What is a Mutual Fund ?

What is a Fixed Deposit ?

1. What is a Fixed Deposit?
2. What is premature withdrawal charges ?
3. Who can apply for fixed deposit ? 
4. What are the benefits offered by a Fixed Deposit?
5. What is the minimum amount for a fixed deposit? 


1. What is a Fixed Deposit? 
In a Fixed Deposit account you deposit you money for a set period of time, the deposit earns you interest which is usually higher than what the savings account offers you. 


2. What is premature withdrawal charges ?
Unlike the savings account where you can withdraw the money either partial or in full at any time the fixed deposit can be withdrawn only when term period expires. Pre,ature withdrawal from fixed deposit before the term period would attract premature withdrawal charges


3. Who can apply for fixed deposit ? 
Organizations and Individuals who want to park their funds somewhere, for some future purpose simultaneously earning better interest than that offered by savings accounts.


4. What are the benefits offered by a Fixed Deposit? 
# You can take loan of a certain percentage (e.g. say 80%) against a fixed deposit.
# Better interest rates than that offered by savings accounts.
# Flexibility in choosing the term period for the deposit.
# Premature withdrawal, in case funds are required urgently.


5. What is the minimum amount for a fixed deposit? 
The mimimum fixed deposit offered by various financial institutions vary,
hence the information may be obtained directly from such institutions.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).

What is Credit ?

1. What is Credit ?
2. What is checked before giving credit ?
3. What is credit worthiness ?
4. Who can get credit ?


1. What is Credit ?
Monetarily, credit is the amount that you borrow on the condition that you repay later. Credit can also be considered as a loan. 
When you buy something on credit, the seller considers the the amount to be paid by you as credit given to you, which you would later repay as per the agreement/understanding between you and the seller.


2. What is checked before giving credit ?
3. What is credit worthiness ?
The person/body giving credit to you would in normal case assess your credit worthiness i.e., whether you would be able to repay the amount taken on credit along with interest, if interest is also being charged on the credit amount.


4. Who can get credit ?
This depends on who you are taking credit from, your friend, the grocery shop, bank, etc. The more professionally involved the lender in this business the more stringent their method of verifying your credit worthiness.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).

What is Insurance ?

INSURANCE
1. What is Insurance ?
2. What are the different insurance plans available/I can choose from ?
3. Insurance plan for financial Planning !


1. What is Insurance.
Insurance can be defined as “ A contract/agreement between two parties whereby one party called insurer undertakes in exchange for a fixed sum of money (premium in installments), to pay the other party called insured a fixed amount of money on occurrence of a certain defined event."


insurance can be seen as basically a security and protection cover that can be bought against a financial loss which can arise on the occurrence of an unexpected event including financial losses and damages. The cover 


2. What are the different insurance plans available/I can choose from.
Different insurance plans cover different aspects of our assets, following are some of the insurance plans that are available in the market.
Life Insurance
Medical Insurance/Health Insurance
General Insurance
Home Insurance, 
Travel Insurance
Vehicle Insurance
Term Plans
Endowment Plans
Group Insurance
Retirement Plans
Children's Plans
Wealth Plans


3. Insurance plan for financial Planning !
Life Insurance also plays a good role in your financial planning as apart from providing financial security cover it also ensures growth.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).

What is a Current Account ?

1. What is a Current Account ?
2. What are the features of Current Account ?
3. Which banks and financial institution in india offer current accounts ?
4. What is QAB (Quarterly Average Balance) to be maintained in a  Current Account ?
5. What if the minimum balance (QAB)  is not maintained in Current Account ?
6. How to get/obtain a Current Account?
7. Who can open a Current Account ?
8. What a bank asks/requires for opening an account?
9. What is required for obtaining Current Account ?
10. What documents are required for opening a Savings Account ?
11. Where can I get Current Account ?


1. What is a Current Account ?
Current account is a account held in a bank or financial institution operated by cheque, these are usually preferred by firms, companies, public enterprises and independent businessmen as they allow them to have as many financial transactions i.e., deposits and withdrawals and transfers per day as they wish. These account would not earn any interest as in case of savings account and also they would be requiring a higher minimum balance (QAB) wen compared to savings account. Now even the flexibility of debit card and online internet banking is also being offered making it even more convenient for the businessmen to go about their business. Considering the large number of transactions in the account and volatile nature of balances maintained overnight banks generally levy certain service charges for operating a Current account. 


In terms of RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts. However, legal heirs of a deceased person are paid interest at the rates applicable to Savings bank deposit from the date of death of the account holder till the date of settlement. 


2. What are the features of Current Account ?
Following are some of the important features of current account, although features offered by individual banks and financial institutions may differ.
# Overdraft facility
# Unrestricted No. financial of transactions.
# Electronic Payments.
# Faster funds transfer transactions like internet banking.
# Cheque book facility.
# Nomination facility.


3. Which banks and financial institution in India offer current accounts ?
The following list of banking institutions may be considered, that list in not in any particular order


State Bank Of India
Indian Overseas Bank
Indian Bank
Bank of Mysore
Bank Of Rajasthan
Bank Of India
Canara Bank
central bank of india
State Bank of Bikaner and Jaipur
State Bank Of Travancore
Union Bank of India
ABN AMRO Bank
Axis Bank
Allahabad Bank
American Express
Barclays Bank
CitiBank
DENA Bank
Deutshe Bank
Development Credit Bank Ltd.
Fullerton India Credit Co ltd.
HDFC Bank
ICICI Bank
IndusInd Bank
Jammu and Kashmir Bank
Karur Vysya Bank
Karnataka bank
Muthoot Group
Oriental Bank Of Commerce
Reliance Capital Ltd.
Tata Capital Limited
Vijaya Bank
YES Bank 


4. What is QAB (Quarterly Average Balance) to be maintained in a  Current Account ?
Minimum balance that needs to be maintained in the Current Account will be higher than the savings account, the exact information about the same may be obtained from the respective bank/institution of their website.


5. What if the minimum balance (QAB)  is not maintained in Current Account ?
Is there a penalty is QAB (minimum balance) is not maintained in Current Account ?
Non maintenance of certain minimum balance/QAB would attract QAB charges.


6. How to get/obtain a Current Account?
Either you can visit the nearest branch of the bank or you can apply for the same on internet by visiting the concerned bank's official website.


7. Who can open a Current Account ?
#An individual who is a major.
#In case of two or more individuals, in their joint names.
#Sole proprietorship concerns.
#Hindu Undivided Family (HUF).
#Limited Companies.
#Partnership concerns.
#Others - Govt. and semi Govt. bodies, local authorities etc.
#Clubs, Societies.
#Trusts, Executors and Administrators.


8. What a bank asks/requires for opening an account ?
Banks are required to know the true identity of the person wanting to open an account. Banks also seek introduction of the person from an existing account holder. Banks require photograph of the person to be kept on record for future identification purpose. Banks have to obtain PAN numbers (issued by Income Tax Dept.) of the account holder at the time of opening of the account. 


9. What is required for obtaining Current Account ?
10. What documents are required for opening a Savings Account ?
# Your completed Current Account opening form.
# Passport-size photograph(s) of yourself and all other account holders (in case of Joint Account).
#Proof of individual's identity
Passport*
Voter's ID
Driving licence
Government ID card
Defence ID card
Photo ration card
Photo PAN card
#Proof of residence
Passport
Telephone bill
Electricity bill
Ration card
Society outgoing bill
Life Insurance Policy
#Introduction of the person from an existing account holder in the bank.
#PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961


11. Where can I get Current Account ?
A Current bank account can be opened in any operating bank of financial institution.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).

What is a Savings Bank Account ?

1. What is a Savings Bank Account ?

2. Some of the prominent banks in India are as followed.
3. What is minimum balance to be maintained in a  Savings Account ?
4. What is QAB/AQB Average Quarterly Balance ?
 5. How to get/obtain a Savings Account?
6. Who can open a Savings Account ?
7. What a bank asks/requires for opening a Savings Account ?
8. What is the interest paid for Savings Account ?
9. What is required for obtaining Savings Account ?
10. Where can I get Savings Account ?
11. For how long Savings Account would be valid ?
12. What is inactive/inoperative/dormant Saving Account ?
13. How to cancel/deactivate Savings Account?


1. What is a Savings Bank Account ?

It is an account in a bank where depending on the balance (money) maintained in the account the bank pays interest as per the existing interest rates which is directly credited to your account. 

Savings Bank Account can either be opened in the name of an person/individual or  the depositors can open in joint names. The money can be withdrawn form the bank by various methods the most common being the Debit Card used in the ATM (Automated Teller Machine), although there is generally a ceiling on the total number of withdrawals that are allowed within a specified period. 

2. Some of the prominent banks in India are as followed.

Nationalized Banks

SBI & associates 

State Bank of India.

State bank of Hyderabad 

State bank of Mysore, 

State Bank of Bikaner and Jaipur

State bank of Travancore, 

State bank of Patiala, 

State bank of Indore, 

Other Nationalised Banks (Chronological Order)

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

IDBI Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab and Sind Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Private Banks (Chronological Order)

Axis Bank

Bank of Rajasthan

City Union Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

Laxmi Vilas Bank

South Indian Bank Ltd

Tamil Nadu Mercantile Bank

Yes Bank

3. What is minimum balance to be maintained in a  Savings Account ?

Certain minimum balance needs to be maintained by the Savings account holder in the account as per  different bank. There would be a difference when nationalized banks and private banks are compared, the nationalized banks require lesser minimum balance.

4. What is QAB/AQB Average Quarterly Balance ?

It is the average of daily balances (end of the day) for a quarter (3 months).

Some banks require you to maintain certain QAB/AQB which may be different for different banks, failing which  QAB/AQB charges would be levied (deducted from your account). 

Example

Avg. Month Balance – JAN – 15,000

Avg. Month Balance – FEB – 5,000

Avg. Month Balance – MAR – 10,000

Then Average Monthly Balance for Jan to March would be 10,000 per month.

If say your bank's QAB is 15,000 as your are falling short by 5,000 QAB/AQB charges would be levied, and the same amount would be deducted from your account.

5. How to get/obtain a Savings Account?

Either you can visit the nearest branch of the bank or you can apply for the same on internet by visiting the concerned bank's official website.

6. Who can open a Savings Account ?

# by a person in his / her name;

# by two or more persons in their joint names payable to :

- both or all of them or the survivor or survivors of them; OR

  - either or any more of them or the survivor or the survivors of them; OR

  - former / latter or survivor of a particular person during his lifetime or survivors jointly or   survivor.

# Certain non-profit welfare organizations are also permitted to open Savings bank accounts with banks.

7. What a bank asks/requires for opening a Savings Account ?

Banks are required to know the true identity of the person wanting to open an account. Banks also seek introduction of the person from an existing account holder. Banks require photograph of the person to be kept on record for future identification purpose. Banks have to obtain PAN numbers (issued by Income Tax Dept.) of the account holder at the time of opening of the account. 

8. What is the interest paid for Savings Account ?

The Reserve Bank of India has issued a directive, according to which the interest (as applicable )would have to paid on the minimum amount present in a savings bank account each day. As per the new directive issued by RBI, only commercial banks including all banks other than co-operative ones will need to follow this new method of interest payment on savings accounts. Previously the interest on Saving Account was calculated at 3.5 per cent per annum on the minimum balance held in the account from the 10th of each month to the last day of that month.

9. What is required for obtaining Savings Account ?

What documents are required for opening a Savings Account ?

# Your completed Saving Bank Account opening form.

# Passport-size photograph(s) of yourself and all other account holders (in case of Joint Account).

#Proof of individual's identity

Passport*

Voter's ID

Driving licence

Government ID card

Defence ID card

Photo ration card

Photo PAN card

#Proof of residence

Passport

Telephone bill

Electricity bill

Ration card

Society outgoing bill

Life Insurance Policy

10. Where can I get Savings Account ?

A Savings bank account can be opened in any nationalized, private or co-operative bank.

11. For how long Savings Account would be valid ?

Until the account in closed by the account holder(s). 

12. What is inactive/inoperative/dormant Saving Account ?

If an account is not used for a long period the account becomes inactive/inoperative/dormant and the same needs to be activated for use, for which the account holder(s) may be required to approach the branch in which the saving account was opened.

13. How to cancel/deactivate Savings Account?

You would be required to approach the branch in which your account has be opened or you get the preliminary information from the customer case of the concerned bank.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).

ArthGyan - Know everything about money...

Welcome,

The aim of this Blog is to give people a general awareness and information related to finance and the products and services offered by the Indian BFSI Sector. BFSI is an abbreviation for Banking Financial Services and Insurance.

A consumer always wishes and wants to have at least a minimum amount of information and knowledge about the products and services of Banks, Financial Institutions and Insurance companies, so that they, before buying or getting into a contract, could get as much information and suggestions from several sources as possible and then make an informed decision. Here we would try and provide enough information so that a viewer always leaves with a little more knowledge and awareness. 

Visitors are welcome in posting their comments, suggestions and contributions.

PLEASE NOTE : All the information on this blog is subject to the "Disclaimer" (click here to read the Disclaimer).