Prajna Capital

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• Charges on your savings bank account
• Are your cheque leaves CTS-2010 compliant?
• Top up Health Insurance Plans

Charges on your savings bank account Posted: 12 Mar 2014 05:01 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300         One of the most popular Individual accounts is savings bank account. Various bank charges applicable should be considered before choosing a bank to open a savings bank so that you minimize your costs.  Following are the charges normally applicable on savings bank account. Average Quarterly Balance- It refers to the balance to be maintained every quarter and if the minimum balance goes below statutory minimum it attracts penal charges. For example Axis Bank Charges Rs. 5000 for average quarterly balance and if the other bank charges lesser than this amount the person should go for that. If average quarterly balance falls below Rs. 5000 that person will have to pay Rs. 750/ Quarter. Real Time Gross Settlement. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. The RTGS system is the fastest possible interbank money transfer facility available through secure banking channels in India. In case person wants to transfer funds above Rs. 1 lakhs he/she can use RTGS facility. A person avail this facility from Yes Bank free of cost. Payable at par Cheque usage- If a person on an often uses cheque facility then he/she has to take care whether he draws cheques on and often. In case of Yes Bank 25 Txns per Month free; Rs 2/ Txns thereafter. National Electronic Funds Transfer- Funds are transferred to the credit account with the other participating Bank using RBI's NEFT service. RBI acts as the service provider and transfers the credit to the other bank's account. For this facility Yes bank charges no amount and ICICI and SBI Bank charges a normal fee. So if you happen to transfer funds often using electronic (Online) mode, then consider this element as well.  Outstation Cheque collection and payment- You could end up paying a good amount as charges for your outstation check collection. Yes bank charges Rs 25/ instrument up to an amount of Rs. 5000. Citibank does not charge a fee here if you have a preferred relationship status. Saving account can make a huge difference to your bank balance if the choice is made wisely. Such small charges on bank account can make a lot of difference to your savings. Similarly consider the interest you earn on your saving bank account. Typically, most banks give you interest of about 4% p.a. on the balance you maintain with them. You can earn an interest rate of 7% with Yes Bank (6% for Amounts < Rs.100,000) and 6% with Kotak Bank (5% for Amounts <Rs. 100,000). If you would not like to open another savings account, you can use Auto Sweep facility provided by most banks. You can give a standing instruction to convert surplus balance above your defined cut off, into Fixed Deposit of your specified tenor.  Please keep in mind that interest earned from a normal fixed deposit is added to your income and taxed accordingly.  For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. 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Are your cheque leaves CTS-2010 compliant? Posted: 12 Mar 2014 04:13 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     What is CTS-2010 standard? The New Year is going to witness a change in the way cheques are cleared in India. From January 1, 2013, the Cheque Truncation System (CTS) will be implemented by all banks across the country, wherein the physical movement of cheques between banks will be eliminated. This means, when you issue a cheque to someone, and this person presents the cheque in his bank, this cheque will not physically move to the drawee bank. The physical cheques are retained at the presenting bank level. Instead, an electronic image of the cheque is transmitted to the drawee branch, along with relevant key information like data on the MICR band, date of presentation, presenting bank, etc. To enable this, the Reserve Bank of India (RBI) has prescribed a set of minimum security features which need to be followed by the banks. Such benchmark prescriptions are together known as “CTS-Standard”. Is this a new concept in India? The CTS was implemented by the RBI in the National Capital Region in 2008 and in Chennai in 2011. Taking into account the benefits of this system to all the stakeholders, the RBI has decided to introduce this system across the country from January 2013. How will the new cheques look like? The CTS-compliant cheque leaves will need to have the following: 1. Bank's logo and details, printed in invisible ink 2. VOID pantograph, which is a wavelike design, below the account number 3. Cheque printer details along with ‘CTS-2010’ mentioned, positioned on the extreme left hand side of the cheque 4. Rupee symbol "`" next to where the amount in figures needs to be written 5. Signature space indicator mentioning "please sign above"   What must you do as a customer of the bank? As a customer, you must ensure that you use only CTS-2010 compliant cheque leaves with effect from January 1, 2013. You are not charged a fee for this. If you have ordered cheque books recently, there is a possibility that you would have received the new format cheque books. However, if you have received the cheque book before 3 or 4 months, you might have received a cheque book which is non-CTS compliant. In such a case, you must immediately surrender the non-compliant cheque book to your bank and obtain a new CTS-compliant cheque book. Further, if you have issued a post-dated cheque to anyone, dated after January 1, 2013, or issued such non-compliant post-dated cheques for your home loan or auto loan or any other loan, then you must exchange these for CTS-compliant cheques immediately, as the old cheques may not be cleared after December 31, 2012. You must also take great care while using CTS-2010 compliant cheques. Any alterations or corrections in crucial fields may result in the cheque not being processed under the new system. It is therefore advisable to use a new cheque leaf if you wish to change the payee’s name, amount in words or the amount in figures. It has also been advised by RBI to preferably use dark coloured ink while writing cheques. What do you stand to gain under the new system? As there is no physical movement of cheques, the clearing and credit to your account will be faster than before. Also, there is no risk of loss of cheque in transit. The biggest advantage is that CTS-compliant cheques are more secure than old cheques. There is a reduced scope for committing frauds due to the security checks in place. It is proposed to integrate multiple locations and reduce geographical restrictions in cheque clearing. The new system also aims to increase operational efficiency, both for the banks as well as the customers. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap FundsInvest Online DSP BlackRock MicroCap Fund 2.Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. 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Top up Health Insurance Plans Posted: 12 Mar 2014 03:30 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     In today’s world where healthcare costs are increasing rapidly, a normal health cover of Rs. 3-4 lakhs for the entire family, which most people opt for, may not be sufficient. This nominal health cover may fall short of your actual expenditure if there are multiple ailments by more than one family member or even if a single family member is required to undergo hospitalization many times. You may have to disturb your savings in such a situation. A top-up health insurance plan can be used in this case. Meaning A top-up policy is an additional insurance, providing coverage above an existing health insurance. In other words, when you purchase a top-up cover, you get coverage over and above what is available in your original policy. You can purchase the regular policy and top-up policy from the same or different companies. A top-up policy has similar benefits and conditions as a normal health insurance policy. A top-up policy usually works out to be cheaper than taking a new policy or enhancing limits of your existing policy. But wait, everything cannot be positive about this. There must be a catch somewhere. So, what is the catch? The main criterion is that a top-up plan can be used only if expenses you claim are beyond a certain limit, known as the “deductible”. This limit is decided in advance and premiums are calculated accordingly. So a top-up plan with a higher deductible has a lower premium. Further, a top-up plan usually works only on a single occurrence of hospitalisation. In effect, you can use the top-up plan only if your medical bills exceed the deducible during a single hospitalisation by a single member. Given the restrictions, are top-up plans good for you? A top-up plan is an economical and simple option to augment your health-cover. Top-up plans are useful only when you already have an existing policy and expect that to be insufficient. In the example above, if you feel Rs. 2 lakhs is not sufficient to cover your entire family, you can opt for a top-up plan which works out cheaper than a new policy. Additionally, when you already have a health insurance policy, you should not buy a top-up plan which has a deductible higher than the existing plan’s coverage. So if you have a health insurance policy with a cover of Rs. 2 lakhs, then do not buy a top-up plan with a deductible higher than Rs. 2 lakhs. It does not make sense to opt for top-up plans with high deductibles or if you already have an existing policy with a very high cover. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap FundsInvest Online DSP BlackRock MicroCap Fund 2.Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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