SEO Simplified By Gabs Gaurs &amp; Geets

As the name suggests this is an unit-linked insurance plan (Ulip) offering financial security for your child's future.

There are two options offered under death benefit — Single Life Option and Joint Life Option. Under the Single Life Option, in case of an unfortunate death of life insured, the sum assured is paid to the nominee of the policy. Subsequently, the insurer waives off the future premiums and an amount equal to this corpus (sum of all future premiums) is added to the fund value. The policy continues to be alive and the insurer will pay off the accumulated fund value at maturity.

Joint Life Option: Under this option as well, the insurer waives off the future premiums and an equivalent amount is added to the fund value. But this option kicks in the event of death of any one of the policyholders. On the death of the other parent, sum assured is paid to the nominee. If both the parents die at the same time, both the benefits are paid to the nominee.

Guaranteed Additions: They are added on 10th year and every 5 years thereafter till the end of the policy term. Guaranteed Loyalty Additions will be a percentage of the average fund value depending upon the premium amount. For premium slabs in the range of . 25,000-. 100000, the guaranteed loyal addition is pegged at 3.15% of average fund value.

CHARGE STRUCTURE

Premium allocation charges:
3.15% of annual premium for first 5 years. No allocation charges thereafter.

Fund management charge:
0.75% to 1.35% of the fund value. Policy administration charges: 6.30% of annual premium for the first 5 years and 3.15% thereafter. Mortality charges: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

CHOICE OF FUND

IDBI Federal has six funds which address conservative as well as aggressive investors. You can opt for aggressive fund with equity exposure if you have a high risk appetite and are planning to lock into the fund for 10-15 years. If you have limited investment period, you should go for the conservative fund which invests in money market instruments.

DISADVANTAGES

Given the cost structure, you cannot invest in this plan for a short term. Also if the interest rates flatten out in a couple of months, the debt fund option offered in this plan may not be that rewarding. If the sole purpose of investing in this plan is financing your child's future, you can invest in diversified large-cap equity funds and buy a simple term cover for the protection element.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

LIC Jeevan Vriddhi - Single Premium

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 04:58 AM PDT

Life Insurance Corporation of India (LIC) has launched a single premium non-linked insurance plan `Jeevan Vriddhi' with risk cover of five times of premium chosen by the customer.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

PENSION PLAN of your own with a mix of options

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 04:29 AM PDT

Change a leaky faucet, fix an electricity point, tighten a loose hinge—people do many things around the house to save money. Add one more to your do-it-yourself list this year. Make your own pension plan and save considerably more than the money you pay a plumber or an electrician.

The pension plan market has all but dried up after the Irda's diktat that insurers must give guaranteed returns on annuities. Most insurers have stopped selling pension plans. On the other hand, distributors don't want to push the low-cost New Pension Scheme (NPS) despite an upward revision in their commission.

Don't let your retirement planning suffer due to the regulatory problems and the distribution logjam. Take control of your retirement planning by structuring and managing your own pension plan. A little bit of research and prudent investment choices can help you save big on the commission and other charges payable on a pension product from an insurance company.

Besides, it will be more transparent, and as the fund manager of your pension portfolio, you will have complete control over the investments. You can change the asset allocation as per your risk appetite and make changes you feel are necessary to optimise returns.

The withdrawal of pension products by insurers is perhaps the best thing that could have happened to investors. Young investors should put their money in diversified large-cap equity funds and not be too concerned about short-term volatility. "In 20-25 years they will earn a handsome return.

However, not everybody can manage his investments over an extended period. You need to have some knowledge of investment options, understand concepts like portfolio rebalancing and conduct basic research yourself. If you have the skills, go ahead and build your retirement plan. Here are a few steps that can help you build a successful pension plan.

Automate savings

Discipline is the key to long-term savings. To ensure this, put your savings plan on an auto mode by setting up ECS mandates for your SIPs in mutual funds. Keep the SIP payment date as close as possible to the day you get your salary so that there is no chance of blowing up the money on discretionary items. This way you won't have to depend on your will power to invest. Your bank will do it even if you are feeling jittery about investing in an overheated market. Smart tip: Opt for the Voluntary Provident Fund deduction in addition to your PF. VPF contributions enjoy the Sec 80C tax benefits and withdrawals are tax-free.

Diversify investments

Your pension plan is a long-term commitment. It will see many ups and downs and market cycles. Don't concentrate the investments in one asset class. It is best to diversify across equity and debt so that one black swan event doesn't wipe out gains of several years. Even within equities, large cap or multi-cap diversified mutual funds are your best bets. Stay away from thematic schemes, sectoral funds and exotic products when you are saving for retirement. A simple index fund or a diversified multi-cap equity fund will work better. In debt too, don't concentrate the investments in one option or maturity. Have a mix of fixed deposits of different terms, debt funds and fixed maturity plans.

Smart tip:

Use the '100 minus your age' rule to know how much you should put in stocks.

Rebalance periodically

Rebalancing is profit booking by another name. If the equity component in your portfolio surges ahead and your desired asset allocation changes, it may be time to rebalance. This might seem counter-intuitive because you will be required to prune the asset class that is doing well. Believe us, restoring the original asset mix in your portfolio not only reduces the risk but also holds the key to long-term wealth creation. Experts say rebalancing should be done once in 12-18 months. If you do it more often, it amounts to timing the market and defeats the purpose.

Smart tip:

Try copying the auto choice of the NPS in which the 50% equity exposure is reduced by 2% every year after the investor turns 35. It reduces the portfolio risk.

Watch the costs

When you have an investment horizon of 15-20 years, even a small difference in cost can balloon into a big amount. The funds of funds offered by some mutual fund houses have very high charges. The buyer effectively pays an expense ratio for two funds. In stark comparison, the 0.0009% fund management fee charged by the NPS is one of the lowest in the world. Buy passive funds and investment options that have a low cost structure.

Smart tip:

Index funds and ETFs have lower expense ratios than actively managed equity funds.

Minimise tax outgo

Structure your investments to minimise the tax outgo. Choose options that can help you defer the tax, if not completely avoid it. Gains from equity funds are exempt from tax if you remain invested for more than a year. Avoid churning your funds because there is a tax implication every time you sell a fund. The PPF and VPF are good ways to accumulate a tax free retirement corpus. Use debt funds instead of fixed deposits to defer the tax till withdrawal. Even then, the tax will be lower because of indexation benefits available on long term capital gains. Don't opt for the dividend option of non-equity funds because the dividend distribution tax will erode your returns. But this could change as the DTC proposes to tax debt fund dividends as per one's income slab and also dilute the indexation benefit for long-term gains.

Smart tip:

Balanced funds enjoy the tax treatment of equity funds. Use them to avoid paying tax on the income from debt funds.

Devise withdrawal strategy

Last but certainly not the least, devise a withdrawal strategy for the corpus after you retire. Your income will comprise interest from bonds and fixed deposits, dividends from funds and stocks and maturity proceeds of bonds and FMPs. Start systematic withdrawal plans that draw down from your investments in mutual funds. Don't opt for the monthly dividend option of MIPs from mutual funds unless you are in the highest income tax bracket. Instead, opt for the cumulative option and redeem some units every month. Manage your withdrawals in a way that your tax liability does not shoot up in one particular year.

Deploy your retiral benefits in a mix of fixed income options but steer clear of complex products. You can buy an immediate annuity from an insurance company.

Smart tip:

Set up a ladder of FDs so that there is some deposit maturing very year. Reinvest the proceeds for the longest term.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

SBI Life Insurance launches India’s first multi-lingual website

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 03:57 AM PDT

SBI Life Insurance, a leading new generation life insurer, has launched multi-lingual website in key nine Indian languages, namely, Hindi, Marathi, Gujarati, Tamil, Telugu, Malayalam, Bengali, Kannada and Punjabi. First of its kind across Indian Financial sector, the multi-lingual website addresses the latent communication need of large Indian population whose usage of internet is increasing rapidly. Mr. M. N. Rao, MD & CEO,SBI Life said "In line with our customer centric business philosophy, the multi-lingual website has been created to facilitate communication with customers in the language they are most comfortable with. The initiative is aimed at further simplifying customers understanding about our products and services so as to enable them to make well-informed decisions before investing their hard earned money".

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

ING Dividend Yield Fund - Change in Fund Manager

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 01:54 AM PDT

ING Mutual Fund has announced a change in the fund manager of ING Dividend Yield Fund, with effect from March 1, 2012.

Mr. Ankur Arora has ceased to be the fund manager with effect from February 29, 2012. Mr. Danesh Bharucha will replace Mr. Ankur Arora as the fund manager of this scheme.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

JP Morgan India Smaller Companies

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 01:24 AM PDT

This is an equity fund with a focus on mid and small sized companies. According to the November 2011 portfolio, around 83 per cent of the equity portfolio is in mid and small cap stocks.

This fund is not the best in its category - 'Equity: Mid & Small Cap'. It holds a three star rating indicating that there are plenty of better options to select from. But then, it's not the worst either. Take a look at its trailing returns and annual returns and you will see what we are saying.

The fund was launched in November 2007, just before the extreme turmoil that the market witnessed in 2008. Sure, the net asset value (NAV) is below the Rs 10 mark, but it has shown positive returns over a longer period.

It is futile to predict the future. If you need the money, sell. If you do not, then you can hold till the market shows some sign of recovery. But for the future, as an investor, you need to understand the inherent risk when investing in equity funds and take a look at its performance with regards to the benchmark and the category.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Diversification in a portfolio

Submit the filled up form to Collection canter near you

Posted: 19 Mar 2012 12:41 AM PDT

In today's uncertain markets, diversification is key to achieving investment success. It is proven that diversification not only reduces risk in your portfolio, but also allows it to perform under different market conditions.

Broadly speaking, you could achieve portfolio diversification (read: asset allocation) by investing in different asset classes, such as equities, debt and gold. But, still greater diversification could be achieved by investing in different securities within an asset class.

Mutual funds have emerged as an ideal option for investors to achieve diversification. Apart from being a diversified investment vehicle, these offer a variety of funds within an asset class. For example, for the equity portion of your portfolio, you have the option to choose from a variety of funds, such as large-cap, mid-cap, smallcap, multi-cap, index, sector, thematic, contra and opportunity funds. If you choose well, both in terms of type and number of funds, you can not only restrict the impact of volatility in your portfolio, but also get better returns over time.

Unfortunately, diversification is also an aspect of portfolio-building where a number of investors err. The common belief is more the number of funds one invests in, the more diversified the portfolio. It is a myth that investors have been believing in for years. Even while investing through systematic investment plans (SIPs), many invest in a number of funds. One often comes across portfolios where an amount as low as ~5,000 is invested through SIPs in five funds.

If your portfolio suffers from over-diversification, it would dilute your returns over time, as non-performing funds pull down overall returns. Moreover, having too many over-lapping funds would invariably make your portfolio quite complicated. It is always difficult to keep track of a complicated portfolio. On the other hand, a few carefully selected funds in the portfolio could provide you with a higher level of diversification and that too, without compromising on your returns.

Over-diversification can harm your portfolio in some other ways, too. For example, a quality mid-cap fund is a must for along-term portfolio, as it can help improve the overall portfolio returns. However, having too many mid-cap funds in your portfolio for the sake of higher diversification would invariably make you compromise on the quality of the portfolio, as stock picking and a sound investment process are major differentiators for these funds. Considering the midcap segment suffers from poor liquidity and limited coverage, it is always prudent to opt for a quality mid-cap fund that has an established performance track record.

While there is nothing like an optimal number of funds that you need to own to have a sufficiently diverse portfolio, factors like the size of your portfolio and your asset allocation can help you decide that number.

Another important aspect that requires attention is the level of risk you are willing to take to meet your returns expectations. Risk tolerance should also be addressed from two perspectives: Financial risk tolerance and emotional risk tolerance.

While investing in the right combination of funds and in the right number, would ensure a good beginning for the investment process, monitoring their progress too, remains key. The right way to analyse the performance of your funds is to compare these with the peer group, rather than the benchmark index alone. If required, don't hesitate to get rid of non-performing schemes. By doing so and re-investing in funds that have better quality portfolios and track record, you can enhance your portfolio returns. However, once you invest in a fund, give its fund manager sufficient time to perform

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Assess your risk tolerance for good financial health

Submit the filled up form to Collection canter near you

Posted: 18 Mar 2012 09:25 PM PDT

Most people (including those who have planned for their retirement) are concerned about how their financial status will change once they retire. The fear of exhausting one's entire retirement corpus is one of the major concerns for people at the brink of transition into a new life.

This is a very valid concern, and one doesn't want to end up in a scenario where corners need to be cut to make the basics meet. However, such situations can be avoided by following a few steps: Reassess your portfolio: If you are still very long away from your retirement, this is the apt time to reassess your existing retirement plan. Look at asset allocation to minimise your risk and understand what works best for you. If you are nearing your retirement age, make sure you choose low risk vehicles that will help you achieve your financial goals. To make the reassessment process fruitful, you should also consider relooking at your dreams and financial goals to check if they need to be revised first.

Know your risk tolerance: There are various tools and processes one can apply to reduce the impact of risks to your financial health. However, there are cases, where people create financial plans but do not have an understanding of their risk tolerance. If you are not sure about how much risk you are personally comfortable with or how much risk your existing portfolio allows you to take, its time you sit with your financial planner to assess your risk tolerance level.

Get rid of debt: In an ideal scenario, one should stay away from accumulating any bad debt (for example credit card debt).

However, as you get close to retirement, you should be free of all kinds of debt, (including `good' debt like home loans).

The fund that you create for retirement is meant to provide for your living expenses and not to pay loans.

Health insurance: One of the largest contributors of expenses for people post 60 years of age is medical/health expenses. And, this is one component that you need to be adequately prepared to deal with. A health insurance policy is a must have for you post retirement, however, the sooner you get, the better it is for you.

In addition to this, set aside funds for regular medical expenses which are not covered as a part of your health insurance policy.

Don't spend all your resources in one go: Many people believe that now that they have retired, they are free to buy or do what they want, And end up splurging all of their wealth. Instead of spending all of it one go, take a percentage of it every year and do whatever you want to. When Suresh, had started his retirement plan, he said he wanted to have enough wealth to do whatever he wanted without dipping into his pension fund. So, we created a `splurge account' for him, where every month till his retirement, he would invest 1 per cent of his savings. This would mean that he can do whatever he wanted with that saving amount without worrying about overspending.

It's never too late to think about your future. Small steps like these can help you live comfortably even in your retirement, without having to cut corners.
After all, your retirement is the new beginning of your life.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Know How SB Account can get you higher returns

Submit the filled up form to Collection canter near you

Posted: 18 Mar 2012 07:59 PM PDT

THERE is now a situation where depositors in savings bank accounts can ensure a higher amount of earning with respect to their investments. This is an important thing because the deregulation of the interest rates on these accounts has meant that some of the banks are offering interest rates higher than 4 per cent to attract deposits. However in this entire process there is a need to check about the conditions that need to be fulfilled to get the benefit and how the individual will actually ensure that this is completed.

Up till Rs 1 lakh: There are two distinctions that banks have to make with respect to the amounts that are actually lying in the savings account. The first one is that the initial limit for the purpose of distinction for different rates is an investment barrier of Rs 1 lakh.

This means that there has to be equal treatment for the amounts lying in the accounts up to this specific figure. There cannot be any discrimination between the investors or depositors who keep money till this figure. So for example, the bank can have a rate of say 5 per cent for the deposits till Rs 1 lakh, but it will ensure that someone who has a deposit of say Rs 40,000 will get the same rate as someone who has a higher figure of Rs 80,000. This ensures that the situation is such that the barrier limit is protected for all deposit holders equally.

Above Rs 1 lakh: The distinction that can be done is possible for the income that is above the figure of Rs 1 lakh, so there can be favourable treatment that is meted out to those people who actually put up a higher amount. This is already being witnessed with some private banks offering a higher rate of interest that goes up to 6 per cent or even 7 per cent for those people who are willing to put the higher amount of deposits with them in the savings bank account.

End of day balances: A point that a lot of people often forget is that the method to calculate interest is quite important and this hold a big difference when it comes to the savings bank account and the fixed deposits. When there are fixed deposits, the rate of interest is known but the amount has to be invested for the specific period of time so that this is locked up for this period, and hence there is no access to the amount available. An early withdrawal can lead to a penalty in the form of a lower interest earned. In the savings account on the other hand the money can be used at any point of time. The method for the calculation of the interest is such that this has to be done on the end of day balance so this is the figure that would be considered for the purpose of the calculations. The individual who has large amounts available with them can ensure that by consolidating amounts they are not undertaking more additional efforts to get the higher rate of return that is available.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs