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How to do KYC for Mutual Fund Online | DBS digibank

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How to do KYC for Mutual Fund Online | DBS digibank

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Online KYC for Mutual Fund -  From the convenience of your own home, one can complete your mutual fund KYC. This service can be simply accessed by installing the digibank app.

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Key Takeaways

Know Your Client or Know Your Customer (KYC) is a verification process mandated by Indian regulatory bodies.

KYC helps authenticate a customer's identity with government-approved ID and address documents.

Its objective is to curb fraudulent financial practices.

The online KYC for Mutual Funds eliminates the need for In-person Verification (IPV).

You can complete eKYC online through video calls where the mutual fund house representative records the video and captures your photograph.

Investments in Mutual Funds are gaining popularity among the young investors of the country. Per a report by the Association of Mutual Funds in India, the Assets Under Management (AUM) rose from INR 33 lakh Cr in the first Financial Quarter of FY 21-22 to INR 36 lakh Cr in the Second Quarter. This number will only keep growing. As such, it is imperative to correctly identify the large influx of customers on the precipice of their investment journey. Keeping these factors in mind, the Indian Government has resorted to digital means to conduct KYC for Mutual Fund. Keep reading to learn the process.

What is KYC?

Know Your Client or Know Your Customer is an authentication process conducted by several Indian banking and non-banking financial companies (NBFCs). It enables institutions to verify the identity, address, occupation, and other relevant information of a potential customer. KYC aims to eliminate illegal activities like money laundering and terrorist financing activities, among other things.

Over the years, the finance sector has experienced unlawful activities to fabricate criminal and unethical practices. A deficit of thorough verification processes gave fraudsters the freedom to open unwarranted accounts and fund illegal activities. To overcome this obstacle, the Government of India made it mandatory for all financial institutions like banks, Securities and Exchange Board of India, SEBI registered intermediaries like brokerage houses etc., to conduct the KYC process before account opening accounts for investment purposes.

How To Do KYC Online For Mutual Funds?

Traditionally, Asset Management Companies and brokerage houses would have you visit their premises to complete the KYC process. However, today, you can complete online KYC for Mutual Funds from the comfort of your home with the Video-based Customer Identification Process (V-CIP), regulated by the RBI. Here are the steps:

1. Select your preferred Fund House to open your Mutual Fund account.

2. Register your details - name, mobile number, email ID, PAN details on the company website.

3. Keep clear, physical copies of the required documents handy along with your video-enabled device.

4. The Fund House executive or a third party will record the audio-video and capture your photograph to complete the e-KYC for Mutual Fund.

After verification, you will be deemed KYC compliant and can start your Mutual Fund investments.
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Documents Required

1. Proof of Identity

PAN Card

Driving License/Voter ID/Passport

2. Address Proof

Latest Bank Account Statements/Bank Passbook

Aadhaar Card/Aadhaar XML/Aadhaar DigiLocker

Passport Copy

Ration Card

Latest Electricity or Telephone Bill

Rental Agreement

3. Passport Size Photograph

4. Cancelled Cheque

5. Copy of your signature

Conclusion

Now that you know how to do KYC for Mutual Fund online, you can virtually complete eKYC for mutual funds. Per the New RBI regulations, customer KYC is completed via digitalisation, making the KYC process hassle-free.
Save your time and energy by investing in Mutual Funds online. Download the digibank app to start the paperless process of creating your savings account and be one step closer to investing in Mutual Funds. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Online KYC for Mutual Fund - Stepwise Procedure | digibank by DBS

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Know Your Client or Know Your Customer (KYC) is a verification process mandated by Indian regulatory bodies. KYC helps authenticate a customer's identity with government-approved ID and address documents. Its objective is to curb fraudulent financial practices. The online KYC for Mutual Funds eliminates the need for In-person Verification (IPV).

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How To Know Your PAN Card Status | digibank by DBS

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How To Know Your PAN Card Status | digibank by DBS

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PAN Card Status - Here is a simple guide on how to check the status of your PAN card both online and offline. The digibank by DBS website has more comprehensive information.

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Key Takeaways

You can conveniently apply for PAN Card online via NSDL or UTIISTL.

In both processes, you can track your PAN Card Status online.

You can check the PAN status on the NSDL website with your acknowledgement number.

On the UTIISTL website, you can check the PAN Card Status via a coupon number.

You can call or send an SMS to know the PAN application status as well.

Your PAN Card is an essential piece of documents that you, as a taxpayer, need to file your Income Tax Returns. Providing your PAN Card is mandatory for receiving salary, sale or purchase of assets, making Mutual Fund investments, and other such financial transactions. All your tax-related information is linked to your PAN Card, which lenders, investors etc., can assess when you enter into a financial relationship with them. You can conveniently apply for a PAN Card online through the NSDL and UTIISTL websites and check the status of your application. Find out how to track your PAN Card status in this article.
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How to Know PAN Card Status

There are many ways in which you can check PAN Card Status online and offline. Here are somethings you can do:

Call the PAN Helpline

You can call on 020-27218080 and track PAN status by providing you 15-digit Acknowledgement Number received on your email address at the time of the PAN card application.

Send an SMS

Send your 15-digit Acknowledgement Number to '57575'. You will receive the current status of your application via SMS within a few minutes.

Track status Via NSDL Website with Acknowledgement Number

1. Visit the NSDL Website and click on 'Know status of PAN/TAN Application'.

2. Select 'PAN - New/Change Request' from the 'Application Type' dropdown.

3. Enter the 15-digit Acknowledgement Number, enter the captcha code and click on 'Submit.

4. The PAN Card status will appear on the screen.

Track status Via NSDL Website without Acknowledgement Number

1. Visit the NSDL Website and click on 'Know status of PAN/TAN Application'.

2. Select 'PAN - New/Change Request' from the 'Application Type' dropdown.

3. Enter your 'Last Name/Surname', 'First Name', and 'Middle Name.

4. Enter Your Date of Birth/Incorporation/Agreement/Partnership or Trust Deed/Formation of Body of Individuals/Association of Persons.

5. Click on submit to track PAN Card Status.

Visit the UTIITSL Website

If you applied for PAN Card on the UTI Infrastructure Technology And Services Limited ( UTIITSL) website, follow these steps to track your PAN application.

1. Visit the UTIISTL website.

2. Click on 'PAN Card Services' and select 'Track PAN Card'.

3. Enter the Coupon Number or the PAN Number which you receive on email.

4. Enter Your Date of Birth/Incorporation/Agreement/Partnership or Trust Deed/Formation of Body of Individuals/Association of Persons.

5. Enter the captcha code and click on 'Submit' to view the PAN Card Status.

Final Note

Now that you know how to check PAN Card status, you can choose any of the above methods to learn whether your PAN Card application is processed. You can use the acknowledgement number, reference or coupon number to track the status of your PAN Card. Ensure you save the email with the acknowledgement details. You can track the status by simply entering your full name and date of birth. You could also send an SMS or call the customer care helpline.
Are you looking for a smart mobile banking app? Download digibank by DBS and explore a world of banking facilities in a few swipes. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Track Pan Card Status - How to Check Pan Card Status? | digibank by DBS

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You can conveniently apply for PAN Card online via NSDL or UTIISTL. In both processes, you can track your PAN Card Status online. You can check the PAN status on the NSDL website with your acknowledgement number. On the UTIISTL website, you can check the PAN Card Status via a coupon number.

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What is Virtual Payment Address  | digibank by DBS

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What is Virtual Payment Address  | digibank by DBS

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Virtual Payment Address - Learn about VPA's features, advantages, and key information. One can easily make payments by installing the digibank app.

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What is Virtual Payment Address & Key Benefits of using a VPA | digibank by DBS

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Find out what VPA (Virtual Payment Addresses) are and how they can help you send or receive money. Download digibank app & send money to your family now.

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How to Add Beneficiary to Your Account | DBS digibank

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How to Add Beneficiary to Your Account | DBS digibank

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How to Add Beneficiary - digibank presents a step-by-step tutorial for adding beneficiaries to ensure smooth fund transfers. By downloading the digibank app, one may make payments without any fuss.

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Key Takeaways

In banking, a beneficiary is a recipient of fund transfers.

Adding beneficiaries is a one-time process you can undertake on your internet banking portal

You need details like name, bank and branch name, account number and IFSC code to add a beneficiary.

You can transfer funds to beneficiaries via internet and mobile banking systems like NEFT, IMPS, and RTGS.

The beneficiary receives funds within 30 minutes.

Are you looking to transfer funds to a friend or relative? You can now do this easily with the Net Banking or Mobile Banking facilities offered by your bank. You can do an electronic funds transfer to account holders within your bank or those held in other banks as well. But before you do that, you will need to add the bank account details of the recipient so that they can receive funds. This article explains the steps to add a beneficiary and the subsequent fund transfer processes.
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Who is a beneficiary?

In banking, a beneficiary is a recipient of fund transfers. The beneficiary may have a bank account in the same bank as yours or another bank. You need to provide the fund transferring bank with specific details of the beneficiary before you can initiate the fund transfer via payment channels like Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) or the National Electronic Fund Transfer (NEFT).

How to Add Beneficiary

Here are the steps to add a beneficiary

1. Log in to Internet Banking or Mobile Banking.

2. Click on 'Add beneficiary' under the 'Fund Transfer' tab.

3. Enter beneficiary account details like their name and bank branch and name, bank account number, IFSC code, and mobile number and click on submit.

4. Enter the one-time password (OTP) sent on your registered mobile number to complete adding the beneficiary.

It takes a cooling period of 30 minutes to add beneficiary on the back end, after which you can initiate the fund transfer.

After Adding Beneficiary How To Transfer Money

1. Login to your net banking account once again.

2. Select Fund transfer and your preferred mode from IMPS, NEFT, and RTGS.

3. Select the beneficiary and enter the fund transfer amount.

4. Enter their mobile number

5. Click on the box to receive intimation on fund transfer on your mobile number and/or email id

6. Enter OTP to complete the fund transfer

This completes the fund transfer process.

Fund Transfer limit

NEFT: No minimum or maximum amount required.

RTGS: Minimum INR 2 Lakhs, No upper ceiling

IMPS: Daily transfer limit is INR 5 lakh.

How to Initiate Funds Transfer Without Adding Beneficiary?

Some banks allow you to make a quick, one-time fund transfer of up to INR 50,000 without adding a beneficiary. The other option to transfer funds to an account without adding a beneficiary is to make an IMPS transfer using Mobile Money Identification Number or MMID. MMID is a seven-digit unique number. With the MMID and contact details of the beneficiary, you can initiate IMPS without adding beneficiary.

Final Note

The main benefit of adding a beneficiary to your account is the ease of transferring money to your payee through NEFT, IMPS and RTGS channels. Also, once you have added a beneficiary, you can continue to make repeated payments anytime in the future without the hassle of adding their details again.
Get started with seamless money transfer with digibank. Download the app now and send money to your family from anywhere! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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after adding beneficiary how to transfer money

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fund transfer without adding beneficiary

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Add Beneficiary to Account for Money Transfers in Easy Steps | digibank by DBS

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In banking, a beneficiary is a recipient of fund transfers. Adding beneficiaries is a one-time process you can undertake on your internet banking portal You need details like name, bank and branch name, account number and IFSC code to add a beneficiary.

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NEFT Transaction Charges | digibank by DBS

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NEFT Transaction Charges | digibank by DBS

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NEFT Charges - One of the most economical ways to send money online is through NEFT transfers. One can transfer money by downloading the digibank app.

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Key Takeaways

The RBI owns and operates the National Electronic Funds Transfer (NEFT) system in India.

NEFT enables electronic fund transfers within 30 minutes.

NEFT money transfers are immensely popular thanks to its PAN-Indian presence.

You can make online and offline NEFT transfers.

There are no NEFT charges for online transfers, whereas offline transfer charges are nominal.

In this digital age of online shopping and same-day deliveries, Indian banks have kept up with the times. Today, banks offer several methods of same-day, inter and intra-bank fund transfers. You can transfer funds into beneficiary accounts via methods like NEFT, IMPS, RTGS, etc. Let us talk about NEFT and NEFT transaction charges.

What is NEFT?

National Electronic Fund Transfer (NEFT) is a payment system operated by the Reserve Bank of India. A PAN-India facility, NEFT allows the speedy transfer of funds between bank accounts across India. Funds are typically credited into beneficiary accounts within 30 minutes. NEFT aims to facilitate efficient, reliable, and secure online and offline fund transfers.

NEFT Transaction Charges

If you are wondering, 'is there any charge for NEFT', you should know that charges apply based on whether you choose the online or offline fund transfer method.

Online

The RBI levies no charges from member banks for NEFT Transactions. Effective January 2020, the RBI has advised banks not to impose any charges for online NEFT Transactions made from a Savings Account. Therefore, NEFT Transactions made via internet banking and mobile banking with digibank by DBS Savings Account are free of charge. Additionally, there is no upper limit on the fund transfer amount for online NEFT transactions.

Offline

You can transfer funds via NEFT by visiting your nearest DBS Branch and filling the NEFT form. The maximum NEFT bank charges levied on NEFT Transactions made at bank branches are as follows:

The above NEFT charges are as per RBI guidelines. Note that you can make an NEFT cash transfer without holding a bank account. Simply visit the NEFT-enabled bank branch and fill an NEFT transfer form. You can transfer a maximum amount of INR 50,000 per transaction through this method.
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Features & Benefits

Besides knowing NEFT bank charges, you should be aware of its unique features. Until 2019, the RBI processed NEFT transactions at specific hours. However, today, you can electronically transfer funds all year round. Presently, NEFT operates in half-hourly batches at intervals throughout the day.

Besides fund transfers, you can use NEFT to pay off your credit card dues, loans EMI, make inward foreign exchange remittances, etc.

At present, there are over 1.5 lakh NEFT-enabled banks in India. The PAN India coverage makes NEFT transfers extremely convenient.

The most apparent benefit of NEFT is the absence of charges for online fund transfers. With digibank by DBS, Savings Account holders can make online NEFT charges free of cost.

Conclusion

NEFT transfer is one of the most cost-effective means to transfer money online. You have to pay nominal NEFT charges for offline transactions, while online charges are non-existent. The PAN India presence makes NEFT transactions extremely convenient.
Download digibank by DBS to effortlessly send money to your loved one with 100% confidence. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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NEFT Charges - Know NEFT Transaction Charges | digibank by DBS

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The RBI owns and operates the National Electronic Funds Transfer (NEFT) system in India. NEFT enables electronic fund transfers within 30 minutes. NEFT money transfers are immensely popular thanks to its PAN-Indian presence. You can make online and offline NEFT transfers. There are no NEFT charges for online transfers, whereas offline transfer charges are nominal.

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Account Statement – An Overview | digibank by DBS

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Account Statement – An Overview | digibank by DBS

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Account Statement –  The purpose, advantages, and main components of the bank statement are covered by digibank by DBS. All the specific information is available on DBS's digibank website.

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Key Takeaways

A bank statement is a detailed summary of all activity in your account across a particular period.

It records both - deposits and withdrawals.

Banks are mandated to keep records of your bank statements for a minimum of five years, even if you have closed your account.

It is a great tool to help you keep track of your money.

You can use bank statements as your income proof when you apply for a loan or mortgage.

A bank statement is a detailed summary of the income and expenditure related to your Current or Saving Account and is prepared by your bank every month. A bank statement allows you to track your spending and monitor any suspicious activity in your account. It also helps you analyse your spending patterns so that you can make prudent financial choices. Typically, banks send monthly statements to account holders on a particular date. But you can also generate your statement online via net banking or collect a physical copy from the bank.
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Features & Benefits of Bank Statement

A bank statement is also known as an account statement or transaction summary statement. Below are its features and benefits

Bank statements are excellent tools to help you keep track of your money.

It doubles as your proof of income when you apply for loans or mortgages.

While filing IT returns, you can provide your bank statement as proof of your financial position.

What Does a Bank Statement Contain?

A bank statement usually contains the following details:

Account holder details

The statement includes the basic details of the individual or joint account holders - their names, residential address, registered mobile numbers and PAN Numbers.

Account details

It also includes specific details such as the bank name, customer number, account number and type of account.

Transaction history

The statement mainly comprises the transaction history - a record of all credits and debits with specific date and time stamps, amounts, payer, and payee descriptions, etc.

Steps to View the Bank Statement Online

1. Login to your account through the net banking portal or mobile banking app of your bank.

2. Look for the Account Statement.

3. Select the period for which you would like to generate the statement.

4. The bank will give you the option to either download the statement on your system or send it to your registered email address.

Bank Statement versus Mini Statement

Apart from a bank statement generated for a particular period, banks offer a compressed version of your account. This is called a mini statement. The mini statement gives you the details of the last five to ten transactions and your account balance. While a bank statement is more comprehensive, a mini statement gives you the more recent transaction details. Also, you cannot use a mini statement as income proof. You can get your mini statement through various modes like Mobile Banking, SMS Services, Quick Missed Call Banking facilities and Net Banking.

Final Note

Most banks now allow you to choose how you wish to receive your monthly bank statements. You can either opt for a paper statement or apply online for an electronic bank statement sent to your registered email address. Updating your mobile number and email address is crucial so that you do not miss out on important alerts from your bank.
With the digibank by DBS app, you can open a new savings account in a few minutes! Download the app to get started. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Bank Statement - Decoding What is Account Statement in Detail | digibank by DBS

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A bank statement is a detailed summary of all activity in your account across a particular period. It records both - deposits and withdrawals. Banks are mandated to keep records of your bank statements for a minimum of five years, even if you have closed your account.

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What is OTP Number - How to authenticate your transaction with an OTP number is covered in this post. To open an account, one can download the digibank app.

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Key Takeaways

OTP is a banking-industry term for One-Time Password.

An OTP number is a unique security code used for online transactions.

An OTP uses an auto-generated algorithm to help users authenticate their online transactions.

It provides an extra layer of authentication as compared to a static password.

An OTP is valid only for a few minutes and cannot be reused.

In the 1990s, financial scams and phishing became increasingly common in India. This forced the banking industry to review the security features for various kinds of transactions. As banking moved to a more digital phase, banks realised the need to add a security measure for online transactions. Thus, was born the OTP authentication method. Let us understand what is OTP in this article.
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What is OTP?

A one-time password or OTP number is a unique security feature for online transactions. It is an automatically generated numeric string of characters, which acts as a PIN to authenticate various banking transactions. Valid only for a single transaction or login session, an OTP provides an extra layer of authentication than a user-created static password.

When is OTP generated?

Once you fill in your account details to pay for an online transaction, you get redirected to a page where you have to click on get 'My OTP number'. At this stage, your bank sends you the instant OTP number via SMS on your registered mobile number. An OTP is valid for a few minutes, and you must enter it to complete the authentication process. If you do not receive the OTP instantly, you can click on resend OTP two more times.

How do banks send OTP Numbers?

Banks typically send OTP numbers via text message on your mobile device and your registered email address.

They may make a voice IVR call on your registered mobile number, wherein you will receive the OTP as a spoken password.

Some OTPs come as security tokens, which are microprocessor-based server smart cards or pocket-size key fobs. These cards produce a numeric or alphanumeric code to gain access to a transaction. This secret code changes every 30 or 60 seconds based on the configuration of the token.

With push notification authentication, you do not have to enter the OTP manually. The code is auto filled in the corresponding tab, and you can approve it with the click of a button.

Benefits of OTP Number

OTP authenticates the account holder and prevents theft attempts.

It is far more secure than static passwords.

Since you can use it only once, you cannot enter the same OTP twice.

The OTP number helps block robots generating automatic profiles to dodge the validation tests, such as the 'Completely Automated Public Turing test to tell Computers and Humans Apart' (CAPTCHA).

Some formats allow two-factor authentication, which involves a user-created password and an auto-generated OTP, further adding an extra level of authentication.

Even if your credit or debit card is lost or stolen, fraudulent payments cannot be made with it without OTP validation. As such, OTP protects your credit card from potential fraud.

Final Note

The world is turning increasingly digital. Several websites and stores allow you to use conduct all kinds of online transactions. For such transactions, the OTP number plays a vital role in ensuring the authenticity and security of your financial transactions.
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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OTP Number - What is OTP & How it Works | digibank by DBS

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OTP is a banking-industry term for One-Time Password. An OTP number is a unique security code used for online transactions. An OTP uses an auto-generated algorithm to help users authenticate their online transactions. It provides an extra layer of authentication as compared to a static password.

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How to Unblock Debit Card - Stepwise Guide | DBS digibank

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How to Unblock Debit Card - Stepwise Guide | DBS digibank

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How to Unblock Debit Card - The many procedures to unlock a debit card to resume use are described by digibank. Downloading the digibank app allows for simple payment processing.

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Learn different ways to unblock Debit Card to restore usage

Key Takeaways

If your Debit Card is lost or stolen, immediately report it to your bank.

Block your card online through Net Banking or call the customer care helpline of the bank.

You can unblock your card by placing a request with your bank.

If your card is hot listed, request your bank to issue you a new card.

The bank may levy a charge to issue a new Debit Card.

Consider this – You decide to go to the mall for your festive season shopping. After a good day of retail therapy, you get back home only to realise that your Debit Card is not in your wallet. You then recollect that you may have probably left behind your Debit Card at the billing counter of the food court. After many frantic calls to the mall, you get to know that there is no way you will get your card back.

Scary thought? But do not fret. There are ways to block your card remotely in a few minutes temporarily. Learn about how to unblock Debit Card after blocking it.

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How to Block Debit Card

You can immediately call the customer care helpline of your bank from your registered mobile number or place a request through Net Banking to remotely block your ATM-cum-Debit Card.

You can also block the card via SMS or by visiting the bank branch.

After following the necessary steps, you will receive a ticket number after the successful blocking of your card. Make a note of this number for future reference.

How to Unblock Debit Card

Similar to the above case, your Debit Card could get blocked due to various other reasons. Nevertheless, there are ways to unblock the card and restore its normal functioning. Depending upon why your card was blocked, you can look at ways to unblock it to carry out merchant payments or cash withdrawals at ATM kiosks. Here are some ways:

Automatic Unblocking

When you enter the wrong PIN thrice, the bank blocks your Debit Card for 24 hours to avoid misuse. After 24 hours, it will unlock on its own.

Apply to The Bank to Unblock Your Card

If you have blocked the card due to suspicious activity or due to your negligence and now would like to unblock it, you will have to place a request at the nearest bank branch. You may have to provide your identity proof along with your account number so that the bank can unblock the card.

New card Issued by the bank

Your card usually comes with a validity of 3-5 years. If the card has been blocked due to its expiry, the bank will issue a fresh one with a new card number and PIN.

How to Remove Hot listing of Debit Card

A hotlist refers to a list of cards that have been reported stolen, cancelled, or compromised. This means you cannot use the card for any further transactions. Once your card is hot listed, you will have to request your bank to issue you a new card.

Final Note

A lost, or stolen Debit Card could be used for fraudulent transactions. If you notice any unauthorised transaction on the card linked to your bank account, you should immediately alert the bank and follow the how to block Debit Card process mentioned above.

Happy shopping with the digibank by DBS Debit Card! Download the app to open your digiSavings account instantly and get your Debit Card!

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Unblock Debit Card - A Detailed Guide | digibank by DBS

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How to Unblock Debit Card - Here’s a stepwise guide to help you unblock debit card in a hassle-free manner. Download the digibank app to get a debit card today!

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All You Need to Know About Cashless Payment | DBS digibank

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All You Need to Know About Cashless Payment | DBS digibank

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Cashless Payment - There are four distinct ways to go cashless, according to digibank. Downloading the digibank app allows for simple payment processing.

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Key Takeaways

The future of money is cashless

Cashless payments are convenient and secure.

The pandemic and the subsequent social distancing norms have propelled the shift to digital payments.

Digital financial transactions are easily tracked and recorded.

Digital payment apps and cards offer a range of discounts and freebies.

First, it was demonetisation, and now it is the pandemic - these two catalysts have entirely changed the way we conduct our financial transactions. With digital payment systems gaining momentum, India is gradually transitioning into a cashless economy. From buying groceries to paying utility bills, cashless payment is soon becoming the most preferred payment option for many. If you are still on the fence about ways and reasons to go cashless, this article is for you.
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Ways to Go cashless

There is no dearth of alternative payment methods available today, from credit or debit cards; to electronic payment apps; to mobile wallets to cryptocurrencies. The most popular types of cashless payments include the following:

Credit and Debit Cards

All it takes is one swipe of your credit or debit card to shop for your favourite items offline. You can use these cards for online shopping as well. Banks issue cards with enhanced safety features like embedded chips and OTPs for authentication, making card transactions safe.

Mobile Banking

Mobile banking gives you the freedom to access your bank accounts 24/7. Bank apps allow you to check your account balance, transfer funds, pay utility bills, etc. Furthermore, your account information is not stored on your device. This makes mobile banking safe and secure to transact.

Mobile Wallets

A mobile wallet is a novel way to carry your cash digitally. All you have to do is to link your debit or credit card to your mobile wallet application. Once that is done, you can transfer money to your mobile wallet to make any transactions. So, instead of carrying cash or cards, you can just bring your phone to shop both online and offline.

UPI via Electronic Payment Apps

Unified Payment Interface (UPI) is a popular mode of digital transaction. It is quick, secure, and hassle-free. With a single click authentication, you can make easy transfers via UPI with the virtual payment address of your beneficiary.

Why Go Cashless?

There are many positive reasons to move cashless. Here are the best ones:

Convenience

As long as you carry your credit/debit card or mobile phone, you can have instant access to all your cash holdings. It saves the hassle of carrying hard cash everywhere.

Discounts

Several bank cards and mobile wallets provide cashback offers and discounts on digital transactions. Also, you can take advantage of reward points and loyalty benefits to redeem your purchases. Opting for cashless payments lets you save on railway tickets, highway tolls, buy insurance products at discounted prices.

Tracking expenses

With cash transactions, you must maintain endless ledgers and may fund it cumbersome to track payments. With digital payments, all transactions are recorded on the applicable payment modes, helping you to keep a tab on your expenses.

Final Note

There is a popular adage 'Cash is king'. But with India's move towards a cashless economy and small businesses to retail giants opting to move cashless, it is only a matter of time that a cashless revolution will dethrone king cash.
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Cashless - Top Cashless Payments & Transaction | digibank by DBS

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The future of money is cashless Cashless payments are convenient and secure. The pandemic and the subsequent social distancing norms have propelled the shift to digital payments. Digital financial transactions are easily tracked and recorded. Digital payment apps and cards offer a range of discounts and freebies.

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What is the Best Way to improve your credit score | DBS digibank

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What is the Best Way to improve your credit score | DBS digibank

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How to Improve Credit Score - To benefit from loans with reduced interest rates, one might take steps to raise credit scores. Visit the digibank website to learn more.

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A good credit score is the ticket to fast-track loans. Your credit score directly impacts your loan eligibility and helps you get lower interest rates on loans. You can leverage several simple tricks to improve your credit score before applying for a loan.

If you are in the market for a new car, house, or even a tech gizmo, you may probably consider getting a loan. After all, a loan empowers you to buy big-ticket items, while you can repay the principal sum in pocket-friendly and affordable Equated Monthly Instalments. At digibank, your good credit score can help you get fast track loans within minutes of approval. Wondering what a credit score is and how you can improve it? Read on to find out.

Credit Scores For digibank Loans

The credit score is a 3-digit numeric value, ranging from 300-900 points. It is a number that the lender considers before determining the status of your loan application. In India, entities like the Credit Information Bureau India Limited (CIBIL) and major banks pool together data about every consumer's credit history to access your financial behaviour - the number of bank accounts you have, how you manage your payments and more. Upon crunching these variables, CIBIL assigns each account holder a credit score that reflects your credit repayment behaviour - whether you have repaid your previous and current loans and credit card bills on time. As lenders, it helps us assess your creditworthiness and determine the loan amounts you can get.

The higher the credit score, the better are your chances of getting a high-amount loan at lower interest rates. The credit score ranges from 300-900. While scores above 600 may make you eligible for a loan, those above 750 can help you get an attractive deal that is also budget-friendly. Ensuring you improve your credit scores before applying for a loan improves the chances of it being disbursed successfully.

How to Improve Credit Scores?

If your credit score is not yet up to the mark, worry not. There are some simple tricks you can employ to improve your credit score, and by extension, your loan eligibility. Here are some things you can do.

Mind your utilisation patterns and spending activities

Have you been making too many expensive purchases recently? What about your transactions - have they increased significantly? If yes, you need to keep an eye on them. Your bank might become concerned if your spending patterns begin to change suddenly. This may make them more cautious while extending new lines of credit to you.

Do not be swayed by tempting promotions

Are you tempted by an incredible promotional offer from a bank or lender? Some of them are great, but sending applications to many lenders can affect your credit rating! Banks consider the number of credit facilities available to you as liabilities and may view this behaviour as financially irresponsible if you respond positively to most offers. Focus on not over-extending yourself. This goes a long way in improving your credit score.

Show the lender that you are creditworthy

How often do you miss your credit card payments? If the answer is never, you have already won half the battle. Remember, banks deem you creditworthy for paying off your credit card bills on time. Try and make the total payments of outstanding credit card debt each month instead of partial or late payments. This not only saves you from paying interest on credit card spends but also improves credit scores.

Cultivate a good working relationship with the bank

Have you been a loyal customer with your bank since you first opened your account? Have you paid off your credit card bills in full and on time? Have you maintained the average balances needed in your account? If not, building a better relationship with your bank can be very rewarding. You would also then be considered a reliable customer and borrower.

Review the amount of credit you have

While you may have the 'right card' that helps you avail of discounts, cashback and other perks, you could consider scaling back on two things - the number of credit cards you own and the credit utilisation limit on each card. Your credit score is affected by the number of credit card accounts you have with various banks. If your credit utilisation ratio is over 30% on each card, your credit score could also be impacted. So try limiting your credit utilisation limit to 30% to improve your credit score.

Limit requests for new or hard credit

Applying for a new credit card or loans while repaying existing loans can adversely affect your credit scores for anywhere from 2 months to 2 years. The bank perceives this behaviour as taking on more debt than you can repay. So, avoid making constant, hard enquiries for fresh credit so that your credit score remains unaffected.

Pay off existing debts

An excellent trick to increase credit scores is to pay off your existing debts, including loans. If you pay your loan EMIs on time, without defaulting, you can rest assured that your credit scores will improve.

Frequently Asked Questions

What is the easiest and best way to improve your credit score?

If you repay your bills on time, your creditor proposes an increased credit limit. While you should accept the increased credit limits, avoid utilising more than 30% of the limit. This practice helps improve your credit score.

What is credit report?

When you apply for a loan from digibank, we ask you to provide some basic documents and proof of eligibility. Of these, the credit report is a document that affects the outcome of your loan, helps us determine the loan amount you can get and whether you are creditworthy.

Who assigns credit scores?

Credit scores are assigned by Credit Information Bureau India Limited, or CIBIL, Equifax and Experian in India. CIBIL is the leading credit information bureau in India.

How can I check CIBIL scores, and what are the charges for the same?

You can check CIBIL scores online on the CIBIL website. You can get your first CIBIL report for free. After that, you can opt for a one-time report by paying a nominal charge for the same. You also have the choice of selecting six month or year-long subscription models, the charges of which may vary.

How to build credit score?

The process of building credit scores is gradual. You can build your scores by regularly using your credit card and repaying your dues. Taking on loans and repaying them on time also helps build credit scores.

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what is the best way to improve your credit score

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How to Improve Credit Score Fast | digibank by DBS

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A good credit score is the ticket to fast-track loans. Your credit score directly impacts your loan eligibility and helps you get lower interest rates on loans. You can leverage several simple tricks to improve your credit score before applying for a loan.

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Meaning of Loan Moratorium | DBS digibank

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Meaning of Loan Moratorium | DBS digibank

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Loan Moratorium - Learn more about the purpose, advantages, and requirements for the loan moratorium here. The digibank by DBS app can be downloaded to submit an application online.

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Key Takeaways

A loan moratorium is a temporary suspension of loan repayment.

It allows you to plan your finances better.

It offers you some respite from your financial hardships.

A loan moratorium is not a waiver but a postponement of the EMI.

You must check with your lender if you are eligible for a loan moratorium.

The novel coronavirus pandemic dealt a severe blow to the common man's finances. In March 2020, the Reserve Bank of India (RBI) announced its first Loan Moratorium as a relief measure on loan EMI repayment for individuals and small businesses against the pandemic-induced lockdown. The apex bank then extended the moratorium again in August 2020 and May 2021; the latter with the Supreme court's intervention. With moratorium becoming the most popular finance buzzword in the aftermath of the covid-19 pandemic, we thought we thought it apt to write about it. Let us find out loan moratorium meaning in this article.
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Loan Moratorium - Meaning Explained

A loan moratorium is a temporary suspension of loan repayment. It is a period wherein you are entitled to get a break on your loan repayment. You can stop paying the Equated Monthly Instalments or loan EMIs for a specific tenure during a moratorium. The moratorium tenure depends upon the type of loan you are repaying and differs from lender to lender.

Bear in mind this loan moratorium is not a waiver but a deferment of loan EMIs. This means that the repayment tenure and maturity of the loan will extend by the number of months you avail of the moratorium facility.

Who is Eligible for a Loan Moratorium?

Having explained loan moratorium meaning, let us learn who is eligible for this facility. Banks generally offer moratoriums on products like Home Loans, Personal Loans, Education Loans and Credit Card dues.

The term moratorium is widely used in the context of education loans, where students can start repaying EMIs, after completing their course and finding employment. Education loan applicants are usually provided with a loan moratorium of 6 months to 1 year after completing their degree. They can start repaying loan EMIs after the moratorium period ends.

Besides Student Loans, you can avail of an EMI holiday on Home Loans. Since the loan amount is usually on the higher side, you can avail moratorium to settle these loans.

Benefits of Loan Moratorium

The moratorium allows you to plan your finances better.

It offers you some respite from tight liquidity conditions.

Availing moratorium will not affect your credit score; instead, it saves you from becoming a defaulter.

Things To Consider About Loan Moratorium

Loan EMIs will be deferred and not waived

The interest will continue to accrue on the outstanding amount.

Your loan tenure is bound to increase.

For a moratorium on Home Loans, the lender may increase the interest rate once the loan resumes.

Final Note

Now that you know Loan moratorium meaning, you can consider utilising this facility if needed. While availing of a moratorium can help ease your financial hardships, you should only opt for it if necessary. If your bank has set a moratorium as the default option for your loan, and you do not wish to avail of it, you can visit their website and fill a form to opt out of the scheme.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Loan Moratorium's Meaning Explained in Detail | digibank by DBS

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A loan moratorium is a temporary suspension of loan repayment. It allows you to plan your finances better. It offers you some respite from your financial hardships. A loan moratorium is not a waiver but a postponement of the EMI. You must check with your lender if you are eligible for a loan moratorium.

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What is Estate Planning | digibank by DBS

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What is Estate Planning | digibank by DBS

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Estate Planning - The definition of estate planning and what it entails are provided by digibank. One can visit the digibank by DBS website for additional information.

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Key Takeaways

Estate Planning is the planning of your assets during and beyond your lifetime.

It helps you distribute your assets per your wishes.

Estate Planning entails drafting your will and assigning a Power of Attorney.

A trust can allow you to safeguard your assets for designated beneficiaries.

Buying life insurance is also a critical aspect of estate planning.

Proper management of your estate is crucial through the course of your life and also beyond your lifetime. To ensure that your legacy is protected and the financial security of your chosen beneficiaries, you can rely upon Estate Planning services. To learn more about Estate Planning, read on.

What is Estate Planning?

Estate Planning is the planning of your assets during and beyond your lifetime. Your estate consists of all your tangible and non-tangible assets, determining your net worth. It includes real estate, land, cash, securities and investments, or other valuable possessions.

In India, it must draft a Will declaring your intentions to devolve your assets before passing. If you pass away without fulfilling this requirement, then country-specific laws on asset distribution will apply. In such an event, your loved ones could be left out of the inheritance process and not receive your assets.

To avoid these circumstances, you must consider the financial planning of your estate, thereby ensuring your beneficiaries are financially secure in your absence. This is called the Estate Planning process.
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How to Begin Estate Planning?

Here are some things you can do to plan your estate properly

Draft a Will

A Will is a legal declaration wherein, as a testator, you lay down your plan for distributing your assets among your heirs. It is the most basic way of ensuring that your heirs are not robbed of their due inheritance.

Create a Trust

A Trust allows you to transfer your moveable and immovable property to your heirs. As a settlor, you can transfer your wealth to a trustee to hold the transferred property on behalf of your beneficiaries. The trustee ensures that the transferred property reaches the beneficiaries per your instructions.

For instance, a private Living Trust allows you to retain control of the assets placed in the trust while you are able. However, in case of your incapacitation, the benefactor carries out your instructions.

Assign a Power of Attorney

A Power of Attorney is a legal document you can sign to give another person the right to make financial decisions on your behalf. It is an important estate planning document and can help you get your financial affairs in order. Usually, a power of attorney ceases to have effect once the principal dies. However, a durable power of attorney continues to remain in effect even after the death of the principal.

Invest in Life Insurance

Long-term Estate Planning also includes investing in life insurance policies, wherein you pay premiums while purchasing the policy. Should you pass away, the policy provides death benefits to the designated beneficiaries. Buying Life insurance equals excellent financial planning that allows you to look after your loved ones beyond your lifetime.

Final Note

Most people confuse Estate Planning with retirement planning. However, both types of financial planning are equally crucial. In India, beneficiaries do not have to pay an inheritance tax on the wealth they receive on your passing. The estate tax was abolished in 1985, allowing your heirs to enjoy your wealth without worrying about tax implications.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Estate Planning? - 4 Ways to Plan Your Estate Properly | digibank by DBS

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Estate Planning is the planning of your assets during and beyond your lifetime. It helps you distribute your assets per your wishes. Estate Planning entails drafting your will and assigning a Power of Attorney. A trust can allow you to safeguard your assets for designated beneficiaries.

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Tax Benefits of Investing in Mutual Funds| digibank by DBS

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Tax Benefits of Investing in Mutual Funds| digibank by DBS

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Mutual Funds Tax Benefit - The advantages of investing in mutual funds tax-wise are described in this article. By downloading the digibank by DBS app, one can begin investing.

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Key Takeaways

Investing in Tax-Saving Mutual Funds allows you to get tax deductions of up to INR 1.5 Lakh.

ELSS Mutual Funds is the best type of mutual fund offering tax benefits

Long-term Capital Gains not exceeding 1 lakh in Equity Funds are non-taxable.

Dividends earned on equity and debt Mutual Funds investments are exempt from tax in the hands of the investor.

You only pay tax when you sell the units, not when they are in the holding period.

Mutual Funds investment is a popular choice amongst investors because of the returns they generate. But choosing Mutual Funds schemes after only looking at their past returns does not suffice. Any income you earn in India, more often than not, is taxable. Essentially, you have to pay taxes on the returns you earn from Mutual Fund investments. However, as a tax-paying investor, you can reap Mutual Fund Tax Benefits. Keep reading to know how to gain tax benefits of investing in Mutual Funds.

Mutual Fund Tax Benefits

It is imperative to understand the taxes you are liable to pay before investing in any scheme. Yes, you could potentially earn higher returns, but you have to pay taxes on your gains, which, in turn, impacts your overall returns. Also, tax is only applicable when you redeem the investment. As long as you stay invested, you are not liable to pay any tax. Below are the rules governing income tax on Mutual Funds in India.
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Mutual Fund Tax Benefit on Equity Funds

Equity Funds attract two types of taxes - dividend and capital gains. Dividends paid on equity Mutual Fund investments are tax-free in the hands of the investor. However, the Asset Management Company (AMC) is liable to pay a Dividend Distribution Tax (DDT) at a specified rate.

Capital Gains are further categorised into two types - Long and Short Term Capital, and the tax on it is known as LTCG and STCG. If you redeem the Mutual Fund units within 1 year, you have to pay a short-term capital gains tax of 15% plus taxes. LTGC of up to INR 1 Lakh is exempt from tax. However, LTGC exceeding INR 1 Lakh are taxed at 10% + taxes, without indexation benefits.

80C ELSS Funds: The Equity Linked Savings Scheme (ELSS) is the only Mutual Fund scheme that falls under Section 80C of the Income Tax Act, 1961, under which you can get tax deductions of up to INR 150,000 per annum. For investors falling under the highest income tax slab of 30%, this translates to Mutual Fund tax benefits of up to INR 46,800.

Mutual Fund Tax Benefit on Other Fund Schemes

Dividend earned in Non-Equity Mutual Funds such as debt funds is exempt from tax, while the AMC has to pay DDT.

As for capital gains, the minimum holding period for LTCG in non-equity funds is 3 years. You have to pay STCG tax per your tax bracket if you sell your funds within 3 years of investment. Similarly, LTGC tax on redeeming investments are 3 years are taxed at 20% with applicable indexation benefits.

Conclusion

Now that you know the tax benefits of investing in Mutual Funds, you can make informed investment decisions. You can invest in Mutual Funds via lump sum or in instalments with Systematic Investment Plans. Enjoy benefits like portfolio diversification, compounding benefits, and more.
Download digibank by DBS on your smartphone, register and choose any tax-saving options from the menu. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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tax benefits of investing in mutual funds

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Mutual Funds Tax Benefits on Equity Funds & Other Schemes | digibank by DBS

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Investing in Tax-Saving Mutual Funds allows you to get tax deductions of up to INR 1.5 Lakh. ELSS Mutual Funds is the best type of mutual fund offering tax benefits Long-term Capital Gains not exceeding 1 lakh in Equity Funds are non-taxable.

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Short Term Mutual Funds - Features & Benefits | DBS digibank

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Short Term Mutual Funds - Features & Benefits | DBS digibank

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Short Term Mutual Funds - digibank explains on short term mutual funds meaning, their features & benefits. Investment can be done by downloading the digibank app.

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22 Nov 2021

A complete guide on what is Short Term Mutual Funds – their features & benefits.

Key Takeaways

Short Term Mutual Funds allow you to invest in debt securities with shorter maturity periods.

Fund managers invest capital in money market instruments and debt funds.

The reduced maturity period helps balance the associated risks and combat volatile interest rates.

Taxation levied depends upon the holding period of the units in question.

These Mutual Funds are Suitable to meet short-term financial goals and can offer decent returns.

The Securities and Exchange Board of India (SEBI) has classified and segregated Mutual Funds into several different types. As an investor, you can pick from various kinds of Mutual Funds to meet your financial requirements. One of the SEBI categories is Short-Term Mutual Funds, which help you achieve your short-term investment goals. Let us understand this type of Mutual Fund in detail.

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What Is Short-Term Mutual Funds?

A Short-Term Mutual Fund is a type of Debt Mutual Fund with a limited maturity period. These are funds with maturity tenures lasting from 1-3 years. You may also choose Ultra Short-Term Mutual Funds with a maturity period of 3-6 months. With these funds, fund managers invest capital into money market instruments and debt funds.

Short Term Mutual Funds – The Salient Features

Asset Allocation

As per SEBI guidelines, you may invest up to 50% of total assets in debt instruments for the short term. You may also invest up to 50% in foreign securities and up to 20% in securities lending.

Risk-Reward Ratio

Short-term Mutual Funds carry a certain amount of risk, but the limited maturity period offsets such concerns. While you may not be averse to credit risk, liquidity risk, and interest rate risk, you stand to earn returns of 7-9% with well-managed Short and Ultra Short Term Mutual Funds.

Tax Implications

You must pay a Short-Term Capital Gains (STCG) tax on short-duration funds because the holding period does not exceed 3 years. The STCG rate is 15%, irrespective of your tax slab. Since you cannot hold Short-Term Mutual Funds for tenures exceeding three years, Long Term Capital Gains tax of 20% plus indexation benefits does not apply to it.

Advantages of Investing in Short Term Mutual Funds

High Liquidity

With these funds, you can rely on sufficient liquidity. You can withdraw your invested amount any time after investing. However, be mindful of exit loads when you do so.

Short-Term Goals

You can invest in Short Term Mutual Funds at any time, which is especially useful while fulfilling short-term financial goals. If you have an investment horizon of up to 1-3 years, these funds can help you meet your short-term investment objectives and benefit significantly.

Safety from Volatility

Investing in Short Term Mutual Funds, with reduced Macaulay durations can help you offset the risks presented by interest rate volatility.

Sufficient Returns

Compared to other investment funds that allow you to invest in securities with shorter maturity periods, Short Duration Mutual Funds provide more significant returns.

Final Note

Now, you can invest in the best Short Term Mutual Fund via the digibank app and internet banking platforms. You can check the Morning star accredited credit ratings for each Mutual Fund Scheme before choosing your preferred scheme. Also, remember to check the fund manager at the helm of the fund and their past performance while managing funds. Finally, consider your investment goals, horizons, risk appetite, and the expense ratios associated with the fund before investing.

Download digibank to explore the different Mutual Funds on offer.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Keep Reading

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Short Term Mutual Funds - Top Benefits & Features Explained | digibank by DBS

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Short Term Mutual Funds - Check out what short-term mutual funds are and their features & benefits. Download the digibank app to invest in mutual funds now.

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Personal Loan Tax Benefit - An Overview | digibank by DBS

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Personal Loan Tax Benefit - An Overview | digibank by DBS

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Personal Loan Tax Benefit - The methods for claiming tax deductions for personal loans are listed below. One can fill out this application for a personal loan by installing the digibank app.

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Key Takeaways

You can use a Personal Loan for personal and business expenditures.

There are no specific end-use restrictions on the loan amount.

Personal Loan Tax Benefits depend on how you use the funds from the loan.

Interest paid on Personal Loan Principal amount qualifies for tax exemption during ITR filing.

The unsecured nature of Personal Loans aids in quicker loan processing.

Personal Loans are one of the easiest ways to raise money for various purposes. Whether you want to fund your higher education, deal with a medical emergency, or plan a dream wedding, a Personal Loan offers great respite. But have you ever wondered how Personal Loans could help in tax saving, and in what situations? Yes, you can enjoy tax benefits on a Personal Loan depending on how you use the funds from the loan. Read on to know about the specific expenses that can fetch you tax benefits on Personal Loans.
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Tax Benefits on Personal Loans in India

Here are some ways in which you can enjoy Personal Loan tax benefits in India

Funds used to Buy or Construct Residential Properties

If you have taken a Personal Loan to buy a property or construct your own house, you can claim the interest payment as an expense and avail of tax benefits on the same. You can seek exemption of up to INR 2 Lakh on the interest repayment component under Section 24(b) of the Income Tax Act on resident or vacant properties. You need to own the property to avail the tax benefits on Personal Loans. If the house is rented, you can deduct the total interest paid on the loan from your taxable income.

Personal Loan for Home Renovation

You can also get a tax benefit on a Personal Loan if you use the funds to renovate or remodel your home with the loan amount. You may claim a deduction of up to INR 1.5 lakh under Section 80C of the IT Act based on the principal amount repaid in the financial year. Note that if you use up 80C tax deductions for some other investment, you can avail of it again on the Personal Loan.

Funds Routed to Invest in Business

If you decide to utilise the Personal Loan amount to invest in your business, you can claim tax benefit on the interest amount. This would reduce the burden on the total taxable income from your business. There is no maximum deduction on the total claim.

Funds Used to Purchase Assets

When you use the sanctioned amount to invest in an asset, you can claim Personal Loan tax benefits on it. These can be in the form of non-residential property, gold, stocks, or shares. However, you may not claim this deduction in the same year of interest payment but instead in the year of selling the asset purchased through the Personal Loan. At the time of resale, you can deduct the total cost of acquisition, including interest, under Section 48 of the IT Act.

Final Note

Given that Personal Loans are collateral-free, getting funds for your specific needs is convenient and risk-free. To claim income tax benefits on a Personal Loan, always keep a copy of all essential documents handy as you would need proper evidence to be eligible to claim a deduction.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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is there any tax benefit on personal loan

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Personal Loan Tax Benefit - Avail Benefits on Personal Loan | digibank by DBS

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You can use a Personal Loan for personal and business expenditures. There are no specific end-use restrictions on the loan amount. Personal Loan Tax Benefits depend on how you use the funds from the loan. Interest paid on Personal Loan Principal amount qualifies for tax exemption during ITR filing.

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Instant Personal Loan Without Documents | digibank by DBS

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Instant Personal Loan Without Documents | digibank by DBS

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Instant Loan Without Documents - digibank offers instant personal loans without requesting any paperwork or evidence of income. By installing the digibank app, one can submit an application for a personal loan.

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Key Takeaways

Personal Loans are unsecured, collateral-free loans.

A good CIBIL or credit score can help you get instant Personal Loans without documents.

Your loan eligibility increases if you have no outstanding debts and a low debt-to-income ratio.

You can utilise the funds from the Personal Loan to pay for all kinds of expenses.

You can complete the loan application process online on the website of the lender.

Introduction

While applying for a loan of any type, your lender typically asks you to provide some security, also known as collateral. However, with Personal Loans, the lender grants you the loan amount without asking for any collateral or other form of financial security. It is no wonder that Personal Loans are referred to as unsecured loans. Find out how you can get a Personal Loan without income proof or other documents.
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Secure Easy Personal Loan without Documents

Here are three things to do to get an Instant Personal Loan without documents.

Approach your existing bank

Your best chance to get an instant Personal Loan is to approach the bank with which you have an existing relationship. This relationship of trust is cultivated over time - with the way you maintain balances, create deposits with the bank, and utilise its services. When you have a long-standing relationship, the bank has access to your financial habits, which allows it to expedite the application process and disburse funds quickly.

Ensure you have a good CIBIL Score

A good CIBIL Score indicates your credit repayment behaviour. It showcases how regularly you have repaid your loans or credit cards debts. A good credit score of 600+ points increases your chances of securing a loan without documents. You can build your credit scores by repaying loan EMIs and credit card debt on time. Avoid defaulting on EMI and debt repayment as it can hamper the loan approval process.

Check your Debt-to-Income Ratio

Lenders also consider your debt-to-income ratio while approving Personal Loans without documents. If your existing debts are greater than your monthly income, lenders may not consider you creditworthy, which affects the outcome of the loan application. As such, you should ensure that your debt-to-income ratio is less than 50%.

Features and Benefits of a Personal Loan

Unlike home loans, car loans or business loans, a Personal Loan is versatile and can be used to fund expenses like planning a vacation, paying for a wedding, buying consumer goods, etc.

You do not need to inform the bank about how you intend to use the funds from the loan.

You can enjoy flexible loan repayment tenures lasting from 12 to 60 months.

Banks do not ask for collateral, making the Personal Loans without Documents process entirely hassle-free.

The eligibility criteria are simple too - you should be an Indian above 21 years of age and can be salaried or self-employed.

You can send out the loan application online by submitting soft copies of your ID and address proof documents with your filled loan application form.

Get Instant Personal Loans with digibank

If you wish to apply for an instant Personal Loan without documents, visit the digibank by DBS website. Fill the online form on the Personal Loan page and attach soft copies of your ID and address proof documents for KYC purposes. Ensure you fit our eligibility criteria to get fast-track Personal Loan disbursements and affordable EMI repayment options.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Get Instant Personal Loan Without Documents in Easy Steps | digibank by DBS

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Personal Loans are unsecured, collateral-free loans. A good CIBIL or credit score can help you get instant Personal Loans without documents. Your loan eligibility increases if you have no outstanding debts and a low debt-to-income ratio. You can utilise the funds from the Personal Loan to pay for all kinds of expenses.

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How to get 50,000 personal loan | digibank by DBS

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How to get 50,000 personal loan | digibank by DBS

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50000 Personal Loan - Are you looking for 50000 rupess loan urgently? One can apply for 50000 loan easily by downloading the digibank app.

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Key Takeaways

Personal Loans are sanctioned based on your credit health and loan repayment abilities.

Personal Loans are unsecured loans, therefore, do not require collateral.

You can repay the loan in flexible tenures of up to 5 years.

Personal Loan EMIs comprise the principal and interest rate components.

Banks do not set end-use restrictions for a Personal Loan.

Are you tempted to upgrade to that latest smartphone or perhaps that action camera for your video blogs? How about the latest play station? If you are thinking, 'I need 50,000 Rupees loan urgently but have no idea how to get it, your search can end with Personal Loans. Now you can get Personal Loans to finance any expense - big or small. You can apply for amounts as low as INR 50,000 with no restrictions on end-use. Find out the numerous benefits of a Personal Loan and things you should consider before getting one.

How To Get 50,000 Personal Loan

There are two types of loans - secured and unsecured. A secured loan requires you to provide collateral such as a car, a home, or sometimes stocks and bonds. Unsecured Loans, however, require no collateral, for example, credit cards and Personal Loans. When you apply for a Personal Loan, the lender sanctions the loan primarily on your creditworthiness along with other basic parameters. The eligibility criteria for an INR 50,000 Loan are as follows:

Minimum and maximum age of 21 and 60 years, respectively.

Salaried or self-employed individuals must provide proof of regular income.

Your CIBIL Score must be at least 600 points.

Check your eligibility with the Personal Loan EMI Calculator.
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Features and Benefits

Hassle-free documentation

Loans that require collateral demand mountains of paperwork. However, Personal Loans are collateral-free and require minimum to no paperwork. Just provide scanned copies of documents, including your PAN card, ID, address and income proof. Pre-approved bank customers can avail of instant loans with no documents required.

Flexible repayment tenures

Choose flexible tenures starting from 12 months till five years and repay your loan of Rs. 50,000 in easy Equated Monthly Instalments.

Quick disbursal

Once the lender approves your loan request, the loan amount gets credited to your bank account in minimal time. If you are a pre-approved customer or eligible for instant Personal Loans, the bank credits your Savings Account within hours, typically on the same day.

Personal Loan cost

You can avail of Personal Loans at competitive interest rates. While banks levy a one-time loan processing fee plus taxes, there are other charges like late payment, default charges, prepayment charges, etc. These are mentioned in the loan agreement.

Loan cancellation

Some banks allow loan cancellation within 48 hours of loan disbursement. The bank will reverse the loan amount into its source account, except for any loan processing fee and additional taxes.

No end-use restriction

Once the amount gets disbursed, you can use it to finance any expense of your choice. You can use the INR 50,000 Personal Loan to pay for a vacation, buy a tech gizmo, furnish your home, and more.

Conclusion

As long as you hold a good credit score and show proof of regular income, you can get a Personal Loan with minimum to no documentation. Remember to check your eligibility and possible EMI payments with online Personal Loan eligibility and EMI calculators, respectively.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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50,000 Loan - Know How To Get Rs.50,000 Personal Loan | digibank by DBS

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Personal Loans are sanctioned based on your credit health and loan repayment abilities. Personal Loans are unsecured loans, therefore, do not require collateral. You can repay the loan in flexible tenures of up to 5 years. Personal Loan EMIs comprise the principal and interest rate components.

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10 Lakh Personal Loan EMI - Instant Loan | digibank by DBS

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10 Lakh Personal Loan EMI - Instant Loan | digibank by DBS

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10 Lakh Personal Loan EMI - To obtain a personal loan of 10 lakh rupees with ease, one can apply here for an instant personal loan by downloading the digibank app.

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10 lakh Loan – Know How to Get 10 Lakh Personal Loan Here | digibank by DBS

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Need 10 lakh Loan? Find out how to get a 10-lakh personal loan along with personal loan benefits. Download the digibank app to apply for a personal loan instantly!

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How to get 5 Lakh Personal Loan Instantly | digibank by DBS

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How to get 5 Lakh Personal Loan Instantly | digibank by DBS

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5 Lakh Personal Loan -  The methods to rapidly obtaining a loan for Rs. 5 lakh have been explained by digibank. For a quick personal loan, one can download the digibank app.

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Key Takeaways

A Personal Loan is a type of unsecured loan that does not require collateral.

Personal Loans are processed quickly and involve no physical documentation.

The repayment tenure is flexible, of up to 5 years with easy EMIs.

The lender does not set restrictions on the end-use of the loan amount.

In some cases, you can even cancel the loan after the loan amount gets disbursed.

Are you finally planning your fairy-tale wedding? Or maybe a dream vacation? Do you need a business loan to kickstart your new venture? Or are you in need of extra money? Well, a Personal Loan has got your back. The usage of Personal Loans does not come with any restrictions. Also, the process of securing a Personal Loan is an easy one. You can get loans of amounts as low as INR 50,000 or as high as INR 15,00,000. Find out how you can get an INR 5 Lakh Personal Loan.

How To Get 5 Lakh Loan

Generally, when you borrow money, the lender asks for collateral as security for lending you money. However, in finance, loans that do not require collateral are called unsecured loans. A Personal Loan is thus an unsecured loan since you do not need to pledge any collateral. However, to get the loan, you must fulfil the eligibility criteria of the lender, which is generally as follows:

You should be in the 21 and 60 years age group.

You should be a salaried employee with monthly salary slips as income proof or a self-employed individual with evidence of a regular income source.

Your credit score should be above 600 (minimum).

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Features and Benefits

Paperless documentation

Did you know you can send loan applications without visiting the bank? Well, with a 5 Lakh Personal Loan, you can. You only need to provide scanned copies of your address proof, ID proof and income proof for KYC purposes. Sometimes, banks may offer Personal Loans without any documentation based on your relationship with it and your credit health.

Flexible repayment terms and easy EMI

You may repay the INR 5 lakh Personal Loan over tenures ranging from a year to 5 years. With affordable Personal Loan Interest Rates and principal repayment, paying off EMIs in pocket-friendly instalments is a breeze.

Fast approvals and disbursals

Personal Loans are approved and processed in the shortest time possible. After the lenders approve your loan application, they credit your bank account with the loan amount almost immediately. If you are preapproved and qualify for an Instant Personal Loan, your bank account gets credited within few hours.

No hidden charges

You only have to pay a one-time Personal Laon processing fee plus taxes. Other charges include penalties for late payments, defaulting on EMIs, etc. These are stated under the terms and conditions section of the loan document.

Freelook period

If you choose to cancel the loan after the bank has disbursed the loan amount, you can do so in the 48-hour freelook period. The bank reverses the transaction and debits the loan amount from your account, but the processing fees and taxes remain non-refundable.

Conclusion

Now you can check your eligibility and possible EMI payment with the help of EMI and Personal Loan Eligibility calculators. Get an INR 5 Lakh Personal Loan to fund any financial crisis.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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5 lakh Loan - Know How to Get 5 Lakh Personal Loan Here | digibank by DBS

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A Personal Loan is a type of unsecured loan that does not require collateral. Personal Loans are processed quickly and involve no physical documentation. The repayment tenure is flexible, of up to 5 years with easy EMIs. The lender does not set restrictions on the end-use of the loan amount.

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2 Lakh Personal Loan Scheme | DBS digibank

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2 Lakh Personal Loan Scheme | DBS digibank

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2 Lakh Personal Loan - For funding modest expenses, you can obtain a personal loan of INR 2 lakh. By installing the digibank app, one can instantly obtain a personal loan.

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Conveniently avail of an INR 2 Lakh Loan from digibank by DBS

Key Takeaways

Personal Loans empower you to take care of unannounced contingencies.

You can avail of an INR 2 Lakh Personal Loan with minimal to no documentation.

Banks offer flexible Personal Loan tenures making EMI repayment affordable.

Bank customers applying for Personal Loans can get instant loan disbursals.

You can use the personal loan amount to fund expenses with no end-use restrictions.

Are you facing a medical emergency? Do you perhaps wish to take on a home renovation project or fulfil that long-awaited dream of taking off on your dream vacation? Are you thinking, ‘I need 2 Lakh Rupees Loan urgently’? If your answer to any of these questions is yes, then a Personal Loan is what you need. Now you can also secure smaller amount Personal Loans seamless and effortlessly. Fund your more immediate expenses with paperless and hassle-free Personal Loans. Keep reading to find out how.

How To Get 2 Lakh Personal Loan

Personal Loans are unsecured loans that do not require collateral as assurance. Banks sanction Personal Loans after verifying your credit report and other fundamental factors such as your age, income, and loan repayment capacity. You can get an INR 2 Lakh Personal Loan for financing smaller expenditures.

Eligibility Criteria

Most banks consider Personal Loan applications of borrowers who receive a monthly income from a fixed source. You can be a salaried employee or a self-employed individual, but you should be able to prove that you have some sort of employment that pays you a monthly income. The minimum age requirement is usually 21 years until 60 years at the time of final EMI repayment. Additionally, you must possess a good credit score of 600+ points. Check your eligibility with a Personal Loan EMI Calculator.

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Reasons to Opt for A Personal Loan

You need not provide collateral for obtaining a 2 lakh Loan scheme Personal Loan. Banks will approve the loan based on your credit score in addition to other factors mentioned above.

The primary documents required for a Personal Loan include scanned copies of ID, address, and income proofs documents along with a scanned copy of your PAN Card. As a loyal customer, you may also qualify for paperless pre-approved loans with expedited loan disbursals.

Personal Loan interest rates remain fixed throughout the repayment tenure. Make sure that you check all costs such as the processing fee, late payment penalties etc.

Once approved, the bank disburses the loan amount to your bank account almost immediately.

Banks do not set conditions for usage of the loan amount, and you can use the money to pay for all kinds of expenses, no questions asked.

You can optimise the 2 Lakh loan Equated Monthly Instalments (EMI) by selecting a loan tenure ranging from 1 to 5 years.

Some banks also offer a 2-day freelook period in which you can cancel the loan after disbursement, provided you place the cancellation request within 48 hours. If you place the cancellation request, the bank reverses the transaction, but you have to forego the loan processing fee.

Conclusion

Use the INR 2 lakh Personal Loan to fund your necessary expenses. With a good credit score, your chance of obtaining a Personal Loan increases manifolds. You can also check your loan eligibility and possible EMI amounts with online Eligibility and EMI calculators.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page.

Download digibank Now

*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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2 lakh Loan – Know How to Get Two Lakh Personal Loan Here | digibank by DBS

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Need 2 lakh Loan? Find out how to get a two-lakh personal loan along with personal loan benefits. Download the digibank app to apply for a personal loan instantly!

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How to get 1 Lakh Loan | digibank by DBS

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How to get 1 Lakh Loan | digibank by DBS

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1 Lakh Personal Loan - Learn how to easily get a personal loan for 10 lakh rupees with digibank. By installing the digibank app, one can instantly obtain a personal loan.

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21 Oct 2021

Fund your expenses with an INR 1 Lakh Loan

Key Takeaways

1. Personal Loans are collateral-free unsecured loans.

2. You can avail of instant and paperless Personal Loans.

3. Repayment of your 1 Lakh Personal Loan is convenient with Equated Monthly Instalments.

4. Banks disburse Personal Loan amounts within short timeframes.

5. You can use the Personal Loan amount to fund any expenses without any conditions.

One can never predict the need for money. When circumstances call for cash, walking up to family or friends and saying, ‘I want 1 Lakh Rupees Loan urgently’ may not always work out. However, you can get quick access to fund by approaching a bank for a Personal Loan. The loan also helps strengthen your credit health. Keep reading to know how you can obtain a Personal Loan of INR 1 Lakh.

How to Get 1 Lakh Loan?

A Personal Loan is often referred to as an unsecured loan in that it is collateral-free. Financial institutions sanction Personal Loans based on your creditworthiness and ability to repay the loan. Hence, you need not worry about mortgages for obtaining an INR 1 lakh Personal Loan. The eligibility criteria for obtaining a Personal Loan include a minimum age of 21 years until 60 years, excellent credit score and minimum monthly income of INR 20,000. You can also check the eligibility with a Personal Loan EMI Calculator.

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Personal Loan – Features and Benefits

Loan Tenure

Personal Loan tenures range between 12 to 60 months. You can choose a flexible repayment tenure to pay off your INR 1 Lakh Personal Loan.

Minimum Paperwork

Personal Loans are usually paperless, and you can apply by providing scanned copies of basic documents, i.e., your ID, address, income proof and PAN Card. As a loyal customer of the bank, you may also qualify for pre-approved or instant Personal Loans with no documents required.

No Hidden Costs

When you apply for a Personal Loan, all charges, including processing fees, late payment fees, along with the Personal Loan interest rates, are made available at the time of application.

Instant Approval

If your CIBIL score, also known as Credit Score, matches the margin for loan approval, the bank will disburse the loan amount of INR 1 Lakh into your bank account at the earliest. In the case of pre-approved loans, banks credit your Savings Account almost immediately.

Loan Repayment

You can pay off the Personal Loan in easy Equated Monthly Installments (EMI). Get the most out of your INR 1 Lakh Personal Loan EMIs by selecting your preferred loan repayment tenure.

Freelook Period

Some banks also offer a 2-day free look period, during which you can cancel the loan. If you choose to cancel the loan, you have to forego the non-refundable loan processing fees and taxes. Once you place your loan cancellation request, the bank debits the INR 1 lakh Loan amount from your account.

No End-use Conditions

You can use the funds from the INR 1 lakh Loan scheme for all intents and purposes, including home renovations, holiday planning, funding grand events or even take out a business loan. The bank does not intervene with how you use the loan amount.

Conclusion

Personal Loans can help you out of a financial crisis. With flexible tenures and affordable EMIs, you can repay the 1 lakh Personal Loan conveniently. Ensure your credit health is at its best to secure a Personal Loan quickly.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Keep Reading

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1 lakh Loan – Know How to Get One Lakh Personal Loan Here | digibank by DBS

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Need 1 lakh Loan? Find out how to get a one lakh personal loan along with personal loan features. Download the digibank app to apply for a personal loan instantly!

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How to Calculate EMI for Personal Loan | digibank by DBS

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How to Calculate EMI for Personal Loan | digibank by DBS

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How to Calculate EMI on Personal Loan - Here is a step-by-step guide on how to calculate the instant EMI for a personal loan. By installing the digibank app, one can apply for a personal loan.

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You can avail of Personal Loans to pay for various types of expenses

You can repay the loan in budget-friendly EMIs

You can utilise Personal Loan EMI calculators to compute the EMI amount

You may also calculate EMIs manually.

Amortisation Schedules provide more information about your EMI payments.

A Personal Loan is a type of financial aid that helps you meet your various financial needs. Whether you need to pay for medical treatments, plan celebrations, or support loved ones financially, a Personal Loan can be helpful. You can repay Personal Loan in Equated Monthly Instalments or EMIs and compute the EMI amount even before applying for the loan. Let us find out how to calculate Personal Loan EMI.

How to Calculate EMI for Personal Loan

Manual Calculation

The formula to manually calculate Personal Loan EMIs is as under:

EMI = P × r × (1 + r)n/((1 + r)n - 1)

Where

'p' is the Loan amount,

'r' is the interest rate,

'n' is the repayment tenure (in months).

The EMI amount of the loan directly proportional to the loan amount and interest rate and inversely proportional to the loan tenure. Thus, the more the loan amount and interest rate, the higher your EMI will be. On the other hand, a longer tenure will lead to lowered EMI.

While you can calculate the EMI for Personal Loans manually, such a calculation can be error-filled. As such, you can also use Personal Loan EMI calculators to compute the EMI payable.

EMI Calculators

Using an online EMI calculator, you can follow the below steps on how to calculate Personal Loan EMI.

1. Enter the required loan amount in the first tab of the EMI calculator after checking the minimum and maximum loan amount sanctioned by your chosen lending bank.

2. Enter your preferred interest rate (per annum) on the loan amount after checking the minimum lending rate of the bank.

3. Enter your preferred loan repayment tenure based on the minimum and maximum repayment term, as determined by the bank. Typically, you can repay personal loans in tenures lasting up to 5 years.

Once you enter these figures, the EMI calculator will automatically compute the payable EMI amount.
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What is an Amortisation Schedule?

To understand the loan and EMIs in greater detail, you can refer to an Amortisation Schedule. This schedule is essentially a tabular representation that comprehensively breaks down your Personal Loan componets i.e.,the principal loan amount and interest payable on each EMI. Plus, you can use it to understand how much of the loan amount has been paid and the outstanding payments. You can refer to it for details like the interest rate, the principal payment, and the outstanding loan in this table. If you want to opt for foreclosure or refinancing, the Amortisation Schedule can be of assistance.

Personal Loan at digibank

Now that you know how to calculate EMI for Personal Loan, you can apply for one. You can also use the digibank Personal Loan EMI calculator by clicking here. digibank offers competitive interest rates, with repayment tenures lasting up to 5 years. You can send your Personal Loan application online to digibank and get faster loan disbursals.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Calculate EMI on Personal Loan | digibank by DBS

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You can avail of Personal Loans to pay for various types of expenses You can repay the loan in budget-friendly EMIs You can utilise Personal Loan EMI calculators to compute the EMI amount You may also calculate EMIs manually. Amortisation Schedules provide more information about your EMI payments.

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Fastag Price - The various FASTag fees and FASTag's operation are explained by digibank. The digibank by DBS website has more comprehensive information. One can visit the website to know more.

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Key Takeaways

FASTag is an RFID sticker that allows cashless payment of toll fares.

You must pay a FASTag joining fee of INR 100, as stated by the NCPI.

FasTag price is determined depending on the vehicle, and you have to pay a nominal and refundable security deposit.

You are also required to maintain a minimum balance to ensure a smooth payment process.

FASTag saves time at toll booths while also helping you save fuel.

In 2016, the National Highway Authority of India (NHAI) under the Ministry of Road Transport and Highways introduced FASTag - a unique toll collection system. FASTag is a digital toll payment service that reduces the transaction time at toll booths. In this article, we discuss how FASTag works and the various FASTag costs.
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How FASTag Works

Helmed by the National Payments Corporation of India (NPCI) and developed by National Electronic Toll Collection (NETC), FASTag is a Radio Frequency Identification (RFID) sticker. It enables you to make toll payments directly from your bank account or a linked prepaid account. You must affix the sticker on the windscreen of your vehicle. The sticker is scanned when you stop at a toll booth, and the toll tax is automatically collected, enabling you to pass the toll booth without making a cash transaction.

FASTag Charges

FASTag costs depend on the type of vehicle you own. You can purchase the FASTag from toll booths, Point of Sale (POS) outlets, or e-commerce websites. Bank FASTag is also available from NETC affiliated bank members. Here is a look at the various FASTag charges.

FASTag Sticker Price

You must pay a one-time joining fee to register yourself as a FASTag user. NETC affiliated banks can charge a maximum of INR 100, including taxes, per tag. This amount is fixed by the NPCI.

Security Deposit

Another FASTag price you have to pay is the security deposit, which is typically a nominal amount. When you close the FASTag account, you get a full refund of the deposit. The security deposit amount differs depending on your vehicle class. The bank may use this amount to adjust outstanding toll charges in case of insufficient balance.

Minimum Balance

You must maintain a minimum amount in your prepaid account and pay this balance amount at the time of activating your FASTag. The minimum balance depends on your vehicle class, and the FASTag costs for them are as under.
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FASTag Price - All FASTag Charges Explained in Detail | digibank by DBS

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FASTag is an RFID sticker that allows cashless payment of toll fares. You must pay a FASTag joining fee of INR 100, as stated by the NCPI. FasTag price is determined depending on the vehicle, and you have to pay a nominal and refundable security deposit.

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Instant Loan without CIBIL - Different Ways | DBS digibank

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Instant Loan without CIBIL - Different Ways | DBS digibank

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Instant Loan without CIBIL - Here are several methods for getting your quick loan approved without a CIBIL score. Downloading the digibank app will allow one to obtain a quick loan.

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Key Takeaways

A good CIBIL score is an important yardstick to determine your creditworthiness.

Many lenders refrain from giving loans to those with a low credit score.

You can still avail of a Personal Loan without CIBIL Score.

If your credit score is low, then collateral serves as a security deposit for lenders.

You should maintain a credit score of 700+ to avail of a loan at lower interest rates.

Picture this - You are in urgent need of a loan to fund your son's university fees. You consider the option of applying for a Personal Loan. But you realise that your CIBIL score was a dismal 500 because of a credit card default some time ago. Now, your lender insists you should have a better CIBIL score to qualify for a loan. What do you do in such a situation? Are you aware that you can still get an instant loan without CIBIL score? Let us understand what CIBIL score is and how you can obtain that loan you so need.

What is CIBIL score?

CIBIL, one of the top credit bureaus in India, maintains a credit report of customers. Based on the credit report, it assigns a three-digit numeric summary that reflects their credit health. The score, from 300 to 900, identifies the ability of a customer to repay the loan and is known as a CIBIL or credit score.
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Instant Loan Without CIBIL Score

Even though CIBIL Score is mandatory, there are still several options available to get your Personal loan without CIBIL Score required by lenders.

Provide Income Proof

You need to prove to the lender that you will be able to repay the loan. Banks may consider your loan application if you have a stable monthly salary or steady income. Your salary slips or bank statement will give your lender the confidence to grant you the loan without CIBIL score.

Consider Collateral-based Loans

Typically, Personal Loans do not require you to furnish collateral. However, if your credit score is low, collateral serves as a security deposit for lenders. You can pledge your property, jewellery or any other valuable asset in lieu of the loan amount.

Apply with a Co-Applicant or Get a Guarantor

If you apply for a loan with a co-applicant who has a steady source of income and a good CIBIL score, your loan application may be approved. The other option is to get a guarantor for your loan amount.

Get NA/NH on your credit report

The History not Available (NA) or No History (NH) on your credit report means that there has been no previous credit activity or credit in the last 36 months. You can request your lender to issue an NA or NH on your credit report. If the lender is willing, you can get a Personal Loan at a higher rate of interest.

Apply for a lower loan amount

It is best to go for a lower loan amount as the lender may doubt your ability to repay the loan or charge high interest. This ultimately improves your chances of getting the loan approved.

Final Note

Getting an instant loan without CIBIL is possible. However, it is best to ensure you maintain a healthy CIBIL score of 600+ regularly. Pay off your debts and limit credit utilisation to improve your CIBIL score.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Get Instant Loan Without CIBIL Score in 5 Ways | digibank by DBS

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A good CIBIL score is an important yardstick to determine your creditworthiness. Many lenders refrain from giving loans to those with a low credit score. You can still avail of a Personal Loan without CIBIL Score. If your credit score is low, then collateral serves as a security deposit for lenders.

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Unsecured Loan - What is an Unsecured Loan | DBS digibank

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Unsecured Loan - What is an Unsecured Loan | DBS digibank

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Unsecured Loan - Here is a thorough explanation of unsecured loans, including its varieties and significance. By installing the digibank app, one can apply for a loan.

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Key Takeaways

An Unsecured Loan is a type of loan where the lenders do not ask for collateral.

Credit cards and Personal Loans are common examples of unsecured loans.

Unsecured loans come in handy when you need funds instantly.

A high credit score, stable income, and good credit history can help you secure such loans.

Untimely repayment of unsecured loans can impact your credit score significantly.

Introduction

Borrowing money has become easier than ever. Today you can apply for various types of loans to fund your various investments and expenses. Loans are primarily categorised into two kinds - secured and unsecured loans. Secured loans are those where the lender asks you to provide collateral. Then there are collateral-free unsecured loans. Find out more about unsecured loans in this article.

What is an Unsecured Loan?

As mentioned above, unsecured Loans are those where the lender does not ask you to provide collateral. These are loans that your lender sanctions based on certain factors such as your age, income, and credit scores. Lenders typically offer unsecured loans when the loan amount is slightly smaller. They do not ask you to mortgage anything to avail of this loan. Instead, they check your previous credit repayment history to determine if you are creditworthy.

Advantages

Unsecured loans do not require any collateral.

There is no risk of losing assets.

Banks sanction loan amounts for eligible borrowers within shorter timeframes.

Good credit scores result in higher loan amounts and attractive interest rates.

Types of Unsecured Loans and How they Work

There are two types of unsecured loans - collateral-free instalment loans and unsecured revolving lines of credit. A typical example of the former includes unsecured Personal Loans used for vacation, wedding planning, medical and financial emergencies, etc. You can get attractive Personal Loan interest rates on these loans. You may also avail of unsecured Business Loans for business expansion, cash flow management and other purposes. On the other hand, funds borrowed on a credit card is an example of unsecured revolving lines of credit. In this type of unsecured loan, you can keep borrowing money and repaying the credit card bill as per the predetermined credit cycle.
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When should you opt for an Unsecured Loan?

When you need instant cash but cannot provide collateral.

When you need funds for specific expenses like planning trips or celebrations, businesses expansion, home renovation etc.

If you have a steady source of monthly income, that enables you to make timely EMI payments and repay the loan within the stipulated loan tenure.

If you wish to consolidate your various debts and pay off existing loans.

Conclusion

As is apparent, an unsecured loan is the best kind of loan. It is a fast-track loan that guarantees quick disbursals. You can choose your preferred type of unsecured loan to pay for your various leisurely and urgent expenses. Unlike Home Loans and Car Loans, unsecured loans are versatile in that you do not have to inform the lender about how you intend to use the funds from the loan. Just ensure you meet the eligibility criteria set by the lender before applying for the loan. Get a competitive interest rate and flexible repayment tenures with unsecured loans. Apply for the loan today.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Unsecured Loan - All About What is an Unsecured Loan | digibank by DBS

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An Unsecured Loan is a type of loan where the lenders do not ask for collateral. Credit cards and Personal Loans are common examples of unsecured loans. Unsecured loans come in handy when you need funds instantly. A high credit score, stable income, and good credit history can help you secure such loans.

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Fixed Deposit Monthly Interest for 10 Lakh in Bank | DBS digibank

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Fixed Deposit Monthly Interest for 10 Lakh in Bank | DBS digibank

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Fixed Deposit Monthly Interest for 10 Lakh in Bank - The monthly interest rate on a fixed deposit of 10 lakh is discussed by digibank. One can visit the digibank website for additional information.

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08 Nov 2021

What would the monthly interest for 10 lakh Fixed Deposit be?

Key Takeaways

Fixed Deposits can help you meet the various financial needs that might crop up.

You can invest a sum for a specified period at a predetermined rate of interest.

You can receive compound interest or regular interest pay-out.

FDs are safe investments that offer capital protection.

Monthly interest for 10 lakh Fixed Deposit can serve as an additional income source.

A Fixed Deposit (FD) is one of the most popular investment instruments in India. Banks and Non-Banking Financial Companies (NBFC) offer FDs in India. An FD allows you to save money without undertaking too much risk, invest money for a pre-decided period and earn additional interest income at a predetermined rate of interest. FD interest rates vary according to the bank or financial institution you choose. You can also opt for an FD for a period that suits you, choosing from tenures ranging from 7-14 days to 10 years. So, what would the monthly interest for 10 lakh Fixed Deposit be? Read on to know more.

When you invest INR 10 lakhs in an FD, you can rest assured that the sum invested will be returned to you upon maturity. You will also receive interest on the 10 lakhs you have invested. The interest earned depends on the tenure of the FD. Bank FDs with short terms tend to offer lower interest rates. Depending on what you choose to do with the interest earned, you can broadly classify FDs into two categories.

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How to Earn 10 Lakh FD Interest Per Month

Cumulative Fixed Deposits

With Cumulative FDs, the annual interest earned is reinvested in the FD. Thus, you receive the principal amount and all the interest earnings at maturity. Through this type of FD, you can enjoy the benefits of compound interest, with the principal amount increasing each year due to reinvestment. So, over the years, the 10 lakhs invested will increase after the reinvestment of interest.

Non-Cumulative Fixed Deposits

On the other hand, a Non-Cumulative FD will allow you to receive interest at fixed intervals and enjoy a regular stream of income. You can choose whether you would like to receive the interest monthly, quarterly, half-yearly, or annually.

How to Calculate Monthly Interest For 10 Lakh Fixed Deposit?

Calculating the interest due on an FD depends on the amount invested, the rate of interest offered by the bank or NBFC, and the tenure of the FD. You can manually calculate the Fixed Deposit monthly interest for 10 lakh in bank by using the formula given below:

Interest on FD = Amount Invested x Interest Rate x (Duration/ 12 months)

However, you can also get accurate figures regarding Fixed Deposit monthly interest for 10 lakh in bank without doing any interest calculation yourself. You can rely on Fixed Deposit Calculators available online to accurately calculate rate of interest on the Fixed Deposit of your preferred tenure. Remember, Fixed Deposits generally offer interest rates higher than Savings Account rates.

Final note

So, whether you choose the monthly interest for 10 lakh Fixed Deposit or the cumulative interest payment option, you can rely on FDs for regular income sources and capital appreciation. FDs also help you meet your short-term goals. This investment is ideal for senior citizens and low-risk investors who wish to invest their savings in safe, capital-protecting instruments.

If you prefer to save time and effort, and open an FD account remotely, then download the digibank by DBS app right away!

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Fixed Deposit Monthly Interest for 10 Lakh in Bank | digibank by DBS

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Calculate fixed deposit monthly interest for 10 lakh in bank with digibank. Download the digibank app & open a fixed deposit account today.

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Money Transfer App - Best App | digibank by DBS

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Money Transfer App - Best App | digibank by DBS

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Money Transfer App - Your payments can be simplified with safe and secure money transfer apps. By downloading the digibank app, this can be acccessed easily.

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Key Takeaways

Money Transfer Apps allow you to digitally send money to friends and family and even pay for goods and services.

They offer robust security features that protect your money.

They give you the freedom to transfer funds from anywhere, at any time

Domestic cash transfers are processed instantly.

Some banks also offer international Money Transfer Apps with preferential exchange rates and low handling fees.

The way we manage financial transactions has entirely changed in the aftermath of the coronavirus pandemic. From small and big grocery shop owners to service providers and retail vendors, everybody has started accepting digital payments instead of cash and bank cards. Whether it is about transferring funds to friends and family, making online bill payments, or paying for your cab ride, all you need is a smartphone and the right Money Transfer App.

What is a Money Transfer App?

A Money Transfer App is a platform that allows you to conduct financial transactions via digital or online modes without the involvement of any physical exchange of money. Both parties, the payer and the payee, use electronic mediums to exchange money. You can securely transfer money to anyone you want, domestically and internationally, using Money Transfer Apps.

Money Transfer Apps and Popular Payment Methods

Mobile Wallets

A mobile wallet is a digital version of a physical wallet where you can load money to buy different services and products. You can use a digital wallet on your internet-enabled smartphone by simply downloading the application from the iOS App Store or Android Google Play Store. After entering essential information like your name, credit card or debit card information, you can start using your mobile wallet. This mode of money transfer can easily replace both cash and cards as it allows you to make payments with a single tap.

UPI

Unified Payment Interface (UPI) has made sending funds from one bank account to another with your mobile phone an easy task. In this payment method, you can initiate direct bank-to-bank payments via mobile apps. You can transfer money via UPI by entering the Virtual Payment Address (VPA) of the receiver, their phone number, account number and IFSC code or by scanning a QR code.
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Features of Money Transfer Apps

The best Money Transfer Apps have the following features:

They allow you to accept and send mobile payments from anywhere, anytime, using any internet-enabled device like a smartphone or tablet.

You can conduct both domestic and international transactions money transfers with Money Transfer Apps. Domestic transfers are primarily free of cost, while international transactions attract nominal transfer fees.

Fund transfers are completed rapidly with Money Transfer Apps. Domestic money transfers take only a few minutes, while international money transfers take up to two days.

Money Transfer Apps store data securely. To ensure total protection, Mobile app developers add extra layers of protection with features like biometric authentication with digital fingerprints, OTP verification, and QR codes that allow app users to conduct secure transactions.

International Money Transfer Apps operate in multiple currencies. You can choose from the available foreign currencies, and your app will calculate the exchange rate for you.

Final Note

You can freely download most of the best Money Transfer Apps. The money transfer fees depend on your chosen mode of transfer. For international money transfers, you need to monitor currency exchange rates and bank fees.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Money Transfer App - All About What is A Money Transfer App | digibank by DBS

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Money Transfer Apps allow you to digitally send money to friends and family and even pay for goods and services. They offer robust security features that protect your money. They give you the freedom to transfer funds from anywhere, at any time Domestic cash transfers are processed instantly.

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TCS on Foreign Remittance - Important Rules | DBS digibank

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TCS on Foreign Remittance - Important Rules | DBS digibank

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TCS on Foreign Remittance - If you often send money overseas, you should be familiar with the TCS for Foreign Remittance guidelines. One can avail the remittance services by downloading the digibank app.

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Key Takeaways

TCS stands for Tax Collected at Source and applies to Foreign Remittance

TCS rate is 5% for amounts exceeding INR 7 Lakh.

For foreign tour packages, TCS of 5% is applicable on the entire amount, with no limit.

Education Loans provide discounted TCS rate of 0.5%

The absence of PAN details will increase TCS rates from 5% to 10%.

Tax Collected at Source (TCS) is a provision by the Income Tax department of India. As per these provisions, government agencies and specific dealers must collect taxes from buyers on certain transactions. TCS is applicable on sales of certain services and facilities, and non-payment can result in legal consequences. Therefore, TCS payment is extremely crucial for sellers. TCS is also applicable when you make foreign remittances. In this article, we discuss the TCS Foreign Remittance guidelines laid down by the RBI.

TCS on Foreign Remittance - RBI Rules

From 1st October 2020, the government will collect tax at source from individuals making foreign remittances through the Liberalised Remittance Scheme (LRS). TCS will also be applicable on the purchase of foreign Travel packages and on transactions exceeding a set limit under Section 206C(1G) of the Income Tax Act, 1961. However, taxpayers can claim tax deductions for TCS when filing their Income Tax returns.

How TCS for Foreign Remittance Works

Post 1st October 2020, your foreign exchange facilitating bank or authorised dealers are mandated to collect a 5% tax when you make international funds transfer under the LRS scheme transfers exceeding the amount of INR 7 Lakh. However, for foreign travel packages, the tour seller will collect TCS on the entire amount. Under LRS, Indian residents can remit up to USD 250,000 per financial year for medical treatment, taking care of relatives living overseas, overseas education, gifts and investments in stocks, bonds, or real estate.
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TCS on Foreign Remittance

Let us say you make a foreign remittance of INR 10 Lakh for any purpose other than foreign travel package in a financial year. In such a case, you have to pay a 5% TCS on the amount exceeding INR 7 Lakh. As such, TCS will apply on INR 3 Lakhs, and at 5%, it amounts to INR 15,000, which your authorised dealer is obligated to deduct.

If you buy a foreign travel package of INR 10 Lakh in a financial year after October 2020, 5% tax will be calculated on the entire amount of INR 7 Lakh. 5% of INR 7 Lakh, i.e., INR 35,000, will be the TCS charged by the tour seller.

Understanding TCS Rates

Per Income Tax regulations, if you have provided your Permanent Account Number (PAN) details, TCS on Foreign Remittances will be applicable at 5%. However, the absence of PAN will attract 10% TCS, also applicable for purchasing foreign travel packages.

For overseas studies, TCS on Education Loan is offered at a concessional rate of 0.5% on amounts exceeding INR 7 Lakh. However, if the student or the parent finances the overseas education out of their own pockets, TCS of 5% will be applicable for amounts exceeding INR 7 Lakh.

Conclusion: If you conduct international fund transfers regularly, you should be aware of TCS for Foreign Remittance guidelines. Note that you can claim the tax credit on those transactions and reduce your overall tax liabilities by claiming for tax benefit while filing your Income Tax Returns.
digibank by DBS provides international remittance services at preferential rates! Download the app to know more. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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TCS on Foreign Remittance - A Detailed Guide | digibank by DBS

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TCS stands for Tax Collected at Source and applies to Foreign Remittance TCS rate is 5% for amounts exceeding INR 7 Lakh. For foreign tour packages, TCS of 5% is applicable on the entire amount, with no limit. Education Loans provide discounted TCS rate of 0.5% The absence of PAN details will increase TCS rates from 5% to 10%.

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Remittance - Meaning & Types | digibank by DBS

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Remittance - Meaning & Types | digibank by DBS

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Remittance - The act of transferring or sending money from one party to another is referred to as remittance. One can transfer money to their loved ones by downloading the digibank app.

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Key Takeaways

Remittance means sending money from one party to another, usually overseas.

Remittance is a vital source of revenue for a country and plays an integral role in its economic growth and development.

Remittance is of two types - Inward and Outward.

Wire transfers are one of the most popular methods to send remittances.

Money transfer apps are also slowly gaining traction.

When you live overseas on business, as a student, or as a migrant worker, you may often need to send part of your foreign earning to your family back home to maintain their financial upkeep. You visit your bank to enquire about the fund transfer process and learn about a process called foreign exchange remittance. Let us understand what is remittance, its types, payment methods and more in this article.

Remittance - Meaning Explained

Remittance refers to the process of transferring or sending money from one party to the other. The term remittance is typically used to denote the transfer of funds overseas. Essentially, remittance helps you ensure the financial security of your family in one country while you are based in another.

Types of Remittance

Inward Remittance

Inward remittance refers to the funds you receive in your bank account from another account in India or abroad. So, as an NRI living in Canada, if you send money to a local account in India, the fund transfer is called an inward remittance.

Outward Remittance

When you transfer funds overseas from your local account, it is an outward remittance. For instance, when parents in India transfer funds to their child, an international student living in Singapore, the money transfer service becomes an outward remittance for the parents.
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Payment Methods for Remittance

Having explained what is remittance in banking, let us now understand the various payment methods.

Wire Transfer

Wire transfer is one of the most popular methods used for remittances. An international money transfer can easily take anywhere from 3-5 business days or longer. Wire transfers can be quite expensive, with some host countries charging high fees for the service.

Bank Transfer

A bank transfer is used for sending money between your bank accounts. This can be done locally or internationally. A local bank transfer is a cross-border payment where a deposit is made into a foreign bank account.

Money transfer apps

The proliferation of technology has given rise to several apps that facilitate faster remittances. Paying through money transfer apps is easy, secure, and convenient. Processing is almost instant.

Remittance Transaction Limits

Minimum limit: US$ 10 per transaction or its equivalent

Maximum/daily limit: US$ 25,000 per transaction

Annual limit: Up to USD 250,000 or its equivalent

Remittance - Documents & Costs

Self-declaration regarding relation with beneficiary

Government-issued ID proof

PAN Card copy for amounts exceeding USD 25,000

Remittances - Fees and Charges

Remittance charges are usually zero. But the remitting or intermediary bank may charge a fee. You will also have to pay a foreign currency conversion charge, which is a flat fee. Service tax is also levied.

Final Note

Understanding remittance meaning in banking is crucial if you wish to initiate international fund transfers. When deciding whether to do a wire or a bank transfer, consider important factors like timing, exchange rates, and costs. Doing so can help you choose a suitable payment method so that your loved ones can receive the funds faster.
digibank by DBS provides international remittance services at preferential rates! Download the app to know more. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Remittance Meaning - Understand What is Remittance in Detail | digibank by DBS

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Remittance means sending money from one party to another, usually overseas. Remittance is a vital source of revenue for a country and plays an integral role in its economic growth and development. Remittance is of two types - Inward and Outward. Wire transfers are one of the most popular methods to send remittances.

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Best Saving Schemes in India - Must Know | digibank by DBS

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Best Saving Schemes in India - Must Know | digibank by DBS

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Best Saving Schemes in India -  You can pick the best savings plan in India based on your investment objectives because there are many of saving and investing plans available. One can download the digibank app to fulfill their financial needs.

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Key Takeaways

The Indian Government and public sector entities offer numerous savings schemes.

These schemes are secure, provide attractive interest rates and involve lower risks.

You can open most government-backed savings schemes with minimal amounts.

You can get tax benefits by investing in tax saving plans like EPF, PPF and NPS.

Visit your nearest bank or post office to invest in the best Saving Schemes in India.

The Indian Government has rolled out multiple schemes to encourage its citizens to save and invest their money. Investing in the market could be daunting, especially for novice investors. It also involves significant risks on capital. However, government-backed savings schemes are relatively safer investments that protect your capital. These financially secured, low-risk instruments offer decent returns. Here are a few of the best saving plans in India.
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Best Saving Scheme in India

Below are some of the most popular saving schemes in India:

Fixed Deposits

If you want to lock away your funds for a fixed tenure and earn attractive interest income, you can consider Fixed Deposits. You can choose between cumulative FDs and non-cumulative FDs. With cumulative FDs, you get the principal and interest payout at the end of the investment tenure. In contrast, non-cumulative FDs provide interest payouts monthly, quarterly, semi-annually, or annually.

National Savings Certificate (NSC)

The NSC is a government-backed saving plan that you can open with any post office. It has a maximum investment tenure of 5 years and a minimum investment amount of INR 1000 at the time of account opening. NSC interest rates are fixed as on the date of investment and change only on maturity. You can also enjoy tax deductions under Section 80C of the Income Tax Act, 1961 on NSC investments.

National Pension Scheme (NPS)

Arguably the best Savings Plan in India for retirement planning, NPS provides a fixed monthly income to investors upon retirement. You can start investing in NPS during your employment years. The amount at maturity is partially invested in an annuity plan, while you also receive a fixed monthly payment.

PPF and EPF

Public Provident Fund (PPF) is one of the best Savings Schemes in India for long-term wealth creation. It comes with a minimum lock-in period of 15 years, and you can extend your PPF Account is blocks of 5 years after the initial 15-year period ends. PPF differs from Employee Provident Fund (EPF) in that it does not involve employer contributions. However, both EPF and PPF qualify for income deductions of INR 150,000 per financial year, on which you can enjoy tax benefits

Post Office Recurring Deposit

One of the most popular Post Office saving plans, you can open a Post Office RD with a minimum of INR 100. The interest rate on Post office RDs is compounded every quarter. You can withdraw 50% of the balance after a year. Your RD matures after 5 years from the date of joining. You can also open a Joint RD account with up to 3 adults.

Conclusion

With no shortage of saving and investment plans, you can find the best saving plan in India per your investment goals. You can generate medium to high returns based on your chosen investment tenures. Visit your nearest bank or post office or invest online in the best Saving Schemes in India.
If you prefer to save time and effort, and open an FD account remotely, then download the digibank by DBS app right away! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best Saving Scheme in India - List of Best Saving Plan in India | digibank by DBS

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The Indian Government and public sector entities offer numerous savings schemes. These schemes are secure, provide attractive interest rates and involve lower risks. You can open most government-backed savings schemes with minimal amounts. You can get tax benefits by investing in tax saving plans like EPF, PPF and NPS.

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Tax on Interest Income - An Overview | digibank by DBS

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Tax on Interest Income - An Overview | digibank by DBS

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Tax on Interest Income - digibank outlines the tax repercussions and whether interest income is taxed. The digibank by DBS website can be visited to learn more.

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Key Takeaways

Interest earned on your savings and investment instruments is taxable in India.

You are liable to pay taxes on interest earned of up to INR 10,000 on your savings account deposits.

You also have to pay TDS and basic tax on the interest income from Fixed and Recurring Deposits investments.

Investment securities like Mutual Funds attract capital gains tax.

Enjoy total tax exemption on interest earned on government-backed schemes like Public Provident Fund.

Most financial instruments in India, such as Savings Accounts, Fixed and Recurring Deposits, and investment vehicles, typically generate interest income. This interest you earn is considered an additional income source, and like any other income, is taxed as per the applicable Income Tax laws of the country. As per the Income Tax Act, 1961, you are liable to pay tax on your interest earnings upon crossing a certain threshold. Keep reading to know more about tax on interest income.
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How is Interest Income Taxable?

As mentioned earlier, any form of income is taxable. Listed below are tax implications for some widely used investment instruments.

Savings Accounts

Interest income of a maximum of INR 10,000 per financial year is tax-deductible under Section 80TT of the Income Tax Act, 1961. The INR 10,000 amount includes interest earned from all the Savings Accounts you have in various public and private sector banks, post offices, NBFCs, etc. However, if the interest income exceeds INR 10,000, it becomes taxable interest. In such a case, you have to pay taxes on the interest income per your Income Tax bracket.

Fixed Deposits

The interest earned on a Fixed Deposit is fully taxable, per your Income Tax slab rate. The bank deducts TDS of 10% for income interest of all your FDs exceeding INR 40,000 in a financial year. Under Section 80TTB, Senior Citizens enjoy a higher non-taxable interest limit of INR 50,000. Remember, the TDS rate will increase to 20% if you do not submit your Permanent Account Number (PAN).

Recurring Deposits

Tax on interest income on Recurring Deposits is similar to that on FDs. The entire interest earned is taxed per your Income Tax slab. The government also introduced a 10% Tax Deducted on Source (TDS) in Budget 2016 on RDs. However, you can claim TDS Exemption by submitting Form 15G (15 H for senior citizens) if your overall taxable income from all sources does not exceed the amount not chargeable to tax.

Debt Mutual Funds

Debt Funds primarily invest a significant portion of their assets in fixed-income securities. Gains earned on redeeming debt funds within 3 years, are called Short-term Capital Gains (STCG), taxed at 30%, plus taxes. Gains for funds redeemed after 3 years are Long-term Capital Gains (LTCG), taxed at 20%, plus taxes, with indexation benefit.

Public Provident Fund (PPF)

An investment scheme backed by the government, PFF offers guaranteed returns and tax benefits. While PPF has a longer investment/maturity period of 15 years, it falls under the Exempt-Exempt-Exempt (EEE) category. Thus, you do not have to pay tax on interest income, the principal deposited and the maturity amount.

Conclusion

Paying tax on interest income is mandatory while filing your returns. You must mention the interest income under the 'Income from other sources section in the ITR form. Ensure you know the tax implications associated with your investments since they can significantly impact your overall returns.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Tax on Interest Income - How is Interest Income Taxable? | digibank by DBS

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Interest earned on your savings and investment instruments is taxable in India. You are liable to pay taxes on interest earned of up to INR 10,000 on your savings account deposits. You also have to pay TDS and basic tax on the interest income from Fixed and Recurring Deposits investments.

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Minimum Cash Deposit Limit in Savings Account | digibank by DBS

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Minimum Cash Deposit Limit in Savings Account | digibank by DBS

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Cash Deposit Limit in Savings Account - digibank presents a short description of the maximum amount that can be placed in a savings account. A savings account can be created by downloading the digibank app.

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Key Takeaways

The Reserve Bank of India sets limits on cash deposits in Savings Accounts.

You can deposit only INR 1 lakh cash in one shot in a Savings Account.

Cash deposits in a Savings Account cannot exceed INR 10 Lakhs in a financial year.

The RBI has set similar limits for Current Accounts, Fixed Deposits, and other banking transactions.

Choose cashless transactions with digibank's internet banking services and mobile application.

A Savings Account is undoubtedly the most basic and popular bank feature available. It is used to safely store your money while earning additional income through the interest offered. However, the Reserve Bank of India (RBI) sets specific limits on the funds you can deposit in a Savings Account. To learn more about the cash deposit limit in Savings Account, read on.
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How Much Cash Can Be Deposited in a Savings Account?

The rules that limit the cash deposit limit in a bank Savings Account are in place to benefit account holders and assist the Income Tax department. When you make cash deposits in a Savings Account, you are only permitted to do so till the limit of INR 1 lakh. Deposits exceeding this amount may attract the attention of the tax authorities.

Similarly, it is essential to know how much money can be deposited in a Savings Account in a year. To adhere to the cash deposit limit in Savings Account and avoid the notice of the tax authorities, you can only deposit cash up to INR 10 lakhs per annum.

Furthermore, your bank can set similar rules for cash withdrawals from a Savings Account, which you can ascertain under the terms and conditions section of the Account opening form.

Other Limits on Cash Transactions

Besides knowing the cash deposit limits in Savings Account, you should also know the maximum limits on other cash transactions. If you exceed these RBI-set limits, your bank may report you to the income tax authorities.

Current Accounts

Current Accounts are typically used for business transactions. As such, they are subject to comparatively higher deposit and withdrawal limits. You may receive an Income Tax notice for deposits aggregating to INR 50 lakhs cash in a Current Account.

Fixed Deposits

Cash-based Fixed Deposits are also subject to a maximum ceiling. You can only make a cash deposit of up to INR 10 lakhs in a Fixed Deposit. You can create higher amount FDs via cheques and internet banking.

Credit Card Bill Payments

While making a credit card bill payment, you must adhere to the cash deposits limit of up to INR 1 lakh. To pay bills exceeding this amount, you can rely on other cashless methods of payment.

Real Estate Transactions

While making high-value cash transactions concerning real estate, stick to the limit of INR 30 lakhs. Cash transactions exceeding this amount could lead to you receiving an Income Tax notice.

To ensure that you abide by the rules set by the RBI and avoid attracting the attention of the tax authorities, try to conduct cashless or bank-to-bank transactions as much as possible.

Final Note

Now that you know the cash deposit limits in bank Savings Accounts, make sure you abide by the RBI guidelines while handling cash transactions. digibank offers several financial services and solutions designed to encourage cashless transactions. You can conveniently transfer funds and conduct cashless transactions through digibank internet banking and mobile applications.
Download the digibank by DBS app to get started. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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minimum cash deposit limit in savings account

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cash deposit limit in savings account approval

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Cash Deposit Limit in Savings Account | digibank by DBS

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The Reserve Bank of India sets limits on cash deposits in Savings Accounts. You can deposit only INR 1 lakh cash in one shot in a Savings Account. Cash deposits in a Savings Account cannot exceed INR 10 Lakhs in a financial year.

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Debit Card Transaction Limit Per Day | digibank by DBS

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Debit Card Transaction Limit Per Day | digibank by DBS

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Debit Card Transaction Limit - The daily limit for debit card transactions according to RBI regulations is described by digibank. One can visit digibank by DBS website for comprehensive details.

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23 Oct 2021

Decoding the debit card transaction limit per day per RBI guidelines

Key Takeaways

Your debit card enables you to withdraw money and pay for all kinds of expenses.

The RBI has set daily transaction limits on debit cards.

Banks may also determine their own debit card limits per day.

Debit card transaction limits are higher for privileged accounts with higher daily average balances.

Banks can set daily transaction limits on withdrawals at ATMs and online and retail shopping outlets.

With your debit card in your pockets, you can pay for all sorts of expenses anywhere and anytime. Do you wish to withdraw cash at an ATM or pay for your online or retail store expenses? You can use your debit card. Indeed, the debit card is a nifty invention that allows you to access the funds in your bank account without ever stepping foot in the bank. But did you know that you cannot withdraw more than a predetermined amount of money per day for debit card transactions? Let us understand the various debit card transaction limits in this article.

Debit Card Withdrawal Limits

When we speak about debit card limits, we need to consider several factors. For instance, the debit card withdrawal limits at ATMs depends on which ATM you use for cash withdrawal. Similarly, banks also set daily limits on debit cards for shopping purposes. Moreover, the total debit card daily limit encompasses withdrawals at ATM, online, and retail store purchases.

Withdrawals at ATMs

For most banks, the debit card transaction limit per day for cash withdrawals at ATMs is set at INR 25,000. This daily cash withdrawal limit depends on whether you use your own bank ATM or another bank ATM. If you choose the latter, you can withdraw up to INR 10,000 in one transaction, but the maximum withdrawal limit per day still cannot exceed INR 25,000. Note that the daily cash withdrawal limit for premium accounts differs from standard accounts and can be as high as INR 100,000 or more.

Withdrawal For Shopping Purposes

Whether you wish to shop online or in-person at merchant establishments, you must ensure you comply with the set debit card limit per day. Banks generally allow you to spend up to INR 100,000 on your online and retail store expenses on your standard debit card. This daily limit can be significantly high if you have a premium account and a premium debit card. Banks also offer RFID technology-enabled contactless debit cards through which you can avail of the tap and pay facility. Transactions of up to INR 2000 without entering your secret PIN are available on contactless cards.

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Things to remember

When you use debit cards for online purchases, you have to complete OTP-based authentication.

The limit on free transactions at own-bank ATMs per month is capped at five in metros, whereas that for other bank ATMs is three times in metros and five times in non-metros.

You get a free ATM cum debit card upon account opening and can set your PIN by visiting your own bank ATM.

Final Note

As a debit card user, you should be aware of Debit card transaction limits. It helps to link your mobile number to get alerts after every transaction. All account holders can apply for individual debit cards, but the debit card limits for all joint holders remains the same.

Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card!

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Debit Card Transaction Limit - Know Debit Card Limit Per Day | digibank by DBS

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Debit Card Transaction Limit - Find out the debit card limit per day, withdrawal limit in this blog. Download the digibank app & apply for a digibank debit card.

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SIP Benefits & Advantages - digibank presents a thorough explanation on how to lower your tax obligations by funding the top Tax Saving SIPs. By downloading the digibank app, one can begin investing.

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08 Nov 2021

Reduce your tax liabilities by investing in the best Tax Saving SIPs

Key Takeaways

Equity Linked Savings Scheme (ELSS) Mutual Fund SIP is known as Tax Saving SIP.

You can get tax deductions on ELSS investments of up to INR 150,000 under Section 80C.

Every ELSS SIP has a 3-year lock-in period.

At least 65% of assets in ELSS SIPs are invested in equity and equity-related instruments.

Long-term Capital Gains Tax is applicable on gains exceeding INR 100,000 per annum.

We can all concur that paying a large chunk of our hard-earned money in government taxes is not a joyous sentiment, although crucial by law. However, the Indian Government offers numerous tax saving schemes to reduce the tax outgo. One such way of saving taxes and earning high returns is investing in Equity Linked Savings Scheme Mutual Funds. You can invest in ELSS Tax-saving SIPs and reduce your tax liabilities considerably. Here is an article on Tax-Saving SIPs.

What is a Tax-Saving SIP?

A tax-saving SIP, also known as Equity Linked Savings Scheme (ELSS), is a Mutual Fund scheme that you can invest in via a Systematic Investment Plan (SIP). This scheme allows investors to avail tax deductions of up to INR 150,000 under Section 80C of the Income Tax Act, 1961. ELSS invests at least 65% of the funds in equity and equity-related instruments and comes with a mandatory 3-year lock-in period.

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Reasons To Consider ELSS SIPs Over Lumpsum

With SIPs, you do not have to time the market

You can invest in instalments and grow your corpus gradually

You do not have to lock away a lumpsum amount for 3 years

You can pause SIPs whenever you like.

You can benefit from compounding and Rupee-cost averaging.

Features and Benefits of Tax-Saving SIPs

Tax Benefits

The principal benefit of ELSS Tax-Saving SIPs is that it is the only equity investment on which you can get Section 80 C tax deductions of up to INR 150,000. By investing a maximum of 150,000 per annum in various SIPs, you can save approximately INR 46,800 as a tax-payer in the highest slab of 30%.

Lock-in Period

Not only are ELSS Tax-Saving SIPs tax-efficient, but they also have the lowest lock-in period among all 80C investments. While the minimum lock-in periods for other 80 C tax-saving investments range from 5 to 15 years or more, each ELSS SIP has a short lock-in period of only 3 years.

Returns

ELSS SIPs tend to generate significantly higher returns than other 80 C schemes. Fund Managers allocate more than 65% of funds in equity assets. Hence, you can expect higher returns, in the range of 10% - 18% in the long term, compared to other Mutual Fund and 80C investments.

Investment

Tax-saving SIPs come with a minimum investment amount of INR 100 but could differ from one Fund House to another. Moreover, you can choose a multitude of ELSS tax-saving SIPs, diversify your investment, and utilise maximum tax-saving benefits.

Final note

The SIP tax-saving facility is only available on ELSS schemes. While it is an excellent tax-saving instrument generating high returns, it also comes with inherent market volatility and fluctuation risks. Moreover, each SIP is locked away for at least 3 years, and you have to pay a Long-Term Capital Gains Tax of 10% without indexation on gains exceeding INR 100,000 from ELSS investments. So, ensure you assess your risk appetite before choosing the best tax-savings SIPs.

Download digibank by DBS on your smartphone, register, and choose any tax-saving options from the menu.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Keep Reading

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Tax Saving SIP - Features, Benefits & Reasons to go for it | digibank by DBS

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SIP benefits include easy withdrawals, better returns in comparison with other modes of investments and many more. Download the digibank app to start SIP investments now.

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Debit Card with CVV -  Recognize the purpose, significance, and applications of the debit card CVV number. The digibank by DBS website has more comprehensive information.

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Key Takeaways

CVV stands for Card Verification Value.

All debit and credit cards come with a CVV to protect your account from online scams.

The CVV is a 3-digit code printed on the flip side of the debit card.

The CVV number is different from the PIN.

Each debit card has a single, unique CVV.

Bank frauds are becoming increasingly common today. To mitigate the risks of increasing fraudulent activities, banks have come up with a way to ensure that their customers can conduct secure online transactions while using their debit cards. To this end, they assign a unique 16-digit card number along with a CVV code. You may have seen this CVV number embossed on the flip side of your credit or debit card, right along the magnetic signature strip. Let us find out what CVV is in this article and understand its importance.

What Is CVV Number In Debit Card?

CVV stands for Card Verification Value. You need to enter a code, especially when you make online payments using your debit card. Generally, the CVV is a 3-digit code embossed on the flip or reverse side of most debit cards powered by Visa, Master or Rupay. There are also exceptions like the American Express powered-debit card, which comprises a 4-digit CVV code printed on the front side of the debit card, just above the card number.
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Importance Of CVV Number In Debit Card

You may be surprised to know that every debit card has two CVVs - one hidden under the magnetic stripe, and the ch is visible to us. The hidden CVV is used for physical transactions. In contrast, the visible debit card security code is the one you need to input, along with your card number and card expiration date, while conducting an online debit card transaction.

Debit card CVV protects your money against scams and provides an additional layer of security to all your banking transactions.

The debit card CVV number also serves to verify that the person authorising the online transaction physically possesses the card.

A crucial thing that makes the CVV no on debit cards unique and secure is that online payment portals are not authorised to save the CVV number linked to a debit card. Thus, even if the card number is saved, they cannot make any payments unless the cardholder inputs the CVV number.

Difference Between CVV Number In Debit Card And Debit Card PIN

The CVV number is not the same as the Personal Identification Number or PIN. The fundamental differences are as follows:

You can set the PIN, but the bank assigns the card-provider assigns the CVV number.

You can change the PIN while the CVV remains static.

You must provide the PIN for physical transactions, while you need CVV and PIN for online payments.

You may assign the same PIN to your debit cards, but each CVV is unique, even if the bank gives you a new debit card with the old 16-digit card number.

The CVV code on debit cards protects you from online fraud. You need this card to authenticate your online transactions. CVV is a means to verify your identity, which is why each debit card has a unique CVV number.
With DBS digibank, existing or new users can access debit cards in a hassle-free and quick way. Get started here. Download digibank Now
*Disclaimer: This article is for information purposes only. All information provided is generic and basic. Contact us at DBS to know more.

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CVV Number: Full Form, Meaning & Importance of CVV in Debit Card | digibank by DBS

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CVV stands for Card Verification Value. All debit and credit cards come with a CVV to protect your account from online scams. The CVV is a 3-digit code printed on the flip side of the debit card. The CVV number is different from the PIN. Each debit card has a single, unique CVV.

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What is International Debit Card and How to get it | DBS digibank

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What is International Debit Card and How to get it | DBS digibank

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What is International Debit Card - digibank presents a step-by-step explanation on how to obtain a global debit card. The digibank by DBS website has more comprehensive information.

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Key Takeaways

International debit cards allow you to pay for transactions abroad.

You can activate international usage on your local debit card.

You have to pay a nominal currency conversion fee for using local debit cards abroad.

You may opt for global debit cards like forex cards, but they may prove expensive.

You can apply for international usage on your debit card through your net banking platform.

When you open a bank account, your bank typically provides an ATM-cum-debit card. You usually use this card to pay for shopping and online transactions in India and withdraw cash from Indian ATMs. But have you ever wondered if you could use your local debit card as an international debit card to pay for expenses while you are abroad? Find out answers to this and more. Keep reading.

What is an International Debit Card?

An international debit card is a card that enables you to pay for your expenses like shopping, food, hotel stays, etc., when you are abroad. Moreover, you may withdraw money from foreign bank ATMs using the card while travelling overseas. This card is also known as a Global Debit Card.

Local vs Global Debit Card - A comparison

Essentially, an international debit card is not a separate card - it is your local debit card with global access. You need to activate your local debit card for international transactions before travelling abroad. Doing this enables you to pay for your transactions without applying for a separate debit card or buying expensive forex cards with high currency conversion fees.

While the funds in your local savings account are parked in your local currency (INR, for instance), when you swipe or withdraw funds using your local debit card abroad, your payments and withdrawals will occur in the foreign currency. For example, if you decide to withdraw USD 200 while on your trip to the USA, you can do the same using your local debit card. However, your bank will levy a nominal currency conversion rate for swiping your local debit card abroad and paying in a foreign currency.
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How to Apply for International Debit Card

As mentioned earlier, you do not need to apply for a global debit card separately. You can easily activate your local debit card for international usage by following these steps mentioned below:

1. Log in to your net banking account by entering your username and password.

2. Go to the manage cards section and click on the 'debit card' menu.

3. Click on the request tab and choose 'set international/domestic' usage.

4. Choose the Indian debit card you wish to enable for international usage.

Note that international usage is only provided on Visa and MasterCard debit cards. If you have a RuPay Card, you can ask your bank to provide a Visa or MasterCard debit card. You may also set or modify daily international usage limits under the card tab through the net banking platform.

Final note

Now that you know how to get international debit card access on your local debit card, you can conveniently use your card on your travels abroad. You must provide specifics such as the currency of transactions, the period for which you would need international access and your preferred daily usage limits. Also, ensure you maintain sufficient balances in your account for seamless global transactions.
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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how to apply for international debit card

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International Debit Card - How to Apply, Features, Benefits | digibank by DBS

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International debit cards allow you to pay for transactions abroad. You can activate international usage on your local debit card. You have to pay a nominal currency conversion fee for using local debit cards abroad. You may opt for global debit cards like forex cards, but they may prove expensive.

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What Is Contactless Debit Card | DBS digibank

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What Is Contactless Debit Card | DBS digibank

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What Is Contactless Debit Card - Here is a quick guide to debit cards with contactless NFC. The NFC debit card can be used for simple banking. At digibank by DBS, you can get all the specific details.

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Key Takeaways

Contactless debit cards are also known as Wi-Fi debit cards.

They work on RFID or NFC technology.

You can make payments without swiping the card.

You can recognise the card with the Wi-Fi symbol embossed on it.

Contactless debit cards enable secure and speedy payments.

There is no doubt that debit cards make banking easy. Sleek and easy to carry, these cards help you make payments when you are short of cash. You can also withdraw funds from your Bank Account at any time with the help of your ATM-cum-debit cards. With evolutions in the banking industry, the modern debit card is the updated version of the standard card with a magnetic strip. Yes, today, banks provide contactless debit cards. Here is all you need to know about them.

What is Contactless Debit Card?

A contactless debit card is a card encrypted with Radio Frequency Identification (RFID) or Near-field communication (NFC) technology. Also known as the NFC debit card, it is the latest development in secure payments technology, which allows debit cardholders to pay for their transactions without physically handing over the card to the payee.

How Does the Contactless Debit Card Work?

The RFID technology in contactless debit cards allows the card to communicate with a card reader when the payer or payee holds the card near the card reader for a transaction. The card typically comes with an EMV (Europay, MasterCard, and Visa) chip with the usual details such as the card number, expiration date, CVV, signature strip and magnetic strip.

When you hold the contactless card against the card reader or payment machine, the card authenticates your card information securely. At this point, the point-of-sale system or retail merchant sends your transaction details to the card-issuing bank, which analyses the transaction and approves it.

While these steps may seem complicated, it takes less than a minute to complete the entire transaction.
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Making Payments with Contactless Debit Cards

Essentially, the contactless debit card allows you to make payments without having to swipe the card at retail and other PoS platforms. You can complete transactions securely by holding the card or tapping it on contactless-enabled card readers. The card reader encrypts the card details, the payee enters the amount due, and the payment is completed in seconds.

Recognising Contactless Card and Transaction Rules

Recognising a contactless debit card is easy. All contactless cards contain the Wi-Fi symbol either on the front of the card, under the bank name or card type (Visa, Master, etc.), or on the flip side, near the magnetic strip. The contactless symbol is represented by four curved lines, increasing in size as they move from left to right. This symbol is perhaps why many banks also refer to the contactless card as the Wi-Fi debit card.

Most banks allow contactless payments without entering the secret PIN for transactions up to INR 2,000. In case of transactions exceeding INR 2,000, you must authenticate them by entering the PIN.

Final Note

Now that you know what is contactless debit card you can request your bank for one. Alternatively, your bank may automatically assign a contactless card when your current card expires. Incredibly convenient and secure, the NFC debit card works ten times faster than swiping, inserting in slots or using cash.
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Contactless Debit Card? - All About Wi-Fi Debit Cards | digibank by DBS

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Contactless debit cards are also known as Wi-Fi debit cards. They work on RFID or NFC technology. You can make payments without swiping the card. You can recognise the card with the Wi-Fi symbol embossed on it. Contactless debit cards enable secure and speedy payments. There is no doubt that debit cards make banking easy.

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Debit Card Fund Transfer - digibank presents a thorough explanation of the debit card to bank account money transfer process. By using the digibank app, one can send money to their loved ones.

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Key Takeaways

You can transfer money from debit cards to bank accounts

You must activate your mobile banking app to initiate the fund transfers

You may also conduct debit card money transfers through bank websites

You need to set up beneficiary account details for fund transfers

You must register your mobile number with your bank to receive OTPs to authenticate transactions

Today you can transfer money from one bank account to another in many different ways. You can initiate fund transfers via your internet banking account through which you can access methods like NEFT, IMPS, and RTGS, among others. Moreover, you can also install UPI Money Transfer apps for instant transfers. While these methods are common, most people do not know that they can transfer money from debit card to bank account. Let us understand the requirements and process for debit card money transfers in this article.
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Online Money Transfer from Debit Card - Requirements

For online money transfer from debit card to bank account, you will need the following.

An active and valid debit card featuring the 16-digit card number, card expiration rate and CVV number.

Bank account details of the beneficiary, including their name, bank and branch name, account number and IFSC code.

Registered Mobile Numbers of both the sender and the beneficiary for OTP verifications SMS alerts on successful fund transfers.

Mobile Banking Application of your bank

Steps for Debit Card Money Transfer

To transfer money from debit card to bank account, you will need to install and activate the mobile banking application of your bank. You can also directly visit the bank's website to conduct the fund transfer. Once done, you can follow this step-wise guide on how to transfer money from debit card to bank account.

1. Log in to your mobile banking application or open the website of your debit card issuer.

2. Select your debit card account and log in to it. If you have not set up your debit card details, you can do so at this point by entering the 16-digit card number, card expiration date in MM/YY format, and the CVV number. You can find the CVV on the flip side of the debit card, near the magnetic strip.

3. Navigate the cursor to the money transfer section on the website or mobile app

4. If you have not already set up the beneficiary details, you can do so at this stage. It takes approximately 30 minutes for the beneficiary account to be set up.

5. Once the beneficiary account is set up, you can repeat the above steps and enter the fund transfer amount.

6. Review the details of the beneficiary and confirm the payment by authenticating the transaction with OTP.

The beneficiary will receive an SMS alert confirming the debit card money transfer, while you will receive a notification from the bank stating the completion of the fund transfer and your outstanding balance after the fund transfer process is completed.

Final note

Now that you know how to transfer money using debit card, you can use this fund transfer method anytime. Note that you can also transfer money from your bank account to your UPI wallets and then initiate instant money transfers. Linking the bank account to UPI wallets can prove extremely helpful for instant money transfers.
Get started with seamless money transfer with digibank. Download the app now and send money to your family from anywhere! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Online Money Transfer from Debit Card - Easy Steps | digibank by DBS

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You can transfer money from debit cards to bank accounts You must activate your mobile banking app to initiate the fund transfers You may also conduct debit card money transfers through bank websites You need to set up beneficiary account details for fund transfers You must register your mobile number with your bank to receive OTPs to authenticate transactions Today you can transfer money from one bank account to another in many different ways.

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Money Market Fund - Meaning & Types | digibank by DBS

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Money Market Fund - Meaning & Types | digibank by DBS

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Money Market Fund - The definition and types of money markets are provided by digibank. By installing the digibank app, one can make secure investments in money market mutual funds.

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Key Takeaways

Money Market Funds are short term, high-quality Debt Mutual Funds.

They have a short investment horizon with a maximum maturity of up to one year.

Returns are relatively steady with low to moderate risk.

MMFs are ideal investments for investors with access to surplus cash.

MMFs are eligible for short and long-term capital gains tax.

Introduction

As an investor in the securities markets in India, you should be mindful of the fact that market securities yield high returns but are also subjected to market risks. As such, you should aim to mitigate your risks by investing in a mix of securities. One such type of investment that helps reduce your risk exposure is Money Market Funds. Keep reading to know more about Money Market Fund in India.

What are Money Market Funds?

Money Market Funds are open-ended short-term debt funds. It is a type of Mutual Fund which invests in money market instruments for a year and offer low-risk returns. MMF instruments include cash equivalents and debt securities with short-term maturity.
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Types of Money Market Mutual Funds

Treasury Bills

The Government of India issues Treasury Bills to raise capital for up to a year, with the aim of compensating for any short-term mismatches in expenditures. Since The Government of India backs Treasury Bills, they are deemed as relatively safe investments. However, their returns rate is lower than other Money Market Funds.

Commercial Papers

High credit-rated companies and financial institutions issue commercial Papers (CP), also known as promissory notes. CPs are legal instruments that state a written promise by the lender to the payee, a sum of money at a discounted rate. The payee redeems this sum of money at the prevailing face value. The payee makes profits from the difference between the discounted rate and the face value.

Repurchase Agreements (Repos)

This type of Money Market Mutual Fund in India is an agreement between the Reserve Bank of India and a bank and is referred to as Repurchase Agreements or Repos. Here, the RBI lends money to the bank to facilitate short-term loans. Two banks can get into a Repurchase Agreement as well.

Certificates of Deposit

Scheduled commercial banks offer Certificates of Deposits (CD), which is a type of term deposit. Unlike a Fixed Deposit, investors cannot withdraw the CD before maturity.

Things to Consider

Money Market Mutual Funds attempt to offer the highest possible returns in a short duration. Therefore, they serve as an ideal investment vehicle for investors with a low investment horizon of up to 1 year.

Money Market Funds are debt funds and come with interest rate risk, reinvestment risk and credit risk. Moreover, to increase profitability, the fund manager may invest in high-risk funds.

Generally, returns on Money Market Funds are lower. Additionally, fund managers charge an expense ratio. So, it is essential to invest in funds with the lowest expense ratio to maximise returns.

Like most mutual funds, Money Market Funds in India are eligible for Short-term Capital Gains (STCG) and Long-term Capital Gains (LTCG) on redemptions.

Conclusion

Low default risk and short investment horizons make Money Market Funds a safe and excellent means to invest idle cash. You get higher returns than in a regular savings account. As an investor, you can integrate various types of Money Market Mutual Funds in your portfolio and reduce your risks.
Download digibank to create your savings account and choose from a range of debt mutual fund options to build wealth. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Money Market Fund & What are its Types | digibank by DBS

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Money Market Funds are short term, high-quality Debt Mutual Funds. They have a short investment horizon with a maximum maturity of up to one year. Returns are relatively steady with low to moderate risk. MMFs are ideal investments for investors with access to surplus cash. MMFs are eligible for short and long-term capital gains tax.

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Debit Card Charges - A Detailed Guide | digibank by DBS

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Debit Card Charges - A Detailed Guide | digibank by DBS

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Debit Card Charges - digibank presents a thorough explanation of DBS debit card yearly fees and transaction fees. By using the digibank app, one may take care of all of their financial requirements.

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Key Takeaways

Debit cards allow you to access funds in your bank accounts anytime.

Banks levy various types of debit card charges.

Standard charges include debit card transaction charges, annual charges, reissuance charges, etc.

Charges may depend on the average balances in your account.

Find out digibank by DBS debit card charges in this article.

A debit card is perhaps the most useful of all banking products. It allows you access to the funds in your account 24x7. Its sleek design also makes it very easy to carry with you anywhere. You can easily tuck it in one of your jeans' pockets or carry it in a card wallet. Let us understand what debit card charges are and break down the various charges associated with them.

What are Debit Card Charges?

Your debit card can do a lot of things. It helps you withdraw cash at your own bank and other bank ATMs. You can swipe it to pay for expenses at retail and online stores. Furthermore, you can access your bank account even when you are abroad with your international ATM cum debit card. For all these services and facilities you get with your debit card, your bank levies a charge. These charges associated with the usage of debit cards and the convenience you get from them are known as debit card charges. Here is a schedule of the basic charges associated with digibank by DBS debit cards.

DBS Debit Card Annual Charges

The digibank by DBS Debit Card comes with a nominal annual fee of INR 150+18% GST, translating into another INR 27. As such, the total debit card annual charges are INR 177. The bank waives off this charge in the first year of opening the account and levies it from the second year onwards. The bank debits this amount from your Savings Account in July of each year. Additionally, the bank holds the discretion to levy a charge on the reissuance of physical debit cards.

Debit Card Transaction Charges

Like most banks, digibank by DBS also levies debit card charges based on your total relationship value (TRV) with the bank. TRV essentially indicates the monthly average balances you maintain in your bank accounts. For accounts with higher TRVs, digibank offers waivers on debit card charges. The TRV-specific debit card charges below can help you understand how much the bank charges you for debit card usage.
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Other Charges

Besides these basic charges, banks also levy debit card transaction charges, especially when you exceed the number of transactions at ATMs. Here are the charges:
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Debit Card Charges - Check Debit Card Transaction Charges Here | digibank by DBS

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Debit cards allow you to access funds in your bank accounts anytime. Banks levy various types of debit card charges. Standard charges include debit card transaction charges, annual charges, reissuance charges, etc. Charges may depend on the average balances in your account. Find out digibank by DBS debit card charges in this article.

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What is High Yield Savings Accounts | DBS digibank

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What is High Yield Savings Accounts | DBS digibank

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High Yield Savings Accounts - The definition and key characteristics of high yield savings accounts are covered by digibank. Downloading the digibank app will allow one to start a savings account.

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Key Takeaways

A High Yield Savings Account offers higher interest rates than your Regular Savings Account.

You must maintain a specific Total Relationship Value (TRV) with the bank offering High Yield Accounts.

You can enjoy higher interest rates with increased TRV.

The minimum balance requirements for such accounts is typically high.

You can also avail of fee waivers as your TRV increases.

A Savings Account is one of the first investments for every individual. The entity where you maintain the Savings Account rewards you for using their product by offering interest on your deposits. However, the number of banking and non-banking institutions has rapidly increased over the years. Today more than 34 private and public sector banks, with over 22,000 branches, exist in India. With so much competition in the banking sector, banks have to get creative and offer exciting products. A High Yield Savings Account is one such product launched specifically for affluent customers. Let us understand it in detail in this article.

What Is High-Yield Savings Accounts?

A High Yield Savings Account is a type of Savings Account offering interest rates that are relatively higher than what you could get on a Regular Savings Account. This account is essentially designed for affluent account holders and high net worth individuals. The High Yield Savings Account comes with exclusive privileges and benefits, including designated relationship managers offering a host of services ranging from financial planning to investment advisory services and more.
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Features of a High Yield Savings Account

High-Interest Pay-out

As is apparent from the term 'High Yield', this Savings Account comes with a significantly higher interest rate on deposits. Essentially, banks have different Savings Account Interest rates slabs for High Yield accounts. The interest rate depends on the total balances maintained in the account on an annual basis.

High Minimum Balance Requirements

A High Yield Savings Account with high interest rates typically comes with a high initial deposit requirement and high average minimum balance maintenance. You must ensure you maintain the required balances in your account all the time. Failure to maintain the required minimum balances may result in you having to pay hefty penalties.

Total Relationship Value (TRV)

The TRV is the sum of all balances of accounts held with the bank, including balances in Savings Account, Current Account, Credit Card Accounts, Loans and Insurances. To avail of high-interest rates, you must build a very high TRV, usually over INR 30 Lakh in a specified timeframe.

Waivers and Discounts

You can upgrade your High Yield Savings Account at your convenience. Every upgrade can qualify you for exclusive benefits like waivers on specific charges with an increase in the TRV, no annual fees on debit cards, no liabilities on lost or stolen cards etc.

Bespoke Privileges

In recognition and appreciation of your business with the bank, you also get some bespoke privileges with a High Yield Savings Account. For instance, you get dedicated banking and relationship management services, high amount daily cash transactions, credit cards with high credit limits, financial planning and investment advisory services, etc.

Conclusion

The best High Yield Savings Account offers you attractive interest rates compared to conventional Savings Accounts. It is the ideal place to park your funds for everyday business transactions while growing your corpus gradually. You can open the account online in minutes.
With the digibank by DBS app, you can open a new Savings Account in a few minutes! Download the app to get started. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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High Yield Savings Accounts - 5 Key Features Explained | digibank by DBS

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A High Yield Savings Account offers higher interest rates than your Regular Savings Account. You must maintain a specific Total Relationship Value (TRV) with the bank offering High Yield Accounts. You can enjoy higher interest rates with increased TRV. The minimum balance requirements for such accounts is typically high.

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How to Deposit Money in Bank | DBS digibank

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How to Deposit Money in Bank | DBS digibank

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How to Deposit Money in Bank - Here is a helpful tutorial on the numerous ways to deposit money into a bank. One can meet all of their financial needs by installing the digibank app.

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22 Nov 2021

Learn how to deposit cash in bank via the various methods available.

Key Takeaways

To safeguard your funds, you can deposit them into a bank using various methods.

You can deposit cash by physically visiting a local branch of your bank.

You can deposit funds into your bank account through ATMs as well.

You can deposit funds into an online bank account via wire transfers or money orders.

A deposit slip can help you transfer funds into your bank account via cash or cheque.

The easiest way to safeguard your hard-earned cash is to deposit it in your bank account. Not only do banks offer security measures that keep your money safe, but you can also avail of other benefits like additional income and special offers. With modern banking making headway, you can deposit your money in banks through various methods. Find out the different ways how to deposit money in bank in this article.

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How to Deposit Cash in Bank?

Cash Deposit at Local Bank

The traditional way to deposit cash in a bank is to take it over to a brick-and-mortar bank physically. You can take the money to your bank branch and deposit it in your Current or Savings Account with utmost ease. Not only will you earn extra income per the applicable interest rates but making such cash deposits does not involve any costs. Plus, you can easily access the funds deposited at any time – for bill payments, everyday expenses, shopping, and more.

For cash or cheque deposits, you need to submit a deposit slip provided at the bank. You have to fill out this slip by providing your name and account number. You must also mention the amount you wish to deposit on the slip. A deposit slip helps you deposit funds in a bank through cash or cheque.

ATM Deposits

Another way how to deposit money in banks is at Automated Teller Machines or ATMs vestibules. This electronic machine allows you to deposit cash without having to rely on a teller. However, not every ATM of your bank may have a cash depositing machine, so you must check for one with this facility. You only need your ATM-cum-Debit Card and PIN to deposit cash. Simply select the bank account type and number, insert the amount in a slab in the machine and collect the proof of transaction receipt. Unlike cash withdrawals, wherein you can use other bank ATMs, you may make cash deposits only at your own bank ATMs.

Online Transfers

You can also deposit money into a bank through various online fund transfer methods. You can opt for payments systems like RTGS, NEFT, and IMPS to deposit money into a bank account. While IMPS enables instant credits into beneficiary accounts, it takes up to 30 minutes to transfer funds via NEFT and RTGS. You need to activate net banking for online fund transfers.

Third-party portals

These days, you can also deposit funds in your bank account using third-party payment portals like digital wallets. UPI, etc. Through these methods, fund transfers take place via mobile applications and the money is directly credited into your bank account linked to the number registered with the UPI and bank.

Final Note

Today, banks provide internet and mobile banking services that make depositing money in your bank account easy and hassle-free. With so many methods of how to deposit money in cash, you can choose your preferred method based on the fund transfer amount.

Download the digibank by DBS app to get started.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Keep Reading

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How to Deposit Money In Bank - A Quick Guide | digibank by DBS

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How to Deposit Money In Bank - Here are some easy ways to guide you on depositing cash in the bank. Download the digibank app to open a savings account now!

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How to Save Tax - How to maximise your tax benefits and comprehend how to lower income tax is explained by digibank. One can meet all of their financial needs by installing the digibank app.

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Key Takeaways

Knowing how to save tax can reduce your tax outgo significantly

Several sections of the Income Tax Act of 1961 help taxpayers save tax.

Invest in several tax saving schemes and claim additional benefits.

Get tax deductions on investments like health Insurance, ELSS Mutual Funds, PPF and more.

Enjoy maximum tax-saving benefits on Home Loan principal and interest repayment.

Tax payment is an obligation you must comply with as an Indian citizen. You should file your returns per your tax slab. To ease your tax burden, the Government of India offers tax-saving benefits on different investments under various sections of the Income Tax Act, 1961. Let us understand how to reduce income tax on investments in India.
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How to Save Income Tax Under Various Sections of the IT Act

Section 80C

Under section 80C of the IT Act, you can enjoy tax deductions of up to INR 150,000 per financial year. You can get this benefit by investing in tax-saving schemes like Equity Linked Saving Schemes ( ELSS), Employee Provident Fund (EPF), Public Provident Fund (PPF), National Pension Scheme (NPS). 80C deductions also apply to repaying the principal component of your Home Loan or paying tuition fees for up to 2 children.

Section 80CCD

Besides 80C, NPS investments also qualify for an additional tax-deduction benefit of INR 50,000 under Section 80CCD. Therefore, you get a total tax deduction benefit up to INR 200,000 per financial year on NPS investments. Section 80CCD also applies to employer contributions to pension schemes. The contribution should not exceed 14% and 10% from Central Government and private companies, respectively.

Section 80D

Under Section 80D, you can claim deductions of INR 25,000 to INR 100,000 per annum on paying Health Insurance premiums for self, spouse, and dependent children and parents. The premiums you pay typically depend on your and your parents' age, and the deductions you can get are as under:

Individual + Spouse + Dependent Children = INR 25,000

Individual + Spouse + Dependent Children + Parents (below 60 years) = INR 50,000

Individual + Spouse + Dependent Children + Parents (60 years and above) = INR 75,000

Individual (60 years and above) + Spouse + Dependent Children + Parents (60 years and above) = INR 1 Lakh

Section 24(B)

Another way how to save tax is to utilise deductions on the Interest repayment component of your Home Loan. You can claim a tax benefit of up to INR 200,000 per annum under Section 24(B). This benefit applies to taxpayers occupying the loaned property.

Section 80G

When you donate to government-backed charities, you can claim 100% of the donation as a tax deduction from your taxable income, therefore reducing your tax liabilities.

Section 80 TTA & 80TTB

As a Savings Account holder, you can claim interest of up to INR 10,000 under section 80TTA from all Savings Accounts as a tax deduction. Under section 80TTB, the maximum amount you can claim is INR 50,000 per financial year, including Savings Account, Fixed Deposits etc.

Remember, from financial year 2020-21, you can continue to file taxes per the old regime since the new tax regime does not allow deductions or exemptions.

Conclusion

Now that you know how to save tax ensure you utilise maximum tax-saving benefits. With proper investments, you can substantially reduce your tax liabilities and enjoy tax benefits as well.
Download digibank by DBS on your smartphone, register and choose any tax-saving options from the menu. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Save Tax - Tips on How to Save Income Tax Effectively | digibank by DBS

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Knowing how to save tax can reduce your tax outgo significantly Several sections of the Income Tax Act of 1961 help taxpayers save tax. Invest in several tax saving schemes and claim additional benefits. Get tax deductions on investments like health Insurance, ELSS Mutual Funds, PPF and more.

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How to Use Debit Card Online | digibank by DBS

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How to Use Debit Card Online | digibank by DBS

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How to Use Debit Cards - An instruction manual for using a debit card to make online purchases. One can satisfy all their financial needs by installing the digibank app.

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Key Takeaways

You can use debit cards for all kinds of payments.

Pay for your retail and online shopping expenses with debit cards.

You can also pay utility bills and withdraw cash at ATMs using debit cards.

You must authenticate payments using the ATM Pin or OTPm depending on your debit card usage.

Avoid sharing your debit card details or writing them down as a security measure.

When you open a Savings Bank Account, your bank gives you a starter kit. This starter kit comprises all the essentials you need to manage your account, including a passbook, a cheque book, and a debit card. The debit card doubles as your bank account in your pocket, in that you can use it anytime to pay for all kinds of transactions - from utility bill payments to fund transfers to retail and online shopping. Let us understand the different methods of debit card usage in this article.

How To Use Debit Cards

At ATM Vestibules

A debit card is also known as an ATM card, which means that you can use it at Automated Teller Machines to withdraw cash. You can withdraw money from any ATM in India and abroad (in the case of international debit cards, by opting for international access). All you have to do is select your preferred transaction language, select the cash withdrawal option, key in the withdrawal amount, and enter your pin. The machine will dispense the funds. You can also check account balances at ATMs by following the same steps and choosing 'mini statement' or 'check balance' instead of cash withdrawal.

At Retail Centres

Yet another way how to use debit cards is at any retail or merchant outlet. You simply have to hand over the card to the payee, who will swipe the magnetic strip of the card on an electronic payment machine and enter the amount you owe them. You then have to enter the PIN and click on the green 'confirm' tab on the machine. The funds get debited from your account, thereby completing the transaction.
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At Online Websites

You can use your debit cards to pay for online shopping expenses and utility bill payments. The method of how to use debit cards for online payments is straightforward too. Select debit card as the mode of payment on the payment page and enter your 16-digit debit card number. Some online websites may ask you to select the type of card issuer or financial institution offering the debit card from Rupay, Visa or MasterCard. Enter your name on the card (optional), the expiration date in MMY/YY format and the 3-digit CVV embossed on the flip side of the card, above the magnetic strip. Once you enter these, you will receive a one-time password (OTP) on your registered mobile number. Enter the OTP to authenticate the transaction to complete the online payment process.

Final Note

Now that you know how to use debit card online, you can make all kinds of payments. Ensure you inform the bank at the earliest if your debit card is lost or stolen. You should not share your card number or secret ATM PIN with anyone. While you can spend money as needed to pay for various transactions, avoid saving your card information after completing online transactions as a safety measure.
Happy shopping with the digibank by DBS debit card! Download the app to open your digiSavings account instantly and get your debit card! Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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how to use debit card for online payment

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How to Use Debit Card - Know Debit Card Usage | digibank by DBS

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You can use debit cards for all kinds of payments. Pay for your retail and online shopping expenses with debit cards. You can also pay utility bills and withdraw cash at ATMs using debit cards. You must authenticate payments using the ATM Pin or OTPm depending on your debit card usage.

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How to Save Money in India | digibank by DBS

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How to Save Money in India | digibank by DBS

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How to Save Money - Here is a helpful tutorial on how to budget your monthly spending. One can meet all of their financial needs by installing the digibank app.

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Key Takeaways

The first step of saving money is to set a budget for you.

Savings Plans also help you to save money regularly and systematically.

You can increase your savings by opting for wealth-creating investment options.

Bank deposits like Fixed Deposits and Recurring Deposits can be a secure way of saving money.

Tracking your expenses and reducing unnecessary expenditures is a critical aspect of how to save money.

Whether you wish to meet urgent and essential financial requirements or plan for a smooth retirement, saving is a crucial aspect of life. However, with rising expenses and fast-paced life, it can be challenging to create a sizeable corpus in today's times. As such, we could all benefits from learning how to save money. To learn practical solutions to reach your savings goals, continue reading.
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Tips on How to Save Money in India

Create a Budget

The first step in how to save money is to evaluate your income and set a budget for all your expenses. Once you determine the portion of your income you are spending, it becomes easier to develop a monthly budget and save money each month. To make budgeting more manageable, you can rely on various budgeting mobile apps that help designate portions of your income for different areas of your life, including savings.

Track Your Spending

A good way how to save money each month is to track your spending to determine how much you can save each month. You can optimise your saving habits by tracking necessary purchases versus impulsive expenses. Tracking your spending habits helps you curb overspending, identify and reduce your unnecessary and excessive expenses. Cutting back on unnecessary monthly expenditures can help you allocate more funds to save each month, thereby increasing your corpus.

Choose the Right Savings Plans

A crucial aspect of how to save money is to create sensible Savings and Investment Plans. These are typically offered by the Government of India, banks, or other financial institutions. With these plans, you can inculcate the habit of saving in a systematic and disciplined manner to meet your short and long-term financial goals. You can pick from a host of savings plans to meet your personal financial needs based on your investment horizons and risk profile.

Wealth Creation through Investment

To boost your savings, you can rely on various investment options to help you earn money. You can opt for market-linked financial investments to earn additional income. For instance, you can invest in high-risk, high-return direct equity options like stocks. For a relatively less risky option, you can invest in Mutual Funds that enable portfolio diversification through a range of securities and assets.

Rely on Bank Deposits

The simplest way how to save money is to open Savings Accounts, Fixed Deposits (FD) and Recurring Deposits. While a Savings Account allows you to deposit your idle funds, FDs promote safe, lump-sum investments for specific tenures at predetermined interest rates. You can increase your savings by reinvesting the interest income and choosing the cumulative pay-out option. You can also open Recurring deposits that require fixed monthly payments and provide decent interest income.

Final Note

Knowing how to save money and formulating a clear plan to accomplish the goal, is critical aspect in the process of proper financial planning. With digibank, you can save money through various Savings Accounts, Deposits, Mutual Fund schemes and more such investment options.
Download the digibank by DBS app Download digibank Now to get started.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Save Money - 6 Top Tips on How to Save Money in India | digibank by DBS

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The first step of saving money is to set a budget for you. Savings Plans also help you to save money regularly and systematically. You can increase your savings by opting for wealth-creating investment options. Bank deposits like Fixed Deposits and Recurring Deposits can be a secure way of saving money.

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How to Save Money from Salary Every Month | digibank by DBS

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How to Save Money from Salary Every Month | digibank by DBS

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How to Save Money from Salary - digibank shares some clever tips for setting aside money from your paycheck each month. All financial requirements can be satisfied by downloading the digibank app.

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Key Takeaways

Learning how to save money from salary can go a long way in corpus creation.

Save your monthly salary by investing in investments with fixed lock in like PPF, FD, etc.

Select schemes where you can invest by providing standing instructions like Mutual Fund SIPs, RD etc.

Repay your outstanding loans and avoid utilising your entire credit cards limits.

Minimise unwanted expenses as much as you can.

We can all agree that we all look forward to the salary credit SMS every month. Your job paves the path to financial independence, but how you utilise your salary goes a long way in making you financially secure and self-sufficient. For many people who have just entered the workforce, how to save money from salary can seem to be a challenging proportion. This article is for such youngsters who have just started earning. Read on.
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How To Save Money from Your Salary Every Month

After taking care of your essential monthly expenses like house rent, utility bills, etc., you must ensure you create a plan to save your money and build your savings. Here are some neat tricks on how to do savings from salary.

Invest in schemes with fixed lock-in periods

When you have access to more money, you tend to spend more - sometimes on frivolous, invaluable things. But placing your money schemes with a fixed lock-in period encourages you to curb your impulsive expenses and promotes disciplined investments. As such, you can invest in various schemes like Public Provident Fund, 5-year tax-savings Fixed Deposits and Retirement Schemes with fixed lock-in periods each month.

Invest in schemes with fixed instalment amounts

You can put money aside each month by investing in schemes that require fixed monthly instalments for a fixed duration. Such schemes typically come with the standing instruction feature, where funds are debited on a stipulated date each month. Common examples of these investment-cum-savings plans include SIP Mutual Funds and Recurring Deposits with varying tenures.

Manage your credits card debt

Another way how to save money from salary is to use your credit card wisely. Using a credit card may seem exciting at first, but it can quickly put you into a ton of debt. Not paying credit card debt on time can attract interest and eat into your savings. So, ensure you manage your debt prudently.

Do not over-spend on take-out

Eating out at restaurants frequently can put a severe dent in your pocket. Pack your own lunch for work. On days when meal planning seems tiresome, order food via food delivery apps that offer discounts and cashback.

Reduce unnecessary expenses

With online shopping becoming the norm, unnecessary expenses have increased tremendously. A simple way how to save money from salary each month is to manage these expenses. For instance, you can choose one or two OTT platforms for entertainment instead of ten and switch to digital newspapers with low membership fees. Also, avoid getting carried away during online shopping festivals. Check if the deals are truly worth it and if you indeed need the things you are ordering.

Final Note

So, employ the above tricks on how to save money from salary to grow your savings gradually. Remember, your salary is a result of your hard work. Resourcefully spending money can help you fulfil your financial goals while you enjoy a comfortable lifestyle simultaneously.
Get the digibank by DBS app and start your investment journey now for a better future. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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how to save money from salary every month

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How To Save Money From Salary Every Month - Best Tricks & Tips | digibank by DBS

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Learning how to save money from salary can go a long way in corpus creation. Save your monthly salary by investing in investments with fixed lock in like PPF, FD, etc. Select schemes where you can invest by providing standing instructions like Mutual Fund SIPs, RD etc.

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Money Saving Tips - Important Points | digibank by DBS

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Money Saving Tips - Important Points | digibank by DBS

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Money Saving Tips - To build a respectable financial corpus, digibank explains money-saving strategies. To know more in detail one can visit the digibank by DBS website.

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Key Takeaways

Saving money now will help you fulfil your financial goal.

Investing in securities offering inflation-adjusted returns is one the best ways to save money.

Keep track of your expenses and reduce spending wherever you can.

Do not forget to claim tax deductions and exemptions.

Pay off your debts to free up capital towards your savings.

Are you tempted to buy that cool outfit you saw online? Do you find yourself eating out more often than you should? Are you dreading to look at your bank statement at month-end? Do you regret your spending decisions? If you have answered yes to most of these questions, perhaps you need to readjust your spending etiquettes. This starter course on money saving tips is precisely what the doctor ordered.
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Best Ways To Save Money

The best way to save money for the future include the following:

Determine your Financial Goals

When you set a goal, you can start working towards it. Your financial goals must be clear and precise. For instance - how much do you want your net worth to be in 3 years, 5 years, 10 years, and so on. Once you set the goal, you must make focused, regular investments to achieve that goal.

Assess your Investment Options

Assessing your investment options and devising a strategic investment plan also helps with creating savings. Investing your money helps you earn inflation-adjusted returns. You can either create a lump sum amount and invest in Mutual Funds, Fixed Deposits, etc., or dedicate a fixed part of your salary in monthly investment plans like SIP, Recurring Deposits, and more. Parking funds in a high-interest rate Fixed and Recurring Deposits is the best way to save money in a bank.

Invest in Tax-Saving Securities

Investing in tax-saving securities is one of the most crucial money saving tips that helps you achieve your savings goal. Do not forget to claim your tax deductions for your tax-saving investments. You can enjoy tax benefits on all kinds of investments from PPF to Equity Mutual Funds and Health Insurance to Life Insurance under various sections of the Income Tax Act, 1961.

Minimise Unnecessary Expenses

To fulfil your financial goals, you must devise a savings goal and minimise your unwanted expenses. While you should splurge occasionally, you must keep your eyes on the prize so that you do not waver from your goals. The best way to save money by reducing unnecessary expenses includes cooking at home instead of spending money at restaurants, cancelling automatic subscriptions of products or services you rarely use, not giving in to every online sale, etc.

Limit Your Credit Card Usage

While speaking of money saving tips, we must mention credit card usage. Try not to utilise more than 30% of your credit limit and pay off your bills, in full, every month. Avoid accumulating credit card debt and partial or late payment as it attracts high-interest rates. Also, while shopping online, check for discounts and cashback on specific credit cards to reduce your final payment and increase your savings.

Bottom Line

With these best ways to save money for the future, you can slowly but surely fulfil all your short and long-term financial and personal goals. You must temporarily keep your temptations in check if you wish to achieve your financial goals. Balance your savings and expenditures and prioritise savings only after taking care of your necessary expenses.
Download the digibank by DBS Bank and start investing in minutes! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Money Saving Tips - 5 Best Ways to Save Money | digibank by DBS

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Saving money now will help you fulfil your financial goal. Investing in securities offering inflation-adjusted returns is one the best ways to save money. Keep track of your expenses and reduce spending wherever you can. Do not forget to claim tax deductions and exemptions. Pay off your debts to free up capital towards your savings.

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Income Tax Planning for Individuals | digibank by DBS

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Income Tax Planning for Individuals | digibank by DBS

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Income Tax Planning - Here is a beginner’s guide on income tax planning. To know more in detail one can visit the digibank by DBS website.

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Key Takeaways

Tax Planning is crucial as it helps reduce your tax liabilities.

You can achieve tax efficiency by investing in instruments under Sections 80C, 80 D, 24B, etc.

Your tax slab depends on your basic salary and income sources.

You can invest in schemes like ELSS, PPF, EPF, NPS, etc.

Claim deductions on the Home Loan principal and interest repayments as part of tax planning.

Tax payment is a civic duty that helps foster the development plans of a nation. As an Indian citizen, you have to file your IT returns irrespective of your income and pay taxes if your income exceeds a certain bracket as specified by the government. But did you know that you can reduce your tax outgo significantly and enjoy tax exemptions on various investments with effective tax planning? Consider this article your introductory guide to tax planning and read on.

What is Income Tax Planning?

Tax Planning is the act of devising a financial plan in a way that enables you to reduce your tax outgo significantly. It involves optimally utilising the tax exemption limits and rebates offered by the Government of India under various Sections of the Income Tax Act, 1961. A financial plan that minimises your tax payment while allocating assets in profit-generating and asset building securities is called a tax-efficient plan.
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Tax Planning for Individuals

As a tax-paying Indian citizen, you should be aware of the various sections of the Income Tax Act, 1961 and the tax-savings instruments that fall under it, such as:

Section 80C

Section 80 of the IT Act allows you to claim deductions of up to INR 150,000 in a financial year. It includes a host of instruments in which you can invest and reduce your tax liability. Some of the most common investment instruments eligible for Section 80C tax reductions include Employee Provident Fund, Public Provident Fund, Principal Repayment on Home Loan, National Pension Scheme, Senior Citizens Savings Scheme, etc.

Furthermore, by investing in ELSS Equity Mutual Funds, you can save up to INR 46,800 in tax payment, based on your income tax slab. While equity investments carry market and volatility risks, they generate rapid returns. You must assess your risk profile before making such investments.

Section 80D

One of the primary financial goals you must fulfil during the tax planning process is investing in medical and health insurance. Under Section 80D, you can avail tax exemptions of INR 25,000 to INR 100,000 on paying insurance premiums for self, spouse, children and parents. The tax deduction you get depends on your and your parents' age.

Section 24 B

You can claim tax exemptions of up to INR 200,000 on the interest repayment component of your Home Loan under Section 24 B. With an investment avenue like a Home Loan, you can fulfil two goals - wealth creation by investing in a growth asset and claiming deductions on principal and interest repayment.

Final Note

Personal Tax Planning has become a lot easier with these various government-approved investment avenues. However, you should be mindful of the investment vehicles you choose. Remember to check your risk appetite before investing in stocks and ELSS mutual funds. Also, check your tax slab and the deductions you are eligible for against the type of investment you choose. Consult a tax planning expert and choose safe investments to create a robust financial portfolio.
Download digibank by DBS on your smartphone, register and choose any tax-saving options from the menu. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Tax Planning - Income Tax Planning Tips For Individuals | digibank by DBS

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Tax Planning is crucial as it helps reduce your tax liabilities. You can achieve tax efficiency by investing in instruments under Sections 80C, 80 D, 24B, etc. Your tax slab depends on your basic salary and income sources. You can invest in schemes like ELSS, PPF, EPF, NPS, etc.

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All About Investment Planning | digibank by DBS

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All About Investment Planning | digibank by DBS

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Investment Planning -Here is a comprehensive reference to the advantages and tactics of investment planning. By downloading the digibank app, one can begin investing.

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Key Takeaways

Investment planning is the path to financial security.

Efficient investment planning helps you realise your personal and financial goals.

It involves informed asset allocation, tax planning, and preparing for financial contingencies.

Your financial plan should cover your short, medium, and long term goals based on your appetite to withstand risks.

You can appoint a financial manager to help plan your finances effectively.

If you wish to achieve the ultimate aim of financial security, you need to start investing early and sustain the investment efforts over the long term. You also need to chalk out an investment plan and stick to it, modifying it from time to time. Yes, Investment Planning is incredibly crucial if you wish to live a financially comfortable life. This article explains the need for investment planning, its benefits, and how to go about it.

What is Investment Planning?

Investment Planning is a process of creating a financial strategy to achieve your financial goals and objectives by regularly investing in various securities. It involves well-planned money management that leads to wealth creation through investments in tax savings schemes, thereby minimising your tax outgo. A well-defined financial plan helps you achieve your personal and financial goals, wherein assets are allocated to create returns based on your risk profiles and preferred investment tenures.

Benefits of Investment Planning

Ensures financial security of the kin

You can secure the financial future of your loved ones in the unlikely event of losing employment, or worse, accidents that lead to permanent disabilities or death.

Better income management

Investments plans allow you to manage your earnings precisely. You can create budgets for savings and expenditures.

Preparing for contingencies

Investment Planning also focuses on creating a corpus that can help you during financial emergencies like a sudden illness or damages to your income sources, properties, etc.

Things to Consider While Creating Investment Plans

Your investment plan should comprise a healthy mix of debt instruments that generate stable returns without compromising the security of your capital investment amount.

You can also invest in equities if you have a high-risk tolerance, wish to earn higher returns in a shorter duration and can withstand market volatility.

Plan your investments across various horizons to achieve short, medium, and long-term goals.

Tax minimisation is an integral part of investment planning. Select investment avenues that reduce your tax outgo.

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Steps to Create a Winning Investment Plan

1. Create a fool-proof asset allocation strategy and contemplate your goals before investing. Well defined objectives make investing easy.

2. Most market-linked investments involve high risk. So you must determine your risk appetite beforehand. Doing so helps you pick investment options that are more suitable to your risk profile.

3. Diversify your investment in such a way that you can earn high returns while reducing risks associated with capital erosion. Ensure you invest in a mix of Stocks, Mutual Funds, Sovereign gold bonds, Fixed Deposits, Real Estate and such types of investments for effective investment planning.

4. Investment planning is a continuous process. You must regularly monitor the performance of your investments. You should review your goals from time to time and modify your investment plan to fulfil unattained dreams.

Final Note

A well-thought investment plan helps you realise your dreams and meet your long-term goals. Consider appointing a financial manager to help carve your investment plan.
Download digibank to open your savings account and begin your journey to making successful investments Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Investment Planning - How to Create Investment Plans | digibank by DBS

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Investment planning is the path to financial security. Efficient investment planning helps you realise your personal and financial goals. It involves informed asset allocation, tax planning, and preparing for financial contingencies. Your financial plan should cover your short, medium, and long term goals based on your appetite to withstand risks.

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What is Personal Finance | digibank by DBS

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What is Personal Finance | digibank by DBS

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Personal Finance - Personal finance is a broad phrase that encompasses ideas like money management, investment, tax preparation, and retirement planning, among many other things. To meet all of one's financial demands, one can download the digibank app.

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Key Takeaways

Personal Finance is a way to manage money to meet your long and short-term goals.

It entails financial services and products that enable saving, investing, and money management.

Personal Finance management inculcates financial literacy and empowers you to make informed money management decisions.

It also helps in being financially prepared for emergencies or future expenses.

Most banks in India provide an array of Personal Finance solutions.

Making money is only half the battle; the other half is planning your finance to reap the most benefits. You need a strategic financial plan to prepare for your future, handle emergencies, and create more wealth. While you might have heard of the term 'personal finance', the exact nature of this concept can be ambiguous. To ensure you make informed decisions about financial management, read on to learn about personal finance.
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What is Personal Finance?

Personal finance is an umbrella term that includes concepts like money management, saving and investing, tax planning, retirement planning, and much more. It also includes budgeting, mortgages, insurance, and other banking practices. Essentially, you can boil down the personal finance meaning to include products and services that empower you to make informed personal financial decisions to meet your goals.

Personal Finance Planning

To execute successful financial planning, you should determine your monetary objectives. To this end, you must define your short and long-term financial goals. For instance, you might require funds for the short term to make a large purchase or plan a wedding. You also need to arrange for long-term prospects like buying a house or saving for retirement. To make plans for financial management, you need to know your goals along with your income, expenses, and constraints. Once you consider these factors, you can build a strategy that will help your sort out your personal finance.

Why is Personal Finance Important?

Personal finance helps you become financially literate. Financial literacy is a set of skills that can help you distinguish between good and bad financial advice and assist you in making better decisions. Yet, since your school and college syllabus does not cover money management, you can learn the basics through free online courses, read up articles, watch financial education videos and more.

Further, personal finance also helps you prepare for the contingencies that lie ahead in life. While no approach can be foolproof, with personal finance-based planning, you are more prepared to meet any challenges in the future. Simple, practical steps like managing your cash flow effectively, paying income taxes, opting for beneficial investment instruments like mutual funds, tax-saving instruments etc., can prove helpful.

Personal Finance - Points to Consider

For security purposes, the best place to safeguard your money is in a bank account. Not only is it protected through solid security measures, but you can also earn interest income on funds parked in your Savings Account.

You can easily access money stored in your bank account through debit and credit cards, ATMs, online banking, etc.

You can opt for investment banking services to speed up wealth creation. You can invest in various instruments and save money to create a corpus for retirement.

Final Note

At digibank, you can avail of various products and services to plan your personal finances. With a host of services to suit your needs, you can also access financial management investment products and solutions through your digibank mobile banking app and internet banking platform.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Personal Finance Meaning - All About What is Personal Finance? | digibank by DBS

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Personal Finance is a way to manage money to meet your long and short-term goals. It entails financial services and products that enable saving, investing, and money management. Personal Finance management inculcates financial literacy and empowers you to make informed money management decisions. It also helps in being financially prepared for emergencies or future expenses.

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Financial Planning for Retirement | digibank by DBS

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Financial Planning for Retirement | digibank by DBS

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Retirement Planning - The importance of retirement planning is explained by digibank. To meet all of one's financial demands, one can download the digibank app.

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Key Takeaways

Retirement planning is the act of saving money for your retired life.

It involves setting financial goals and creating a retirement corpus.

Retirement planning helps you sustain the lifestyle you are used to when your income sources reduce.

It requires investing in securities that generate inflation-adjusted returns.

You can employ the services of professional financial planners for assistance with retirement planning.

An adage goes that life is everything between birth and death. The "between portion of life" primarily comprises working hard and earning money to live a life of dignity. The money you make helps support your lifestyle while you have regular income sources. To ensure you can enjoy financial security and the same standard of living while you are old, you should invest and save money regularly. Yes, it is crucial to plan for your retirement right from the start. Let us understand what retirement planning is and why it is important.

What is Retirement Planning?

Retirement Planning can be defined as the act of saving your money through adequate investments during your work life so that you have sufficient funds to support your retired life. It involves setting achievable financial goals and creating a retirement corpus. A good retirement plan helps you generate inflation-adjusted returns and meet your retired life goals.

How to create a Good Retirement Plan?

You can create your retirement plan on your own by methodically investing in various market instruments like shares, mutual funds, government bonds, fixed deposits and diversifying your investments. You can also employ the services of a financial planning expert.
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Importance of Retirement Planning

Here are some reasons why financial planning for retirement is essential:

You cannot work forever

You typically have anywhere from 30-40 years of work-life, during which time you can make money. Once you get old, your income sources may be restricted. With limited income sources, you may find it difficult to sustain the lifestyle you were living before retirement. However, you can continue leading the life you are accustomed to with proper retirement planning.

Your expenses increase with old age

As you grow older, your expenses will start to increase. You may need to spend on medicines and other old age-related expenses. The cost of your medical and life insurance policies will also increase. With increasing life expectancy and medical advancements, you cannot predict how long you will live. As such, you must have sufficient savings to lead a long life with dignity.

To fulfil your life goals

Old age can be pretty dull with little to do. However, it is also the time to fulfil your many life goals - from buying that gorgeous bungalow to travelling the world. Proper retirement planning allows you to build the corpus you need to achieve the goals you had to put on the back burner while you worked to provide for your family. It also enables you to secure the financial future of your loved ones.

Final note

The importance of retirement planning cannot be understated. Starting early is just as crucial as diversifying your investments. Choose a variety of instruments from fixed-income investments to equities, debt, and income tax saving schemes. This way, you can benefit from the power of compounding and create a decent retirement fund. Spend time with a financial planner to learn the best ways to save for retirement.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Key Importance of Retirement Planning | digibank by DBS

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Retirement planning is the act of saving money for your retired life. It involves setting financial goals and creating a retirement corpus. Retirement planning helps you sustain the lifestyle you are used to when your income sources reduce. It requires investing in securities that generate inflation-adjusted returns.

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How to Manage Money - Investing in the appropriate insurance policies is maybe the most important money management advice. One can know more about money management by visiting the digibank website.

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Key Takeaways

Financial management basics dictate that everyone should have a financial plan.

Create a budget and keep a check on your spending habits.

Prepare an emergency fund to pay for unplanned events.

Invest in life and health insurance to save yourself from massive expenses,

Set achievable financial goals and manage debt wisely.

The path to financial security involves a series of activities, from regular investments to proper money management. By combining these two aspects, you can gradually earn returns and eventually build a decent corpus. Whether you are earning a little or a lot, you should invest money every month. If you are unsure about where to start, here are some money management tips that you can employ.
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How to Manage Money?

Consider the financial management basics listed below to grow your money wisely.

Make a budget

The first and the most crucial step in the process of money management is to create a budget. The budget primarily comprises two aspects - the amount of money you can spend each month to support your lifestyle and the money you can put away in savings and investments. Ensure you develop financial habits that echo the predetermined budget so that you can fulfil your financial goals effectively.

Determine your financial goals

Determining short, medium, and long-term financial goals goes hand in hand with creating a budget. Your financial goals are a critical characteristic of money management as it enables you to focus on your spending habits and prevents you from overspending. Decide the financial goals you wish to achieve over the next 3, 5, and 10 years (at a time) and gradually adjust your budget while increasing your investment amount to achieve these goals.

Manage debt wisely

While speaking about how to manage money wisely, we must mention debt management. While credit cards permit you to borrow money and repay the debt later, make sure you do not utilise the entire credit limit. At the same time, use the credit card regularly to earn reward points that translate into actual savings in the form of vouchers that you can use to shop for essentials. Also, ensure that you repay your credit card debt on time and opt for total instead of partial payments so that you do not end up paying any interest on your debt.

Prepare for contingencies

Financial management basics also dictate that you should create an emergency fund to pay for unexpected expenses. Whether you park the money in a Savings Account or any other type of bank account, you should ensure you have enough to pay for medical emergencies and unplanned events like sudden big purchases. Preparing for contingencies saves you from taking on debts with higher interest rates, and you do not have to worry about paying off debt for years on end.

Invest in insurance plans

Perhaps the most crucial of all money management tips is to invest in the right insurance plans. You must ensure you invest in excellent life and health insurance plans with high coverage. Today, you do not have to pay lumpsum insurance premiums as many insurers offer monthly instalment investments schemes.

Final note

Now that you know how to manage money wisely, make sure you create a plan and stick to it. Also, keep an eye on your spending habits and follow your savings goals to get maximum value out of your investments.
Get the digibank by DBS app and start your investment journey now for a better future. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Manage Money? - 5 Tips to Follow | digibank by DBS

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Financial management basics dictate that everyone should have a financial plan. Create a budget and keep a check on your spending habits. Prepare an emergency fund to pay for unplanned events. Invest in life and health insurance to save yourself from massive expenses, Set achievable financial goals and manage debt wisely.

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How to Start Investing in Mutual Funds | digibank by DBS

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How to Start Investing in Mutual Funds | digibank by DBS

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How to Start Investing in Mutual Funds -For novice investors, digibank offers a helpful mutual fund guidance. Downloading the digibank app will allow you to begin investing.

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A handy Mutual Fund guide for new investors

Key Takeaways

Mutual Funds are excellent investment vehicles for beginners.

Select the Mutual Funds that align with your investment goals.

Thoroughly study the risks and returns before investing in Mutual Funds.

Read the necessary documents to know about costs and expense ratios.

Learn how to start investing in Mutual Funds through online literature.

Growing up, you are often taught how to save money. But you learn how to grow your money through life experiences. When you start earning, you realise you have plenty of investment options. Although it is never too late, starting your investment journey early on makes quite a difference in terms of the returns you earn. One of the most popular investment vehicles is Mutual Funds. This article explains how to start investing in Mutual Funds. Read on.

Mutual Fund Guide

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Types of Mutual Funds

The first chapter in the Mutual Fund investment guide includes Mutual Funds classification. The Securities and Exchange Board of India (SEBI) has classified Mutual Funds into 5 broad types – Equity, Debt, Hybrid, Solution Oriented and Other Schemes. The funds are further divided into open-ended and close-ended and could be dividend or growth-based. As an investor, you need to consider certain criteria before you begin investing. Let's decode them.

How to choose the best Mutual Funds?

Consider the following factors to choose the best Mutual Funds

Consider your risk profile and expected returns

Mutual Funds, as they say, are subject to Market Risks. As such, you should consider your risk profile before investing. Essentially, Equity Mutual Funds are riskier, but they generate significantly higher returns. Debt Funds are safer than equity returns. However, they generate stable but lower returns. With Hybrid Funds, you can create an investment portfolio that generates decent returns while mitigating your risks considerably.

Consider your preferred investment method

If you own a substantial amount of cash, you can choose a lump sum investment. However, if you wish to invest a smaller amount, you can consider the Systematic Investment Plans (SIPs) model of investing in Mutual Funds. Note that lumpsum investments prove fruitful for seasoned investors who can time the market accurately but, SIP is ideal for new investors.

Consider your investment objectives

Mutual Fund schemes are typically classified as growth or dividend schemes. If you opt for Growth Funds, the returns on investment get reinvested until you redeem the units. Conversely, Dividend schemes pay periodic, timely dividends. If your objective is to build wealth, long-term growth schemes would be preferable, and if you seek an income source, investing in dividend schemes could prove worthwhile.

Consider the Costs

Expense ratio, entry load, exit load are a few costs related to Mutual Funds investment that you must know before investing. Furthermore, you have to pay a commission to the fund manager for actively managing your investment portfolio. You also have to bear an expense ratio, which can reduce your overall returns. Remember to check all costs thoroughly before investing.

Conclusion

Before investing in Mutual Funds, you must ensure you familiarise yourself with a sound Mutual Fund investment guide. You can find literature surrounding how to start investing in Mutual Funds online through dedicated investment websites, blogs, videos, etc. So, ensure you check out the various Mutual Fund guides online before investing.

Save your time and energy by investing in Mutual Funds online. Download the digibank app to start the paperless process of creating your savings account and be one step closer to investing in Mutual Funds.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Start Investing in Mutual Funds - An Investment Guide | digibank by DBS

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How to Start Investing in Mutual Funds - Refer to this investment guide to choose the best mutual funds hassle-free. Download the digibank app & start investing!

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Mutual Fund NAV Calculation | digibank by DBS

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Mutual Fund NAV Calculation | digibank by DBS

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Mutual Fund NAV Calculation - Here is a guide that explains how NAV is determined and how significant it is to mutual funds. One can visit the digibank website to perform calculations.

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Key Takeaways

NAV stands for Net Asset Value.

It represents the market value of a share in a mutual fund.

You calculate NAV by dividing the net assets by the total number of outstanding mutual fund units.

NAV indicates the past performance of a mutual fund.

NAV does not determine the future value of a mutual fund.

Introduction

How does an investor know where to invest? Or what mutual fund to choose? These are some questions that come to mind when you want to invest. All investments provide a specific parameter that helps you to make an informed investment decision. Similarly, in Mutual Funds, investors consider the NAV of the fund as one of the determining factors. Let us understand Mutual Fund NAV calculation in this article.

NAV Calculation - What is it?

Often associated with Mutual Fund investments, the Net Asset Value (NAV) is the market value of a share of a particular mutual fund. You can calculate NAV by dividing the difference between the assets and liabilities of a company by its number of outstanding shares. NAV aids investors to analyse if the fund is undervalued or overvalued. It computes the value of a particular fund that you will receive when you withdraw your investment.

How NAV is Calculated - The Formula

NAV is the per-unit market value of a mutual fund, where you divide the net assets of the fund by the total number of outstanding units. The mathematical formula for Mutual Fund NAV calculation is:
Net Asset Value = (Assets - Liabilities)/Total Number of Outstanding Units
Here, the assets include the value of securities held and liquid cash, equity, debentures, bonds, exchange bills, commercial papers, any interest or dividend earned. The liabilities include expenses in the form of money payable, interest payable, fund management expenses etc. Fund Managers calculate the NAV of a mutual fund at the end of the market day.
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NAV Calculation - Example

Let us say a mutual fund has INR 100 lakh worth of total investments in securities calculated based on the closing prices for each asset. It also has INR 6 Lakh of cash and cash equivalents and INR 3.5 lakh in total receivables. Accrued income for the day is INR 8000. The fund has INR 20 lakh in short-term liabilities and INR 1.5 lakh in long-term liabilities, and expenses for the day are INR 2000. The fund has INR 5 lakh shares outstanding. Using the above formula, the NAV is calculated as:

[(100,00,000 + 6,00,000 + 3,50,000 + 8000) - (20,00,000 + 1,50,000 + 2000)]/5,00,000 = 17.61

Your mutual fund will be traded at the closing price of INR 17.61 per share for the given day.

The Role of Net Asset Value Calculation in Mutual Funds

NAV is commonly misconstrued as the same as shares priced in the stock market. Investors believe that low NAV means better investments. However, that is not the case. The mutual fund NAV indicates how the underlying assets have performed in the past. It shows how a mutual fund scheme performs at the end of a business day and does not indicate the profitability of the fund.

Conclusion

As a mutual fund investor, you conduct NAV calculations before investing. The NAV, however significant, does not determine the future performance of the mutual fund. However, by studying the NAV, you can assess if a fund can adequately fulfil your investment objectives per your risk appetite.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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NAV Calculation - How NAV is Calculated? | digibank by DBS

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NAV stands for Net Asset Value. It represents the market value of a share in a mutual fund. You calculate NAV by dividing the net assets by the total number of outstanding mutual fund units. NAV indicates the past performance of a mutual fund. NAV does not determine the future value of a mutual fund.

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How to Calculate SIP Returns - digibank presents an explanation of how to calculate SIP step-by-step, either manually or with the aid of online calculators. Visiting the digibank website will allow you to perform calculations.

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Key Takeaways

SIP is a popular Mutual Fund investment method.

You can calculate your Mutual Funds SIP returns using online SIP calculators.

SIP calculator gives you a rough estimate of the maturity value of your SIP Mutual Fund investment.

You can also calculate returns manually using a simple formula.

SIP calculator does not compute expense ratios and exit loads.

If you wish to invest in Mutual Funds but do not have a lump sum amount to spare, you can invest via SIP. An abbreviation for Systematic Investment Plan, SIP allows you to invest in Mutual Funds in instalments. You can compute the returns from your SIP investment before you begin the SIP with the help of SIP calculators. Let us find how to calculate SIP returns using SIP Calculators.

What is a SIP Calculator?

A SIP Calculator is an online simulation tool that enables you to compute the potential returns on your SIP Mutual Fund investment. This tool uses variables like your preferred investment amount and investment tenure, which can be weekly, fortnightly, monthly, or quarterly along with the expected returns rate to compute the SIP returns.
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How SIP is Calculated Using the Calculator

Here are the steps on how to calculate SIP returns with the help of an online SIP calculator:

1. Find a generic online SIP calculator on the internet.

2. Enter your preferred SIP amount.
Select your preferred investment tenure between monthly and quarterly. If you want to invest weekly or fortnightly, calculate the monthly investment amount and select the monthly tenure option.

3. Now enter your expected returns rate per annum, ensuring you choose a reasonable rate in accordance with market conditions.

4. Lastly, enter your preferred SIP investment tenure in years. Some calculators may ask you to enter the number of SIP instalments. So, if you choose five years, it will be 5x12 = 60 SIP instalments.

Once you enter these details, the SIP calculator will instantly compute the expected returns rate.

How To Calculate SIP Manually?

If you wish to corroborate the accuracy of the SIP calculator, you can also calculate the potential returns manually. Use the below formula to compute the returns from your SIP investment manually.
FV = P [ (1+i) ^ n-1] * (1+i)/i Where:

FV = Future value or maturity amount of the investment.

P = Monthly SIP investment amount

i = Compounded returns rate

n = duration of the investment (in months)

r = Expected returns rate

Now let us say that you choose to invest INR 2,000 (P) every month for 24 months (n) at an expected Returns Rate (r) of 12%, on which you stand to earn compounded returns (i) of 0.01%.

At INR 2000 per instalment over 24 instalments, your total investment amount is INR 48,000. At a 12% returns rate, your final calculation will look something like this:
FV = 2000*[(1+0.01) ^ 24-1] * (1+0.01)/0.01.
At this rate, you will earn INR 54,486 when the SIP matures after2 years of investment.

Final note

Knowing how is SIP calculated and how to calculate SIP returns online or manually helps you make informed investment decisions. Since the investment market is volatile, the SIP calculator cannot compute the exact returns rate. Moreover, the calculator does not account for expense ratios and exit loads it gives you a rough estimate of the total value of your SIP investment.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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How to Calculate SIP Returns Stepwise | digibank by DBS

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SIP is a popular Mutual Fund investment method. You can calculate your Mutual Funds SIP returns using online SIP calculators. SIP calculator gives you a rough estimate of the maturity value of your SIP Mutual Fund investment. You can also calculate returns manually using a simple formula.

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Best ELSS Funds - One Must Know | digibank by DBS

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Best ELSS Funds - One Must Know | digibank by DBS

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Best ELSS Funds - This article presents everything you need to know about top ELSS funds. One can start an investment by downloading the digibank app.

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Key Takeaways

Equity Linked Savings Scheme (ELSS) fall under Section 80C, offering tax rebates of INR 150,000 p.a.

These are mutual funds with 3-year lock-in periods.

Check the past performance of ELSS schemes before investing.

Know your fund manager and expense ratio for better investments.

Consider your risk appetite as ELSS funds can be risky but generate higher rewards.

With so many varieties of mutual funds available, it can be challenging to pick the right one. Fortunately, the Securities and Exchange Board of India (SEBI) has classified mutual funds and sub-categories. Equity Linked Savings Scheme (ELSS) Mutual Funds are categorised as Equity Mutual funds and popular investment choices. If you wish to find out what makes the best ELSS Funds, you must look for certain qualities within the fund. Let us understand ELSS Mutual funds and how to pick the best ones.

Understanding ELSS Mutual Funds

Equity Linked Savings Scheme Mutual Funds are also referred to as Tax Savings Funds. Approximately 80 per cent of the assets of the fund are invested in equity schemes. ELSS Funds fall under Section 80C of the Income Tax Act. As such, if you invest in ELSS, you can claim a tax rebate of INR 150,000 per annum. Also, these funds have a mandatory lock-in period of three years, which is the shortest among all Section 80C investments.

Qualities That Determine The Best ELSS Funds

ELSS investments can be considered as mid to long term investments, depending on your preferred investment horizon. They are considered risky but can generate significant returns. Here are some qualities that make the best ELSS Mutual Funds.

Past performance

You must check how the mutual fund has performed across various market cycles in the past. Take data of at least five years into consideration. A good fund generates stable, consistent returns even during volatile and fluctuating market cycles.
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Fund manager

The fund manager is at the heart of every mutual fund investment, including ELSS. Before you pick a fund, you must check other funds handled by the fund manager - the returns accrued and the performance in volatile market conditions. You must also consider the years of experience the fund manager brings to the table and how well the manager understands the investment market.

Expense ratio

When you invest in mutual funds, you must account for the administrative processes and costs like commission, fund managers' fees, etc. In case of high expense ratio costs, the profits into your pockets can reduce significantly. ELSS funds with lower expense ratios tend to offer comparatively higher returns, making them the best ELSS mutual funds.

Personal factors

While considering investments in ELSS, you must also account for three critical personal factors. These include your investment goals and investment horizons. Remember that ELSS funds come with 3-year lock-in periods, and you cannot exit them prematurely. Also, since ELSS funds are considered risky, you must check your risk appetite. These funds can generate significantly higher returns but can also erode your capital investment amount. So be sure before you invest.

Conclusion

Now that you know what makes the best ELSS Funds, you can start investing today. ELSS Funds are top-rated because they offer dual benefits of tax rebate and wealth creation. Earn adjustable inflation returns and diversify your portfolio with ELSS.
If you are looking for high-quality rated mutual fund schemes, then download the digibank by DBS app. Choose from over 250 schemes based on your investment goals. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best ELSS Funds You Should Invest In | digibank by DBS

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Equity Linked Savings Scheme (ELSS) fall under Section 80C, offering tax rebates of INR 150,000 p.a. These are mutual funds with 3-year lock-in periods. Check the past performance of ELSS schemes before investing. Know your fund manager and expense ratio for better investments. Consider your risk appetite as ELSS funds can be risky but generate higher rewards.

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Best SIP for Long Term Investment - digibank talks about the ideal SIP for long-term investments. By installing the digibank app, SIP investments can be made.

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Best Long-Term SIP – 3 Factors to Consider | digibank by DBS

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Best Long-Term SIP – Find out which factors to consider while selecting the best SIP for long term. Download the digibank app to start your SIP investments.

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Personal Loan Without Salary Slip | digibank by DBS

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Personal Loan Without Salary Slip | digibank by DBS

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Personal Loan Without Salary Slip - A step-by-step guide detailing how to obtain a personal loan without a pay stub. Downloading the digibank app will allow one to apply for a personal loan.

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Key Takeaways

Lenders require proof of income like salary slips to approve unsecured loans like Personal Loans.

Self-employed individuals typically do not receive regular salary slips.

Providing alternate income proof documents like bank statements and ITR can help you get a Personal Loan without salary slips.

Maintain a high credit score to get quicker Personal Loan approvals.

Applying jointly with creditworthy co-applicants assists with Personal Loan approvals.

Personal Loans are unsecured loans wherein applicants do not have to provide any security. Due to this reason, lenders look at other aspects of an applicant's profile to gauge if their loan application can be approved. One such factor is the applicant's source of income, which is verified through salary slips. While salaried individuals typically receive monthly salary slips, the same cannot be said of self-employed individuals? If you belong to the latter category, continue reading to understand how you can apply for Personal Loans without Salary Slips.
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How to Get a Personal Loan Without a Salary Slip

Here are some ways to get a Personal Loan without salary slips

Provide Alternative Proof of Income

As a self-employed individual, you would typically work on a contract basis and might not get monthly salary slips. However, you can still produce proof of your income. You can opt for other financial documents like certificates, bank statements, Income Tax Returns (ITR), or Form 16. These documents can help validate your income and assure lenders that you can repay the loan amount borrowed.

Maintain a Healthy Credit Score

Apart from your sources of income, lenders also consider your credit history to determine your creditworthiness and your past credit repayment behaviour. Thus, whether you are self-employed or recently lost a job, try to keep your credit score high. If your CIBIL score is high, a lender will feel more comfortable sanctioning your loan and be assured that you will approach loan EMIs responsibly. Ideally, a score of 600-750 is considered a healthy credit score and can help you easily avail of financial assistance.

Pledge Assets as Security

Another alternative to get Personal Loan without salary slips is to check if the lender provides asset-backed, secured loans. You can pledge assets like high-value Fixed Deposits, mutual fund units, gold jewellery, or anything else that can display your loan repayment ability. If you pledge your assets, you might get your Personal Loan approved without having requisite income-based documents and may even get a lower interest rate.

Apply Jointly

Jointly applying for a Personal Loan with a creditworthy individual as a co-applicant can help you avail of a Personal Loan without salary slips. The co- applicant can provide the required income proof documents and a good credit score, which in turn, increases the lender's confidence while sanctioning the loan. This way, you can get the loan you need to attend to your expenses.

Simple Eligibility Criteria

To avail of a Personal Loan without salary slips and income proof documents, you can approach a lender who requires you to meet basic eligibility criteria. Banks with minimal eligibility criteria are more likely to consider your loan application even if you cannot provide salary slips. Most lenders provide these loans online with easy application and minimal, hassle-free documentation processes.

Apply for an instant Personal Loan at digibank, to meet your financial needs.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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how to get a personal loan without salary slip

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Get Personal Loan Without Salary Slip in 7 Easy Ways | digibank by DBS

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Lenders require proof of income like salary slips to approve unsecured loans like Personal Loans. Self-employed individuals typically do not receive regular salary slips. Providing alternate income proof documents like bank statements and ITR can help you get a Personal Loan without salary slips. Maintain a high credit score to get quicker Personal Loan approvals.

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Best Loan App in India | digibank by DBS

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Best Loan App in India | digibank by DBS

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Best Instant Loan App in India - The best payday loan Applying for Personal Loans is relatively simple with the help of apps like the digibank mobile banking app. One can download the digibank app to avail this facility.

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Key Takeaways

Instant Loan Apps are developed by banks and NBFCs and registered with the RBI.

These apps offer unsecured Personal Loans with hassle-free loan application processes.

You have to upload scanned copies of the required documents to complete the paperless loan application process.

Enjoy instant credit of the loan amount into your account.

There are no end-use restrictions on the loan amount.

The fintech sector of India is rapidly booming. Today, you can conduct all kinds of banking transactions, from fund transfers to loan applications online. With Banks and Non-Banking Financial Institutions (NBFC) developing mobile apps, it has become far more convenient to access Personal Loans at your fingertips. Now you can download the best Instant Loan App in India on your internet-enabled smartphone. Here is all you need to know.
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Best Loan App in India - Features & Benefits

Paperless Documentation: With Instant Loan Apps involve paperless documentation, which means you can complete the loan application by submitting scanned copies of your PAN Card, age, identity, and address proof documents.

Collateral-Free: When you apply for a loan via an Instant Loan App, the lender approves your loan application without asking for collateral.

No End-Use Restrictions: You can use the loan amount to finance any contingencies or leisurely spends.

24*7 Availability: You can avail of funds from these apps 24*7, 365 days a year.

No Credit History: Few Instant Personal Loan Apps approve the loan without a credit score if you submit your bank statements.

Instant Approvals & Disbursals: Loans are approved quickly, and the loan amount gets disbursed into your account within minutes.

What Is the Best Instant Loan App In India?

The Best Loan App in India has the following attributes.

Clearly Mentioned Charges

The best apps mention the charges associated with the loan clearly, such as the loan processing, prepayment, EMI defaulting charges, and more.

Clearly Mentioned Loan Details

The best Instant loan app must indicate the minimum and maximum loan amount you can get, along with the potential repayment tenures and the applicable interest rates on the loan. You should not have to run multiple internet searches to find this information.

Clearly Mentioned Eligibility Criteria

You should be able to check whether you are eligible for the loan in seconds. The app should mention the age limits, the minimum net monthly income requirements and the type of people who may apply (salaried, self-employed, business owners, etc.)

Smooth User Interface

Another vital attribute of the best Instant Loan App in India is that it should be user-friendly. You should be able to download it easily from the app store and navigate through it comfortably so that you can complete the loan application seamlessly in minutes.

Access to Customer Care Helpline Service

The app should have a special section through which you can easily access the customer care helpline of the bank. With customer care details, you should be able to reach out to the bank for any necessary assistance regarding loan application and repayment process.

Conclusion

The best instant loan Apps like the digibank mobile banking app make it incredibly easy to apply for Personal Loans. With such apps, you can access all the necessary loan-specific details. The app also allows you to load scanned copies of your documents, fast-track your loan application, and get speedy disbursals.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best Instant Loan App in India - A Complete Guide | digibank by DBS

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Instant Loan Apps are developed by banks and NBFCs and registered with the RBI. These apps offer unsecured Personal Loans with hassle-free loan application processes. You have to upload scanned copies of the required documents to complete the paperless loan application process. Enjoy instant credit of the loan amount into your account.

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Long Term Loans and Advances | digibank by DBS

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Long Term Loans and Advances | digibank by DBS

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Long Term Loan - digibank describes the long-term loan's characteristics, perks, eligibility requirements, and paperwork needs. One can visit the digibank by DBS website for more thorough details.

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Key Takeaways

Long Term Loans have longer loan repayment tenures with a minimum of 3 years.

Loan amounts are higher while interest rates are lower.

Long Term Loans require you to provide collateral.

Home Loans, Car Loans, Education Loans etc., are typical examples of Long Term Loans.

Some Long Term loans also come with tax benefits.

Do you want to buy a house? Do you want to fund your education? Are you starting your venture and need a business loan? If yes, the answer to all your questions is a Long Term Loan. Offered by banks and Non-Banking Financial companies, this loan comes with several attractive features. Let us decode Long Term Loans in this article.

Long Term Loans

Long Term Loans are secured loans that allow you purchase high-ticket items with the loan amount. This loan comes with significantly higher repayment tenures, and you can repay it over an extended period of time, usually ranging from 3 years to 30 years. Examples of long-term loans include Home Loans, Car Loans, Two-Wheeler Loans, Personal Loans, Small Business Loans, to name a few.
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Long Term Loan - Features & Benefits

High Loan Amount

Long-term loans come with higher loan amounts since the products purchased through the loan are generally expensive.

Low-Interest Rate

Lenders typically offer lower interest rates to loan applicants since the loan repayment tenure is higher.

Collateral

Lenders need security or collateral on Long Term loans. Typically, you have to pledge the item purchased through the loan as collateral. The collateral enables lenders to recover their investment if a borrower defaults on loan repayment.

Monthly Instalments

Lenders allow you to repay the loan in Equated Monthly Instalments (EMIs). Each EMIs comprises a portion of the principal amount and the interest component.

Tax Benefits

Certain Long Term loans with advances come with tax benefits. The best example is a Home Loan, where you can claim tax deductions of INR 150,000 under Section 80C of the Income Tax Act, 1961, on the principal loan repayment. Similarly, you can avail of annual tax deductions of INR 200,000 on interest repayment under Section 24B.

Eligibility Criteria

To be eligible for most Long Term Loans, you should be a resident Indian, salaried or self-employed individual in a specific age group as determined by the lender. Some lenders may also ask you to have a guarantor back your loan application.

Types of Long Term Loans

Home Loans

Home Loan tenures tend to range from 10 to 30 years. The house that you buy acts as collateral until you repay the loan. Home Loan amounts tend to be extremely high. Therefore, borrowers can choose a longer repayment term with decent EMIs.

Auto Loans

An Auto Loan can be used to buy a car or a two-wheeler. The minimum and maximum tenure of an Auto Loan is 3 and 7 years, respectively. You can get this loan at significantly lower interest rates.

Business Loans

If you intend to set up your business or expand it, you can opt for long-term business loans with 5 or more year repayment tenures. These loans may double as Long Term Personal Loans, where you must pledge your business as collateral.

Conclusion

With so many types of Long Term Loans, you can get financing for all your needs. With a financial product like a long-term loan, you can buy things in affordable EMIs and repay the loan flexibly.
Download the digibank by DBS app to get started. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Long Term Loan - Features of Long Term Loans and Advances | digibank by DBS

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Long Term Loans have longer loan repayment tenures with a minimum of 3 years. Loan amounts are higher while interest rates are lower. Long Term Loans require you to provide collateral. Home Loans, Car Loans, Education Loans etc., are typical examples of Long Term Loans. Some Long Term loans also come with tax benefits.

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What is Arbitrage Fund | digibank by DBS

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What is Arbitrage Fund | digibank by DBS

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What is Arbitrage Fund - Here is a comprehensive tutorial that explains what an arbitrage fund is and how it operates. Downloading the digibank app will allow you to invest.

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Key Takeaways

An Arbitrage Fund is a type of hybrid fund that invests in the equity and debt markets.

Investors can benefit from Arbitrage Fund investments in highly volatile markets.

Fund Managers book profits by leveraging the price difference of securities between current and future markets.

Arbitrage Funds offer reasonable profits in a short duration.

Arbitrage Funds are taxed similar to equity funds.

Introduction

If you invest in the securities market, you probably know of its volatile nature. As a knowledgeable investor, you may want to steer clear of such inherent volatility. However, seasoned investors know that they can take advantage of market volatility and create investment opportunities by investing in Arbitrage Funds. Read on to learn more about what is Arbitrage Funds, how it works, and its benefits.

Arbitrage Fund - Meaning

An Arbitrage Fund is a type of hybrid mutual fund that allocates a significant portion of its assets in equity mutual funds, whereas the remaining is invested in debt instruments. In this type of investment, fund managers invest in cash and derivatives markets and leverage the price differentials to maximise returns.

How Does an Arbitrage Fund Work?

The fund manager essentially analyses the price of securities in the current cash market and the futures market. If the price of securities is higher in the current market, the fund manager will purchase future marker securities and sell the equivalent quantity in the current cash market. Here, whatever the difference obtained after selling, will be the gain, less any other costs. On the other hand, the fund manager buys lower-priced securities in the cash market and forms an extended contract to sell those shares in the future market.
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Benefits of Arbitrage Funds

Risk

Since fund managers buy and sell securities simultaneously, you are secure from risks associated with long-term investments. However, frequent market fluctuations make it a slightly risky investment, ideal for moderate-risk investors.

Volatility

Meant to absorb the volatility blow, Arbitrage Funds proliferate under a highly volatile market. An individual stock goes through significant fluctuations. Arbitrage Funds use this fluctuation to their advantage with fast buying and selling.

Returns

Arbitrage Funds in India offer moderate to high returns as they are hybrid funds that invest in equity and debt funds.

Things to Consider

Investment Horizon

Arbitrage Funds are advantageous for short-to-medium term investment goals. It is an ideal vehicle to place surplus cash and earn quick returns. Ensure your goals line up with the objective of the fund.

Cost

Mutual Fund investments come with several costs, including expense ratio, entry and exit load, etc. If you wish to invest in Arbitrage Funds, you will have to bear these costs frequently.

Reliability

Best Arbitrage Funds thrive on high market volatility. Oddly, if the market is not volatile enough, these funds may not be favourable.

Taxation

The tax implications on Arbitrage Mutual Funds are similar to that of equity funds. Short-term Capital Gains (STCG) are gains earned on investments held for less than a year and are taxed at 15%. Long-term Capital Gains (LTCG) are gains made for investments held for more than a year. LTCG above INR 1 Lakh is taxed at 10% per cent with no indexation benefit.

Conclusion

Arbitrage Funds is a solution for investors with a moderate risk appetite. They provide a relatively safe avenue to place your surplus cash and earn capital gains. These Funds also take advantage of market vagaries to generate profit.
Download digibank to explore the different mutual funds on offer. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Arbitrage Fund - Basics & Benefits | digibank by DBS

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An Arbitrage Fund is a type of hybrid fund that invests in the equity and debt markets. Investors can benefit from Arbitrage Fund investments in highly volatile markets. Fund Managers book profits by leveraging the price difference of securities between current and future markets. Arbitrage Funds offer reasonable profits in a short duration.

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Short Term Loans and Advances | digibank by DBS

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Short Term Loans and Advances | digibank by DBS

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Short Term Loan - The qualifying requirements, documentation needs, and features & benefits of short-term loans are all explained by digibank. Downloading the digibank app is required to apply.

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Key Takeaways

Short Term Personal Loans are unsecured and collateral-free loans.

The tenure of Short Term Loans ranges from a year to 2 years.

These loans require minimum documentation and get approved quickly.

The expected CIBIL Score is 600 and above.

Banks offer competitive Short Term Loan interest rates.

Not having access to cash during unforeseen circumstances can be cumbersome. You may need to arrange money for various medical and personal emergencies. Thanks to instant Short Term Loans, you need not fret about short-term money requirements. This type of loan has shorter repayment tenures, is paperless and collateral-free, and the loan amount gets disbursed quickly. To know more, keep reading further.

Short Term Personal Loan

A Short Term Personal Loan is a type of loan that you can repay with 1 to 2 years. Banks do not ask you to pledge collateral against such loans since a short-term loan is typically an Unsecured Loan. Usually, Short Term Loans help you pay for urgent financial contingencies.
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Short Term Loan - Features and Benefits

Online application

You can apply for short-term loans online via the lender's website. The application process is smooth and paperless, and you only have to provide scanned copies of your ID, address, and income proof documents.

Quick Approvals and Disbursals

An exceptional feature of instant Short Term Loans is that most banks typically verify and sanction the loan quickly. Funds are disbursed into your account within 4-48 hours.

Shorter Repayment Tenures

The title of this article itself indicates that the tenure of such loans is relatively short - ranging from 1 to 2 years. You can repay the loan amount in easy Equated Monthly Instalments.

Interest and Expenses

Banks offer competitive interest rates on Short Term Personal Loans with minimal processing fees. Other miscellaneous expenses like taxes, pre-closure charges, late payment charges, etc., are stated at the time of application.

No End-Use Conditions

Once the loan amount gets disbursed, you can use it to finance any expense. For instance, you can plan a vacation or a wedding, furnish or renovate your home, purchase gadgets and appliances, etc.

Freelook Period

If you wish to cancel the loan, you can do so within 48 hours of the bank crediting the loan amount into your bank account. Note that the one-time processing fee plus taxes are non-refundable on cancellation after loan sanctioning.

Eligibility Criteria

Essentially, You should:

Be a resident of India.

Be a self-employed professional or salaried individual with a regular income source.

Earn at least INR 20,000 per month.

Be in the 21 to 60 years age group.

Show a credit score greater than 600.

Check your eligibility using Personal Loan Eligibility Calculators.

Documentation Required

With instant Short Term loans online, you do not have to bother with providing collateral or hard copies of your documents. Simply scan the standard documents mentioned below and attach them with the duly filled online loan application form.

Proof of Identity: PAN, Aadhaar /Passport /Driver's License

Proof of Address: Utility Bills/Aadhaar/ Passport//Driver's License, Bank Passbook)

Proof of Income: Bank Statements, Salary Slips, Filed income tax returns, etc.

Conclusion

Short Term Loans can give you access to quick cash that to finance short-term requirements. These loans are easy to procure and involve a paperless process. Ensure you check your credit history and scores before applying.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Short Term Loans - Features of Short Term Loans and Advances | digibank by DBS

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Short Term Personal Loans are unsecured and collateral-free loans. The tenure of Short Term Loans ranges from a year to 2 years. These loans require minimum documentation and get approved quickly. The expected CIBIL Score is 600 and above. Banks offer competitive Short Term Loan interest rates.

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What is SWP in Mutual Fund | DBS digibank

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What is SWP in Mutual Fund | DBS digibank

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What is SWP in Mutual Fund - Learn the definition of SWP in mutual funds and the specifics of the systematic withdrawal strategy. Downloading the digibank app will allow you to make online SWP investments.

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Key Takeaways

SWP stands for Systematic Withdrawal Plan

You can withdraw your Mutual Fund Investments in a structured manner with SWP.

You can choose the amount, frequency, and duration of withdrawal with SWP.

You can safeguard your Mutual Fund investment from market volatility with SWP.

You may withdraw only capital gains earned or a fixed amount.

Mutual Funds have always been a popular investment choice among all types of investors. Today, you can invest in a wide variety of mutual funds and redeem them conveniently. One way to redeem your funds periodically is SWP. Let us understand what is SWP in Mutual funds in this article.
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Understanding SWP Meaning In Mutual Funds

A systematic withdrawal plan (SWP) is a structured method for withdrawals in Mutual funds. SWP in Mutual Funds allows you to make withdrawals at regular intervals, i.e., weekly, monthly, quarterly, semi-annually or annual, depending upon your requirement.

The amount of withdrawal can be both variable and fixed amounts. With SWP, you may withdraw only the capital gains earned or a fixed amount from your investment.

Why Is Systematic Withdrawal Plan a Wise Investment Strategy?

Systematic Withdrawal Plan is tax efficient.

You need not pay tax deduction at source (TDS) on redemption.

Mutual fund schemes are subjected to market risks.

Market changes directly influence the Net Asset Value (NAV)of your investment.

SWP in Mutual funds allows you to take your money out on time before it erodes, minimising damage considerably.

How Does SWP In Mutual Fund Work?

Here is an example to help understand how a Systematic Withdrawal Plan works.

Assume you have 8,000 units in your Mutual fund, and you wish to withdraw INR 5,000. The NAV of your investment is INR 10 for each unit. On calculation, you will need 400 units to withdrawal INR 4,000. Post withdrawal, you will have 7,600 units.

Now, if your NAV of investment rises to INR 20, you will need 200 units to withdraw INR 4,000. Post withdrawal, you will have 7,350 units left with you.

With each withdrawal, the total number of units you hold decreases. Higher is the NAV of your investment, the lesser units you will need, and vice-versa.

Taxation For SWP In Mutual Funds

Redemption through a systematic withdrawal plan in Mutual funds is taxable.

For equity funds

If your holding period is less than a year, your investment will be considered a short-term one. Here you will be taxed a Short-Term Capital Gains tax (STCG) of 15 per cent. Conversely, if your holding period exceeds more than a year, you will be liable to pay a Long-Term Capital Gains (LTCG) tax of 10 per cent.

For debt funds

In case your holding period is under three years, it will be considered a short-term investment. The capital gains from the same will be added to your total income, and you will be taxed according to the tax slab you are eligible. On the other hand, if your holding period is more than three years, you must pay an LTCG tax of 20 per cent after indexation.

Conclusion

Opting for SWP in Mutual Funds helps you meet your financial needs with ease as these withdrawals are thoroughly planned and phased out. SWP enables you to access your funds at the right time - when you need them the most.
If you want to invest in mutual funds, download the digibank by DBS app today and choose from over 200 schemes! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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SWP in Mutual Funds - Check What is Systematic Withdrawal Plan | digibank by DBS

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SWP stands for Systematic Withdrawal Plan You can withdraw your Mutual Fund Investments in a structured manner with SWP. You can choose the amount, frequency, and duration of withdrawal with SWP. You can safeguard your Mutual Fund investment from market volatility with SWP. You may withdraw only capital gains earned or a fixed amount.

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How to get Personal Loan with Low CIBIL Score | digibank by DBS

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How to get Personal Loan with Low CIBIL Score | digibank by DBS

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Personal Loan with Low CIBIL Score - digibank presents an outline for getting a personal loan with a poor CIBIL score. The digibank by DBS website has more comprehensive information.

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Key Takeaways

Personal Loans are unsecured loans that require no collateral.

Lenders verify your credit history when you apply for Personal Loan.

A low credit score reduces your chances of securing a Personal Loan.

You can get a Personal Loan with a low CIBIL score by showing regular income sources.

Your loan application may be considered if your fund requirements are low or if a guarantor co-signs your loan.

A Personal Loan gives you access to large sums of money. Lender offer loans after assessing your repayment abilities and your credit repayment behaviour. Today, lenders can evaluate your creditworthiness through your credit score. While you need to provide security or collateral for secured loans, Personal Loans are unsecured loans. Here, your credit score serves as a source of security for the lender. But what happens when your credit score is low? Keep reading to find out how to get Personal Loan with low CIBIL score.

Personal Loan and CIBIL Score

Ranging from 300 to 900, the CIBIL or credit score is a 3-digit numeric indicator of your credit history. It reflects your credit handling behaviour like loan repayment, repaying credit card dues, etc. A high credit score indicates that you have been repaying debts on time. When you have a higher CIBIL score, the chances of the lender approving your loan increase considerably. However, lower CIBIL scores can impact your loan approval chances significantly.
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Personal Loan with Low CIBIL Score

A low credit score can reduce your Personal Loan or other debt securing chances. A credit score greater than 600 is usually a good credit score. A CIBIL score below 600 puts your loan application in jeopardy. A bad credit score reflects discrepancies in debt repayments, and lenders typically reject urgent loans for bad credit. However, it is not impossible to obtain Personal Loans with low CIBIL score. That said, the Personal Loan interest rates offered on loans with low credit scores, may be higher.

How to Get Personal Loan with Low CIBIL Score?

Besides the CIBIL score, the lender considers your age, employment status, and net monthly income. Here are some ways to obtain a low CIBIL Score Personal Loan.

Show reliable income sources

Lenders essentially want assurance that they will get their money back. Whether you are a salaried professional or a self-employed individual, if you receive a regular income, you may be able to negotiate with lenders to prove your ability to repay the loan. A reliable income source may convince lenders to consider your loan application.

Apply with a guarantor

Lenders are more likely to approve Personal Loans with low CIBIL scores for applicants who can get a guarantor to co-sign the loan. A guarantor with an excellent credit score and a stable income source helps improve your chances of loan approval.

Apply for low-value loans

Some online lenders would consider approving Personal loans of smaller amounts. If your fund requirements are low, you may be deemed eligible despite your low credit score.

Conclusion

Personal Loans are versatile unsecured and collateral-free loans with no restrictions on the end usage of the loan amount. Your CIBIL scores provide lenders assurance of your loan repayment capabilities. Ensure you show a good credit score or take measures to improve your score instead of applying for a Personal Loan with low CIBIL score.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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how to get personal loan with low cibil score

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Personal Loan with Low Cibil Score - A Detailed Guide | digibank by DBS

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Personal Loans are unsecured loans that require no collateral. Lenders verify your credit history when you apply for Personal Loan. A low credit score reduces your chances of securing a Personal Loan. You can get a Personal Loan with a low CIBIL score by showing regular income sources.

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What is STP - Systematic Transfer Plan | digibank by DBS

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What is STP - Systematic Transfer Plan | digibank by DBS

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What is STP - The principles of a Systematic Transfer Plan are covered in the following guide. By downloading the digibank app, one can begin investing.

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Key Takeaways

A Systematic Investment Plan or STP allows money transfers from one mutual fund to another.

You can transfer money from debt funds to equity funds and vice versa.

The AMC sells units from one fund and uses that money to purchase units of another fund.

STP involves exposing small amounts to equity to reduce market risks.

STP helps you rebalance your portfolio and earn high returns.

Introduction

As an investor, you may constantly seek innovative ways to keep up with the changing market trends. The goal is to invest in securities that help grow your corpus. One of those ways is to invest through a Systematic Transfer Plan (STP). Here, you can protect your investments by investing in mutual funds that are safe while exposing only a small portion of your investment to fearsome equities. The goal is to invest in securities that help grow your corpus. Find out what is STP and how it works.

What is Systematic Transfer?

An STP in a mutual fund is a way to transfer money from one mutual fund scheme to another. E.g., investors invest a lumpsum amount in a debt mutual fund. In an STP, you can gradually transfer this money from the debt fund to an equity fund or vice versa.
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How Does STP Work?

Let us say you wish to earn high returns from a highly volatile equity fund. However, you are concerned about the potential loss that is subject to market risk. On the other hand, if the market is doing well, you may lose out on a potentially profitable investment. Therefore, initially, you invest a lumpsum amount in a low return, safe fund like a liquid fund. By opting for an STP, you can transfer a fixed amount from your lumpsum investment to an equity fund at regular intervals.

Fund houses sell units from your debt fund and use that money to buy units in the equity mutual fund schemes while accounting for rupee-cost averaging. This way, you minimise the risks associated with volatile markets while earning lucrative returns.

Benefits of STP

Risk Factor

In an STP, you transfer and invest a small chunk of money at a specified period regularly. Your lumpsum amount stays invested in a safe fund, while only smaller amounts get exposed to volatile market conditions.

Returns

The purpose of STP is to earn high returns by playing safe. At any given time, you are investing in multiple asset classes. Your equity funds, although volatile, yield high returns, while the debt portion of your fund continues to earn low but relatively steady returns.

Portfolio Diversification

STPs help you diversify and balance your portfolio by investing in equities to compensate for the low returns from debt funds.

Things to Consider

STP is ideal only if you have access to lumpsum amounts for investing.

While Asset Management Companies state the minimum amount or instalments for STP investment, SEBI mandates that you should invest in at least 6 STPs.

Although you can balance risk, you cannot entirely avoid it. Low market conditions may not generate good returns on equity funds, and the same applies to debt funds.

STP requires you to be consistent and not falter when the market is not favourable.

Conclusion

You can balance your investment portfolio by investing in safe and high-risk funds simultaneously by opting for a Systematic Transfer Plan. Consult your investment advisor and find out the best STPs to grow your wealth and accrue steady returns.
Download the digibank by DBS app to get started. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is STP - All About STP in Mutual Fund | digibank by DBS

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A Systematic Investment Plan or STP allows money transfers from one mutual fund to another. You can transfer money from debt funds to equity funds and vice versa. The AMC sells units from one fund and uses that money to purchase units of another fund.

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Best Personal Loan - Instant Loan | digibank by DBS

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Best Personal Loan - Instant Loan | digibank by DBS

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Best Personal Loan - How to choose the best Personal Loan in India is explained by digibank. The digibank app can be downloaded to apply for an immediate personal loan.

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Key Takeaways

Personal Loans are unsecured loans that need no pledging of collateral.

To choose the best Personal Loan, you must do thorough research of features offered by different lenders.

Costs such as interest rates, late payment charges, prepayment charges can affect your overall loan amount.

The higher the tenure of the loan, the lesser would be the EMI amount you pay.

Pre-approved customers can enjoy instant disbursals of the Personal Loan amount.

A Personal Loan is a versatile loan that can offer you quick cash. It is an unsecured loan; therefore, you need not pledge collateral against the loan. Moreover, unlike home loans or car loans, you can use the loan amount to finance any expense of your choice. For instance, you can plan a vacation, undertake home renovations, consolidate debts, fund medical emergencies, etc. With no shortage of lenders, it could get cumbersome to choose one. Here are some ways to choose the best Personal Loan in India.
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How To Choose the Best Personal Loan?

Compare Interest Rates

Personal Loan interest rates affect the total cost of your loan. Undoubtedly, the best personal loans are the ones with reasonable interest rates. You can research the Interest rates offered by various lenders on their website and choose the one with the lowest interest rate.

Compare Tenures

Personal Loans come with flexible tenures, which you can repay in Equated Monthly Instalments (EMIs). The number of EMIs you have to pay and the EMI amount depends on the loan tenure. A lower repayment term typically translates to a higher EMI amount. The best Personal Loan is one where your EMI amount and repayment tenures are balanced.

Check the Fees & Charges

Look for loans with lower processing fees. Some lenders will charge a nominal fee if you prepay the loan amount. Loans with lower costs can be considered as the best Personal Loan in India.

Check the required Credit Score

Lenders do not ask for collateral against Personal Loans. However, they expect borrowers to have a good credit score and credit history. Check for lenders who do not insist on excessively high credit scores.

Check For Documentation Requirements

The best online personal loans are those which are processed with minimum documentation. Choose a financial institution that asks you to provide scanned copies of your ID, address, and income proof documents instead of physical documents to sanction your Personal Loan application.

Consider Loan Disbursal Timeframes

Loyal bank customers can enjoy pre-approved loans, i.e., the loan amount gets disbursed into your bank account almost instantly. Get in touch with your bank to check the eligibility for pre-approved, Instant Personal Loans.

Check the cancellation Policy

Few banks offer a 48-hour freelook period in which you can cancel your loan after it has been disbursed into your bank account. As such, a loan that allows you to change your mind can prove to be a great choice.

Final Note

Personal Loans are an excellent option for availing of urgent cash, and you can find several lenders willing to sanction your loan application. Today, most loans are processed digitally. Thus, you do not need to visit the bank branch; you can apply for the loan online directly through the lender's website. Ensure you do your research to analyse the best online Personal Loans.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best Personal Loan in India Explained | digibank by DBS

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Personal Loans are unsecured loans that need no pledging of collateral. To choose the best Personal Loan, you must do thorough research of features offered by different lenders. Costs such as interest rates, late payment charges, prepayment charges can affect your overall loan amount.

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What is Virtual Debit Card | digibank by DBS

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What is Virtual Debit Card | digibank by DBS

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Virtual Debit Card - The definition and applications of a virtual debit card are given by digibank. On the digibank by DBS website, one can find additional in-depth information.

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Key Takeaways

A Virtual Debit Card means an electronic or digital Debit Card.

You can use your Virtual Debit Card 24x7 on your internet-enabled smartphone.

You can shop on domestic e-commerce websites and make online payments with your Virtual Debit Card.

Your Virtual Debit Card cannot be stolen or misplaced like a physical card.

If you detect fraudulent transactions on your Virtual Card, you can disable the card from your mobile device itself.

When we speak about banking today, we often use the word digitalisation. Digitalisation goes beyond swiping your bank cards to make payments. It includes adopting a cashless policy for all kinds of transactions. For instance, when you use your debit card or credit card to make payments, you are going cashless. While plastic debit cards have been around for the longest time, banks today also provide Virtual Debit Cards. Let us understand Virtual Debit Card meaning and its benefits in this article.
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What Is Virtual Debit Card?

A Virtual Debit Card is an electronic form of a physical Debit Card made for e-commerce transactions. It resembles a regular debit card in most parts in that it has its own unique card number, expiration date, and CVV, which you can use to initiate online transactions. This card is a convenient way of making online domestic payments without providing your primary account information to the merchant. A virtual debit card is typically a temporary solution to your physical debit card until the bank couriers the latter to your home.

How To Get Virtual Debit Card?

A Virtual Debit Card is simply a Debit Card that exists on your smartphone. When you open a bank account digitally, your bank will create Virtual Debit Card in your mobile banking app. Ensure you sign up for internet banking services so that you can use the Virtual Debit Card online for transactions on e-commerce websites.

Benefits of Virtual Debit Card in India

Card Activation

After account opening, you either visit the bank branch to obtain your Debit Card, or you must wait for the bank to courier the card to your doorstep. Thus, you end up losing time that otherwise could have been used to enjoy the card benefits. The Virtual Debit Card, however, gets activated instantly in the mobile banking application once you complete the OTP-based e-KYC authentication process.

Security

The absence of a physical Debit Card eliminates the risk of the card being misused if it is stolen or misplaced. If you suspect your Virtual Debit Card is being used unlawfully, banks give you the option to block the card instantly from the mobile application itself. You can disable the Virtual Debit Card and prevent potentially fraudulent activities.

E-commerce Benefits

Like your regular physical Debit Card, a Virtual Card, too, comes with numerous benefits like reward points and cashback for online shopping, bill payments, and other such online transactions. You can also use the Virtual Debit Card to make payments on government-backed payment platforms. All transactions for the Visa Virtual Debit Card are deemed as 'Card-not-present Transactions'.

Conclusion

Now that you know what a Virtual Debit Card means, you can utilise it for your various payments without worrying about losing or misplacing it. You can use the card to make digital payments on e-commerce websites like you would, your regular Debit Card.
Happy shopping with the digibank by DBS Debit Card! Download the app to open your digiSavings account instantly and get your Debit Card! Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Virtual Debit Card & What are its Benefits | digibank by DBS

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A Virtual Debit Card means an electronic or digital Debit Card. You can use your Virtual Debit Card 24x7 on your internet-enabled smartphone. You can shop on domestic e-commerce websites and make online payments with your Virtual Debit Card. Your Virtual Debit Card cannot be stolen or misplaced like a physical card.

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What is Fund of Funds in Mutual Funds | digibank by DBS

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What is Fund of Funds in Mutual Funds | digibank by DBS

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What is Fund of Funds - The fund of funds scheme's characteristics and advantages are explained by digibank. One can visit the digibank by DBS website for more thorough details.

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Key Takeaways

A Fund of Funds is a pooled Mutual Fund scheme investing in other hedge or Mutual Funds.

Like all Mutual Funds, FoFs help investors with portfolio diversification.

Investors can accrue significant returns at moderate risks.

Costs related to Fund of Funds are higher due to investments in numerous schemes.

You should consider staying invested for more than three years for decent returns from Fund of Fund investments.

Are you a young investor? Do you want to diversify your portfolio but are confused about where to begin? Then the Fund of Funds investment scheme is for you. A type of Mutual Fund scheme that enables you to diversify your investments to minimise risk, Fund of Funds are incredibly popular among investors. Keep reading to know what is Fund of Funds and how it helps tackle the diversification conundrum.

Fund of Funds - Meaning and Example

Fund of Funds (FoF) is a unique Mutual Fund scheme that invests in Hedge Funds and other Mutual Funds instead of investing directly in stocks or other asset classes. For instance, when you invest in a Debt Mutual Fund, the fund manager invests your money directly into debt and debt-related instruments. In the case of FoF, the fund manager will first allocate funds to a Mutual Fund scheme, and then the Fund of Funds Mutual Fund scheme will invest in funds of equity, debt or mixed mutual funds.

What Makes Fund of Funds Different?

So, what difference does it make if you directly invest in stocks and bonds? Essentially, Fund of Funds assist with portfolio diversification to reduce the overall risk. The FoF will invest in the mutual fund schemes of the same fund house or different fund houses.

The fund categories of Fund of Funds in India are asset allocation funds, gold funds, foreign FoFs and multimanager investment FoFs.
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Benefits of Fund of Funds Scheme

Onboarding

Fund of Funds is an excellent means to kickstart your investment journey. Experienced fund managers professionally manage your fund on your behalf.

Diversification

FoF focuses on the top-performing Mutual Funds across assets or sectors, thus enabling you to optimise returns and reduce risks. They also invest in Hedge Funds.

Tax-free

Capital gains are income tax-exempt when the fund manager rebalances your FoF allocation between debt and equity fund.

Things to Consider

Cost

FoFs invest in other Mutual Funds; therefore, you may have to bear the expense ratio of all other Mutual Funds along with fund manager commissions and other related management fees.

Taxation

Short-term capital gains are applicable for FoFs held within three years and are taxed per your income tax slab. Long-term capital gains for FoFs held for more than three years are taxed at 20% with indexation.

Excess diversification

Diversification helps you reduce or mitigate your investment portfolio risks. However, excess diversification may not be ideal so ensure you are careful while selecting fund of fund schemes.

Investment horizons

Fund of Funds in India perform well when held for the long term - typically for investment horizons of three years or more based on market conditions.

Conclusion

The Fund of Funds scheme is ideal for investors looking for ways to diversify their portfolios without the hassle of timing the market or checking the NAV of all schemes. A well-diversified investment portfolio generates good returns at moderate risk. Ensure you consider costs, risks and investment goals and make informed decisions before investing in FoFs.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is Fund of Funds? - Explained in Detail | digibank by DBS

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A Fund of Funds is a pooled Mutual Fund scheme investing in other hedge or Mutual Funds. Like all Mutual Funds, FoFs help investors with portfolio diversification. Investors can accrue significant returns at moderate risks. Costs related to Fund of Funds are higher due to investments in numerous schemes.

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Capital Gain Tax on Sale of Property | digibank by DBS

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Capital Gain Tax on Sale of Property | digibank by DBS

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Capital Gain Tax on Sale of Property - digibank provides comprehensive information on capital gains on property sales and tax-saving strategies. One can visit digibank by DBS website for more thorough details.

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Key Takeaways

When you sell property, the profits earned are known as capital gains.

Per the Income Tax Act, 1961, you have to pay a capital gains tax on sale of property.

Capital gains are classified as short-term or long-term capital gains.

The law also affords exemption from long term capital gains if you meet the required specific criteria.

You can reduce the payable capital gains tax by investing in specific schemes and bonds.

Selling property is a complicated and lengthy affair. As the seller, you must adhere to several laws and regulations. In India, the tax implications following the sale of property are governed under the Income Tax Act, 1961. To learn more about capital gains on sale of property continue reading.
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What is the Capital Gains Tax on Sale of Property?

The payment received on selling property in India is considered a profit or capital gains on sale of property. The tax implication depends on when you sell the property. For instance, if you sell your land, house, or property within 36 months of acquiring it, the profits are considered short-term capital gains (STCG). For property sold after 36 months, the gains are deemed as long-term capital gains (LTCG). The LTCG and STCG tax treatment may depend on your tax slabs or gains acquired.

Capital gains on property sales are calculated by subtracting the cost of acquiring (repairing/improving) the asset from the sale value of the same. The amount determined can be classified as either short- or long-term capital gains.

How to Save Capital Gains Tax on Property?

You can enjoy LTCG tax exemptions under Section 54 of the Income Tax Act, 1961. You should be an individual seller or a member of a Hindu Undivided Family selling the property while fulfilling the following conditions:

You must use the capital gains to purchase or construct another house.

You must purchase the new house one year prior to or two years after selling the old house.

You must construct the new house within a holding period of 3 years after selling the old house.

You must purchase or construct only one additional house or property.

You must purchase or develop the property within the national borders of India.

You must not sell the new house for 3 years after taking possession.

If the price of the new property is less than the sale amount, then the exemption applies proportionately. You can use the remaining money to re-invest according to Section 54 EC within 6 months.

Things to Remember

You can avoid paying tax, especially if you cannot construct a new residential house but plan to, by applying the profit amount from a property sale in any public sector bank under a Capital Gains Account Scheme. Such a scheme allows you more time to begin the construction of your new house. You can also invest the profits earned in specified financial assets after selling property, which assists with saving tax under Section 54EC. To do so, you must invest in capital gains bonds within 6 months of property transfer.

Final Note

Knowing about the capital gain tax on property and tax-saving methods can prove incredibly beneficial. You can save tax by redirecting your gains into a host of investment options from the comfort of your home. Use digibank's internet banking and mobile banking platforms to find suitable investment options.
Download digibank to open your savings account and begin your journey to making successful investments. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Capital Gain Tax on Sale of Property - A Detailed Guide | digibank by DBS

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When you sell property, the profits earned are known as capital gains. Per the Income Tax Act, 1961, you have to pay a capital gains tax on sale of property. Capital gains are classified as short-term or long-term capital gains. The law also affords exemption from long term capital gains if you meet the required specific criteria.

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Long Term Capital Gain Tax - digibank presents an introduction to the rates of long-term capital gains taxes. The digibank by DBS website offers more thorough information.

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Long Term Capital Gain Tax - A Detailed Guide | digibank by DBS

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Long Term Capital Gain Tax - Understand how long-term capital gain tax works and its rate in India here. Download the digibank app and start investing today!

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Short Term Capital Gain Tax in India | digibank by DBS

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Short Term Capital Gain Tax in India | digibank by DBS

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Short Term Capital Gain Tax - One can learn when they must pay short-term capital gain tax in this article. The digibank by DBS website can be visited for more comprehensive information.

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19 Nov 2021

When are you liable to pay Short Term Capital Gain Tax? Find out.

Key Takeaways

Short-Term Capital Gain Tax is the tax imposed on short-term capital gains.

Typically, you have to pay STCG tax on selling assets held for less than 36 months.

STGC is applicable on real estate sold within 24 months of purchase.

Gains under Section 111A are subject to a blanket 15% tax.

Gains other than those under section 111A are charged per your tax bracket.

When you earn a profit on the sale of assets, it is referred to as a capital gain. The term ‘Capital Gains Tax’ is referred to the tax liable on this capital gain. You can compute this tax in the financial year that the asset transfer happens. Depending on when you sell the asset, you are liable to pay the short-term capital gains (STGC) tax or the long-term capital gains (LTGC) tax. The tax rate for STCG and LTCG differs. Let us try and delve deeper into the concept of Short-Term Capital Gain Tax in India.

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Understanding Short Term Capital Gain Tax

Short-term capital gains are categorised into two types:

Short-term capital gains as provided under section 111A.

Short-term capital gains other than as provided under section 111A.

Certain assets like shares (equity or preference) listed in a recognised stock exchange in India attract Short-Term Capital Gain Tax under Section 111A. The period of holding for such assets to be considered for STCG is 12 months. As such, if you sell off your assets within the 12 month holding period, you have to pay STCG on your gains.

This is particularly true in units of equity-oriented mutual funds, listed financial instruments like debentures and Government securities, Units of UTI and Zero-Coupon Bonds. In the case of a debt-oriented mutual fund, the provisions of section 111A are not applicable, and your gains on recouping the investment will be treated as regular gains based on your tax bracket.

Under section 111A, the Short-Term Capital Gain Tax rate is 15% irrespective of your income tax slab when Securities Transaction Tax (STT) is applicable. Likewise, you should add the short-term capital gain to your income while filing your tax returns when the STT is not applicable. As such, Short-Term Capital Gains, other than those under section 111A, are charged at a standard rate of tax based on your total taxable income.

Calculating Short-Term Capital Gains is easy. After taking the total value of the asset into account, you need to deduct the expenses incurred. Also, the cost of acquisition and improvement needs to be considered. The remaining amount will be a short-term capital gain that will be liable for STCG tax.

Short-Term Capital Gain Tax on Real Estate

All real estate transactions, for instance, land, building, or immovable property, attract Short-Term Capital Gain Tax if you sell the property within 24 months of purchase.

You must pay the applicable Short-Term Capital Gains tax rate in India on selling an inherited property.

Typically, capital gains from the sale of agricultural land may be entirely exempted from income tax.

Final Note

While filing your tax returns, you should segregate assets that qualify for Short Term Capital Gains Tax with those qualifying for Long Term Capital Gains tax. If you wish to reduce your tax outgo, you should stay invested for at least a few years as STCG rates are typically higher than LTCG rates in India.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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When are you liable to pay Short Term Capital Gain Tax? Find out | digibank by DBS

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Short Term Capital Gain Tax - Understand how short term capital gain tax works and its rate in India. Download the digibank app and start investing!

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Capital Gain Tax in India | DBS digibank

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Capital Gain Tax in India | DBS digibank

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Capital Gain Tax - digibank presents a thorough explanation of the definition and rates of capital gains tax. By installing the digibank app, one may learn more details about the same.

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Key Takeaways

Capital Gains Tax refers to the tax you pay on the gains from your investments.

Capital Gains Tax is categorised into two types - Long and Short Term Capital Gains

You are liable to Capital Gains Tax only when you sell your assets or investment.

The Indian Government levies Capital Gains Tax on capital assets like stocks, bonds, jewellery, real estate, etc.

Long-term gains are taxed at a lower rate than short-term gains.

When you invest in something, you do so, intending to book profits. The idea is to get a better value than the investment value. This philosophy guides all investments. But did you know that you have to pay Capital Gains Tax when you sell your assets and investments? Let us know more about capital gains tax in India in this article.
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What is Capital Gains Tax?

When you own any capital asset, any profit that you receive from the sale of that asset is termed as a Capital Gain. The government charges you a tax on the profits, called a Capital Gains Tax. The profit you earn is chargeable to your taxable income in the financial year in which you sell the assets. Thus, when you sell capital assets such as property, jewellery, land, market investments, etc., you have to pay a Capital Gains Tax.

Types of Capital Gains that attract Capital Gains Tax

Short-Term Capital Gains (STCG)

You are liable to pay Short-Term Capital Gains Tax when you sell an asset before the expiry of a defined period. Holding these assets for less than the specified periods will bring them under STCG. For instance, if you sell an immovable property like land, house or building before 24 months of its purchase, you will attract STCG tax. Similarly, if you sell equities, bonds, debentures, or units of equity mutual funds before 12 months, you will have to shell out STCG tax for the short-term gains earned.

Long-Term Capital Gains (LTCG)

LTCG applies when you hold a capital asset for more than a specified period. For real estate, it is a minimum of two years. For stocks, equity mutual funds or government securities, if you hold the asset for one year, you will attract LTCG tax. For debt funds and other assets, it is a minimum of three years.

How to calculate Capital Gains Tax?

STCG are taxable at 15% irrespective of your income tax slab rate.

LTCG is levied at 20% for real estate, debt funds and other assets after giving taxpayers the benefit of indexation. Your Capital Gains Tax Rate stands at 10% for stocks, equity mutual funds, listed bonds, zero-coupon bonds, units of UTI, etc.

For LTCG, you need to adjust the acquisition cost and the cost of improvement with the inflation index of the economy. This translates to an increase in the costs incurred on the assets, thereby reducing the Capital Gains.

Further, under Section 54 of the Income Tax Act, if you sell your house property, you can claim exemption from such capital gains if the proceeds are invested in acquiring, purchasing, or constructing another residential property.

Final Note

Ensure you check your tax liabilities and the applicable Capital Gains Tax in India before filing your tax returns. Note that you may also be eligible for tax exemptions on specific investments, and you should check the same before filing your returns.
Download digibank app by DBS on your smartphone, register and choose any tax-saving options from the menu. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Capital Gain Tax - What is Capital Gain Tax Rate in India | digibank by DBS

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Capital Gains Tax refers to the tax you pay on the gains from your investments. Capital Gains Tax is categorised into two types - Long and Short Term Capital Gains You are liable to Capital Gains Tax only when you sell your assets or investment.

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Liquid Mutual Funds Taxation | DBS digibank

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Liquid Mutual Funds Taxation | DBS digibank

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Liquid Funds Taxation - Here is a thorough explanation of the tax on liquid assets. By downloading the digibank app, one can begin investing.

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19 Oct 2021

Get to know more about the tax on liquid funds

Key Takeaways

Liquid Fund is a class of debt fund that with maturity tenures of up to 91 days.

A type of Debt Fund, Liquid Funds, are taxable.

Dividends earned from a Liquid Fund is exempt from tax.

Short-term and long-term capital gains are taxable, per investors' income tax slabs.

Investors can enjoy indexation benefits on long-term capital gains from Liquid Funds.Today, investors prefer to invest their savings than accumulating marginal returns in a Savings Account. Mutual Fund investments help investors grow their savings and earn inflation-adjusted returns. However, earnings from Mutual Fund investments are considered as income and are therefore taxable. The tax payable on a Mutual Fund scheme will depend on the type of securities the fund invests in and the holding period of your investment. Learn more about Liquid Mutual Funds Taxation in this article.

What is a Liquid Fund?

A Liquid Fund is a Debt Mutual Fund that invests in short-term securities such as Treasury bills, repurchase agreements, commercial papers, government securities or certificates of deposit. The SEBI mandates that highly liquid funds should strictly invest in debt and money market instruments. Liquid Funds offer a maturity period of 91 days with no lock-in period.

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Liquid Funds Taxation

A general thumb rule for any Mutual Fund is that if the fund invests 65per cent of its assets in equities, that fund is considered equity-oriented for taxation. Therefore, even Debt Funds that invest a part in equities are taxed as such. The remaining portion of assets are invested in fixed maturity plan funds, Gold Funds or Liquid Funds and are then taxed like Debt Funds. Now let us learn more about the tax implications on Liquid Mutual Funds only.

Tax on Dividends

When you invest in Liquid Funds, you can choose funds that pay dividends or funds that yield capital gains. If you opt for the former, the fund pays dividends from the profits and income earned. Ideally, a dividend is a form of income that requires taxpayers to pay income tax. However, in Budget 2020, the Government abolished the Dividend Distribution Tax. Hence, dividends earned on Debt Funds or Liquid Funds are entirely tax-free.

Tax on Capital Gains

Liquid Fund is a non-equity fund. Therefore, it is taxed similarly to a Debt Fund. When held for up to three years, Liquid Fund gains are referred to as Short-Term Capital Gains (STGC). For Liquid Funds held for more than three years, the gains are known as Long-Term Capital Gains (LTGC).

LTGC for Liquid Funds is taxed at 20 per cent , and investors can avail of the indexation benefit. Indexation benefit refers to the recalculation of the purchase price to adjust for inflation, reducing the impact of tax on LTGC in Debt Funds.

For short-term gains, the Debt Liquid Fund gains get added to the regular income and are taxed as per the investors' income tax slabs. If you, as an investor, fall under the 30 per cent slab, your peak tax would be 30 per cent , whereas, for a 20 per cent slab, you would pay tax at a 20% rate.

Conclusion

Liquid Funds are an ideal addition to your investment portfolio if you want to add a short-term investment instrument. Although taxable, you can avail of tax benefits by holding Liquid Funds for longer investment horizons.

If you are looking for high-quality rated mutual fund schemes, then download the digibank by DBS app. Choose from over 250 schemes based on your investment goals.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Liquid Funds Taxation - A Detailed Guide | digibank by DBS

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Liquid Funds Taxation - Read about tax on liquid funds in this article & make a wise decision on investments. Download the digibank app and start investing now!

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Best Gilt Funds - Features & Benefits | digibank by DBS

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Best Gilt Funds - Features & Benefits | digibank by DBS

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Best Gilt Funds - The purpose of the benefits of Gilt Mutual Funds are explained by digibank. By downloading the digibank app, one can begin investing.

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Key Takeaways

Gilt Funds are a category of Debt Mutual Funds.

These funds typically invest in government securities.

The government-backing makes Gilt Funds one of the safest investment instruments.

Gilt Funds are ideal for conservative investors with lower risk appetites.

You usually have to stay invested for 3-5 years to earn moderate returns.

That Mutual Fund investments help with corpus creation and attaining financial security is no hidden secret. They continue to remain the most preferred investment option for investors with varying risk appetites - conservative, moderate, or aggressive. But for novice investors, who are just embarking on the roller-coaster, that is Mutual Fund investments; it can be pretty confusing to select the best funds to invest. Such investors can consider Gilt Mutual Funds. Here is a brief guide on Gilt Funds.

What are Gilt Funds?

A Gilt Fund is a type of Debt Mutual Fund that invests in government bond funds and fixed interest-generating securities issued by the central and state governments of a country. Per SEBI regulations, at least 80% of assets in this fund are used to invest in government securities of varying tenures. Since the government backs these funds, they carry minimal risk.
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Features and Benefits of Gilt Funds

Low credit risk

Since Gilt Funds primarily invest in government securities, they are backed by sovereign guarantees. These funds carry minimal to no credit risks as the underlying securities are issued by the government. This feature makes Gilt Funds the ideal investment instrument for risk-averse investors.

Returns

When you invest in Gilts, the gains you earn primarily depend on interest rates. However, interest rates may be revised from time to time, and although you stand to earn regular returns, they are not fixed and cannot be guaranteed. That said, during a regime of falling interest rates, you can earn returns of up to 12% from your Gilt Fund investments, but if the interest rate increases sharply, the Net Asset Value (NAV) of the fund may fall drastically. Likewise, in a bear economy, the Gilt Fund returns rate can be better than that from equities.

Investment Horizon

Gilt Funds come with medium to long-term investment horizons. The fund manager invests in Gilt Funds with a maturity period ranging from three to five years. You need to ensure you stay invested for this investment term to accrue the expected returns on investments.

Gilt Fund Facts and Things to Consider

While investing in Gilt Funds, you must consider the expense ratio, which includes the fund manager's fee and other similar expenses.

The upper expense ratio limit specified by SEBI for Debt Fund investment is 2.25%, excluding the fund manager's fees.

You should invest in Gilt Funds if you are a conservative investor with a low-risk appetite.

Gilt Fund investments assist with capital preservation while generating moderate returns.

Based on your investment term, you have to pay income tax on gains from funds, which could be short or long term capital gains.

Final Note

So, if you are looking for Mutual Funds to invest in 2021, you can consider adding Gilt Funds to your investment portfolio. You can consult your investment advisor to help you choose the best Gilt Funds per your risk appetite, investment goals and preferred investment horizons. Also, ensure you familiarise yourself with the Reserve Bank of India and SEBI guidelines about Gilt Fund investments.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best Gilt Funds - Facts, Features & Benefits Explained | digibank by DBS

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Gilt Funds are a category of Debt Mutual Funds. These funds typically invest in government securities. The government-backing makes Gilt Funds one of the safest investment instruments. Gilt Funds are ideal for conservative investors with lower risk appetites. You usually have to stay invested for 3-5 years to earn moderate returns.

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All about Income Mutual Funds | digibank by DBS

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All about Income Mutual Funds | digibank by DBS

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What is an Income Fund - Here is a description of income funds and how they operate. One can download the digibank app to begin investing.

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Key Takeaways

Income Fund is a class of debt Mutual Funds.

Fund Managers invest in fixed income securities to earn regular returns.

Income Funds typically offer higher returns than fixed deposits.

If not adequately managed, interest rate risk and credit risk can follow Income Funds.

Income Funds help you diversify your portfolio and mitigate the inherent investment risks.

The highly versatile nature of Mutual Funds provides investors with numerous opportunities to earn excellent returns. With time, however, you may wish to diversify your investment portfolio to compensate for aggressive equities. One way to do so is to invest in debt funds, which are low-risk mutual funds yielding steady returns. An Income Fund is a type of mutual fund that many investors choose. Learn more about Income Fund meaning in this article.

What is an Income Fund?

An Income Fund is a type of Debt Mutual Fund that invests in debt instruments like corporate bonds, government securities, commercial papers, certificate of deposit, etc. It is typically a long-term investment instrument that provides investors with a regular, fixed income instead of assisting with corpus creation through investments.

How Does an Income Fund Work?

Like most mutual funds, Income Funds are primarily managed by Fund Managers. Regardless of increasing or declining interest rates, these funds aim to generate good returns. Fund managers Managers can either hold the debt instruments until maturity to generate interest income or sell the instruments when the prices increase to book capital gains.

Fund managers typically choose highly rated Income Funds investing in debt instruments. This makes the investment secure, but the returns rate may be lower. However, Income Funds outperform regular bank deposits, are more flexible and highly liquid. This makes the investment secure, but the returns rate may be lower.
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Benefits of Income Funds

Portfolio Diversification

Income Funds invest in multiple debt type funds, including money market instruments, corporate or government bonds, etc. They are a lucrative addition to your investment portfolio due to their highly safe and liquid nature.

Income

Income Funds aim to generate income for investors, making them an alternative, additional income source for most investors.

Returns

Income Funds are also an excellent alternative to bank fixed deposits in that you can earn higher interest rates on your investment.

Liquidity

While you have to stay locked in and bear penalties on premature withdrawals on fixed deposits, Income Funds do not come with a lock-in period, nor do you have to worry about penalties.

Things to Consider

Risks

Income Funds carry interest rate and credit risks. Fund Managers may invest in securities that generate better returns at the expense of credit quality, exposing your investment portfolio to further risks.

Cost

Although most Income Funds do not have a lock-in period, you may have to pay an exit load. Fund Managers also levy a commission, which eats into your profit. Moreover, returns on debt funds are relatively lower. As such, you should check the expense ratio. A higher expense ratio means even lesser returns.

Taxation

If you fall under the 20 per cent and 30 per cent tax slab and hold Income Funds for more than three years, your gains are subject to the Long-term Capital Gains (LTCG) tax. LTCG is taxable at 20 per cent with the benefit of indexation.

Conclusion

As an investor with a low-risk tolerance looking for a regular income source, you can add Income Funds to your portfolios. Fund Managers actively manage the fund to ensure higher returns than a standard deposit account.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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What is an Income Fund & How does it Work | digibank by DBS

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Income Fund is a class of debt Mutual Funds. Fund Managers invest in fixed income securities to earn regular returns. Income Funds typically offer higher returns than fixed deposits. If not adequately managed, interest rate risk and credit risk can follow Income Funds. Income Funds help you diversify your portfolio and mitigate the inherent investment risks.

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Difference between RD and SIP | digibank by DBS

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Difference between RD and SIP | digibank by DBS

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RD Vs SIP -  A comparison of the differences between RD and SIP is provided by digibank. To learn more, one can download the digibank app.

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Key Takeaways

A Recurring Deposit (RD) is a fixed monthly investment plan with fixed interest rates.

A Systematic Investment Plan (SIP) is a method of investing in mutual funds in instalments at

regular intervals.

While RDs generate fixed returns, SIP returns may vary based on fund NAV and market fluctuations.

RDs provide capital protection and are risk-free, whereas SIPs are subject to market risks.

When you invest money, you typically should have a checklist of your investment goals. You should invest based on general factors like your risk profile, investment objectives, and preferred tenures. You should also determine if you want fixed, steady returns or if you can brave market volatility for higher returns. Two of the most common investment options that help you create a corpus and earn decent returns include Recurring Deposits and Mutual Fund SIPs. Let us compare RD vs SIP to understand which is better.
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Recurring Deposit vs SIP - Meaning

Recurring Deposits

A Recurring Deposit (RD) is a type of deposit plan wherein you deposit a fixed sum of money every month in a term deposit for a preferred tenure. Individuals with regular monthly income, who wish to save money in a high interest-bearing deposit, usually opt for an RD. If you do not lump sum cash for a Fixed Deposit, then a Recurring Deposit allows you to create that lump sum, but in instalments.

SIPs

A Systematic Investment Plan (SIP) is a method of investing in Mutual Fund Schemes. With SIP, you can invest in one or more Mutual Fund schemes in instalments. You can choose your preferred investment tenures - weekly, fortnightly, monthly, quarterly, etc. With each SIP, you can buy fund units based on the NAV on the investment day/date. You could be allotted fewer fund units when the NAV of the fund is high and more units when the NAV falls.

Difference Between RD and SIP

Onboarding

You can open an RD with any bank or through your Savings Account. You can visit your bank or create the RD online through internet and mobile banking platforms. As for SIPs, you can choose your preferred fund house or AMC and invest via online banking services after completing KYC compliance.

Returns

Another point of comparison between RD vs SIP is the returns they generate. RDs generate fixed but lower returns based on the applicable interest rate. In contrast, SIP returns depend on market conditions and the type of mutual fund SIP you choose and can be higher in comparison.

Liquidity

RDs come with fixed lock-in periods. While you can opt for premature withdrawals, they may attract penalties. All Mutual Fund SIPs, except ELSS Equity Mutual Funds with 3-year lock-in periods, are significantly liquid. You can exit all mutual funds except ELSS funds before maturity.

Risk

RD is the safest investment vehicle since banks pay you a fixed rate of interest, and your capital amount remains unaffected. On the other hand, SIPs entail several risks, including market risk, concentration risk, volatility risk, and liquidity risk, etc., and may erode your capital.

Bottom Line

Now that you know the difference between RD and SIP, you can choose your preferred investment option. If your risk appetite is low, you should choose Recurring Deposits vs SIPs are best if you can brave market risks. Whatever investment you choose, ensure you determine your investment goals and risk profiles before investing.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice..

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RD Vs SIP - Difference Between RD and SIP | digibank by DBS

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A Recurring Deposit (RD) is a fixed monthly investment plan with fixed interest rates. A Systematic Investment Plan (SIP) is a method of investing in mutual funds in instalments at regular intervals. While RDs generate fixed returns, SIP returns may vary based on fund NAV and market fluctuations.

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What is Dynamic Asset Allocation Fund | digibank by DBS

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What is Dynamic Asset Allocation Fund | digibank by DBS

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Dynamic Asset Allocation Fund - The definition and operation of a dynamic asset allocation fund are given in the following paragraphs. One can learn more by visiting the digibank website.

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What is Dynamic Asset Allocation Fund | digibank by DBS

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Know what is dynamic asset allocation fund & protect your investments from inherent risks. Download the digibank app & start investing right away.

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What is Close Ended Mutual Fund | digibank by DBS

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What is Close Ended Mutual Fund | digibank by DBS

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Close Ended Mutual Funds - A closed-end fund is defined by digibank, along with the benefits it provides to investors. By downloading the digibank app, one can begin investing.

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Key Takeaways

Close-ended mutual funds collect capital through an IPO. Shares are then traded on the market like stocks.

These are stable mutual funds due to a fixed capital collected for the fund.

These funds generate Higher returns as compared to open-ended mutual funds.

You need a lump sum to invest in these funds.

Demand and supply factors affect share prices. You can trade at either a premium/discount with respect to the NAV of the shares.

Planning on investing is always a significant step to help secure a better future for yourself. With several ways to start investing, mutual funds have become one of the most sought-after investment options for most people. Mutual funds can be of different types like open-ended funds, closed-end funds, and interval funds. So, what is a close-ended mutual fund? In this article, we look at a closed-end fund and the advantages it offers.

What Is A Close-Ended Mutual Fund?

A closed-end mutual fund refers to a type of mutual fund where the capital is raised through Initial Public Offerings (IPO) by professional mutual fund managers. Once investors pool their capital into these mutual funds, the fund managers oversee the capital and issue securities to their investors in the form of shares. These shares are further listed in a secondary market so that trading can occur based on the supply and demand in that market.

How Do Closed-End Funds Work?

Like any other mutual funds, close-ended mutual funds are managed by investment managers who pool together money from various investors to invest in a mutual fund scheme. Each investor gets a share, which they can easily trade in a secondary market.

The mutual fund investment is offered in the market as a share in the form of a New Fund Offer (NFO). Once all the closed-end fund shares are issued, the fund managers offer no additional shares. The investors can trade their shares like stocks in the market for values that depend upon the maturity period and returns of the specific closed-end mutual fund. The Net Asset Value (NAV) of closed-end mutual funds is calculated at regular intervals, and the trading price of the shares issued to the investors also depends on the demand and supply trends of the market.

The fund managers use the fixed pool of money to conduct their trades and gain returns. Investors, on the other hand, can also partake in trading their fund shares in the secondary market. Closed-end mutual funds operate within a fixed maturity period, making them an ideal investment for the medium to long term. Investors receive their returns at the end of the maturity period.
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Advantages Of Investing In Close-Ended Mutual Funds

With different mutual fund options in the market, let us look into how advantageous your investment in a close-ended mutual fund can be:

Stable capital for the fund managers

Since the investors cannot redeem closed-end funds before a fixed period, the capital which the fund managers collect is stable. Fund managers need not worry about the liquidity of the asset since they have a set period within which they need to invest to earn returns. With stable capital, fund managers can strategise their plans and achieve the investment objectives of their scheme.

Market supply and demand-based pricing

Closed-end funds are sold on the exchange like stocks. As such, investors can trade their shares at prices that might be above the Net Asset Value of the shares. Also, buyers can buy shares at discounted rates, depending upon the NAV of the funds.

Flexibility for investors

Investors are permitted to liquidate their investment per fund norms. They may utilise real-time prices of the fund during the trading day to buy or sell your fund units at the existing market prices. This feature offers great flexibility to investors by giving them an option to hold on to their shares or sell them off.

Points Of Caution Regarding Close-Ended Mutual Funds

It requires a lump sum investment.

Since closed-end mutual funds require the New Fund Offers to be bought within a specific time in the initial phase, the investment needs to be done at one go. The investment amount can thus be significant, which, in turn, increases the risk of the investor. There are no Systematic Investment Plan options, which help spread the risk across the investment.

It is a highly manager driven fund.

Compared to other mutual fund schemes, with closed-end mutual funds, investors do not get access to the performance analysis. These funds are driven solely by fund managers. At best, investors can investigate the performance of fund managers to analyse the performance of other funds handled by the managers in the past.

How To Invest In A Close-Ended Mutual Fund?

As an investor, you can directly get in touch with various agents and distributors of the mutual funds to know more about the requirements for this investment. A great way to invest is through distributors registered under the Association of Mutual Funds in India (AMFI). This method of investment ensures your investment is carried out through an assured distributor.

A closed-end fund is a great investment plan for investors who can invest a significant sum of money in one go. These mutual funds are ideal for investors with long-term objectives. Closed-end funds provide excellent returns and offer investors a considerable amount of time to hold their investments or trade them in a secondary market. Carefully analyse your fund manager before investing in closed-end mutual funds. An experienced manager leads to better returns.

You can invest in a closed-end fund through digibank by DBS. Digibank by DBS offers a secure and accessible platform for investment and helps you educate yourself on topics related to mutual fund investment.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

digibank offers Mutual Funds that are instant, paperless, signatureless - even transaction fee-less! What's more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on digibank.

Read up more on Mutual Funds here.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

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Close-Ended Mutual Funds - Overview, Advantages & How to Invest? | digibank by DBS

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Close-ended mutual funds collect capital through an IPO. Shares are then traded on the market like stocks. These are stable mutual funds due to a fixed capital collected for the fund. These funds generate Higher returns as compared to open-ended mutual funds. You need a lump sum to invest in these funds.

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Dynamic Bond Fund Explained | digibank by DBS

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Dynamic Bond Fund Explained | digibank by DBS

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Dynamic Bond Fund - digibank presents a summary of the characteristics and meaning of dynamic bond funds. digibank by DBS website can be visited for more comprehensive information.

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Key Takeaways

Dynamic Bond Funds are a category of Debt Mutual Funds.

They allow investors to invest in short-term and long-term bonds.

Dynamic Funds are suitable for investors who can tolerate moderate risk for tenures of 3-5 years.

They are free from Debt Fund mandates and can take advantage of changing interest rates.

Like all Mutual Funds, Dynamic Funds are subject to certain risks.

While investing, one of the most crucial factors to consider is the duration of your investment. Not only does the investment term help you plan your finances, but it can also determine the kind of returns you will earn. Dynamic Bond Funds help you straddle between short-term and long-term investments, while improving returns. Read on to learn more about Dynamic Bond Funds.

Dynamic Bond Funds - Meaning and Explanation

Dynamic Bond Funds are a type of Debt Mutual Funds that are dynamic in two aspects: composition and duration. They keep altering allocations between short-term and long-term bonds. This strategic alteration allows fund investors to take advantage of the fluctuating interest rates. The main aim of a dynamic fund is to garner optimal returns, regardless of rising or falling market trends. The responsibility to achieve this falls upon the fund managers' decisions and fund management styles.

How Dynamic Mutual Funds Work

Fund managers trade in instruments of different maturity periods according to the anticipated change in interest rates. For instance, in the event of a falling interest rate scenario, the fund manager can opt to increase the holdings in long-term instruments, like Gilt Funds.
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Who Should Invest in Dynamic Bond Funds?

If you are someone who does not have investment expertise based on interest rate movement, then investing in Dynamic Bonds is a good option for you. These funds are suitable for investors with a moderate risk appetite and investment horizons ranging from 3-5 years. Dynamic Bond Funds are ideal for investors who prefer the Systematic Investment Plan (SIP) approach. However, returns depend primarily on interest rate movements.

Salient Features of Dynamic Bond Funds

Professional Management

The role of fund managers and their views of the interest rates are vital. If the assets in question move contrary to the fund managers' anticipation, it can impact your earnings.

Macroeconomic Factors

Significant factors like government policies, socio-economic and geo-political factors, fiscal deficit, etc., can impact the returns rate of Dynamic Mutual Funds. Thus, you should invest long-term to reduce short-term risks.

Risk Factors

Like other investment instruments, Dynamic Funds are also subject to market risks. However, these funds are better than short-term funds since they can fall back upon the duration-based strategy.

Interest

Dynamic Fund prices and changes in interest rates are inversely proportional. Thus, with an increase in interest rate, the cost of the Dynamic Bond Fund will decrease. If the interest rate falls, the price of the bond will increase depending on the remaining maturity. In addition, the fund manager can also hold short-term and medium-term corporate bonds to generate interest income.

Freedom from Debt Fund Mandate

Usually, all funds adhere to their investment mandate. Short-term funds stick to investing in short-term securities and so on. However, Dynamic Bond Funds can invest in securities for long durations, depending on interest rate movement.

Final Note

So, choose the best Dynamic Mutual Funds for your investment portfolio. At digibank, we offer exciting investment opportunities and the option to choose from over 200 top-rated Mutual Funds schemes.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Dynamic Bond Fund Meaning & Features Explained in Detail | digibank by DBS

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Dynamic Bond Funds are a category of Debt Mutual Funds. They allow investors to invest in short-term and long-term bonds. Dynamic Funds are suitable for investors who can tolerate moderate risk for tenures of 3-5 years. They are free from Debt Fund mandates and can take advantage of changing interest rates.

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Best High Return Mutual Funds | DBS digibank

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Best High Return Mutual Funds | DBS digibank

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High Return Mutual Funds - digibank explains all about high return mutual funds and their key features and benefits. One can invest in mutual funds by downloading digibank app.

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Best High Return Mutual Funds with Benefits & Features | digibank by DBS

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High Return Mutual Funds - Check how high-risk & high return Mutual Funds work along with their features & benefits. Download the digibank app & start investing!

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Debt Mutual Fund Taxation | DBS digibank

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Debt Mutual Fund Taxation | DBS digibank

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Debt Fund Taxation - digibank has provided a thorough overview of the tax ramifications related to debt financing. For additional information, one can download the digibank app.

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Key Takeaways

Debt mutual fund scheme primarily invests in fixed income instruments.

Tax on debt mutual funds depends on whether you invest in dividend-oriented debt funds or growth-oriented debt funds.

If you choose dividend-oriented funds, you have to pay taxes per your tax slab.

You have to pay STGC or LTGC taxes on growth-oriented funds.

Government offers some relief on tax on debt mutual funds.

Mutual funds have risen as one of the most fruitful investment instruments. They help you fulfil your various investment goals and build wealth gradually. The SEBI has segregated mutual fund schemes into five broad categories, with debt funds being one. Let us understand what debt funds are along with debt fund taxation implications in this article.

What Are Debt Funds?

A debt fund is a mutual fund scheme that primarily invests in fixed income instruments, such as government securities, debentures, corporate bonds, and other money-market instruments that offer capital appreciation. Debt funds are considered safer than equity mutual fund schemes because they invest in securities that essentially generate a fixed rate of return. Moreover, debt funds come with a fixed date of maturity, so stock market fluctuations do not significantly affect them.

What Is Debt Mutual Fund Taxation?

Debt funds are ideal investments for conservative investors. They reap stable, fixed returns. As an investor, you should be aware of the types of tax on debt funds you need to pay on capital gains.

Tax on debt mutual funds depends on whether you invest in dividend-oriented debt funds or growth-oriented debt funds. If you choose the Dividend option, you will earn dividends on your debt fund investment periodically. Conversely, if you invest in growth-oriented mutual funds, the profits you earn are reinvested, and the returns you earn are compounded. Opting for growth-oriented debt funds increases the NAV or the Net Asset Value of the funds.

Debt Fund Taxation on Dividend-oriented Funds

If you choose the dividend option, you have to add the dividends, profits, or interest earnings within a financial year to your taxable income at the time of filing returns. You have to pay taxes on these earnings as per your income tax slab.

Debt Fund Taxation on Growth-oriented Funds

You may choose to invest in growth-oriented debt funds. However, the taxes you have to pay depends on whether the gains obtained are over the short or long term. Taxes on Short-term Capital Gains (STCG) are applicable if the holding period for the fund is less than 36 months, whereas you have to pay a Long-term Capital Gains (LTCG) tax if the holding period for the fund is more than 36 months.
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Debt Fund Taxation - The Calculation Process

To understand debt fund tax calculation, you need to know how to determine the gains.

Once you calculate the gains accrued on your investment, you can quickly compute debt mutual fund taxation.

Tax on Short-term Gains

As mentioned earlier, short-term gains are added to your income and levied as per your tax slab in a given financial year. You have to pay STCG tax if you exit a debt fund scheme within three years of investment.

Tax on Long-term Gains

The long-term gains are taxed at a rate of 20% after the indexation benefit.

Debt Fund Taxation: How Does It Work?

The Central Board of Direct Taxes or the CBDT, for every financial year, declares what is called a Cost Inflation Index (CII). This CII number is typically displayed in the second quarter or the third quarter of the financial year.

The CII is valued at 75 per cent of the Consumer Price Index (CPI) inflation in the last financial year. However, keeping the previous years' data in check, it is more than 75 per cent of CPI inflation. This statement confirms that tax authorities are more generous in providing inflation benefits on LTCG on debt funds.

For each financial year, you remain invested, your cost of acquisition (or buying the funds) is 'indexed'. Now, your capital gains are reached by using this indexed cost of purchase. For taxation purposes, capital gains are calculated by considering the sale price or asset value and subtracting the indexed cost of acquisition.

Now, according to the rate of LTCG, you can calculate the effective tax incidence.

Final note

Debt mutual funds are a great choice if you aim to add security and safety to your investment portfolio. If held for the long-term, debt mutual funds can prove to be highly lucrative investments. Moreover, we have also established that your government offers relief tax on debt mutual funds for long-term investments. You can significantly benefit from investing in debt mutual funds if you belong to the highest tax bracket of 30%. The indexation option allows the investors to reduce the tax payable, making debt funds an excellent instrument for your investment portfolio.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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All about Debt Fund Taxation | digibank by DBS

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Debt mutual fund scheme primarily invests in fixed income instruments. Tax on debt mutual funds depends on whether you invest in dividend-oriented debt funds or growth-oriented debt funds. If you choose dividend-oriented funds, you have to pay taxes per your tax slab. You have to pay STGC or LTGC taxes on growth-oriented funds.

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What is Equity Fund - The definition of equity funds and their various types have been discussed by digibank. By downloading the digibank app, one can begin investing.

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What is Equity Fund - Meaning, Types & Features of Equity Fund | digibank by DBS

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A mutual fund that primarily invests in a corporation’s shares or stocks is known as an equity fund. Download the digibank app to start your investment journey now.

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Difference Between ELSS and PPF | digibank by DBS

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Difference Between ELSS and PPF | digibank by DBS

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ELSS Vs PPF - digibank discusses the optimum tax-saving option for your circumstances that can be determined by comparing the differences between ELSS and PPF. Downloading the digibank app will allow you to invest.

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03 Jan 2022

A concise ELSS vs. PPF comparison to see which tax-saving option will suit your needs best.

Key Takeaways

ELSS and PPF investments fall under Section 80C of the IT Act.

You can invest up to INR 1.5 Lakhs in these instruments.

These investments help reduce your tax outgo.

PPF is a safe option with a fixed benefit.

ELSS has risks, but it offers high returns on investment.

Did you know that provisions under Section 80 C of the Income Tax Act, 1961 can help you reduce your tax outgo while providing several benefits? Yes, you can get tax deduction benefits by investing in either Public Provident Fund (PPF) Schemes and/or Equity Linked Saving Schemes (ELSS). Let us take a look at the schemes and the difference between ELSS and PPF.

What is ELSS?

Equity Linked Saving Schemes or ELSS is the only mutual fund scheme that offers tax deduction benefits. As the name suggests, ELSS’ are investments in equities, which are traded in the market. You can either invest a lump sum amount in ELSS or opt for a Systematic Investment Plan, i.e., in instalments. All ELSS’ have a lock-in period of at least three years after you can withdraw or reinvest your funds.

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What is PPF?

The Public Provident Fund is an investment scheme from the Indian government. You can invest in these long-term investments through your bank or designated post offices. PPF is an excellent investment for people who want to create a corpus and gain tax benefits. The Ministry of Finance decides and modifies PPF interest rates each quarter. Currently, the return rate for PPF is 7.1%. PPF comes with a fixed maturity tenure of 15 years.

Difference Between ELSS and PPF

An ELSS vs PPF comparison can help you understand the better investment plan for you:

Tax Benefits

Both ELSS and PPF provide tax benefits for up to INR 1.5 lakhs on investment. However, PPF is an EEE (where E stands for exempt) instrument. The entire investment, i.e., the invested amount, interest earnings, and the maturity amount, are tax-free. As for ELSS, the returns are not entirely tax-free, and you have to pay a 10% long term capital gains tax if the returns exceed INR 100,000 in a year.

Investment Period

With PPF, you need to stay invested for 15 years. You can make partial withdrawals only after seven years of investment. Conversely, ELSS has the shortest lock-in period among 80C instruments, i.e., three years. However, you get better returns if you stay invested for at least five years.

Investment amount

The minimum amount for deposits is INR 150,000 for both PPF and ELSS. The maximum deposit amount for PPF is INR 150,000 p.a., while ELSS has no caps on the investment amount. However, ELSS tax benefits only apply to investments of INR 150,000.

Risk

PPF is a government-backed, safe investment scheme with guaranteed returns. On the other hand, ELSS investments are subject to market risks, and returns depend on how the fund performs.

Return rate

PPF return rates are determined by the Ministry of Finance and depend on the interest rates, which are modified each quarter. ELSS functions on the ‘high-risk high returns’ premise. Returns may be higher in a bullish market and lower in a bearish market.

Conclusion

While planning your investment and doing an ELSS vs PPF comparison, consider your preferred investment amount and risk profile before investing. Both ELSS and PPF are excellent tax-saving options that you need in your portfolio.

Download digibank by DBS on your smartphone, register and choose any tax-saving options from the menu.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Keep Reading

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ELSS vs PPF -Which is Better for Tax Saving |digibank by DBS

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ELSS vs PPF - Find the best savings option by reading about the individual schemes & their differences. Download the digibank app & go for the best option.

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Tax Saving Investment - Recognize why it is important to focus on ELSS throughout tax season. One can download the digibank app to invest.

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Bank Balance Check App | digibank by DBS

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Bank Balance Check App | digibank by DBS

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Bank Balance Check App -  Through internet and mobile banking, one may now check their bank balances online. Downloading the digibank app will give you access to this.

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Key Takeaways

You can access your bank balance without visiting the bank

You can check your balance via internet or mobile banking platforms.

You can download your bank's mobile application on your internet-enabled smartphone.

You can just as easily view your past transactions, mini statements, etc.

You should log out from the online banking applications after every use.

Introduction

Before the age of digitalisation, to merely check your bank balance, you would have to run to the bank, stand in queues and wait until a bank executive updated your passbook. Now, however, you can check your bank balance from any part of the world via the internet. Read more to know how you can check your bank balance without visiting the bank.

Checking Account Balances Via the Internet with Bank Mobile Apps

Most banks today provide their eponymous mobile bank applications. You need to download the application on your internet-enabled smartphone. Let us say that you have a digibank account. In this case, you must follow these steps.

1. Download the digibank by DBS app on your mobile device. You can do this in two ways - by scanning the QR code displayed on the digibank website, or you can also download the app from your phone's app store.

2. Enter your bank-specific personal details as prompted by the app and create your user ID and password

3. Complete the KYC verification using Aadhaar OTP and PAN card.

4. You can now start banking!

The process of downloading mobile banking apps and setting up online accounts is more or less the same for all banks. A few banks also allow you to log in to your mobile banking app through Fingerprint Login/Touch ID.
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Different Ways To Check Bank Balance Online

You can check your account balance by using any of the following:

Via Mobile Application.

1. Log in to the mobile app by entering your user id and password or with the fingerprint id technology.

2. Tap on 'Deposits'

3. You can now view your account balance.

Via Internet Banking.

1. Log in to the internet banking platform of your bank by entering your username and password.

2. Click on the account or account balance tab on the home page

3. You will be able to see your account balance

If you have multiple accounts with the same bank, you can select the appropriate account and check its balances on both internet and mobile banking platforms.

Conclusion

As is apparent, checking account balances is easier than ever. You just need to log in on the mobile application or the internet banking website. Along with the bank balance, you can also view the transaction history, thus enabling you to monitor your expenses at all times. Ensure that you log out from the website each time to avoid any fraudulent online activities. Also, you cannot access the mobile app and internet banking website simultaneously for security reasons.
With the digibank by DBS app, you can open a new savings account in a few minutes! Download the app to get started. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Bank Balance Check App - How to Check Your Bank Balance Online? | digibank by DBS

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You can access your bank balance without visiting the bank You can check your balance via internet or mobile banking platforms. You can download your bank's mobile application on your internet-enabled smartphone. You can just as easily view your past transactions, mini statements, etc. You should log out from the online banking applications after every use.

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Mutual Fund Apps - A mutual fund investment app is a more practical and convenient way to begin your financial planning journey. One can start investing by downloading the digibank app.

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Key Takeaways

Mutual Fund apps allow you to invest on-the-go.

You can download the apps from Android and iOS App stores.

The best Mutual Fund apps provide detailed research reports.

They enable you to track your investment portfolio on a single platform.

They ensure your investment details are secure and encrypted.

The beauty of investing in Mutual Funds is that there is something for everyone. Based on your risk appetite, you can invest in safe Debt Funds generating fixed returns, riskier Equity Funds generating high returns or Hybrid Funds that balance your risks and returns. You can invest lump sums or through Systematic Investment Plans (SIPs). Today, you can conveniently invest in Mutual Funds on many online and offline platforms, but the most popular way to invest on the go is through Mutual Fund apps. Read on to know more.

What is a Mutual Fund App?

A Mutual Fund App is an online and mobile platform to invest in all kinds of Mutual Funds. Available on internet-enabled smartphones, you can download a program or application on your mobile phone and use it to invest in Mutual Funds. You can download Mutual Fund apps of the Asset Management Company, bank, or brokerage firm with which you have your Mutual Fund investments. The apps are freely available for downloading from the Android Google Play Store and the Apple iOS App.
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Features of a Mutual Fund App

Most Asset Management Companies and Brokerage Houses have their eponymous apps for Mutual Fund investing. However, the best Mutual Fund App typically has the following features.

It should allow you to invest per your preferred investment method

The best Mutual Fund apps are those that enable you to invest per your preferred investment method. The app should have the necessary software to allow you to make a one-time lump sum investment or make systematic investments in frequent instalments via SIP.

It should provide research reports

The best app for Mutual Fund investments is one that not only enables you to invest remotely but also provides you with research reports about the performance of Mutual Funds across short and long-term market cycles. The app should have intuitive software that analyses your risk appetites, objectives, and investment patterns and recommends Mutual Fund schemes based on such analysis. For instance, if you typically invest in equities, it will recommend ELSS Mutual Funds that help generate higher returns while empowering you to save taxes.

It should provide Real-time tracking facilities

One of the key features of a good Mutual Fund app is that it allows you to track the real-time value of your Mutual Fund portfolio. It generates the daily value of your individual and collective Mutual Fund schemes and shows you the NAV of each Mutual Fund unit for the day. This way, you can keep a hawk's eye on your investments, invest when the markets are low, and redeem your funds when you stand to gain profits. The app also shows your expense ratios and tax liabilities on redeeming fund units.

Final Note

While investing in Mutual Funds via apps, you typically have to link your bank account to debit and credit funds when you invest and redeem, respectively. The best app for Mutual Fund investments utilises robust, secure systems that protect your bank information via biometric and secret PIN authentication methods. Such apps ensure your banking information is always secure.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Best Mutual Fund Apps & their Features | digibank by DBS

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Mutual Fund apps allow you to invest on-the-go. You can download the apps from Android and iOS App stores. The best Mutual Fund apps provide detailed research reports. They enable you to track your investment portfolio on a single platform. They ensure your investment details are secure and encrypted.

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What is Asset Management - Here is a thorough explanation of asset management and its significance. The digibank by DBS website has more comprehensive information.

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Key Takeaways

The goal of asset management is to maximise the value of an investment portfolio over time while maintaining risk.

Financial institutions offer asset management services to cater to high net-worth individuals, government entities, corporations, and institutional investors.

Asset managers make investment decisions on behalf of their clients.

Asset managers consider stocks, bonds, real estate, commodities, mutual funds, and private equity investments.

They charge significant fees for managing the assets.

For asset managers, the primary task is to understand an investor's investment goals, risk tolerance and investment timeframes. These requirements, when translated into an investment philosophy and approach, result in desired financial outcomes. Many Asset Management Companies offer their services to institutional investors and high net-worth individuals. Their well-timed investment decisions enable clients to build and maintain wealth. Let us decode Asset Management meaning in this article.
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What is Asset Management?

The term 'Asset Management' refers to managing assets using investor capital by putting them to work in different investments. These may include Stocks, Bonds, Real Estate, Commodities, Mutual Funds and Private Equity. Typically, portfolio managers select positions based on the client's income needs, tax circumstances, and liquidity expectations.

For the service provided, they charge their clients a fee. The fee is determined as a percentage of the total assets under management (AUM). Asset management fees cover various expenses, including portfolio management, advisory services, and administrative costs.

Asset Management Companies come in many different forms and structures, such as Hedge Funds, Mutual Funds, Index Funds, Exchange-traded Funds and Private Equity Funds.

Importance of Asset Management

If you are earning decently well, it would be prudent to optimise your earnings by investing wisely. You should invest your earnings into schemes and investment tools that multiply your money based on your financial goals.

Not everyone is adept at financial matters, so it is advisable to take help from an expert. With the help of asset managers, you can invest in various alternatives, such as capital markets, Mutual Funds, NPS, Pension Funds etc., that would help generate good returns.

Astute asset managers suggest funds or investment picks to suit your portfolio, bearing in mind the market trends and risks involved.

Asset Management Companies usually have a group of investment professionals with broad market expertise. With a large amount of pooled capital, they can utilise diversification and complex investment strategies to generate returns for investors.

All the investment activities are driven by the investment mandate to manage a certain pool of assets in a particular manner. These mandates weigh in the risk parameters within which the investment should be made and what strategy should be used.

Some firms offer their financial services to cater to smaller investors as well. Many of these companies create pooled structures such as mutual funds, index funds, or exchange-traded funds. These can then be managed in a single portfolio. Smaller investors can then invest directly in the fund.

Apart from asset management, these financial institutions provide alternative investment vehicles as well.

Final Note

People often use the terms wealth management and asset management interchangeably. While both are used in managing financial resources, wealth managers go a step further beyond just investments. Asset management firms help investors manage their assets with investment advisory services. Wealth management assists with all financial aspects of the client, including asset management, financial planning, tax planning, retirement planning, and real estate planning.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Asset Management - Decoding What is Asset Management | digibank by DBS

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The goal of asset management is to maximise the value of an investment portfolio over time while maintaining risk. Financial institutions offer asset management services to cater to high net-worth individuals, government entities, corporations, and institutional investors. Asset managers make investment decisions on behalf of their clients.

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RTGS Transfer Charges Explained| DBS digibank

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RTGS Transfer Charges Explained| DBS digibank

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RTGS Charges - transferring money using a low-cost RTGS transfer for amounts over INR 2 lakhs. One can fulfill all their financial needs by downloading the digibank app.

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Key Takeaways

RTGS stands for Real Time Gross Settlement.

The minimum amount for RTGS transfer is Rs. 2 Lakh.

The RBI does not charge a processing fee for such transfers.

It costs anywhere from INR 24.50 to 49.50 for RTGS transfers.

The RBI has capped RTGS Service fees and beneficiaries receive the funds within 30 minutes.

Is a family member in urgent need of money? Are you looking for a way to transfer money at an untimely hour? Is the transfer amount higher than INR 2 Lakhs? If you answered yes to all the above questions and are looking for a legal and secure way to transfer large sums, then RTGS is the answer to your questions. Let us understand what it is and what are RTGS Charges.
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What is RTGS?

RTGS stands for Real Time Gross Settlement RTGS. It is a real-time money transfer payment method through which you can initiate high-value transactions exceeding INR 2 lakhs within minutes. The Reserve Bank of India (RBI) processes RTGS payment requests immediately. You can transfer significantly larger sums of money in a single, individual transaction, unlike the National Electronic Fund Transfers (NEFT) system, which comes with an upper limit on fund transfers.

The RBI typically settles the transaction within 30 minutes of creating an RTGS fund transfer request. As such, the beneficiary account is credited in the shortest time, and the money transferred via RTGS is final and cannot be revoked.

What are RTGS Charges?

The charges you must pay for sending funds via RTGS are known as RTGS transfer charges. Essentially, the RBI does not levy any processing fee for RTGS transfers. However, it does impose a service charge. Here is a schedule of the RTGS fees:

RTGS Charges

The RBI does not levy any processing fee for transfers made via RTGS. However, it does levy a service fee, which the sender must pay. The beneficiary is not liable to make any payments on inward transactions. Here are the RTGS charges:

The INR 24.50 and INR 49.50 is the maximum charge a bank can levy for an RTGS transaction. Banks may charge service fees lower than the above charges mandated by the RBI.

Why choose RTGS for high-value fund transfers?

RTGS allows you to make high-value transactions at the lowest costs. The RTGS facility is available 24x7x365. Since the RBI has capped the RTGS transfer charges, you need not worry about hefty costs. Since the RBI has waived off its processing fees on RTGS transfers, banks, too, may choose to pass on this nil RTGS charge benefit to their customers. If you receive the payment later than what is stated by the RBI, you are eligible for compensation at the current repo rate + 2%.

Final Note

All RTGS payments are settled by the RBI and have legal backing, thereby eliminating any instances of losses, thefts, or fraudulent encashment of funds. You can initiate RTGS transactions through internet banking or mobile banking. You can also visit your pay to transfer funds via RTGS, but the bank may levy an additional RTGS charge for the offline services provided.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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RTGS Charges - A Guide on RTGS Transfer Charges | digibank by DBS

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RTGS stands for Real Time Gross Settlement. The minimum amount for RTGS transfer is Rs. 2 Lakh. The RBI does not charge a processing fee for such transfers. It costs anywhere from INR 24.50 to 49.50 for RTGS transfers. The RBI has capped RTGS Service fees and beneficiaries receive the funds within 30 minutes.

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APBS Full Form in Banking | DBS digibank

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APBS Full Form in Banking | DBS digibank

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APBS Full Form in Banking -  The APBS system is described by digibank, along with its purpose and operation. The digibank website can be visited for more specific information.

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Key Takeaways

Introduced by the NPCI, APBS full form is Aadhaar Payments Bridge System

The APB System electronically channel subsidies and benefits to beneficiaries under the Direct Benefit Transfer Scheme.

Sponsor banks use NPCI mappers to keep track of Aadhaar numbers.

APB System eliminates transactions through multi-channels.

The APB system is based solely on the Aadhaar number and does not require bank account details.

The Government of India is continually embracing technological advancements, thereby transforming its reputation as a brick-and-mortar establishment. The give-and-take between the Government of India and the public is more transparent than ever, especially when it comes to the underprivileged sections of society. However, to eliminate any potential pilferage, the government has taken yet another step by introducing ABPS. Find out what APBS is in this article.
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What is APBS?

APBS full form is Aadhaar Payments Bridge (APB) System. Backed by the National Payments Corporation of India (NPCI), APBS is a unique payment system. It uses Aadhaar numbers to electronically channel subsidies and benefits from the government to the Aadhaar-linked bank accounts of the beneficiaries. The APB system is based on the Aadhaar number issued by the Unique Identification Authority of India (UIDAI) and the Institution Identification Number (IIN) issued by NPCI.

Government agencies use the APB System to transfer government subsidies and benefits under the Direct Benefit Transfer (DBT) scheme. The system enables the government to implement electronic retail payment transactions while re-engineering its subsidy management operations.

APB System and DBT

The Direct Benefit Transfer scheme allows government subsidies to reach the intended Aadhaar Enabled Bank Accounts (AEBA) of the underprivileged population of the country. DBT was implemented to increase transparency in such transactions, which otherwise would go through a third-party agency leading to the pilferage of government-sponsored funds.

Process Flow of APB System

The government departments or agencies initiate a transaction with their sponsor banks for benefits and subsidies. The sponsor banks use the NPCI mapper, a repository comprising Aadhaar numbers and the IIN number of the Aadhaar-linked bank, to transfer money to the destination bank. Banks upload Aadhaar numbers in the NPCI mapper in a specific format via the National Automated Clearing House (NACH) portal. The NPCI mapper only maintains the Aadhaar number and not the bank account details.

Features & Benefits of the APB System

Having explained APBS full form in banking, let us examine its features.

Due to automation, the government can eliminate delays, and the entire process is paperless.

Government benefits and subsidies get transferred promptly and directly into the bank accounts of the beneficiary without the interference of intermediaries or multiple channels.

Even if beneficiaries change their bank account, they do not need to inform government agencies, as long as the new bank account is linked with their Aadhaar number.

Beneficiaries may be eligible for multiple bank social welfare schemes but need to provide only one bank account to the government to receive the DBT payments.

Final Note

Persons eligible under social welfare schemes sponsored by the government can avail of the benefits and subsidies. Such individuals must ensure that their Aadhaar number is linked to their bank accounts to receive the benefits under the APB system. APBS aims to automate money transactions while ensuring that the rightful beneficiaries receive their rightful subsidies, regardless of their bank accounts.
Are you looking for a smart mobile banking app? Download digibank by DBS and explore a world of banking facilities in a few swipes. Download digibank Now
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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APBS Full Form in Banking with Meaning | digibank by DBS

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Introduced by the NPCI, APBS full form is Aadhaar Payments Bridge System The APB System electronically channel subsidies and benefits to beneficiaries under the Direct Benefit Transfer Scheme. Sponsor banks use NPCI mappers to keep track of Aadhaar numbers. APB System eliminates transactions through multi-channels.

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Different Types of Savings Accounts | digibank by DBS

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Different Types of Savings Accounts | digibank by DBS

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Types of Savings Accounts - The many kinds of savings accounts you can open in India are described in this article. Downloading the digibank app will allow one to instantly open an account.

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Key Takeaways

You can open different types of savings accounts in India

Common accounts include regular, joint, digital and zero-balance savings accounts

You can also open specific accounts designed for women, children, and senior citizens

You earn interest on most types of savings accounts

You can open these accounts online as well

Introduction

"Saving is a virtue that everyone should imbibe from a young age". This is what my mother told me when she got me my first piggy bank. As a child, my mother advised me to spend my pocket money frugally and save as much as possible. When I felt I had saved a decent amount, I showed it off to mum, who took me to the bank and opened a Savings Account for me. I have the same account, even today, but it is always great to remember how I opened my first savings account. Like my mother, many parents worldwide teach their children the same lesson and help them open their first savings accounts. Read this article to know about the different types of Savings Accounts.

1. Regular Savings Account

Anyone who has a bank account probably has a Regular Savings Account. This is the most basic type of account you can open. If you choose to open this account, you typically have to maintain an average monthly balance, which can be as low as INR 500 or higher, for instance, INR 10,000. You also get nominal interest, ranging from 3% to 6%, along with other basic facilities like an international ATM cum debit card, cheque book, internet and mobile banking platforms, etc.

2. Zero Balance Savings Accounts

A popular Savings Account among the employed population is a Zero Balance Savings Account. It is also known as a Salary Account. Essentially, your employer opens this account for you to deposit your monthly salary, incentives, bonuses and other kinds of financial rewards that go with your employment. As is apparent from the term 'zero balance', you are not obligated to maintain any minimum balances in this account. You typically get an instant kit with a debit card and net banking details. In recent years, the Indian Government has started offering Zero Balance Savings Accounts, which are not necessarily Salary Accounts to people from economically weaker sections.

3. Digital Savings Accounts

Since we live in a digital world, it only fits that you have a Digital Savings Accounts. This account works like your Regular Savings Account but does not include any physical paperwork regarding bank details. You get a digital debit card, which you can use for all sorts of transactions and purchases. You can store the digital card on your internet-enabled mobile phone and swipe at retail outlets too. So even if you step out of your house without a wallet, you can still access money with your Digital Savings Account.
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4. Joint Accounts

Many families like to pool their savings together in a single account. Such people can open a Joint Account, which is another type of Savings Account. Such accounts operate on an "either" or "survivor" basis. This simply means that the signatories can be either one or all of the joint account holders. Most Indian banks allow up to four people to be named Joint Account holders on a single account. Also, with such accounts, each account holder linked to a single account would be eligible for their ATM-cum-debit card. With Joint Accounts, you get all the basic facilities you would, with a Regular Savings Account.

5. Senior Citizens Savings Accounts

Senior Citizens are typically retired individuals in the 60+ years age group and have limited sources of income. However, their expenses are usually on the higher side, whereas they prefer safer investment options. Keeping such people in mind, banks offer Senior Citizen Savings Accounts, a particular type of savings account that allows seniors to more than park their deposits. These accounts come with added benefits such as a 0.50% extra interest rate on savings, basic health and accidental insurance coverage, and other investment-related benefits.

6. Savings Accounts For Children

A type of Savings Account that all parents and guardians must open for their children (like my mother did for me) or wards is a Savings Account specially designed for children. You have to name the child as the primary account holder in such an account, and as the parent, you can be the secondary account holder. You can deposit the cash gifts your child receives during their formative years in this account as a means of creating savings for them. Like with a Regular Savings Account, your child can earn interest on the savings parked in this account. Banks also provide debit cards in the name of the child (on the parents' request). Once the primary account holder turns 18, this account can be converted into a Regular Savings Account.

7. Savings Accounts For Women

Like senior citizens and children, there is a particular type of Savings Account that women can open. Women can earn 0.50% higher interest rates and get benefits such as high daily withdrawals. They also get higher daily transactions at retail stores and other online modes of shopping with this account. Banks essentially customise this account to enable women to fulfil their everyday requirements and encourage them to open their accounts as primary account holders.

8. Privilege Accounts

Many banks in India have started offering privilege accounts. These are accounts where you get higher interest rates on the savings parked. However, you need to maintain high minimum monthly balances to get the higher interest rates. Typically, you have to keep at least INR 100,000 at all times in these accounts to be eligible for the high interest rate. These accounts also come with complimentary benefits such as higher daily withdrawal limits, unlimited access to airport lounges, international ATM-cum-debit cards with preferential forex rates, and so on.

Conclusion

With so many different types of savings accounts to choose from, you can open multiple accounts to suit your needs. Moreover, today, you can open these accounts online without stepping foot in the bank. Simply visit the website of your preferred bank, fill an online form and submit copies of your ID and address proof documents. You will receive your account opening details via post in a few days, after which you can start depositing money. It is that simple!
With the digibank by DBS app, you can open a new saving account in a few minutes! Download the app to get started. Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Checkout Different Types of Savings Accounts in India | digibank by DBS

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You can open different types of savings accounts in India Common accounts include regular, joint, digital and zero-balance savings accounts You can also open specific accounts designed for women, children, and senior citizens You earn interest on most types of savings accounts You can open these accounts online as well "Saving is a virtue that everyone should imbibe from a young age".

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Benefits of Digital Savings Account | digibank by DBS

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Benefits of Digital Savings Account | digibank by DBS

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Benefits of Digital Savings Account  - digibank highlights the six benefits of a digital savings account. Downloading the digibank app will allow one to start a savings account.

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TLDR Points

A digital savings account is an electronic deposit of your money.

It allows easy access to your funds from anywhere at any time.

It is safe and secure to use.

It helps to keep track of your expenses online.

A digital savings account can be set to pay your bills automatically.

Introduction

Remember when your piggy bank was your only trusted repository for savings? Well, you evolved, and so did the banking system. Today, there are so many benefits of an online savings account that we recommend you open one.

A savings account is not just a secure digital space to keep your money. It is so much more. It is a haven that helps you save, earn, pay, and invest. By the end of this article, you will realise the many benefits of digital savings account.

Benefits of Digital Savings Account

Whether you are a college student or a working professional who manages household expenses, a digital savings account benefits every account holder.

Earn higher interest

Sitting idle is never cool. Same goes for the money in your savings account. So, instead of just sitting in your digital savings account, your money earns a good interest and grows.
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Easy access to your funds

Who doesn't prefer sleeping in for an extra few minutes instead of waking up early and going to the bank? A digital savings account allows you to access your funds from anywhere, at any time through digibank.

Safe and secure

A digital savings account on a secure server keeps your account balance safe.

Track your expenses

With a digital savings account, you can track all your expenses across months and even years.

Pay your bills

'The bills are piling up' is not a statement you can make any longer. You can arrange for your digital savings bank account to pay your bills as soon as they come in.

Start investing

Are you looking to open fixed deposits or invest in mutual funds? You can start any of these and more with a digital savings account.

Conclusion

Read the many benefits of online savings account and make your life easier. Let your digital savings account handle your tedious day-to-day tasks while focusing on the parts of life that you love more.
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digital savings account benefits. benefits of online savings account

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Read 6 Benefits of Digital Savings Account | digibank by DBS

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A digital savings account is an electronic deposit of your money. It allows easy access to your funds from anywhere at any time. It is safe and secure to use. It helps to keep track of your expenses online. A digital savings account can be set to pay your bills automatically.

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Tax on Savings Account | digibank by DBS

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Tax on Savings Account | digibank by DBS

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Tax on Savings Account - This article provides information about savings account taxes and their terms and limitations. By downloading the digibank app, one can open a savings account.

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Tax on Savings Account Interest Under Section 80TTA & 80TTB | digibank by DBS

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Tax on Savings Account – Read about tax implications on the interest earned from a savings account in India. Learn about tax deductions and calculations on savings account at digibank website.

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Loan App - The benefits of installing an Instant Loan App are discussed in this article. Downloading the digibank app will allow one to obtain a quick loan.

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Key Takeaways

Loan apps enable you to apply for a wide variety of loans.

You can apply for Personal Loans, Home Loans, Vehicle Loans, etc., through loan apps.

Loan apps allow you to complete the loan process with 100% flexibility and transparency.

You can enjoy fast-track fund disbursals directly into your bank account.

Your digibank by DBS mobile app doubles as your instant loan app.

A loan is a financial facility that helps you obtain funds for your various needs like buying a home, a car, or a smartphone. Earlier, the process of acquiring a loan was rather tedious. It involved mountains of paperwork and long waiting periods. But today, you can apply for a loan by tapping a few buttons on your internet-enabled smartphone and get instant credit in your bank account. All you have to do is download a loan app. Let us find out how downloading online loan apps can prove beneficial for you.
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Five Reasons to Download Loan Apps

1. Choice of Loans

Loan apps give you instant access to a variety of loans. You can choose from Personal Loans, Home Loans, Vehicle Loans, Vacation Loans, Student Loans, etc. You can select your preferred loan type and begin a hassle-free loan application process.

2. Flexibility

An online loan app allows you to apply for a loan at any hour of the day. You do not have to bother with multiple visits to the lender's office during working hours. It is a time-saving, digital process wherein you just need to download the app on your phone and send your application in seconds.

3. Faster Loan Processing

Most lenders today offer instant loans, which means that you can complete the entire process from application to sanction and loan disbursal within 1 - 4 days. The lender directly credits the loan amount into your bank account. Faster loan processing proves incredibly worthwhile when you need money during financial emergencies.

4. Transparency

Instant loan apps in India provide all the necessary details you need about a loan in a straightforward, transparent manner. You can even calculate the maximum loan amount you can get and compute the estimated EMI by using Eligibility and EMI calculators. Based on the type of loan you need; you can check the interest rates and repay the loan over comfortable tenures ranging from 1 to 30 years in pocket-friendly EMIs.

5. Minimal documentation

You do not have to bother with detailed documentation processes with loan apps, especially when you apply for instant cash loans. For instance, if you apply for a Personal Loan, you just need to fill out an online form and submit scanned copies of basic documents. Scan and upload your ID and address proof, latest salary slips, and a copy of your credit scores. If you are eligible, the lender credits instant money into your account.

Download digibank by DBS Loan App

Your digibank by DBS Mobile Banking App doubles as your instant loan app. The app allows you to obtain various types of loans. You can download the app at the time of opening your digibank Savings Account. Like the loan application, you can instantly open the account online by submitting your PAN and Aadhaar card and completing the e-KYC process. As a digibank account holder, you can enjoy fast-track loan approvals.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Loan App - All About Instant Online Loan App | digibank by DBS

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Loan apps enable you to apply for a wide variety of loans. You can apply for Personal Loans, Home Loans, Vehicle Loans, etc., through loan apps. Loan apps allow you to complete the loan process with 100% flexibility and transparency. You can enjoy fast-track fund disbursals directly into your bank account.

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RTGS -  The RTGS funds transfer service's features and definition are provided by digibank. By visiting the digibank website, one can obtain more thorough information.

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Key Takeaways

RTGS stands for Real-Time Gross Settlement

With RTGS, you can transfer funds 24x7 irrespective of bank or national holidays.

Funds transferred through RTGS are deposited into beneficiary accounts within 30 minutes.

RTGS enables high-value transactions with a minimum transaction limit of INR 2 Lakhs.

You can conduct online and offline RTGS transactions, and there is no fixed upper limit.

The modern era has allowed us to enjoy newer, more convenient methods of conducting payments and settlements. However, with so many new methods of transferring funds, it can be confusing to pick one that meets your needs. This article focuses on one such payment method that has become incredibly popular in India - RTGS. Continue reading to know more.

What is RTGS?

RTGS full form is Real-Time Gross Settlement. This fund transfer facility was first introduced by the Reserve Bank of India (RBI) in 2004. It is a system that allows continuous real-time transfer of funds. The word 'real-time' highlights the nature of the transfer wherein the instructions are processed at the time they are received as opposed to after a delay or waiting period. Subsequently, the term 'gross settlement' means that the instructions for the transfer of funds are handled on an instruction-by-instruction basis. This transfer method is generally designed for high-value transactions, and you can use it for online and offline transactions.
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Features and benefits of RTGS transactions

Having explained RTGS meaning, let us now analyse its features and benefits.

RTGS is a secure way of transferring funds.

There is no maximum limit on your transfer amount when you opt for RTGS through a bank branch.

With RTGS, you can initiate and complete real-time fund transfers into the bank accounts of your intended beneficiaries.

The beneficiary receives the fund credits within 30 minutes.

You do not need to submit any cheque or demand draft to conduct RTGS transactions.

Your funds are protected from loss or theft or even fraudulent encashment from beneficiaries.

You can initiate the transfer from anywhere with internet and mobile banking.

The Reserve Bank of India legally sanctions RTGS transactions.

Things to Consider While Initiating RTGS Transactions

Timings

RTGS Transactions are available on all days, at all times. It is a 24 x 7 x 365 service. You can transfer funds anytime, irrespective of bank or national holidays.

Transaction Limits

While the RBI has not placed an upper limit on RTGS transfer, the lower limit is INR 2 lakh per transaction. Also, if you choose to conduct an RTGS transfer via internet banking, you should verify the upper limits on RTGS transactions set by the bank, as it can differ from bank to bank.

Fees and Charges

The RBI has set a limit on the charges banks may levy for RTGS transfers. While there is no charge on inward transactions, you have to pay nominal fees on outward transactions as under:

Final Note

Now that you know what is RTGS, you can leverage this fund transfer method for high-value transactions. To successfully conduct an RTGS transfer, you must ensure that both the sending and receiving banks are RTGS enabled bank branches. Also, note that RTGS transfers take place in the books of the RBI, and the payments are final and irrevocable.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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RTGS - What is RTGS & What are its Benefits | digibank by DBS

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RTGS stands for Real-Time Gross Settlement With RTGS, you can transfer funds 24x7 irrespective of bank or national holidays. Funds transferred through RTGS are deposited into beneficiary accounts within 30 minutes. RTGS enables high-value transactions with a minimum transaction limit of INR 2 Lakhs.

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Index Funds - In-depth information about index funds and how to start investing in them can be found in this article. By downloading the digibank app, one can begin investing.

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Key Takeaways

Index Fund is a type of Equity Fund.

It mimics the stock market index, i.e., NSE Nifty and BSE Sensex.

The fund is passively managed and has a lower expense ratio.

It is a relatively low-risk equity fund.

You can reap higher returns from index funds by staying invested for longer durations.

Introduction

Mutual Funds are of various types, allowing you to fulfil your different investment objectives per your risk appetite. A rule of thumb that many investors follow is diversifying their portfolios to minimise risks. One of the best mechanisms for risk minimisation is an index fund, a type of equity fund. Let us find out more about Index funds - their properties, factors, and who should invest in them.

What is an Index Fund?

An index fund is a type of equity fund that mimics the stock market indices, the NSE Nifty or the BSE Sensex. Unlike other funds where the fund manager actively and strategically invests in securities, in index funds, the fund manager buys and sells stocks according to the composition of the underlying benchmark of the indices. Since an index fund is passively managed, it generates lower expense ratios.

Why Invest in Index Funds?

You might find yourself asking the question, 'If Index Fund mimics the Stock market, why invest in Index Funds and not the Stock Market?' To put it in simple words, when you invest in stocks of an individual company, you become a shareholder or part-owner in that company. You share the profit as well as the losses.

Assuming you invest in an Index Fund that tracks Nifty 50, the fund manager invests in the same 50 stocks trading on the NSE Nifty in the same proportion. Here, even if few companies perform poorly, there will be companies that will perform well. This leaves you with an average chance to earn returns with careful risk mitigation, which is always preferable to incurring losses by investing in just one company.
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Factors to Consider Before Investing in Index Funds

Risk

The nature of equity funds is dynamic and volatile. Hence, it involves a high-risk factor. However, index funds track an index and are less likely to face such risks. During a market slump, there are possibilities that the equity funds could lose their value. Therefore, it is advisable to have a good mix of index funds and actively managed funds.

Returns

Generally, the returns you earn typically mirror the returns of the underlying indices being mimicked. However, you should be aware of the term 'Tracking Error'. It is the difference between the return on the index fund and the return on the stock market index. For example, if the index mutual fund gives you a return of 5 per cent and Nifty gives you a return of 7per cent the Tracking Error here would be 2 per cent. In theory, to make the most out of index funds, the Tracking Error should be zero, but it typically has a 1- 2 per cent range.

Investment Cost

Since index funds mimic an existing stock index, they are known as passively managed mutual funds, in that the fund manager does not have to choose stocks and create a unique portfolio carefully. Due to this passive management, the expense ratio is relatively low compared to what is charged on actively managed funds. A lower expense ratio means more savings in the investors' pockets, and the excellent performance of the funds also translates to higher returns.

Taxation

Index Fund is a type of Equity Fund and is thus taxed similarly to equity funds. The rate of taxation depends on the holding period. Short-term capital gains (redeemed within a holding period of one year) attract 15 per cent tax. Long term Capital gains (redeemed after a holding period of one year) up to INR 1,00,000 is tax-exempted. Any gains above INR 1 Lakh will attract a 10 per cent tax.

Who Should Invest in Index Funds?

Index funds perform better if held for longer durations, i.e., minimum of 5 to 10 years. This makes it an ideal investment for those looking for corpus creation or lump sum funds for retirement. Due to its substantially low-risk nature, investors who are sceptics of the stock market or actively managed equity funds can invest in Index Funds, too.

Conclusion

Index funds are perhaps a unique type of mutual fund investment. They are what one may call safe equity investments. These funds mirror a stock index with the best-performing companies while attempting to replicate their returns. These attributes make index funds a low-risk investment that offers higher returns, primarily when held for longer durations.
If you want to invest in mutual funds, download the digibank by DBS app today and choose from over 200 schemes! Download digibank Now
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Index funds - Meaning, Why to Invest & Factors to Consider Before Investing | digibank by DBS

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Index Fund is a type of Equity Fund. It mimics the stock market index, i.e., NSE Nifty and BSE Sensex. The fund is passively managed and has a lower expense ratio. It is a relatively low-risk equity fund. You can reap higher returns from index funds by staying invested for longer durations.

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What is Blue Chip Fund | digibank by DBS app.

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What is Blue Chip Fund | digibank by DBS app.

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Bluechip Fund - A definition of blue chip funds and a list of things to think about before investing in them. By installing the digibank app, you can make the investments online.

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Key Takeaways

Blue-chip funds invest in well-established companies with a long track record and sound governance.

Blue-chip investments are ideal for investors with long-term objectives like retirement planning.

Blue-chip funds invest in top companies from various sectors, thereby mitigating your investment risks.

Blue-chip companies typically overcome volatile markets and can generate steady returns.

These companies enjoy a competitive advantage over other companies in the same sector.

Mutual fund investments could be a somewhat confusing topic for many. But with proper knowledge and research, you will find that it could open new avenues of investment. In simple words, a mutual fund is an investment that collects money from investors and then invests in equities, bonds, money market instruments, and other securities. It is considered a viable investment option as it gives people the opportunity to invest in a diversified and professionally managed basket of securities.

The blue-chip fund is one of the many types of schemes that mutual fund offers. Let us dive into this topic to understand if this type of fund could help you achieve your financial goals.

What Is Bluechip Fund?

Before we discuss what blue-chip funds are, let us understand what blue-chip means. A blue-chip is a nationally recognised, well-established, and financially sound company. Blue-chip mutual funds are schemes that invest in the stocks of these types of companies. In technical terms, they are equity mutual funds that invest in the stocks of companies with a larger market capitalisation.

According to SEBI, India does not have an official category called blue-chip funds. The term "blue-chip" is used as a synonym for large-cap funds. Large-cap funds invest at least 80% of the corpus in stocks of top 100 companies.

What are the Features of Blue-Chip Funds?

With blue-chip funds, you know that you are investing in stocks of companies in the top 100 in market capitalisation. Here are a few more features of a blue-chip fund to help you decide if it is a suitable investment for you.

Risk Factor

Large, well-established companies are more stable compared to mid and small companies. Even during market volatility, they can offer stability because they have been in the industry for many years and have experience dealing with volatile, fluctuating markets.

Assured Returns

Since blue-chip companies are well-established, you feel considerably assured that you will earn steady and guaranteed returns. Investors can rely on metrics like the past performance of funds, performance during bullish and bearish market trends, etc., to base their investments.

Management

Big companies have expert corporate governance and employees with years of experience within the company. Hence, even during a volatile market, they are well-prepared to deal with unpredictable and unstable market conditions. These management skills inspire confidence among investors to stay invested.

Cash Flow

Blue-chip companies have sufficient funds to finance their business and expansion plans. As such, they have enough cash flow and can quickly raise it if needed, through the public (by offering shares) or through their relationships with banks that provide them with instant lines of credit or loans.

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Why should you invest in blue-chip mutual funds?

Having explained blue-chip fund meaning and features, let us analyse why they are a good investment option.

Fulfil Long-Term Goals

Blue-chip mutual funds are ideal for long-term goals as the longer you stay invested, the higher the probability to earn more returns. You can invest in blue-chip funds to create your retirement corpus, fund higher education for your children, etc.

Stable and Regular Dividends

Blue-chip companies are typically stable, with the capacity to generate steady returns in dividends, bonus shares, etc. These qualities make them an attractive investment option.

Portfolio Diversification

Blue-chip companies generally do not concentrate on one sector alone; they are spread across various sectors. This means, when you invest in blue-chip funds, you are investing in stocks of top companies in multiple sectors. Even when there is instability in one industry, your investment in other sectors is not hampered, which in turn mitigates your investment risks.

Economic Moat

Since blue-chip companies are large and well-established with a long track record, they enjoy a competitive advantage over other companies in the same sectors. Therefore, they hold a significant market share and helps you earn inflation-adjusted returns over time.

Liquidity

A blue-chip mutual fund is an open-ended scheme, which means you can redeem or withdraw your investment whenever required. This feature proves advantageous for investors, especially in times of financial crisis, where they do not have to bear the burden of debt.

Things to Consider Before Making a Blue-chip Investment

Track Record

You must always check the track record of the companies the scheme invests in before taking a final decision. Blue-chip funds with significant Assets Under Management (AUM) are considered more favourable.

Fund Managers' Credentials

Check fund managers' credentials and investment style handling the blue-chip funds, including the performance of other funds managed by them.

Performance Against Benchmark

Check the performance of the blue-chip fund in the past 3 to 5 years. It is essential to select a fund that has outperformed the benchmark over time.

Fund Portfolio

Checking the fund portfolio helps you understand where the fund invests. Some blue-chip funds could be significant and mid-cap funds. Hence, it is essential to study the fund portfolio.

Conclusion

With mutual fund investments, there is always an element of risk attached. However, investing in blue-chip funds is a more reliable investment, especially if you are a risk-averse investor. It would help if you stayed invested for the long-term to gain maximum benefits from your investment.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Bluechip Fund - Meaning, Features & Why to Invest in Blue-Chip Fund | digibank by DBS

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Blue-chip funds invest in well-established companies with a long track record and sound governance. Blue-chip investments are ideal for investors with long-term objectives like retirement planning. Blue-chip funds invest in top companies from various sectors, thereby mitigating your investment risks. Blue-chip companies typically overcome volatile markets and can generate steady returns.

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What is Mid Cap Mutual Funds | DBS digibank

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What is Mid Cap Mutual Funds | DBS digibank

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Best Mid Cap Mutual Funds -  digibank provides advice on the characteristics of mid-cap mutual funds that make them worthwhile investments. Downloading the digibank app will allow you to invest.

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29 Sep 2021

What are the qualities that make mid-cap mutual funds worth your investment?

Key Takeaways

Mid-Cap Mutual Funds come under the SEBI category of Equity Mutual Funds.

They invest in stocks of mid-sized companies.

The best Mid-Cap Mutual Funds show proof of performance, good management, and low expense ratios.

Personal factors like your investment objectives, investment horizon, and risk appetite also determine whether a fund is good for you.

Invest in the best Mid-Cap Funds with digibank by DBS.

The wide variety of Mutual Funds schemes makes them popular but confusing investment options. Thankfully, the SEBI has classified Mutual Funds into various categories and sub-categories. Of these, Mid-Cap Mutual Funds belong under the broader category of Equity Mutual Funds. Let us find out what is Mid-Cap Fund, and the qualities to look for while choosing the best Mid-Cap Mutual Funds.

Mid-Cap Mutual Funds – Meaning

A Mid-Cap Mutual Fund is typically an open or close-ended Equity Mutual Fund scheme that predominantly invests in stocks of Mid-Cap companies. These companies are listed between 101 and 250 in terms of market capitalisation. Mid-Cap Mutual Funds invest a minimum of 65 per cent of their assets in equity and equity-related instruments of Mid-Cap companies. In contrast, the other 35 per cent may be invested in large and small-cap companies or may vary based on specific schemes.

Choosing The Best Mid-Cap Mutual Funds

With over 250 Mid-Cap companies listed on the stock exchange, selecting the best Mid-Cap Funds can be challenging. Instead of investing based on random lists featuring fund names, you should look for specific qualities to determine the best Mid-Cap Mutual Fund. Here is what you should consider.

The past performance of the fund

While investing in any market scheme, the first thing you should check is the fund’s past performance. Past performance does not just mean how the fund performed in the last 1-2 year market cycle but over the years. Check if the supposed best Mid-Cap Fund showed stability and endurance during volatile market conditions over you should first check, seven, or ten years. If it did, you have a winner on your hands.

The fund management style

Fund managers make all the decisions regarding stock selection, asset allocation, redeeming funds, and more. As such, you must research the management style of the fund manager, how a fund has performed under the manager, or any other funds handled by the manager over the years, to check if you have a winning fund in your hand.

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The expense ratio

There is no point in investing in funds if you share a significant part of your profit in administrative costs like commission, fund management charges, entry and exit load, etc. The best Mid-Cap Mutual Funds are those that have relatively lower expense ratios, as they put more profits in your pockets.

Other factors

You must also consider certain personal factors such as investment objectives, preferred investment durations, and, most significantly, risk appetite. These factors help ascertain whether a supposedly best Mid-Cap Mutual Fund is indeed right for you. If you are a conservative investor and invest in a fund showing promise in performance but putting your capital at risk, it may not be worthy of your investment.

Conclusion

Now that you know what is Mid-Cap Fund, and the qualities that make a fund the best, you can consider investing. Mid-Cap Funds are considerably safer than Small-Cap Funds but riskier than Large-Cap Funds. As always, you must consider your risks before investing.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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Choose the Best Mid Cap Mutual Fund With digibank | digibank by DBS

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Best Mid Cap Mutual Funds - Invest in India’s mid-sized businesses with Mid Cap Mutual Funds. Download the digibank app & begin your adventure into investing.

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What is Large Cap Mutual Fund | DBS digibank

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What is Large Cap Mutual Fund | DBS digibank

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Large Cap Mutual Funds - This tutorial discusses the aspects to consider before investing in large size funds, as well as the risks and returns involved. By downloading the digibank app, you can start investing.

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12 Aug 2021

Large-Cap Mutual Funds – An Introduction

Understanding the basics of Large-cap Funds.

Key Takeaways

Large-cap Fund is a type of Equity Fund.

This fund invests in Large-cap companies with an excellent track record.

It is a low-risk fund with steady returns.

The returns are consistent but can be lower than mid-cap and small-cap funds.

The expense ratio limit is 2.50%, as per SEBI.

Introduction

Investing in mutual funds comes with its own set of benefits and risk factors. However, if you choose a suitable scheme and fund for you, they are a great investment vehicle. The Security and Exchange Board of India (SEBI) has categorised mutual funds into five broad types, with equity funds being one of the categories. SEBI further classifies equity funds into 11 sub-types; one of them is the large-cap fund. This article details the basics of large-cap funds, their features and investment criteria.

What is a Large-Cap Mutual Fund?

According to the SEBI, companies with a significantly high market capitalisation, i.e., around INR 20,000 crores, are listed as large-cap companies. When mutual fund managers invest funds in these companies, those funds are termed large-cap funds.

These companies have an exemplary track record and have shown to generate wealth for their investors over a long period. Due to their well-established nature of generating returns, they are low-risk and have a long-term investment horizon.

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Risk

Large-cap equity funds are typically influenced by market conditions but in a conservative way. The Net Asset Value (NAV) fluctuates at a low level, thus providing stability to your investment portfolio. This attribute makes them a considerably low-risk investment when compared to mid or small-cap funds.

Returns

Large-cap funds generate consistent, average returns, even during volatile market conditions. In comparison, the returns caused by mid-cap and small-cap funds are more volatile – they can be higher during a bullish market and fall significantly when the market falls into a bearish slump.

Cost of Investment

Large-cap funds are actively managed by fund managers who charge a minimal rate for their work, also known as the Expense Ratio. SEBI has mandated that this expense ratio must not exceed 2.50%. Asset Management Companies survive the growing competition of attracting investors by charging lower expense rates. Therefore, you should look out for lower expense ratio schemes to maximise your returns and eventually compensate for the expense charges.

Taxation

A large-cap fund is a type of equity fund, and the rate of taxation depends on the holding period. Short-term capital gains (redeemed within a holding period of one year) attract 15% tax. Long term capital gains (redeemed after a holding period of one year) up to INR 1,00,000 are tax-exempted. Any gains above INR 1 Lakh will attract a 10% tax.

Who Should Invest in Large-Cap Mutual Funds?

As mentioned above, large-cap funds are meant to provide steady and consistent returns with low risk. Therefore, these investments are ideal for conservative to medium-risk investors who can stay invested for a minimum of five to seven years. Investors willing to lock away their investments for this horizon are likely to benefit from investing in large-cap mutual funds.

Conclusion

Large-cap equity funds are funds of companies that have stood the test of time on the stock exchanges during stable and volatile markets. These equity funds invest in low-risk large-cap companies and offer steady returns when held for an extended period. If you wish to maintain a diversified investment portfolio with funds offering stable returns, you should consider investing in large-cap funds.

Are you interested in securing your financial future? If yes, then download the digibank by DBS app and start investing in mutual funds. You can choose from over 200 of the top-rated schemes*

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

digibank offers Mutual Funds that are instant, paperless, signatureless – even transaction fee-less! What’s more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on digibank.

Read up more on Mutual Funds here.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

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Large Cap Mutual Funds - Meaning & Factors to Consider Before Investing for Large Cap Funds | digibank by DBS

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Large-cap Fund is a type of Equity Fund. This fund invests in Large-cap companies with an excellent track record. It is a low-risk fund with steady returns. The returns are consistent but can be lower than mid-cap and small-cap funds. The expense ratio limit is 2.50%, as per SEBI.

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What is Tax Saver Mutual Fund | DBS digibank

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What is Tax Saver Mutual Fund | DBS digibank

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Tax Saving Mutual Funds -  A comprehensive reference to the top tax-saving mutual funds is available from digibank. By installing the digibank app, you may access tax-saving solutions.

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Key Takeaways

Equity Linked Savings Schemes or ELSS are the best tax saver mutual funds in India.

ELSS falls under Section 80C, under which you get deductions of up to INR 150,000 per annum.

Investors in the 30% tax bracket can save up to 46,800 per annum through ELSS investments.

You need to stay invested in ELSS tax saving schemes for at least three years.

ELSS offers dual benefits of tax savings and wealth generation.

Introduction

Investing in mutual funds can be both rewarding and overwhelming as there are several categories. It is no wonder that India's Securities and Exchange Board (SEBI) formally categorised mutual funds. As per SEBI categorisation, there are five major categories and several sub-categories. For instance, equity and debt mutual funds are further sub-divided into eleven and sixteen types, respectively. One such equity mutual fund scheme is ELSS, the best tax saver mutual fund scheme. Let us understand what is a tax saver mutual fund in this article.

What Is A Tax Saver Mutual Funds?

As is apparent from the term, a tax saver mutual fund is one on which you get tax deductions benefits. There is only one tax saving mutual fund scheme in India - the Equity Linked Savings Scheme or ELSS. Under Section 80 of the Income Tax Act of India, 1961, you can claim benefits from your taxable income if you choose to invest in ELSS mutual funds. Fund managers typically allot 65% of assets in equity and equity-linked schemes. For investors, the ELSS tax saving mutual fund scheme can generate the highest returns among all investments permitted under section 80C.

Features And Benefits Of Taxing Saving Mutual Funds

Here are some of the best features and benefits of ELSS tax saving funds:

ELSS investments allow you to benefit from tax deductions and assist with wealth creation.

Under Section 80C, you may claim tax deductions of 150,000 per annum.

As an ELSS investor in the highest tax bracket of 30%, you can save up to INR 46,800 per annum.

ELSS funds come with the shortest lock-in period among all Section 80 C investments, i.e., three years.

There are no provisions to exit an ELSS scheme prematurely.

You may invest any amount of money in an ELSS scheme, as there is no specific upper limit. However, the minimum investment amount may differ from one fund house to another.

ELSS funds are also the only tax-saving investments that can potentially generate inflation-adjusted returns.

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Comparison With Other Tax Saving Schemes

Under the IT Act of India, you can invest in various schemes and avail tax savings benefits. However, under-investment tenure and returns, ELSS funds are the best tax saver funds. For instance, you can get tax exemptions by investing in 80C instruments like Public Provident Funds and Tax Saving Fixed Deposits. However, the returns generated on both instruments are significantly lower, while the investment tenures are higher at 15 and 5 years, respectively. In comparison, ELSS tax saving funds come with a short lock-in period of only three years.

That said, PPF and Tax-savings FDs are safer investments, unaffected by market fluctuations. In contrast, ELSS invests in equity schemes, so there is always an element of risk attached. ELSS is a scheme that fits the cliché, 'higher the risks, higher the rewards'. However, you can mitigate your risks by running technical and fundamental analyses about ELSS funds - their past performance, management, prospects, etc., before investing.

How To Invest In Best Tax Saving Mutual Funds?

You can invest a lump sum amount in ELSS tax savings funds and lock your investment for three years. You can just as efficiently utilise the Systematic Investment Plan (SIP) route. If you opt for the SIP route, remember that each instalment is considered a particular investment, and so it has to be locked in for three years. The minimum investment amount for SIP can be as low as INR 100-500, depending on the fund house.

You may invest in ELSS tax saver mutual funds on your own through the fund house's website by completing the KYC formality. You may also invest via your Demat and trading account (although it is not mandatory for mutual fund investments).

Conclusion

The best tax saver funds are those that remain stable even during volatile markets. In India, many investors have benefited from investing in ELSS mutual funds. It is one of the best instruments that assist with wealth creation while providing tax savings benefits. If you are unfamiliar with mutual funds, you should consider hiring an investment advisor to guide you with your investments.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

digibank offers Mutual Funds that are instant, paperless, signatureless - even transaction fee-less! What's more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on digibank.

Read up more on Mutual Funds here.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

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Tax Saving Mutual Funds - Meaning, Features & Benefits of Tax Saving Funds | digibank by DBS

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Equity Linked Savings Schemes or ELSS are the best tax saver mutual funds in India. ELSS falls under Section 80C, under which you get deductions of up to INR 150,000 per annum. Investors in the 30% tax bracket can save up to 46,800 per annum through ELSS investments.

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Senior Citizen Fixed Deposits |  digibank by DBS

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Senior Citizen Fixed Deposits |  digibank by DBS

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Senior Citizen Fixed Deposits - A comprehensive guide that covers all there is to know about Senior Citizen Fixed Deposits and the advantages of doing so. The digibank website can be visited to learn more.

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Find out all about Senior Citizen Fixed Deposit and the benefits of opting for it.

Key Takeaways

Senior citizen FDs help you earn a fixed income after retirement.

Banks offer higher interest rates on Senior Citizen Fixed Deposits.

The Senior Citizen Fixed Deposit is a risk-free investment that guarantees returns.

You can opt to receive monthly or quarterly income if you prefer.

You can also enjoy tax benefits when you invest in a senior citizen fixed deposit.

Fixed deposit investments are generally made at a young age to save funds for future use. With secure investment options rare for senior citizens, the Senior Citizen Fixed Deposit scheme is a great investment option for people over 60 of age. These special schemes can help you earn a fixed income even after retirement, thus contributing to your financial security and independence. Read on to know more about Senior Citizen Fixed Deposit schemes.

Features And Benefits Of Senior Citizen Fixed Deposit Schemes

Attractive interest rates

Senior Citizen Fixed Deposits offer relatively higher interest rates on your investment. Banks typically give Senior Citizen FD holders an extra 0.50% interest rate, which contributes to more interest income, especially if the FD value is high. Compare the interest rates offered by various banks and choose one that provides the highest rate of interest on FD for senior citizens.

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Monthly income option

You can opt to receive the interests on your FD as monthly income. This is one of the reasons why Senior Citizen Fixed Deposit schemes are very popular. Since your income sources are limited in your retired age, opting for the monthly income option ensures you have a stable stream of funds coming into your account to manage your monthly expenses.

Secure investment option

Fixed Deposits are primarily deemed as the most secure investment option. Investing in risky ventures can be unfavourable, especially as a senior citizen. The assured returns from a Senior Citizen Fixed Deposit make it a safe investment plan. The assurance of safety and a monthly income can help you accurately plan your post-retirement finances.

Premature withdrawal

You can prematurely withdraw your FD at any given time, especially if you need money urgently. The bank will deposit the FD amount directly into your linked Savings Account. The bank may, however, penalise you for premature withdrawal.

Tax benefits

If the income from your Fixed Deposit is equal to or less than INR 50,000 in a year, then you will not have to pay any taxes as per Section 80TTB of the Income Tax Act (1). You can even claim deductions for your income of up to INR 50,000 even if your income exceeds the tax exemption limit.

Eligibility For Senior Citizen Fixed Deposit Schemes

You need to be a Resident Indian or Non-Resident Indian to invest in the Senior Citizen Fixed Deposit Scheme.

You should be over 60 years old.

You need to have an active Savings Bank Account.

NRIs investors must have a valid NRE or NRO Account to invest in this FD.

DBS Bank offers one of the highest rates of interest on FD for senior citizens – Between 2.50 % to 5.50 % (2) depending on the investment term. You can even open this FD online through the digibank website.

If you prefer to save time and effort and open an FD account remotely, then download the digibank by DBS app right away!

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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All You Need to Know about Senior Citizen Fixed Deposit | digibank by DBS

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Read about the benefits and eligibility criteria of senior citizens fixed deposit with digibank by DBS. Download the digibank app to open a fixed deposit account in few minutes.