Category: Personal Finance

Comparison in long term

According to recent interest rates by, Ujjivan Small Finance Bank, on FD for 3 Years and 1 Day to 5 Years, giving 6.25% interest to public and 6.25% interest to the senior citizens. However, the State Bank of India (SBI), is offering 5.40% interest to the general public and 6.20% interest to senior citizens on FDs for 5 years and up to 10 years. On the other hand, for FD up to 5 years to 10 years, Axis Bank’s interest rate for the public is 5.75%, while the rate for a senior citizen is 6.50%. But, Ujjivan Small Finance Bank is giving interest rates for senior citizens for 5 years to 10 years FD, at 6.50%.

One should remember, Ujjivan Small Finance Banks’ interest rate for 2 Years to 3 years FD, is higher for both public and senior citizens, at 6.50% and 7.00% respectively. But, Compared to these banks, Jana Small Finance Bank is offering 6.75% interest to the public and 7.25% to senior citizens for 3 years to 5 years FD. So, having an account in the Jana Small Finance Bank can be profitable for an investor who is thinking to invest in a long-term FD.

Comparison in short term

For the short term, FD, Ujjivan Small Finance Bank, and Jana Small Finance Bank both might not act very profitable, because they offer 2.50% to 6.00% interest. On the other hand, Utkarsh Small Finance Bank is offering 7.25% interest on 700 days FD (effective from August 11, 2021). For the senior citizens, the rate is 7.25%, while for the general public the rate is 6.75%. For a 364 day FD, the Utkarsh Small Finance Bank also gives 5.75% to the public, and 6.25% to the senior citizens.

Compared to other banks like Axis, small finance banks’ interest rates are better. Axis bank offers 5.10% interest to the public, and 5.75% interest to the senior citizens for 1 year 5 days FD, and the rates are around 4.65% for lower tenure.

Risk factor

If you are shying away from the FD investment in small finance banks, because you are afraid of the risk factor, then you can start investing with a smaller amount. The small finance banks like Utkarsh Small Finance Bank, Ujjivan Small Finance Bank, and Jana Small Finance Bank are completely regulated by the RBI. They maintain the cash reserve ratio (CRR) requirements, statutory liquidity ratio requirements like other banks. Also, they are certainly required to maintain capital adequacy of 15% of the risk-weighted assets. This makes a bank safe for your investment.

But if you are uncertain about it, then invest an amount less than Rs. 5 lakhs in an FD. This amount is insured under the deposit insurance program of DICGC, India. So, the money will not be at risk. If you have a larger amount to invest in FDs, then you can spread your investments in different banks, or multiple FDs, so the money will be less exposed to risks.

Current gold price trend

In the early trade today gold prices remained rather steady discounting in the fact of the probable unwinding of the stimulus which shall weigh on gold prices.

“Gold is trading above what we deem as fair value at this moment, and I believe this premium is due to the market pricing inflation fears,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. “With the Fed due to begin monetary normalization, I still believe gold will face more downward pressure in the coming year.”

Factors that may lend support to gold prices in the near term

Nonetheless, sentiment back home remains promising for gold given few of the factors such as

1. Postponement of the withdrawal by the Fed Reserve to begin tapering and calls on this shall be likely known sooner.

2. Prices have fallen substantially and hence providing an impetus to demand. Evident through gold imports in India gaining substantially month on month.

3. Rupee weakness has been another trigger.

4. Inflation-the global concern is also pushing investors’ to hedge their investments.

Experts suggest that the buying in gold shall provide support while that for silver there is seen uneven recovery. For the precious yellow metal, gold prices are said to hit Rs. 48200 per 10 gm by Diwali and one can initiate trade at Rs. 47300.

Subdued dollar has been lending support to the gold, but in the near term gold will also face some of the headwinds such as the rising US yield, which diminishes the appeal of the safe-haven gold and any monetary tightening steps by global central banks.

Gold price outlook for the last quarter of Cy 2021

Earlier Bank of America in August this year suggested that given the holding pattern in gold, it could get a push to $1900 per ounce level.”In its latest forecast published Thursday, Bank of America expects gold prices could push to $1,900 an ounce at the end of the year,” a Kitco News article noted. “However, it expects the average price to come in around $1,800 an ounce in the final three months of the year. The fourth quarter could be the highwater mark for the precious metal as the bank sees prices gold steady at around $1,800 an ounce through the first half of next year.”

Now in the current scenario, for the bull case to persist in gold, the XAU/USD needs to surpass 50-DMA at $1779. XAU is The ISO 4217 standard code for one troy ounce of gold, considered as a currency.”It remains to be seen if the yellow metal manages to extend the recent gains, as the rally in the global yields will likely continue amid hawkish expectations from the key central banks, including the Fed and the BoE.”

“The 14-day Relative Strength Index (RSI) is trading flattish above the midline, backing the renewed upside. However, the bear cross confirmed on the daily sticks on Tuesday warrants caution for gold bulls. The 100-DMA cut the 200-DMA from above flagging a bearish signal.”

“XAU/USD is likely to face resistance once again at the horizontal 50-DMA at $1779. A sustained move above the latter could call for a retest of the 100 and 200-DMAs confluence zone at $1794. A sustained break above the latter could expose the $1800 round number.”

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Section 80D deduction in respect of health insurance premiums

Apart from the above said, the best part is that the deduction is also available for purchasing health insurance for the assessee or his family, which includes spouse and dependent children, or any contribution made to the Central Government Health Scheme or any other scheme as may be notified by the Central Government. The following is a list of the deductions allowed under section 80D.

The total amount paid to purchase or maintain a health insurance policy for the assessee or his family, or any contribution made towards the Central Government Government Health Scheme or payment made for such other scheme as the Central Government may notify in this regard, or any payment made for a health check-up for the assessee or his family, should not surpass Rs 25,000.

The total amount paid to purchase or maintain insurance by an individual on behalf of his or her parents or any payment made towards a preventive health check-up should be up to Rs 25,000.

The total amount paid for medical expenses for himself or any member of his family should be up to Rs 50,000 in a financial year. The entire amount paid on account of medical expenses expended on the health of any of the assessee’s parents should be up to Rs 50,000 in any given financial year.

Payment mode and eligible individuals

Payment shall be made in any method, including cash, for any sum paid on account of a preventive health check-up or a medical insurance premium paid for self, spouse, children, or for dependent parents in any mode other than cash for deductions. If the assessee is a Hindu undivided family, the entire amount paid to effect or maintain insurance for any member of that Hindu undivided family should not surpass Rs 25,000 in total.

And the entire amount paid for medical expenses on behalf of any member of the Hindu undivided family should be up to Rs 50,000 in total to claim a deduction. In the case of senior citizens, the deduction limit allowed is Rs. 50,000. An assessee can claim a tax deduction of up to Rs 25,000 for purchasing insurance for himself, for his spouse, or dependent children.

For purchasing insurance for parents aged less than 60 years, a deduction is available of up to Rs 25,000, and for parents aged more than 60 years the deduction available is Rs 50,000 in a given financial year. Individuals, families, and parents over the age of 60 who pay a premium of Rs 50,000 for themselves, their families, and their children, and a premium of Rs 50,000 for their parents, are eligible for a total deduction of Rs 1 lakh.

How to claim an 80D deduction without paying a health insurance premium for your parents?

While we’re on the subject of how to claim an 80D deduction without paying a health insurance premium for your parents, the country’s largest lender State Bank of India (SBI) revealed today on Twitter that “Now save more! Avail 80D Deduction without paying Health Insurance premium for your parents. Simply log in to YONO & file your ITR with Tax2win for FREE.”

Individuals can file their Income Tax Return (ITR) with Tax2win on YONO and claim all 80D deductions without paying Health Insurance premiums for their parents. Apart from that, taxpayers can have eCA assistance for just Rs 199. By login into YONO SBI >> Shop & order >> Tax & Investment >> Tax2win, eligible individuals can claim their 80D deductions.