Category: Personal Finance

Top 10 Banks Offering The Lowest Interest Rates On Home Loans

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

The cost of your home loan is calculated by the interest rate charged by banks and non-financial institutions on home loans. The interest rate levied defines how much you have to pay your lender on your loan per month as you pay your home loan in EMI (equated monthly installment). Interest rates are typically linked to the repo rate, but they can differ from one lender to the next. A home loan is one of the most affordable loans available, and it is also the only option for an individual to purchase a home. Although interest rates provided by banks can change at any time, Kotak Mahindra Bank is currently offering its customers the lowest home loan interest rate starting from 6.65 percent per annum. The top ten banks that are currently offering the best home loan interest rates are listed below.

Top 10 Banks Offering The Lowest Interest Rates On Home Loans

Factors that influence home loan interest rates

A home loan allows you to purchase your dream home anytime and anywhere. The Equated Monthly Installments (EMI) that you will have to reimburse decide the loan’s viability. EMI allows you to repay the principal and interest in a manner that does not put more strain on your personal finance. That being said, the interest rate will have a major impact on this. The interest rate is influenced by a number of variables that differ from one lender to the next. Some of these variables are as follows:

Type of interest rates: You have the option of a fixed, floating, or mixed interest rate. Floating interest rates fluctuate in response to the adjustments made by Reserve Bank of India (RBI). Your EMIs will be lowered if the current RBI guidelines result in lower interest rates, and conversely. A fixed interest rate means you’ll pay the same rate of interest for the entire period of your loan. The rates you are provided with are often determined by the type of home loan you have applied for.

Loan to value ratio (LTV): The loan-to-value (LTV) ratio determines the value of a loan you want to take out to the measured value of the house you want to purchase. LTVs are used by lenders to decide how unsafe a loan is and whether or not to accept it. It will even help you figure out whether you’ll need a mortgage benefit or not. A loan-to-value ratio determines how much of a property you currently own and how much you owe on the loan you used to buy it.

Credit Score: Your credit score is thoroughly scrutinised during the loan processing. It entails credit checks from the past and present. You’re more likely to get a decent deal if you’re active on your payments and have a strong credit score. A strong credit record also gives you the right to face for a cheaper rate. Your loan interest rates will be affected significantly as a result of this.

Income: Along with the income aspect, the sector you work in and the employer both have an influence. A reasonable interest rate will be offered to those who have a steady and strong salary, which is necessary to repay the loan. Due to the uncertainties involved, salaried employees are likely to receive a marginally lower rate than self-employed applicants. Separate slabs are maintained by banks for salaried and self-employed employees.

Loan tenure and loan amount: When the bank agrees on the interest rate to be given to you, the loan tenure you select plays an important role. If you’re able to commit to a longer period, the interest rate provided is likely to be lower. The loan amount proposed has the potential to stabilise the rate. The general concept is that the higher the loan amount, the lower the interest rate.

Tax benefits on home loans

Here is a list of all the tax advantages that a taxpayer can get on home loan EMI payments if they choose the old tax regime. Note that for the current fiscal year, a person will continue to use the old tax system and claim tax exemptions such as HRA and various deductions under sections 80C, 80D, and so on. Individuals can still choose to operate under the new tax regime, which includes a reduced tax rate with no tax exemptions:

Exemption for repaying the principal loan amount

The EMI you pay is made up of two parts: principal amount and interest charged. For self-occupied property, the amount repaid as principal part in the EMI can be counted as a deduction under section 80C of the Income Tax Act, 1961. Please remember that if you have another home that is either vacant or where your parents live, that home will be called a self-occupied residence. The stamp duty and registration fees charged after purchasing a home can also be deducted under Section 80C.

Exemption for repaying the interest of a home loan

A taxpayer can claim a deduction on the interest accrued on a home loan in addition to the principal amount repaid on the loan. In the case of a self-occupied house, a deduction on interest paid on a home loan is applicable under section 24 for a limit of Rs 2 lakh in a specified fiscal year. In the case of self-occupied property, interest payments above Rs 2 lakh will not be taken forward or offset against any other income heading such as capital gains, salary, and so on. If you own two homes and one of them is vacant or owned by your parents, interest on the second house’s home loan is also included under section 24. Please remember that in a given financial year, the overall deduction for interest paid on a home loan on both houses cannot surpass Rs 2 lakh.

Additional exemption on purchasing an affordable home

If you have purchased a property in the subsidised housing category, you can exempt the interest paid on the home loan you used to purchase it. This exemption can be claimed up to Rs 1.5 lakh per financial year under section 80EEA. It is available in addition to the section 24 deduction for a limit of Rs 2 lakh. Thus, if a taxpayer purchases an affordable home, he or she can claim a deduction of up to Rs 3.5 lakh in a fiscal year. Please remember that you cannot claim the same amount under two different sections. To qualify for this deduction, you must apply for a housing loan from a financial institution such as a bank or a housing finance company for the purpose of purchasing a residential home, the home loan must be undertaken between April 1, 2019 and March 31, 2021, with a stamp duty of not more than Rs 45 lakh on the house property. Budget 2021 has extended the timeline for receiving a home loan by another year, from March 31, 2021, to March 31, 2022, in order to seek an additional deduction for interest paid on a home loan.

Exemption under section 80EE

For first-time home buyers who availed home loans, this benefit was reinstated in FY 2016-17. Section 80EE enabled taxpayers who took out a home loan in FY 2016-17 to seek an additional tax deduction of up to Rs 50,000. Under Section 24, a home loan borrower who pays interest on the loan can exempt the interest paid from his or her gross income up to a limit of Rs 2 lakh per year. To be eligible for this deduction, the house for which the loan is taken must be worth more than Rs 50 lakh, the loan amount must be less than Rs 35 lakh, and the loan must have been approved between April 1, 2016 and March 31, 2017.

Home Loan Interest Rates

Below are the top 10 banks which are currently providing the cheapest rates on home loans. Please keep in mind that the interest rates are considered for a loan amount of Rs 30 lakhs with a tenure of 20 years.

Sr No. Banks ROI in %
1 Kotak Mahindra Bank 6.65 to 7.3
2 HDFC Bank 6.7 to 7.2
3 ICICI Bank 6.7 to 8.05
4 State Bank of India 6.75 to 8.2
5 Punjab National Bank 6.8 to 8.9
6 Union Bank of India 6.8 to 8.4
7 Bank of Baroda 6.85 to 8.7
8 Central Bank of India 6.85 to 9.05
9 Punjab & Sind Bank 6.85 to 7.35
10 Bank of Maharashtra 6.9 to 9.65
Source: Bank Websites



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Axis vs Kotak vs IDBI Bank: Revised Interest Rates On FD Compared

Personal Finance

[ad_1]

Read More/Less


Axis Bank Fixed Deposit

With effect from March 18, Axis Bank has updated its fixed deposit interest rates (FDs). Axis Bank provides FDs in terms ranging from seven days to ten years. Axis Bank is providing a 2.50 percent interest rate on FDs for a maturity period of 7 to 29 days. The bank provides 3% on FDs with a maturity period of 30 days to less than 3 months. 3.5 percent for FDs with a maturity period of 3 to 6 months. For FDs maturing in six months to less than 11 months 25 days, Axis Bank offers a 4.40 percent interest rate. 5.15 percent from 11 months and 25 days to less than one year and five days. For term deposits maturing in 18 months or less than two years, Axis Bank currently provides 5.25 percent interest rate. Long-term deposits maturing in 2 to 5 years offer a 5.40 percent interest rate, while deposits maturing in 5 to 10 years earn a 5.75 percent interest rate. On select maturities, Axis Bank provides senior citizens a higher interest rate compared to the general public. On deposits maturing in 7 days to 10 years, senior citizens can get interest rates ranging from 2.5 percent to 6.50 percent. The current Axis Bank FD interest rates, effective March 18, for both non-senior citizens and senior citizens on deposits of below Rs 2 Cr, are listed below.

Tenure ROI in % for general public ROI in % for senior citizens
7 days to 14 days 2.5 2.5
15 days to 29 days 2.5 2.5
30 days to 45 days 3 3
46 days to 60 days 3 3
61 days < 3 months 3 3
3 months < 4 months 3.5 3.5
4 months < 5 months 3.5 3.5
5 months < 6 months 3.5 3.5
6 months < 7 months 4.4 4.65
7 months < 8 months 4.4 4.65
8 months < 9 months 4.4 4.65
9 months < 10 months 4.4 4.65
10 months < 11 months 4.4 4.65
11 months < 11 months 25 days 4.4 4.65
11 months 25 days < 1 year 5.15 5.4
1 year < 1 year 5 days 5.15 5.8
1 year 5 days < 1 year 11 days 5.1 5.75
1 year 11 days < 1 year 25 days 5.1 5.75
1 year 25 days < 13 months 5.1 5.75
13 months < 14 months 5.1 5.75
14 months < 15 months 5.1 5.75
15 months < 16 months 5.1 5.75
16 months < 17 months 5.1 5.75
17 months < 18 months 5.1 5.75
18 Months < 2 years 5.25 5.9
2 years < 30 months 5.4 6.05
30 months < 3 years 5.4 5.9
3 years < 5 years 5.4 5.9
5 years to 10 years 5.75 6.5

Kotak Mahindra Bank Fixed Deposit

Kotak Mahindra Bank Fixed Deposit

The interest rate on fixed deposits (FDs) has been updated by Kotak Mahindra Bank, with effect from March 25, 2021. On FDs maturing in 7 to 30 days, 31 to 90 days, and 91 to 179 days, Kotak Mahindra Bank provides interest rates of 2.5 percent, 2.75 percent, and 3.25 percent, respectively. For term deposits maturing in 180 days or less than a year, Kotak Mahindra Bank offers 4.40 percent interest. For deposits maturing in one year to 389 days, the bank offers 4.50 percent interest rate. For FDs maturing in 390 days to less than 23 months, the bank will now offer 4.90 percent interest rate. For deposits maturing in 23 months to less than 3 years, Kotak Mahindra Bank will provide a 5% interest rate. For term deposits with a maturity period of three years or more but less than four years, the bank will pay 5.10 percent. For deposits maturing in 4 years or more but less than 5 years, Kotak Mahindra Bank offers a 5.25 percent interest rate. For FDs maturing in 5 years or more, up to and including 10 years, the bank offers 5.30 percent. Senior citizens will get interest rates that are 50 basis points higher than the general public. On FDs maturing in 7 days to 10 years, the bank provides interest rates ranging from 3% to 5.8% respectively. On deposits of below Rs 2 Cr the current interest rates on FD of Kotak Mahindra Bank for both the general public and senior citizens are listed below:

Tenure ROI for general public ROI for senior citizens
7 – 14 Days 2.50% 3.00%
15 – 30 Days 2.50% 3.00%
31 – 45 Days 2.75% 3.25%
46 – 90 Days 2.75% 3.25%
91 – 120 Days 3.25% 3.75%
121 – 179 days 3.25% 3.75%
180 Days 4.40% 4.90%
181 Days to 269 Days 4.40% 4.90%
270 Days 4.40% 4.90%
271 Days to 363 Days 4.40% 4.90%
364 Days 4.40% 4.90%
365 Days to 389 Days 4.50% 5.00%
390 Days (12 months 25 days) 4.90% 5.40%
391 Days – Less than 23 Months 4.90% 5.40%
23 Months 5.00% 5.50%
23 months 1 Day- less than 2 years 5.00% 5.50%
2 years- less than 3 years 5.00% 5.50%
3 years and above but less than 4 years 5.10% 5.60%
4 years and above but less than 5 years 5.25% 5.75%
5 years and above up to and inclusive of 10 years 5.30% 5.80%

IDBI Bank Fixed Deposit

IDBI Bank Fixed Deposit

The interest rates on IDBI Bank’s multiple fixed deposit schemes have also been updated. Since March 18, the updated IDBI FD rates are in force. After the new adjustment, IDBI FDs maturing in 7 days to 20 years will provide interest rates ranging from 2.9 percent to 5.1 percent. For senior citizens, the IDBI Bank FD rate varies from 3.4 percent to 5.6 percent. IDBI Bank provides 2.9 percent on deposits for a maturity period of up to 30 days. It provides 3% interest for 31 to 45 days, 3.25 percent interest for 46-90 days, and 3.6 percent interest for 91 days to 6 months. The interest rate on FDs with a maturity period of six months to one year is 4.3 percent, while the rate on deposits with a maturity period of one year to ten years is 5.1 percent. For 10- to 20-year FDs, the bank will bid 4.8 percent. Term deposits with a 5-year maturity period will provide 5.1 percent interest. On deposits of below Rs 2 Cr the current interest rates on FD of IDBI Bank are as follows:

Tenure ROI in % for general public ROI in % for senior citizens
07-14 days 2.9 3.4
15-30 days 2.9 3.4
31-45 days 3 3.5
46- 60 days 3.25 3.75
61-90 days 3.25 3.75
91-6 months 3.6 4.1
6 months 1 day to 270 days 4.3 4.8
271 days up to< 1 year 4.3 4.8
1 year 5 5.5
> 1 year – 2 years 5.1 5.6
>2 years to < 3 years 5.1 5.6
3 years to < 5years 5.1 5.6
5 years 5.1 5.6
> 5 years – 7 years 5.1 5.6
>7 years – 10 years 5.1 5.6
>10 years – 20 years 4.8 5.3



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Gold Price Corrects To Below Rs. 44000: Factors That Can Further Pull Down Gold Prices

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Roshni Agarwal

|

Owing to the second wave of Covid 19 in the country and hence a threat to economic recovery, there is ample scope for the precious yellow metal to again hit fresh highs, there are some of the factors that may not support gold prices in the near to medium term. Here we will delve on the same, nonetheless as the bullion is expected to trade between Rs. 42000 to Rs. 60000 in this year, buying in dips is advised for investors.

Gold Price Corrects To Below Rs. 44000: Factors That Can Further Pull Down Gold

Gold Price Corrects To Below Rs. 44000: Factors That Can Further Pull Down Gold Prices

Risk Factors That Can Pull Down Gold Prices

1. Hike in real rates:

If there is positive news around economic progress and the US central bank begins to normalize its policy and move away from its accommodative stance then there shall be given a boost to the dollar. And rising dollar weighs on gold prices in a negative way, i.e. when dollar inches higher, gold prices move down.

2. Outflows from Gold ETFs:

Demand and supply also called as the market factors dictate pricing of a product, which is true for bullion as well. And as there have been reported continuing outflows from Gold ETFs, it will further put a pressure on gold prices.

3. Rising bond yields:

As the treasury and gold both are considered safe havens, there exist a positive correlation between gold and bond prices but gold and bond yields are inversely related i.e. when bond yields trend higher there is pressure on gold prices. So, is the case now as the US treasury yield drifted to its highest level of 1.74% for the first time since January 2020.

4. Increase in supply and non-matching demand:

Given the higher prices, recycling rates are rising for gold and at the same time, mining supply also is witnessing an increase as the Covid 19 led restrictions eased. And now if similar level of investment or physical demand for gold is not seen then excess supply would again put pressure on gold prices.

At the local jewellers gold of 22K is trading at a price of up to Rs. 43000 per 10 gm depending on your city and on the MCX gold for April delivery fell close to 2% today (March 29, 2021) to below Rs. 44000 at Rs. 43800 per 10 gm.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

2 Special FD Schemes For Senior Citizens Which They Can Avail Before June

Personal Finance

[ad_1]

Read More/Less


SBI Special FD Scheme For Senior Citizens

The interest rate on SBI’s special FD scheme for senior citizens will be 80 basis points (bps) higher than the regular customers. SBI presently provides a 5.4 percent interest rate on five-year fixed deposits to the general public. The interest rate applied to a fixed deposit made by a senior citizen under the special FD scheme is 6.20 percent. Below are the current fixed interest rates for senior citizens of SBI which are in effect from January 2021.

Tenure ROI in % for senior citizens for below Rs 2 Cr
7 days – 45 days 3.4
46 days – 179 days 4.4
180 days – 210 days 4.9
211 days – 364 days 4.9
1 year – 1 year 364 days 5.4
2 years – 2 years 364 days 5.6
3 years – 4 years 364 days 5.8
5 years – 10 years 6.2

HDFC Bank Special FD Scheme For Senior Citizens

HDFC Bank Special FD Scheme For Senior Citizens

Under its special FD scheme HDFC Bank offers 75 basis points (bps) higher interest rates compared to the general public. If a senior citizen holds a fixed deposit with HDFC Bank Senior Citizen Care FD, the interest rate will be 6.25 percent. The interest rate on an FD booked under the HDFC Bank Senior Citizen Care FD scheme that is prematurely closed (including a sweep in/partial closure) after 5 years will be 1.25 percent lower than the contracted rate or the base rate available for the period the deposit has maintained with the bank, whichever is lower. Below are the current fixed interest rates for senior citizens of HDFC Bank which are in effect from November 13, 2020.

Tenure ROI in % for senior citizens for below Rs 2 Cr
7 – 14 days 3
15 – 29 days 3
30 – 45 days 3.5
46 – 60 days 3.5
61 – 90 days 3.5
91 days – 6 months 4
6 months 1 days – 9 months 4.9
9 months 1 day < 1 Year 4.9
1 Year 5.4
1 year 1 day – 2 years 5.4
2 years 1 day – 3 years 5.65
3 year 1 day- 5 years 5.8
5 years 1 day – 10 years 6.25

Note

Note

Several banks, including ICICI and Bank of Baroda (BOB), also had introduced special FD schemes last year at the midst of the pandemic to offer a meritorious alternative to senior citizens at a time when interest rates were declining. ICICI Bank provides a separate FD scheme for senior citizens entitled ‘ICICI Bank Golden Years’. The bank offers an 80 basis point higher interest rate on these deposits. The ICICI Bank Golden Years FD scheme offers senior citizens a 6.30 percent annual interest rate. These rates are in effect from 21 October 2020. On the other side, senior citizens will get a 100 basis point higher rate compared to the regular citizens on these deposits of Bank of Baroda. The interest rate on fixed deposits made under the special FD scheme (for a term of more than 5 years and up to 10 years) will be 6.25 percent. These rates are effective from 16 November 2020. It is important to remember you as a senior citizen is that both the special FD scheme of ICICI and BOB will end on March 31, 2021.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Here’s Why Customers Of SBI, HDFC, & ICICI Bank May Face Issue In Receiving OTP

Personal Finance

[ad_1]

Read More/Less


Planning

oi-Vipul Das

|

If you have an account with HDFC, SBI, or ICICI Bank, you may encounter difficulties receiving OTP in the upcoming days. Those hoping to visit the banks in the coming week, however, should be informed that the banks will be closed for 5 days from March 30 to April 4. The Telecom Regulatory Authority of India (TRAI) issued the names of 40 companies on Friday that failed to comply with the latest SMS rules, including three banks: SBI, HDFC, Kotak and ICICI. The TRAI issued a declaration in which they issued a stern rule, specifying that these companies must comply with the directives by April 1, 2021, or their customers will be unable to get or receive OTP on their registered mobile number or email ID with the bank.

Here’s Why Customers Of SBI, HDFC, & ICICI Bank May Face Issue In Receiving OTP

The Telecom Regulatory Authority of India (TRAI) has launched a mechanism to reduce unauthorized and illegitimate SMS by asking companies to lodge SMS in a format with TRAI in order to satisfy customers. The primary objective of this initiative is to deliver the appropriate message to customers to prevent them from being victims of cybercrime. Many companies, on the other hand, are not taking TRAI’s order effectively, and their customers may end up bearing the bulk of the consequences in the coming month. According to the latest statement TRAI stated that “It has been informed that principle entities including major banks like State Bank of India, HDFC Bank, Punjab National Bank, Axis Bank Ltd are not transmitting mandatory parameter like content template IDs, PE (principle entity) IDs, etc. even in those cases where content templates have been registered while sending such messages to TSPs (telecom service providers) for delivery.”

As a result of the companies’ failure to obey its directives, TRAI has taken stern action against them. The authority has warned all of these defaulting firms that if they don’t want their customers to face trouble receiving OTP, they must comply with the order by April 1, 2021. As a consequence, from April 1, 2021, any message that fails the ‘Scrubbing Process’ since it does not satisfy regulatory criteria will be excluded from the regulatory regime. The new SMS system is yet to be adopted by 17 private and public sector banks including Life Insurance Corporation of India (LIC). Other companies listed as defaulters by Trai include Flipkart, non-banking financial companies (NBFCs) Bajaj Finance Ltd and Indiabulls Consumer Finance Ltd, brokerage companies Kotak Securities Ltd and Angel Broking Ltd, and the National Stock Exchange (NSE).

All regulatory bodies, including the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory Development Authority, and state and central government authorities, have been directed by TRAI to ensure that the rules are followed by bodies within their regulation. TRAI also stated that “It appears that few entities are not only indifferent but are not serious enough in complying with the provisions of the regulations, thereby, causing inconvenience to the consumer. In the absence of these necessary parameters, the messages are bound to be rejected by the system during the scrubbing process”. The Telecom Commercial Communication Customer Preference Regulations (TCCCPR), that prevent unregistered companies from issuing commercial messages, were implemented in July 2018 to properly deal with the menace of spam. Fraudulent messages to customers are often prohibited for registered businesses. Following significant glitches in online transactions like net banking, Aadhaar-enabled transactions, train ticket bookings, and vaccine registration, TRAI restored the latest SMS scrubbing rules last week.

Bank Holidays From March 30 to April 4

It should be noted that bank services in Patna will be closed on March 30. Following this, banks will be closed on March 31st, which is the last day of the fiscal year. Following these, banks will be closed on April 1 because account closures will be concluded on that day. On April 2, there will also be a holiday due to Good Friday. The banks will be closed on April 4th due to the fact that it is a Sunday.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Check The New TDS Rules For PPF And Other Small Savings Schemes

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Where an investor withdraws more than Rs 20 lakh from all post office schemes including PPF, the Department of Post has released new guidelines for deducting tax deducted at source (TDS). TDS will be withheld from the withdrawal balance if an investor has not filed income tax returns (ITR) for the previous three assessment years, as per the latest provisions of Section 194N of the Income Tax Act 1961. This latest statute is in effect from July 1, 2020. Know all about the new TDS standards below:

Check The New TDS Rules For PPF And Other Small Savings Schemes

Know All About New TDS Rules

  • If an investor’s overall cash withdrawals during a financial year cross Rs 20 lakh but do not exceed Rs 1 crore, and he is a non-ITR filer, TDS of 2% will be withheld from the amount surpassing Rs 20 lakh. If the gross cash withdrawal from all post office accounts in a financial year crosses Rs 1 crore, TDS of 5% will be levied on the amount in excess of Rs 1 crore.
  • If you file an ITR, though, the rules are specific Where an ITR filer’s cash withdrawal in a financial year crosses Rs 1 crore. The amount above Rs 1 crore will be subject to a 2% of income tax.
  • These updates are yet to be introduced. The Center for Excellence in Postal Technology (CEPT), a technology service partner for post offices, has reported and collected the specifics of such depositors for the term 1 April 2020 to 31 December 2020 in order to make it easier for Post Offices to deduct TDS.
  • The necessary details will be forwarded to the Circle/CBS CPCs by CEPT. The CEPT will provide specifics such as the account number, account holder’s PAN number, and the amount of TDS to be deducted.
  • The circle’s incharge, CPC(CBS), shall forward the specifics to the relevant Post Office and allow TDS deduction from such customers/accounts effectively without failure.
  • TDS will be deducted at the depositor’s Post Office, and the account holder will be notified in writing of the deduction.
  • The responsible Postmaster will organise and approve a voucher for the TDS amount, which will then be forwarded to HO/SBCO with other SB vouchers.
  • Since it is a legal necessity, the responsible postmaster is solely responsible for deduction of TDS in conformity with the act.
  • Non-deduction of TDS may result in penalty or recovery respectively.

Note

It’s worth remembering that some tax-saving initiatives require a minimum contribution per fiscal year in order for the account to remain operational. Public Provident Fund (PPF), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) are some of the small saving schemes of post office that require a minimum deposit per fiscal year. Please, bear in mind that starting in FY 2020-21, a taxpayer can proceed to use the old/current tax regime and take advantage of current tax deductions. Alternatively, you can choose the new, more favourable tax regime, which excludes all existing tax breaks and deductions. It’s worth remembering that even though you choose the current tax regime, you must make a minimum contribution to keep your account operational. To know how much you need to make a minimum contribution towards your PPF, NPS and SSY account are as follows:

Public Provident Fund (PPF)

In a fiscal year, the minimum annual contribution to a PPF account is Rs 500. The deadline to make a contribution for this fiscal year is March 31, 2021, following which you will be charged a penalty of Rs 50 every year as well as a Rs 500 arrear subscription fee for each year in case you miss to make the minimum contribution. The account would be considered as inactive if the minimum contribution is not made during the financial year. In all of these scenarios, the PPF account holder will be unable to seek a loan or make partial withdrawals until the account is reactivated. Before the initial maturity date, a terminated account can be reactivated. It can’t be revived after it reaches maturity, and it can’t be closed until it reaches maturity.

National Pension System (NPS)

It is required to make a minimum contribution to a Tier-I NPS account per fiscal year if you have opened one. NPS tier-I allows a minimum contribution of Rs 1,000 in a financial year to keep the account functioning, according to existing regulations. If you fail to make the minimum contribution towards your NPS Tier-I account, it will become inactive. To reactivate your NPS account, you will be required to pay a penalty of Rs 100 per year, as well as make minimum contributions per year. For reactivating the NPS account, Point-of-Presence (POP) charges will be applied. Even though Tier II has no minimum contribution requirements, if the Tier I account is frozen, the Tier II account will be frozen as well if any.

Sukanya Samriddhi Yojana (SSY)

A minimum deposit of Rs 250 is required per financial year to keep the Sukanya Samriddhi Account active. The account would be considered as an inactive or frozen account if the minimum contribution is not made in a fiscal year. A dormant account can be reactivated before the 15-year period expires from the date it was opened. You will be required to make a minimum deposit of Rs 250, as well as a penalty of Rs 50 for each defaulted year, to get the account reactivated.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

New Wage Code: Why Your Take-Home Salary May Decrease?

Personal Finance

[ad_1]

Read More/Less


Basic Pay

The new wage code stipulates that minimum wages must account for half of an employee’s CTC. Employee benefits such as leave travel, house rent, overtime, and transportation would have to be reduced to the remaining 50% of CTC. According to the new regulations, the allowance portion of the total salary or compensation cannot exceed 50% of the total salary or compensation, which means that the basic salary must be 50%.

If a person’s salary is Rs. 1 lakh and the new minimum wage is Rs. 40,000, the employee and employer can each contribute Rs. 4,800 to PF at a rate of 12%. In this case, the in-hand salary will be &dollar;90,400.

However, if the basic wage is raised to Rs 50,000 after agreeing with the Current Wage Code’s concept, the take-home pay will fall to Rs 88,000, a decrease of Rs 2,400.

Provident Fund

Provident Fund

In situations where the employer contributes to PF on the actual basic salary rather than the minimum required contribution of 12% of Rs 15,000, the adjustment in basic pay would result in a change in PF contribution.

Previously, the Provident Fund was measured based on an employee’s basic salary, taking into account the dearness allowance and other benefits provided by the company. The employer and employee contributions will now be based on half of the CTC. Your PF contribution will go up, but your take-home pay will go down.

Gratuity

Gratuity

Gratuity would also adjust as a result of the updated wage code. Gratuity would have to be measured on a broader scale, taking into account all standard wages and other salary deductions such as travel, special allowance, and so on. This will increase the cost of gratuities for businesses. Gratuity is the amount of money accrued to you at the completion of a final and permanent work term. Even after a year of service, the employee is entitled to a gratuity.

Impact on Taxes

Impact on Taxes

Those in a higher salary bracket would pay more tax because the tax planning option is limited to 50% of cost-to-company (CTC), while those in a lower bracket would be protected by higher retirement contributions and lower taxes.

As PF contributions increase, one might be able to demand a larger deduction. Increased statutory contributions, such as PF, which result in a reduction in tax liability, subject to the overall limit of Rs 1.5 lakh set by Section 80C.

In these turbulent times, the new pay code seeks to provide workers with stability and assurance. The government needed to ensure that millions of workers’ retirement plans were safe. As a result, the new pay code was announced.

When the company restructures after compensation provisions, it will be wise to consult a professional to understand the pay structure and plan your investments accordingly.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Past 1-Year Returns From Focused Equity Funds Are Up To 95%? Should You Invest?

Personal Finance

[ad_1]

Read More/Less


1-Year Returns from Focused mutual funds have been encouraging

In the past 1-year after the stock markets have gained substantially to record high, focused mutual funds with investments into varied stocks have also yielded returns to the tune of 75-100%. In comparison during the same period, Sensex has surged by 67% (taking into consideration Sensex opening levels as on March 30, 20200.

5 Top performing Focused funds in the last one year

1. Nippon India Focused Equity Fund: 1-year annualized return from the fund has been 96.73%. Fund size is substantial of Rs.4990 crore. And of the total 90.52% corpus into Indian stocks, 55.67% is into large cap stocks, 11.76% is in mid cap stocks, 8.95% in small cap stocks.

Focused fund 1-year return 3-year return 5-year return
Nippon India Focused Equity Fund 96.73% 11.65% 15.88%

2. Mirae Asset Focused Fund-Regular Plan:

2. Mirae Asset Focused Fund-Regular Plan:

With a fund size of Rs. 5179 crore and expense ratio of 1.94%, Mirae Asset Focused Fund has provided 1-year annualized return of 82.34%. NAV of the fund as on March 26, 2021 was 15.528. This fund has 98% invested into Indian stocks with 46% in large-cap stocks and the remaining 25% and 11% in mid-cap and small cap stocks, respectively.

Focused fund 1-year return 3-year return 5-year return
Mirae Asset Focused Fund-Regular Plan 82.34% NA NA

3. Franklin India Focused Equity Fund:

3. Franklin India Focused Equity Fund:

Fund size of this Franklin AMC is Rs. 8028 crore and it holds CRISIL 2-star rating. 93% of the entire corpus is into stocks with 67% in large-cap, 9% in mid-cap and 12% into small cap.

Focused fund 1-year return 3-year return 5-year return
Franklin India Focused Equity Fund 80.34% 11.27% 13.64%

4.ICICI Prudential Focused Equity Fund:

4.ICICI Prudential Focused Equity Fund:

This is a 3-star CRISIL rated fund with 95% investment in Indian stocks of which 75.87% is in large cap stocks, 8.88% is in mid cap stocks, 6.81% in small cap stocks.

Focused fund 1-year return 3-year return 5-year return
ICICI Prudential Focused Equity Fund 77.48% 12.82% 14.00%

5. IIFL Focused Equity Fund-Regular Plan:

5. IIFL Focused Equity Fund-Regular Plan:

This fund from IIFL Mutual fund is a 5-star rated CRISIL fund and out of the total 98% investment into stocks, over 60% is into large-caps.

Focused fund 1-year return 3-year return 5-year return
IIFL Focused Equity Fund-Regular Plan 73.54% 19.56% 18.25%

So, with majority of the corpus put into large caps, the focused fund helps to provide higher alpha driven by mid and small cap stocks, while the downside risk in the fund is protected with the help of large-cap holdings.

Note the return for the different funds are taken from moneycontrol website as on March 29,2021

Should You Invest In Focused Equity Mutual Funds?

Should You Invest In Focused Equity Mutual Funds?

In the past one year, the returns in the equity fund space has been propelled by substantial gains in equity from the lows induced by Covid 19 and in the long term, these focused funds or a focused approach in the portfolio may or may not work in all market conditions. So, a better suggestion as per experts is to look at diversified equity funds that have managed to deliver across market cycles.

Further as suggested by the different focused funds, the risk in them is moderately high, higher than even diversified funds, so for you to be investing in focused equity funds, you should have a significantly higher risk appetite, as any wrong bet could yield significant losses for you.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

HDFC Bank Special FD Scheme For Senior Citizens Extended Till June

Personal Finance

[ad_1]

Read More/Less


HDFC Bank FD Rates For Regular Citizens

HDFC Bank provides 2.50 percent on deposits with a maturity period of 7 to 29 days, and 3 percent on deposits with a maturity period of 30 to 90 days. 3.5 percent for 91 days to 6 months, and 4.4 percent for 6 months 1 day to less than one year. On one-year FDs, the bank offers 4.9 percent interest rate. Term deposits with a one-year or two-year maturity period will yield 4.9 percent interest. FDs maturing in 2 to 3 years will yield 5.15 percent, while those maturing in 3 to 5 years will yield 5.30 percent. 5.50 percent interest is provided on deposits for a maturity period of 5 to 10 years. The current fixed deposit interest rates of HDFC Bank are in effect from 13th November 2020.

HDFC Bank FD Rates For Senior Citizens

HDFC Bank FD Rates For Senior Citizens

“An additional premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the fixed deposit less than Rs 5 crore for a tenure of 5 years one day to 10 years, during special deposit offer commencing from 18th May’20 to 30th Jun’21,” HDFC Bank stated on its official website. On these deposits, HDFC Bank gives a 75 basis point (bps) higher interest rate. The interest rate on a fixed deposit made by a senior citizen under the HDFC Bank Senior Citizen Care FD will be 6.25 percent. These special rates are in effect from 13th November 2020.

Tenure ROI in % for senior citizens
7 – 14 days 3.00
15 – 29 days 3.00
30 – 45 days 3.50
46 – 60 days 3.50
61 – 90 days 3.50
91 days – 6 months 4.00
6 months 1 days – 9 months 4.90
9 months 1 day < 1 Year 4.90
1 Year 5.40
1 year 1 day – 2 years 5.40
2 years 1 day – 3 years 5.65
3 year 1 day- 5 years 5.80
5 years 1 day – 10 years 6.25

Note

Note

Recently, the third time, the State Bank of India’s (SBI) special fixed deposit scheme for senior citizens has been extended. The SBI ‘WECARE’ Senior Citizens’ Term Deposit scheme for senior citizens was launched in May 2020 by the leading public sector bank of India. This special scheme has now been extended for another three months until June 30 which was previously extended until December 31, and then again until March 31, 2021. “A special SBI Wecare Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till 30 June 2021,” SBI stated on its official website. The interest rate on SBI’s special FD scheme for senior citizens will be 80 basis points (bps) higher than the rate for regular citizens. SBI currently offers a 5.4 percent interest rate on five-year fixed deposits to the regular customers. Whereas under the “SBI Wecare” deposit scheme, senior citizens will get an interest rate of 6.20 percent. To know more click here.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Kotak Bank Modified Fixed Deposit Interest Rates: Check Current Rates Here

Personal Finance

[ad_1]

Read More/Less


Kotak Bank FD Rates For Regular Public

For the general public, Kotak Mahindra Bank’s new FD rates for below Rs 2 crore are valid as of March 25, 2021.

Tenure ROI
7 – 14 Days 2.50%
15 – 30 Days 2.50%
31 – 45 Days 2.75%
46 – 90 Days 2.75%
91 – 120 Days 3.25%
121 – 179 days 3.25%
180 Days 4.40%
181 Days to 269 Days 4.40%
270 Days 4.40%
271 Days to 363 Days 4.40%
364 Days 4.40%
365 Days to 389 Days 4.50%
390 Days (12 months 25 days) 4.90%
391 Days – Less than 23 Months 4.90%
23 Months 5.00%
23 months 1 Day- less than 2 years 5.00%
2 years- less than 3 years 5.00%
3 years and above but less than 4 years 5.10%
4 years and above but less than 5 years 5.25%
5 years and above up to and inclusive of 10 years 5.30%

Kotak Bank FD Rates For Senior Citizens

Kotak Bank FD Rates For Senior Citizens

Senior citizens will get interest rates that are 50 basis points higher than the non-senior citizens. On FDs maturing in 7 days to 10 years, the bank provides interest rates ranging from 3% to 5.8% to the senior citizens.

Tenure ROI
7 – 14 Days 3.00%
15 – 30 Days 3.00%
31 – 45 Days 3.25%
46 – 90 Days 3.25%
91 – 120 Days 3.75%
121 – 179 days 3.75%
180 Days 4.90%
181 Days to 269 Days 4.90%
270 Days 4.90%
271 Days to 363 Days 4.90%
364 Days 4.90%
365 Days to 389 Days 5.00%
390 Days (12 months 25 days) 5.40%
391 Days – Less than 23 Months 5.40%
23 Months 5.50%
23 months 1 Day- less than 2 years 5.50%
2 years- less than 3 years 5.50%
3 years and above but less than 4 years 5.60%
4 years and above but less than 5 years 5.75%
5 years and above up to and inclusive of 10 years 5.80%

Note

Note

Recently IDBI Bank and Axis Bank have also revised interest rates on their fixed deposits. The new FD rates of IDBI Bank and Axis Bank are in effect from 18 March. Following the most recent revision, Axis Bank currently provides 2.50 percent interest on FDs maturing between 7 and 29 days, 3% for FDs maturing between 30 days and less than 3 months, and 3.5 percent for FDs maturing between 3 months and less than 6 months. Whereas the IDBI Bank’s FD interest rates range from 2.9 to 5.1 percent for FDs maturing in 7 days to 20 years. IDBI Bank provides 2.9 percent interest on deposits maturing in 7 to 14 days and 15 to 30 days. 3 percent interest for 31 to 45 days, 3.25 percent interest for 46 to 90 days, and 3.6 percent interest for 91 to 6 months. The bank offers 4.3 percent interest on FDs with a maturity period of six months to one year. IDBI Bank will pay 5.1 percent on deposits maturing in one year to ten years. The bank will also offer 4.8 percent on 10- to 20-year FDs. Term deposits with a 5-year maturity period will earn 5.1 percent interest.



[ad_2]

CLICK HERE TO APPLY

Leave a comment
1 … 310 311 312 313 314 … 387