All posts by ANAND BHIDE

Indians continue to rely and look upon Fixed Deposits as risk-free investments that offer guaranteed returns. With an attractive interest rate and flexible tenure, IndusInd Bank FDs are a great option for risk-averse investors.

Over the years, each generation evolves. There is a new set of identities born every 10 years. It’s reflected in art and movies around us as well, right? If it was short Kurtis fashion and bell-bottom jeans in the early 2000s, it’s anarkalis and straight jeans. Digital channels are reigning, and OTTs are giving Bollywood a run for its money, while movie theaters are going empty. If there is one thing that hasn’t seen a change in decades is our love for traditional investment.

Fixed deposits have stood the test of time and continue to rule the heart of Indians. Our grandparents and then our parents and now to us – we all know it works as it’s reliable, convenient, and yields great investment benefits. But what exactly makes it so popular and indispensable a form of investment that has charmed generations of Indian households?

What makes fixed deposits so popular?

Indian middle class rose from 14% in 2004-2005 to 31% in 2021-2022. In other words, 1 in every 3rd Indian is middle class. The Indian middle class has always been described as one with limited disposable income left after meeting all financial obligations. The lack of disposable income predisposes investors to look for investment options with minimal or no risk at all. With the rise in the middle-class household in India, and the rising income, financial obligations have also risen with people seeking better education, health, and stress-free retired life. This makes most people averse to market-linked investment options. Therefore, this makes fixed deposits an ideal option for households over many generations as they offer maximum capital security at inflation-beating interest rates!

Individuals with an unstable source of income, including retired people, and senior citizens, can take advantage of monthly, quarterly, half-yearly, yearly, and interest at maturity – while keeping their investment safe. At the end of fixed deposit maturity, you acquire the capital, along with the accrued interest amount as well.

Additional features which make fixed deposit attractive and reliable –

No-risk investment: If there is one thing people, irrespective of age or generation gap agree upon is an investment without risk or security of capital. Since fixed deposits do not depend upon market fluctuations, they continue to yield the interest rate of returns till they mature – making them one of the most secure investment options.

Guaranteed returns: Saving and growing money by investing in fixed deposits guarantees that the investor will get the principal plus the interest amount back at maturity. With attractive interest rates, IndusInd Bank FDs are the perfect choice for risk-averse customers who wish to multiply their wealth.

Flexible tenure: Whether an investor is looking for 6 months to 10 years for online fixed deposits or 7 days to 10 years for offline fixed deposits – there are multiple tenure options as per the investor’s convenience. Once you choose your tenure, it becomes easy to determine what returns you can expect. You can calculate the stable returns from a fixed deposit using the IndusInd Bank FD Calculator, allowing you to plan your financial future accordingly.

At IndusInd Bank, regular customers enjoy attractive interest rates on fixed deposits, while senior citizens receive even higher rates. Choose from a flexible tenure and apply for an FD today to earn guaranteed attractive returns, and peace of mind.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

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Current Account

Is current account a liability or an asset for banks?

January 11, 2023 ANAND BHIDE Leave a comment

All businesses, banks and individuals have two main components in their balance sheet – assets and liabilities. Even you have your own assets and liabilities. Your assets are anything you may own outright – such as a car, a house, or cash in a bank account. Your liabilities are considered to be anything that you make payments on – such as rent, a mortgage, a car payment, or utilities.

Bank assets and liabilities are somewhat the same as individual assets and liabilities. Bank assets are considered anything that the bank owns, whereas bank liabilities are anything that the bank owes to someone else. In a nutshell, if a bank owns the building it operates in, then the building will fall in the asset category as it can be sold for cash value. However, if the bank doesn’t own the building it operates in, then the bank must make payments (rent) to a creditor (owner). Hence, the building becomes a liability.

Bank Assets

Banks have general assets just like businesses and individuals. These assets make money for the bank. For instance, cash, interest-earning loan accounts, government securities, etc. Loans are important assets for banks because they generate revenue from the interest that the customer pays on these loans.

The three most common bank assets are:

Loans given to bank customers
Deposits made to the central bank
Trading assets

Bank Liabilities

Liability for a bank is anything that it owes to the outsiders. Examples of liabilities for a bank include distribution payments to customers from stock, interest paid to customers for savings and fixed deposits.

The most common bank liabilities are:

Loans taken from the central bank
Deposits made by the bank customers
Trading liabilities

Is current account a liability or an asset for the bank?

Current accounts are held by businesses/individuals who carry a significantly higher number of transactions with banks. These accounts deal mostly with liquid deposits and offer several customized options for instant and seamless financial dealings. Further, current accounts do not have any limits on daily transactions and cash deposits/withdrawals.

Whenever a customer deposits money into his/her account, the bank views it as liability. This is because the bank owes these deposits to its customer, and is obligated to return the funds when the customer wishes to withdraw their money by any means (ATM withdrawal, cheque deposit).

Similarly, a current account is also a liability for a bank because whatever funds you hold in a current account is something the bank has to return. Additionally, current accounts are heavily operated accounts as they are mainly held by businesses, merchants and enterprises for large and frequent transactions. Banks incur a huge operational cost on current accounts due to this.

Which bank is the preferred choice for opening a current account?

IndusInd Bank is known for instant current account opening with minimum paperwork. You can even open a digital current account from the comfort of your home with video KYC. Select from a range of industry specific accounts by IndusInd Bank (like Agro, IT, Telecom, BPO, Manufacturing) to meet your unique banking needs. We also give you the freedom to choose your account number! Be it your birth date, or your lucky number – get an account number of your choice with ‘My Account, My Number.’

IndusInd Bank also offers pre-approved loans with quick disbursal for immediate capital requirements. Premium doorstep banking services like cheque pickups, cash pickups, secure NEFT/RTGS/IMPS transactions, instant SMS alerts, simple mobile banking & smooth internet banking interface make us the preferred bank for opening a current account.

How to open a current account with IndusInd Bank?

You can empower your business with an IndusInd Bank current account in minutes! To apply digitally without any branch visits, click here. Next, enter your details and pick an account number of your choice. Click on ‘Apply Now.’ Once your account is open, you can download the easy-to-use Indus Merchant Solutions App to complete your video KYC anywhere, anytime. Using the All-In-One mobile banking app, you can send & collect funds instantly, avail pre-approved loans, enjoy paperless banking and do much more!

We are the right banking partner for your business. Click here to open current account instantly with IndusInd Bank!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

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Savings Account

5 Differences between a Current Account and a Savings Account

January 11, 2023 ANAND BHIDE Leave a comment

If you are wondering what is the difference between a current account and a savings account – after all, they are both bank accounts, you are not alone. A lot of us still don’t know the correct answer. To put it in laymen’s terms, a current account is meant for businesses, and a savings account is meant for salaried individuals looking to save money. However, there is a lot more to these accounts.

Today, we will explore what is a current account and what is a savings account. We will also dive through the differences between both the accounts so you can select the one that best matches your banking needs.

What is a current account?

A current account is a non-interest-bearing deposit account designed to facilitate frequent & high-value transactions. These accounts are usually held by business owners, small to medium scale enterprises & large corporates as they offer higher cash deposit limits than other accounts. Since these accounts are heavily operated, they also require a higher minimum balance as compared to savings account. A Penalty may be charged if the minimum balance of the current account is not maintained.

What is a savings account?

As the name suggests, a savings account is the most basic type of account maintained by any individual who aspire to save money. It is a great way to park your extra funds and earn a fixed interest income on it. Unlike other investment products, a savings account is more liquid in nature, so you can access your money whenever you require it. A Zero Balance Savings Account makes this even easier by allowing you to enjoy these benefits without the need to maintain a minimum balance. Apart from interest income and easy access to money, savings accounts also offer shopping deals, discounts and cashbacks on different brands.

5 differences between a current account and a savings account

Let’s take a look at how the purpose, facilities, customer base, etc. of a current account are different from that of a savings account:

1. On the basis of purpose

Current Account	Savings Account
By now, you must have understood the purpose of both the accounts. The purpose of a current account is to enable account holders to carry out business transactions properly and promptly. This includes making direct payments via cheques, demand-drafts or pay-orders, etc., making high-value transactions on frequent basis, making bigger deposits than other types of accounts.	The purpose of a savings account is to help account holders reach their financial goals. It provides steady interest income along with easy access to money. With a savings account, you can send & receive payments, pay credit card bills, pay utility bills, make investments, etc.

2. On the basis of customers

Current Account	Savings Account
Due to the type of services it offers, a current account is an account is mainly opened by businesses – such as proprietorships, partnership firms, public and private companies, trusts, association of persons, etc.	A savings account is generally opened by earning individuals with steady monthly income, looking to save money and reach their financial goals.

3. On the basis of interest earnings

Current Account	Savings Account
As mentioned earlier, a current account does NOT offer interest income to account holders. Current accounts are heavily operated accounts due to which banks incur a huge operational cost. Offering interest income on these accounts will increase this cost exponentially.	Interest income is the salient feature of a savings account. This interest amount varies from bank-to-bank and from one variant to another. The interest income is generally credited quarterly, or on a half-yearly basis. IndusInd Bank Savings Account offers attractive interest rate along with BIG discounts & exciting offers!

4. On the basis of offerings

Current Account	Savings Account
The most common offerings across all current accounts are – overdraft facility, frequent high-value transactions and high cash deposit limit. Overdraft is one of the most beneficial features of a current account. It means that the account holder can withdraw money even if the account balance is zero. This amount can be paid back to the bank with nominal interest charges.	A savings account is a great way to get periodic return on your money while making sure it is accessible to at all times. Additionally, the savings account interest income also enjoys tax deductions under certain sections offered by the Income Tax Department to promote savings and investment sentiments.

5. On the basis of account opening procedure

Current Account	Savings Account
To open a current account, businesses are required to submit documents such as certificate of incorporation, memorandum of association for companies/trusts, Job card issued by NREGA, and lots more. Thankfully, you can open a paperless current account from anywhere, anytime with the All-In-One Indus Merchant Solutions App.	The documents required to open a savings account are different from the ones needed to open a current account. To open a savings account with IndusInd Bank, all you need is your PAN and Aadhaar card. You can open an account from the comfort of your home with video KYC and start earning interest on your account balance instantly!

Get best-in-class current account and savings account with IndusInd Bank If you are a business owner, or planning to start a new business, you should opt for IndusInd Bank Current Account. With us, you can choose from a range of industry-specific accounts that offer premium banking facilities.

If you are an earning individual looking to grow your savings, you can open a savings account with IndusInd Bank in minutes and start enjoying competitive interest income on your earnings. So, what are you waiting for? OPEN IndusInd Bank Savings Account NOW!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

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Beyond business

Know about the reward points structure for the Legend credit card

January 10, 2023 ANAND BHIDE Leave a comment

Swati always wanted to apply for a credit card that allowed her to enjoy all the travel perks, so she could maximize her spending on travel. She decided to apply for the Legend Credit Card and found the right partner in it. She knew she will earn 1 reward point per INR 100 spent on weekdays and 2 reward points per INR 100 spent on weekends, but being a new credit card user, she could not understand how the reward structure worked.

Credit Card Reward Points – What are they, and what do they do?

Own an IndusInd Bank Legend Credit Card to take advantage of our finest rewards and benefits that have been meticulously curated to meet your demands and provide you with a once-in-a-lifetime experience by bringing you the best.

Each spend using your credit card for shopping, booking movie tickets, bill payments, and more will bring you exciting rewards. Your transactions will be classified as weekend/weekday purchases per transaction on this credit card and will reflect likewise in your credit card statement. The transaction date will note the exact time you tapped or swiped your card for a particular transaction for both online and offline purchases.

Special Bonus

The users who spend INR 6L or above in a financial year from the date of the issue of their credit card, are eligible to receive 4,000 bonus reward points!

Redeem Your Rewards:

With IndusInd Bank’s Legend Credit Card, you have the flexibility and convenience to redeem your reward points the way you like.

Cash:

You could convert the accrued reward points to cash and use them to pay the outstanding amount on your account statement. With this credit card, 1 reward point is worth INR 0.75 in cash value.

Therefore, if you spend INR 90,000 per month using this credit card, you can accrue upto 1800 reward points. One reward point is worth INR 0.75 in cash, so for a total of 1800 reward points, you could get INR 1350 in cash. Isn’t it just wonderful.

Pay with Rewards:

You could also use your reward points to redeem them to pay at select merchant categories. This is a pay + points system where you can pay the entire statement bill amount using points and another form of payment. On the other hand, while making payment at the select merchant portal, you can select the product/service and then select ‘pay with rewards’! You will be redirected to the merchant’s select points page where your associated rewards will show for you to redeem.

To avail of this best-in-class service, apply for a credit card with us and enjoy the world of rewards at leisure!

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Manage your Finance

Why to pledge jewellery & take a Gold Loan?

January 9, 2023 ANAND BHIDE Leave a comment

A secured loan, a gold loan comes with low interest rates and flexible repayment tenures. With myriad advantages to borrowers, an IndusInd Bank gold loan is a swift and secure way to get instant access to credit, while ensuring the safety of your jewellery.

Gold jewellery in India has traditionally been looked upon as an asset, akin to land and property. Ornaments made of the precious metal are greatly valued across the country, and often serve as heirlooms passed down through generations of a family. But gold jewellery is not coveted just because it is beautiful or is considered a mark of wealth and prestige. Since gold is a valuable commodity that can be pledged as collateral for a loan, it can be really helpful in times of financial crises, as it can give people instant access to funds.

What is a Gold Loan?

A gold loan (also known as loan against gold) is a secured loan taken by a borrower from a lender by pledging their gold ornaments as collateral. The loan amount provided to the borrower could be up to 75% of the value of the pledged gold, depending on the current market value and quality of gold. The borrower gets back their gold jewellery once the loan is repaid along with the interest amount.

Like a personal loan, a gold loan can be availed to meet all your short-term credit requirements such as taking care of a medical emergency, funding a child’s education, setting up or expanding a business, or any other personal exigency.

Why should you take a Gold Loan?

While the pandemic appears to be in its last legs, its ripple effect continues, with many people still embroiled in financial difficulties. If you own gold jewellery and are wondering if it is a good idea to take a loan against it for meeting an urgent financial need, read on to discover 5 major reasons to take a gold loan:

A gold loan is a practical way to secure urgent funds without having to dip into your savings, liquidate your long-term investments, or sell your valuables
Since gold serves as collateral, gold loan interest rates are typically lower as compared to unsecured loans such as a personal loan
As a secured loan, a gold loan calls for minimal documentation and is quickly sanctioned and processed
With flexible end-usage, this type of loan can substantially help meet a variety of short-term credit requirements
Gold loans come with a flexible and convenient repayment schedule

Fund your Dreams through IndusInd Bank Gold Loans

Worth a million sentiments, your gold jewellery is infinitely precious and IndusInd Bank understands this. With simple documentation and attractive interest rates, a gold loan from IndusInd Bank can easily help you tide over difficult times. Some of the defining features & benefits of an IndusInd Bank gold loan are as follows:

A transparent and swift process marked by same-day credit disbursal
Low interest rates, nominal processing fees, and valuation charges.
A highly secure process entailing valuation and sealing of your gold ornaments in your presence to ensure peace of mind. Kept inside the bank locker, your gold is fully safeguarded.
Loan amount could be up to INR 20 lakhs, with availability of flexible repayment tenures ranging between 3-12 months

Fulfil your financial needs with a gold loan from IndusInd Bank today!

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What makes fixed deposits so popular?

Additional features which make fixed deposit attractive and reliable –

What is a current account?

What is a savings account?

5 differences between a current account and a savings account

1. On the basis of purpose

2. On the basis of customers

3. On the basis of interest earnings

4. On the basis of offerings

5. On the basis of account opening procedure

Credit Card Reward Points – What are they, and what do they do?

Special Bonus

Redeem Your Rewards:

Cash:

Pay with Rewards:

What is a Gold Loan?

Why should you take a Gold Loan?

Fund your Dreams through IndusInd Bank Gold Loans