “right time” to come and it never arrives due to the negligence.

Mistake #3: 

Taking Debts Early in Life

Debt is not a problem till you handle it properly; taking loan in need is definitely a good idea as it is not possible for a lot of people to avoid taking loans; also it’s not practical in the present times. But, with the EMI culture available with each and every commodity, more and more people are investing in not so important things instead of thinking of growing their money by taking a lucrative investment plan.

So, taking a good investment plan or fixed deposit plan  in the start of your career and not by following the footsteps of your peers on tax saving. You can work wonders with your money and see your wallet growing thicker everyday assuring a good financial life! 

3 Mistakes that Can Retard Your Financial Well-Being

No matter how much you have invested in fixed deposit plans or strived to raise your income, you’ll not be able to find financial freedom if you fail to strike a balance between your income and expenses. Believe it or not, managing money is an art and it calls for considerable amount of skills and managing abilities. In addition to this, there are a handful of mistakes that every individual tend to commit which renders an obstacle in achieving complete financial freedom.

Cash Flow Management:

Cash flow management means regulating the in and out flow of money in a sorted way. According to the experts dealing in investment companies, you will be able to make savings if only the amount of outflow is lesser than the amount of in flow. Try to cut all the chances of over spending, make a disciplined habit of writing monthly household budget so that you identify and control your out-flow episodes very easily.

Getting Beyond Means:

Although fulfilling every wish is an integral part of life, yet it’s not recommendable that you achieve it by jeopardizing your future goals. Owing to societal pressure you may choose to make some impulsive purchases that may bring instant gratification but may be the cause of financial dissatisfaction later on. You can easily control this behavior by differentiating between your needs and wants. Money should be judiciously spent on wants only when you have met all you needs including saving, fixed deposit rate or any other investment plan.

Too Much Burden of EMIs:

Many people choose to take loans in the face of unfavourable circumstances like stagnant income levels, increasing debt etc. However, you must consider taking loan only to satisfy your needs and not your wants. Home loan, vehicle loan can be deemed as necessary loan whereas taking personal loan for going on a vacation is plainly unimportant. Interest rate on personal loan is much higher compared to secure loans which are likely to lay excessive stress on your wallet. So, avoid overburdening yourself with unnecessary EMI

Instead, think of improving your income as upgrading have always been helpful in making you earn more. This upgradation can be in the form of a new job, new financial knowledge, or exploring new avenues like investment companies etc to earn money.

Would Gold Really Be a Good Investment in the Years to Come

As the dollar moved higher, gold prices slid slightly lower as investors continued to mull the implications of China’s currency devaluation on the timing of an initial U.S. rate hike. And, in the face of this changing scenario research says that gold is going to become even less valuable and an unpredictable mode of investment for investors looking forward to reaping high rate of interest on the yellow metal.

Gold as a Commodity:

Different people have different way of interpreting the valuation of the yellow metal. Some consider it to be an evergreen commodity for investment and others take it as a strange commodity. For example you can’t eat gold, neither it’s a fuel to help you run your car, or keep you warm in the winter. However, whenever there is even a minor episode in any aspect of the global economy, demand for this precious metal increases.

Investor Psychology:

Due to the nature of gold and its ever fluctuating prices, it has generated a mixed feeling in the minds of the investors. Gold is a volatile commodity prices of which rises and falls in the short and intermediate term depending on the animal spirits of the economy. Over the time Investment companies in Delhi/NCR have witnessed a lack of interest among investors in gold and an increase in investing high ROI yielding less risky plans. One of the biggest reasons for gold for getting unpopular among investors is that it has not been able to give expected return to the investors in the last three years. And, with the present fluctuation in the prices, there will surely be less appetite for the metal in the coming years.

So, if you’re going to include gold, don’t take on very much of it. Earlier investors used to go by the saying “Gold is for rainy days”, but the face of the events have changed so drastically over the years that investing in gold for reaping good ROI may not be that profitable. Don’t be surprised though if prices continue to drop in the short term.

Investing in Bank FDs Results in Lesser ROI

Banks Fixed Deposits have always been considered safe as banks cannot ran away and you are likely get your money back one day or the other. But, the most ironical fact here is that Bank FDs can negatively affect your savings over a certain period of time.

Fixed Deposit Interest Rates:

Fixed deposit interest rates offered by banks is very low as compared to Non-Banking Financial organizations or other financial institutions. After investing in a fixed deposit plan in bank you can get about 8.5% before tax and around 7% after tax. Although subjected to market risk, the return on investment from equities and mutual funds is tax free. Whereas ROI obtained from bank Fixed Deposits are taxable. The higher your income, the lower your FD return will be. 

That leaves an important question unanswered. "If bank fixed deposit plan is not a good way of investing all your money, where else should you invest your money?"

Non-Banking Financial Companies:

Although bank fixed deposits offers you lesser ROI, fixed deposit rates extended by Non-Banking Financial Companies are really lucrative and free of any tax. Money invested in a Non-Banking Financial Company’s fixed deposit plan not only provides the security, but also professional management of money along with good performance over time. This type of plan is also very tax efficient and is highly recommended if you want to create a financial back up or grow your money at a faster pace over a stipulated period of time.

Thus, if you want your investment to bless you with regular monthly income of interest, Non-banking Financial Fixed Deposit plans are better than bank fixed deposit plans due to tax efficiency and 100% assured return at the highest rate possible.

A Non-Banking Financial Company fixed deposit plan serves as an innovative and reliable platform for smart investing!

Why You Need to Take an Investment Plan Immediately

One of the most convincing reasons that have motivated many investors over time is the awareness that there are only two ways to make money – by working or by having your idle lying money work for you.

If you keep jamming your money in your back pocket instead of looking for better chances to help it grow, you will never make more money than what you save. Investing money helps you to generate more money by earning interest or by gaining appreciation in terms of buying and selling property.

Whether you invest in stocks, bonds, precious metals, real estate or fixed deposits, investment will always help you generate more cash than what you have. Nevertheless, the best of all is a high ROI providing fixed deposit plan as it’s free of any market risk and can bring you exactly what you have stipulated. Nowadays, the well-recognized Non-Banking Financial Companies in Delhi are providing the highest rate of interest you can get from anywhere else.

Main features of a Fixed Deposit Plan:

§ Tenure ranges between six months to 10 years

§  Assured Returns

§  Get Interest income on monthly, quarterly or annual basis

§  Reinvest return on investment and gain the benefits of compounding

§  Partial as well as full withdrawal facility is available with penalty interest rates

§  Get loan approval against deposits

The above mentioned points are some of the salient features that you can find in every fixed deposit plan. However, features and added advantages may vary from company to company. Before investing your money in a fixed deposit plan do not forget to ask for the following points –

Factors you should know before selecting a NBFC Investment Plan:

§  Compare the rate of interest

§  Type of interest (Fixed rate or floating rate)

§  Mode of interest payout

§  Withdrawal facility

§  Level of Security

§  Know other attached benefits

“Money isn’t everything, but happiness alone can’t keep out the rain” someone said. Thus, investing is essential to getting you where you want to be.

How to Make Money And Conquer the Bull Completely

It helps to know that your finance skills are constantly getting better and is reaping good benefits for you. The sense of making money can give peace of mind, time & freedom to focus on the things that truly matters to you. And, this fact is even more applicable in case of evolving entrepreneurs.

Entrepreneurs have to manage the bottom line very strictly in order to stay in business. However, it’s very hard to keep priorities fixed as it is an easier option to stay oblivious to financial problems and let your money manage you and to play a constant game of catching up to your finances. Here’s a few ways that will help you look straight into the bull’s eyes and manage your money like a boss.

Get Finance Meeting Done from Time to Time:

No single plan of making money would be properly organized or complete without a meeting. It may be with your spouse, your family or your friends - contribute a generous amount of time to review your financial plans. The point of the meeting is to do three key activities: measure past performance, make projections for the future, and reallocate your money as needed.

Measuring Performance:

Even if you have built your investment portfolio very wisely and know that everything is working quite well, it’s critical that you measure your performance from time to time. After all, you won’t be able to estimate the real performance of your investment portfolio if you do not compare the numbers in front of you. So, look at your expenses and ask yourself these questions. Were you able to stay under budget? Did anything unexpected come up? What was your point of struggle? In a nutshell, how much  in total, did you spend, save, and invest?

Plan Ahead:

Along with other things, your money planning process should also get a little smarter. Make an estimate of what new expenses or investments are down the line in the coming one, two, or five years? Knowing your long-term goals will give you a clue regarding your finance portfolio, your future activities and today’s expenses. So, make planning ahead a key component of your agenda if you are truly after making money. 

Make Investment:

Finally, it's time to put all the money that you have saved while following all these steps into action. If you had extra money left over in your budget from the last period, sweep it into lucrative investment plans with NBFCs as they provide highest rate of interest on fixed deposits. Following the above mentioned steps will not only ensure that your money making process is keeping up with your life, but it will make it all more manageable and, most importantly, less stressful.