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June 26, 2018

Reasons behind choosing FDs over other traditional forms of investments

bank investmentsIt’s not advisable that you keep your surplus funds in a regular savings account for long. In that case, you can’t just expect a high ROI against this fund. You may choose to go with multiple options like mutual funds and shares, but they have an element of risk. The risks are much lower with FD investments as they’re regulated.

What’s so special about Fixed Deposits?

You may open FD account while you’re looking for some safe and sound investment option. Besides being safe, FDs yield a lucrative rate of interest for the investors. You may earn quality interests on the amount that goes out in your FD account for a certain period.

1. Fixed Deposits create earning opportunities by compounding interests

FDs yield interest for over a uniform period when issued by banks. If you don’t need the amount of interest to come as regular quarterly or monthly income, you may consider reinvesting in your FD account. You’re likely to witness a growth of the principal amount and the interest of the upcoming period will be ascertained on the new value. In this way, you’ll end up earning more on the invested amount. All you need to do is to pick your payment option besides opting for the compounded FD option. You may use any FD calculator online to check the returns.

2. Sound investment option for senior citizens

You may consider an FD among the most lucrative investment options when you don’t have a source of steady income, especially when you’re old and retired. Many of the Indian banks provide you with an FD account and abide by the safety norms laid out for protecting your invested principal. The rates of interest might not be very high, but you may still gain something on these deposits. Under circumstances when you’re heading towards a financial crisis, you may close all FDs even if they haven’t matured.

3. Fixed Deposits yield tax-saving opportunities

FDs come with great tax saving options when you’re specifically interested in investing a portion of your funds for a long term. You may avail them in the form of a 5-year term deposit and set your money to be locked in for those 5 years. Until the maturity of your FD, you won’t be able to achieve credits or loans on your fixed deposits and can’t break them. With tax saver FDs, you may enjoy tax exemption on the principal amount invested by you. Depending on the tax slab, taxes are levied on the interest.

4. Fixed Deposits are much safer

The RBI governs all FD schemes that are issued by the NBFC and Indian banks. Issuers of these schemes are required to follow certain stringent regulations and rules from time to time. In India, the banking industry is safer for the investors as most saving schemes yield adequate protection towards the principal.

If you’re not among those who looks for a high ROI then you may be in need of a more secure investment. FDs are certainly one of those safer schemes that you’ve been looking for. All of your capital is in safe hands as the FDs are regulated by stringent norms laid down by the government authorities. That is also the reason why FDs are considered so safe for the members of low-income groups that don’t possess any alternative source of income.

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June 19, 2018

5 Things to note before taking your first personal loan

obtain personal loansIf you’re taking out your first online personal loan, it probably means you don’t have a credit history or a credit score. This doesn’t however hold true if you’ve had or currently have a credit card (if you’ve had a credit card in the past, you’ll have a credit score). Lenders use your credit score obtained from your credit report to understand how good you’ve been at managing credit in the past. Personal loans are unsecured loans that don’t involve collateral, and usually come with a higher interest rate in comparison to secured loans. This is precisely the reason why having a good credit score is important for your application to get approved.

Let’s forget the credit score part for now. If you’re a first timer, here are some things you should note before taking your first unsecured personal loan:

Know the various charges involved

Personal loans come with a list of charges that include late payment charges, EMI bounce charges, processing charges, pre-closure charges, and part-payment charges. When you’re taking out your personal loan for the first time, make sure you are aware of the various charges. It is of course, always good to be aware about how much lenders are charging you.

Choose a short repayment period

Choosing a short repayment period helps reduce the interest payment over the course of your loan tenure. Longer tenures attract higher interest payments, but lower monthly repayment amounts. As your first loan, you wouldn’t want to pay too much interest, do you? However, if lower monthly repayments suit you, you should go ahead and choose a longer tenure, for you can always pre-close your loan after a certain period. Note that most lenders require you to complete a minimum of 6 months or 12 months of your tenure before you can pre-close.

Don’t borrow more than you need

Your approved amount might be higher than what you asked for – lenders use this tactic to make you borrow more. Don’t fall for it thought. Borrow only how much you need. Borrowing more than you need is just setting the platform for unnecessary debt accumulation.

Negotiate the interest rate

Negotiating the rate with the bank will help you get a lower interest rate on your loan. Moreover, if you don’t have a credit history, there’d be multiple lenders in the market willing to offer you a loan. Going by this logic, it is advised that you negotiate the interest rate on your loan to get a reduced rate.

Don’t apply with multiple lenders

Applying with multiple lenders negatively affects your credit score. Too many credit inquiries reflect credit-hungry behavior, and lenders can reject you on the basis of this – rejections bring down your credit score as well. So for starters, make sure you apply with only one lender.

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June 18, 2018

8 Smart Tips for Flooring Renovation to Increase Home’s ROI at Resale

resellable flooringThe best home improvements are those that give you the best return on investment (ROI.) Some of these, like flooring from Wraps Studio, work well, as long as you choose the best options for each room of your home. Certain types of flooring, like luxurious carpeting from carpet grapevine tx or traditional hardwood floors, are guaranteed to give you the best ROI. Here are eight tips that will help you with this process.

1) Know the Different Types Of Flooring

You need to understand the differences between the types of flooring. There are so many options on the market, from various kinds of tile to laminate and bamboo floors that just going into Wraps Studio may give you a headache. If you educate yourself first, you’ll be much better off.

2) Choose Flooring That Fits Your Needs

Don’t just buy the cheapest or most expensive flooring out there. Instead, pick the type that best fits each room of your home. Look for study options for busy rooms and luxurious, finicky ones for the spaces that get less traffic.

3) Don’t Be Afraid To Ask For Advice

Flooring store employ experts who can answer questions and help you choose a style or finish. They’re in the store for a reason – ask them for help if you need it.

4) Diversity Your Flooring

It can be tempting to cover every inch of your subfloor with carpeting from carpet grapevine tx. However, you should break things up as needed and choose the very best flooring for the room. Your home will look more complete, and you won’t have to worry about scaring buyers off with a carpeted bathroom or kitchen.

5) Personalize Your Floor

The key to making your house stand out from all of the others on sale in your area is by adding some personalized touches. Buyers will appreciate those hand-stenciled floors and other details.

6) Redo Your Floors When Needed

If you can’t afford to have, new flooring installed, then make the most of what you already have. You can restain hardwood floors, and they’ll end up looking as good as new. In fact, if you’re afraid of the staining process, paint works just as well. It will cover up any stains and watermarks and give your home a whole new look.

7) Spend Time Doing Necessary Maintenance

You’ll need to do some regular maintenance in order to keep your floors looking nice. It might be something as simple as wiping up spills right away to steam cleaning your carpets every few months. Do what you need to in order to make your flooring look as good as new.

8) Prevent Your Floor from Becoming Damaged

Some types of flooring are prone to damage. If you have this finicky flooring, be gentle with it. If your wood floors are light in color and you’re worried about permanent stains, then lay down a rug. However, at times you might just have to install new flooring in order to reverse any damage.

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May 10, 2018

Money Management: 5 Tips to Make Handling Your Finances Easier

manage your financesManaging your finances can be overwhelming when you don’t make use of the right tools to address them. The amount of paperwork will make you shudder if you continue to do things the old-fashioned way.

Making use of technology can revolutionize the way you do your finances. There are services and apps available that will help you simplify payment transactions, staying on top of your savings, and monitoring your personal budget.

Here’s how you can do a better job of managing your money with the help of tech-powered solutions.

1) Register for online banking

Why spend precious time waiting to be attended to in a bank when you can complete your transactions online? Whether it’s checking the balance on your account or transferring funds, you no longer need to go to the actual bank, which saves you money and time.

The major benefit of online banking services is that you have instant access to your money. Plus, with mobile SMS banking, you don’t even have to carry around your laptop. With a few clicks on your phone, you can check payments and see if your budgeting numbers are correct.

The access alone can already help streamline your finances so that you’re always up-to-date when it comes to your money.

2) Opt for paperless

When you see a stack of paper bills inside your mailbox, it’s easy to become overwhelmed by your financial obligations. Sometimes, you tend to place them somewhere you can’t remember, which leads to late fees.

As much as possible, go paperless so that you can easily track your bills the moment they hit your email.

Without the possibility of misplacing your bills, you are less likely to forget due dates of payments. Most utilities and bills have the option for customers to go paperless.

Check if you’re able to sign up for such by taking these steps:

1. Sign in to your online account and check if you have an option to have your bills sent via email.
2. Then, follow the prompts in the email to pay the bills without any extra fuss.

During tax time, it’s a bonus that you no longer have to sort through your stack of bills to gain an idea of how much you’ve spent. You only have to log into your account to look at your statement.

3) Automate payments

If you can, set-up automated payments for accounts that stay consistent every month. So instead of going into your account and paying manually, the amount is debited automatically.

There are many banks that will allow you to have your own auto-pay rules. You can even choose to have the amount immediately sent via check or electronically to your selected service provider.

However, being on auto-pay doesn’t mean you can ignore payments; you still have to check transactions to ensure they’re paid correctly.

4) Combine or eliminate your accounts

When you have countless open accounts, several payments to make regularly, and account maintenance to fulfill, you need to “spring clean.” Streamlining accounts will tidy up your payments and transactions so that you have a simpler path to money management.

Take a look at your regular monthly bills and you may find unnecessary services. If possible, combine or eliminate accounts you don’t need. For instance, if you’re maintaining several credit cards but have one card with a tiny balance, pay it off and close the account. Doing so will leave you with one less payment to remember.

5) Perform a regular budget check

You may have a budget in place, but lining up the numbers isn’t enough to maintain order in your finances. You still have to regularly check your budget to ensure that your numbers are right. Furthermore, you should allow adjustments for any unplanned expenses.

To avoid disorganized finances, you should balance your budget on a regular basis. Make it a habit to schedule a monthly check-up on your budget by following these steps.

● Gather your bills for the month.
● Log-in to your online bank account.
● Look at your account and check if payments match bills and there are no suspicious charges.
● Discuss next month’s expenses with your partner or family.
● Make adjustments to any budgeting numbers that need it. One example is your electricity bill during the summer.
● Ensure that you’re still on track with the financial goals you’ve set.

Don’t let your finances control you. Handle your finances better by using technology and regularly tracking your budget. Remember, how you manage your finances matters as much as the math.

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April 15, 2018

Is Britain’s debt detrimental to pension performance?

dealing with debtsAs the saying goes—out of sight, out of mind. And for many, this has been the motto for their pensions. However, the launch of auto-enrolment schemes, increased media coverage and a growing awareness of retirement has shifted these attitudes.

According to the Q2 2017 edition of the Tackling The Savings Gap Consumer Savings and Debt Data report, 598,000 employers were enrolled in a workplace pension scheme. Over the 12-month period, they contributed a collective £87.1 billion. With the popularity of personal pensions continuing, it’s clear to see that Britain is certainly more aware of their pension responsibilities.

Could our other financial commitments be holding back our personal pension savings? The Q3 2017 edition of the report suggests so. During the quarter, 45% of survey respondents failed to make a pension contribution; this was most common in 45 to 54 year-olds (47%). 18 to 24 year-olds had the second largest proportion of people who failed to contribute (44%).

Consider the above in relation to what the report also found. Findings show that a third of its respondents worry about money on a daily basis, while 37% admitted to lying about their debt. Perhaps then it’s not because of a lack of awareness; it may be because their financial situation simply won’t allow them to make a contribution.

Pension contributors added £203 on average to their pensions during Q3 2017. In contrast, the average amount of debt taken on by UK consumers each month stood at £370—significantly higher than the amount put towards their pensions.

A total of £143 per month is spent on average on purchases that are later regretted, the Q3 2017 report found. This includes purchases across food, clothes, alcohol and other items. If this money was invested in a pension instead for the full span from age 30 to 65, it could translate into almost £320,000. Based on the fact that Brits believe they will need £23,000 annually to live comfortably in retirement, this amount would be enough to fund 13 years of retirement.

This monthly spend breaks down to £4.70 per day. As the above example shows, investing this amount instead could lead to a comfortable start to your pension pot for retirement. As such, we shouldn’t underestimate the impact that small yet regular contributions can have. This underlines the importance of better financial management to allow us the capacity to add such funds to our pension pots.

To help you learn more about how much you could potentially need for retirement, True Potential Investor has created the Saving For Retirement: How Much Will You Need? quiz. By answering a series of questions, you can get an idea of the potential pension pot you’ll need—take the quiz today to find out more.

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