Online Financial Tips

Archive for the ‘Fixed Deposit Accounts & Certificates’ Category

If you are an NRI wanting to earn income in India, you must open an NRE, FCNR or NRO accounts. These accounts will help you even in case of applying for NRI loans. You can enjoy tax exemptions on FCNR account as it is held on a repatriable basis with zero tax liability and high returns on interest rate. Enjoy tax exemptions, enroll for a pension plan, tax saving fund, insurance policies, Fixed Certificates, loans etc.

All income earned in India is repatriable now. Be it rental income, interest earned on savings account or fixed deposit, profits on shares, debentures and mutual funds are transferred abroad. Boost your financial health by investing in debentures, mutual funds and PSEs. RBI has made possible investment in India while you stay abroad. You can continue to earn your income and make profits in India being an NRI. You are allowed to invest in Indian mutual funds, shares, debentures and other certificates, except for a few certification which is not open to a non resident Indian.

Good news is that, you can save your income from being deducted in the form of tax. In order to enjoy tax free income, invest in insurance policies, pension plan, certificate of deposits and tax saving fund. Protect your family while you enjoy tax benefits simultaneously. If you are planning to invest in shares then you must have an online trading account too. Besides this, Non resident external account and Foreign currency non resident account should also be held to carry out financial transactions in five different currencies. You can freely have your financial transactions in US dollar, Deutsche Mark, Pound Sterling, Euro and Japanese Yen.

Except for Kisan Vikas Patra and other national savings certification, you can invest in all major certificate deposit schemes, company deposits, bank deposits and tax saver funds. Enjoy zero tax liability on your FCNR account and NRE account.

A savings account is a balance of funds maintained with a depository institution in order to accumulate money. It is a useful and time-tested way of saving up money for whatever the future holds. The bank or depository institution makes a pledge to repay the amounts maintained in the account. Typically, such institutions are regulated in the United States and provide a depositor protection insurance, which guarantees the funds will be available when needed by depositor.

Typically, longer-term investments are put into equities or fixed deposits because they yield a higher rate of interest. Each depository institution maintains their own policies about how savings accounts can be used. In many cases one bank can have several savings account offerings depending on the type of customer they seek.

People may open a time deposit account, wherein the cash deposited is kept for a predetermined tenure. However, withdrawals can be made after giving a notice or incurring loss of interest. A dormant savings account typically has no transactions except collecting interest from the savings amount for a specified period of time.

A passbook savings account is one in which deposits and withdrawals are documented in the depositor’s passbook. Other types of savings also include corporate retained earnings and a government budget surplus.

In simple terms, ‘savings’ sounds easy to understand. However, there are a few definitions of what exactly the term savings can mean. One may argue that the portion of a person’s income that is utilized on mortgage settlements and not spent on present consumption should consequently be termed as savings.

There are many banks in Singapore but in his article we talk about the three top banks which give the best interest rates in Singapore. The interest rates vary periodically and you have to check the latest rates from the bank website. Read on to know more.

One of the top banks is the DBS Bank that is incorporated in Singapore. The previous name of the bank was The Development Bank of Singapore Limited. The new name was adopted in 2003. The role of the bank has changed through out the years. The bank was set up in 1968. They have their offices in China, Dubai, India, Hong Kong and many other countries. They offer their customers the best interest rates. They have various schemes customized to individual customer needs. The customer can deposit a minimum amount of S$1000. The person with the fixed deposit account can also access the ATM card. The account is automatically renewed with the same interest rates unless the customer has instructed otherwise. The best fixed deposit rates over here for twelve months of an amount of S$1000 to S$9,999 is at the rate of 0.45 %. The head office of this bank is 6 Shenton Way, DBS Building Tower One Singapore 068809.

Another premier bank in Singapore is HSBC. It is one of the earliest banks to be established in Singapore. It offers its customer a wide range of services. It was first established in December 1877. Today it is known as the world’s famous local bank. However to open a fixed deposit account over here people have to open an account that has a balance of minimum S$5000.It has got flexible deposit scheme with attractive interest rates. In most cases the deposits are automatically renewed. The interest rate over here for 12 months would be 0.48% for the amount of S$5000 to S$ 49,999. Over here one can get the highest interest rates. For further details you can visit their office at 21 Collyer Quay HSBC Building Level 2 Singapore 049320 from 9.30 am to 5.00 pm from Monday to Friday.

OCBC bank in Singapore is one of the leading financial institutions in Asia. They have got a large range of services for their clients. The minimum amount to open a fixed deposit account is S$5000. The best interest rate for a period of 24 months for the amount of S$5000 to S$20,000 is 0.7000.The rates are calculated in % per annum. For further details anybody can contact 65 Chulia street #01-00 OCBC center Singapore 049513.

The Benefits Of Fixed Term
Fixed term deposits lock your money away and keep it safe, so if you want to save money for a specific reason such as paying back your home loan or saving for a holiday, this type of account is what you need. The interest rate can be quite high and will remain a fixed interest rate over a certain period.

If you have a hard time saving your money, then you may want to consider one of these accounts. You will be able to select the timeframe that your money will earn a specific interest rate, which can be anywhere from one month to five years; plus, the minimum amount to get started can be quite low.

To deter you from moving the money early, you will be charged a fee if you choose to take money out of this account, so if you continue to use fixed term deposits for a long period, you will earn more interest on top of your regular interest.

Many providers are offering easy set-up options when it comes to opening a fixed account, like being able to transfer money online. In basic terms, you can log into your account through the internet, choose the amount you want to transfer, the time period it runs and then sit back and watch it grow.

If you have any questions regarding the account, always be sure to contact the institution you have your money with, as once the term deposit account is opened and your funds are in there, moving them can be costly.

It is absolutely essential to shop around and look at the different deposits available. Some financial institutions charge fees for term deposits, but this is not the norm. Find accounts that do not charge fees and that offer the highest interest rates. If you want a low risk investment, then a deposit is definitely the way to go.

The bank gives to its customers a pass book or a statement of account. Pass book or statement of account is a copy of the customers account in the books of the bank. The bank keeps the customer informed of the entries made in its books. The customer is expected to compare the pass book with the cash book (bank columns) and to inform the bank immediately regarding the errors that may have come to his notice.

The statement of account is similar to the pass book with the only difference that it is on loose sheet. The statement of account is sent by the bank to the customer of its own whereas it is the customer’s duty to send the pass book to the bank for being written up-to-date. Recording banking transactions Banking transactions are recorded in three column cash book. However, jf the triple column cash book is not maintained the transactions would be journalized.

The journal entries are as follows:

Current Account

When cash is deposited in the bank
Bank account … Dr
To Cash account (for cash deposited into bank)

When cash is withdrawn from bank for use in business.
Cash account …Dr.
To Bank account (for cash withdrawn.)

When payment is made to creditor by cheque to settle his account.
Creditor’s account …Dr.
To Bank account (for cheque issued-to settle his account.)

When an expenditure is met by the issue of cheque.
Expense account ….Dr.
To Bank account (for expenses paid by cheque)

When cheque is issued to meet the personal expenses of the proprietor.
Drawings account …Dr.
To Bank account (for cheque issued to meet personal expenses.)

When cheque or draft is received from a party.
Cash account …Dr.
To Personal account (for cheque received)

When cheque or draft received is paid into the bank.
Bank account …Dr.
To Cash account (for cheque received paid into bank)

When cheque or draft is received from a party and is paid into the bank the same day.
Bank account…Dr.
To Personal account (for cheque received and paid into bank)

When a customer pays the money directly to the bank.
Bank account…Dr.
To Customer’s account (for payment made by a customer directly into the bank)

When a cheque or draft is received from one party and is endorsed in favor of someone’ else.
Endorsee’s personal account …Dr.
To Payee’s personal account (for cheque received from – endorsed over to -.)

When bank debits the customer’s account with the incidental or collection charges.
Bank charges account…Dr.
To Bank account (for bank charges charged by bank)

When bank credits customer’s account with interest.
Bank account …Dr.
To Interest account (for interest credited by bank)

When cheque is dishonored
Personal account (Party from whom cheque was received)
To Bank account …Dr.
(if it was sent to bank)
To Endorsee’s personal account (If the cheque was endorsed)

When draft is purchased from bank and sent to some one. Personal account …Dr.
Bank charges account …Dr.
To Cash account (for draft purchased and sent to-)

Fixed Deposit Account
When amount is deposited in fixed deposit account.
Fixed deposit account …Dr.
To Cash account (for cash deposited in fixed deposit account)

When fixed deposit is made by the issue of a cheque.
Fixed deposit account …Dr.
To Bank account (for cheque issued and deposited into fixed deposit)

When interest becomes due on fixed deposit.Fixed deposit accountTo Interest account(for interest due on fixed deposit account)

When cash is received on realization of fixed deposit.
Cash account …Dr.
To Fixed deposit account (for cash received on realization of fixed deposit)

When the amount of fixed deposit is paid in the bank current account.
Bank account …Dr.
To Fixed deposit account (for fixed deposit amount on realization paid into bank account)

Savings Bank
When money is paid in savings bank account.
Savings bank account …Dr.
To Cash account (for cash paid into savings bank account)

When interest is due.
Savings bank account …Dr.
To Interest account (for interest credited by bank)

When cash is withdrawn from bank
Cash account …Dr.
To Saving bank account (for cash withdrawn from bank)

Bank Loan
When loan is given by bank in cash
Cash account …Dr.
To Bank loan account (for loan withdrawn from bank)

When the amount of loan is credited by bank in current account.
Bank account …Dr.
To Bank loan account (for loan credited by bank in ‘current account)

When interest becomes due on loan. Interest account to Bank loan account (for interest due on loan)

When loan is repaid.

Bank loan account …Dr.
To Cash account (if paid in cash)
To Bank account (if repaid by cheque).

Online Web banking is a department of many financial services organizations and banks around the world. These financial institutions can have three business verticals which are Wealth and Institutional Management, The Retail Bank and The Business Bank.

Customer centric approach should be the motto and driving force of any online banking service. With these views in mind the online banking service provider is expected to suit the changing needs of the consumer. Today’s consumer needs speed, efficiency, effectiveness, accuracy and value for all banking transactions. Time is important for the discerning customer of today.

Just as it is with all other sectors, IT and Internet has revolutionized the banking business beyond recognition. Online banking has made the banking experience simpler and cost effective. Internet offers a host of value added services available at the click of a mouse. A customer has the convenience of making transactions from home or workplace.

Online banking is the most effective way of managing bank accounts. One can easily perform the usual functions without having to spend time in queues or having to personally visit the bank at a designated hour. Online banking provides the customer with a safe, secure and fast banking experience.

There are large companies which offer online customers a lot of benefits. These basic benefits include checking balances and viewing statements, transfering money from one account to another, making payments, paying bills online and requesting for cheque books, demand drafts and statements online. Customers can also download account information, open a new savings account, open accounts for trading in the stock market and request for ATM cards and credit cards. You can also view credit card transaction details online, and set up standing instructions for future transactions to avoid delays and default. Lastly, customers can open a fixed deposit account and apply for other miscellaneous financial products. Those who are into forex trading can access the latest financial information such as the Forex rate and the deposit rate.

The transaction costs are bare minimum and the process is extremely user friendly and transparent. All these functions can be performed without any hassles, from the comforts of your home and at your own time and pace. There is no rush and you have all the time in the world to understand your requirement, analyze data and do whatever you need to do without any external interference.

The advantages of online banking far outweigh the disadvantages. There are very few disadvantages and they may not even qualify as disadvantages considering the immense benefits that one gets from online banking. The three most apparent disadvantages are as follows. Firstly, online banking is devoid of human intervention. If you prefer chatting up with your friendly teller while waiting for cash, you may prefer the traditional way of banking. Secondly, you need to keep your user I. D. And password safely. If this sensitive information gets into the hands of unscrupulous people, they can wreck havoc on your bank accounts. Lastly, online banking may take a while for the uninitiated to get a hang of it. However; with time and practice it will become easier.