All posts by ANAND BHIDE

The key benefits of opening a zero balance account for small business owners are: saves costs, simplifies book-keeping, saves time & facilitates transactions with ease, offers extra benefits, and is easy to open. Get maximum benefits with minimum costs with the Indus Delite zero balance account.

For an overwhelming majority of micro and small businesses, the most obvious choice for conducting banking activities is via a current account. However, a current account requires the account holder to maintain a minimum balance. On the other hand, a zero balance account frees the account-holder of the responsibility of maintaining any balance. You may feel it is counterintuitive to have a business bank account with zero balance. However, that’s actually the whole point of having a Zero Balance Account for your business: you could use that dedicated zero balance account to fund specific expenses, such as payroll, departmental spending, or any other business need. Read on to discover the top benefits of having a zero balance account for small business owners.

1) Cost-Effective Option

A zero balance account does not require small business owners to maintain an average monthly balance. Therefore, you do not have to deposit large sums of money to open or maintain this account. What’s more, there will be no penalty if you maintained nil balance. With free net banking services and ATM withdrawals, it indeed offers a cost-effective solution to small business owners.

2) Easier Tracking & Book-Keeping

As earlier elucidated, you may open a zero balance account for designated business purposes such as for short-term payroll, paying commercial utility bills, travel reimbursement, and office supplies, among others. This can help you monitor spending for various departments and identify patterns of overspending. In addition to easier book-keeping, it could help you avoid unnecessary background checks and taxes, particularly if you receive many cash payments.

3) Saves Time & Simplifies the Process of Transactions

With a zero balance account, you could make transactions anytime, anywhere via mobile or net banking. It will be easy to deposit, send, and withdraw money without additional charges, ensuring the smooth running of your business. You could also automate the process of moving funds around or balances for your accounts, saving yourself time and minimising chances of errors and delays.

4) Additional Benefits

A zero balance account can come with many additional benefits. At IndusInd Bank, the Indus Delite Zero Balance Savings Account, for instance, comes with a bouquet of benefits such as an attractive interest rate, cash-back on debit card spends, round-the-clock customer service, and a facility to automate recurring payments.

5) Easy to Open & Operate

While packed with so many features and benefits that can help small business owners, a zero balance account is also unbelievably simple to open. At IndusInd Bank, zero account opening online is instant using your Aadhar and PAN card – the application process is 100% paperless and hassle-free.

Get Started with Indus Delite Savings Account

As illustrated above, there are several merits of keeping a separate operating account for your transactions and another for minor business expenses. If you are a small business owner, the Indus Delite zero balance account from IndusInd Bank can be a great choice for you. With minimum requirements, this account allows you to enjoy exceptional banking facilities along with lucrative interest rates.

With an instant 100% online application process involving just 4 easy steps including Video KYC, getting started is as easy as pie. Go for Indus Delite zero account opening online today!

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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Investment

How To Choose The Best FD Scheme With Maximum Interest Rate: Factors To Consider Before Investing

May 10, 2023 ANAND BHIDE Leave a comment

Looking for the best FD scheme with the maximum interest rate? Before investing, it’s important to consider some of the important factors that have an impact on FD. IndusInd Bank offers fixed deposits with flexible tenures. Customers can easily open and manage their FD accounts through the bank’s online banking platform.

Are you looking to maximise the interest rate on your fixed deposit scheme investments? Have you ever wondered why some FDs offer a higher rate of interest than others or how to identify which FD scheme will give you the highest return? Choosing a suitable FD scheme can be daunting, but with all the available options, you needn’t worry. In this blog post, we’ll provide insight into what factors may influence your decision-making and guide you through selecting maximum interest rate on FD. With this knowledge, ensure that your next investment works for you!

5 Factors To Consider Before Investing In FDs

1. Interest Rate

One of the most important factors to consider when choosing the best FD scheme is the interest rate offered by the bank or financial institution. The interest rate is the percentage the bank will pay you for holding your funds in their FD scheme. It’s also crucial to note that interest rates can vary depending on the tenure of the FD scheme. Typically, longer-tenure FD schemes offer higher interest rates. Therefore, it’s essential to determine the tenure of the investment that suits your financial goals and compare the interest rates various banks offer to select the best FD scheme.

2. Tenure

When considering the best FD scheme with the maximum interest rate, one important factor to consider is the tenure of the deposit. The tenure is the length of time for which the FD is held and typically ranges from a few months to several years. A longer tenure generally translates to a higher interest rate but it also means the money is locked in for a longer period. Choosing a tenure that aligns with your financial goals and needs is essential.

3. Credibility and Reputation of the Bank

When choosing the best FD scheme with the maximum interest rate, one of the most important factors to consider is the credibility and reputation of the bank. It is vital to choose a bank with a good track record of stability and reliability that is well-known and respected in the industry.

4. Taxation

Taxation is an essential factor to consider when choosing an FD scheme. The interest earned on FDs is taxable, and the rate of taxation depends on the investor’s tax slab. Banks deduct TDS on interest earned on FDs, but the investor must pay additional taxes if the total interest income exceeds a certain threshold. However, tax-saving FD schemes offer deductions under Section 80C of the Income Tax Act. It is essential to consider the tax implications of an FD scheme before investing to maximise returns and minimise tax liability.

5. Premature Withdrawal and Penalty Charges

When choosing an FD scheme with the maximum interest rate, it’s essential to consider the premature withdrawal and penalty charges. Premature withdrawal is when you withdraw your money before the FD’s maturity date. In such cases, banks usually charge a penalty, ranging from a percentage of the interest earned to a percentage of the principal amount.

IndusInd Bank provides attractive interest on FDs, combined with other attractive benefits. Make your choice wisely and make an informed sound decision to experience short-term or long-term wealth enhancement coupled with ease of access anytime. Start investing today!

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Manage your Finance

How to Automate your Savings with a Savings Account

May 10, 2023 ANAND BHIDE Leave a comment

Automating your savings is the easiest way to inject financial discipline into your life. You can do it with the help of a high-interest savings account by setting aside savings for different goals, automating bill payments, using a cash-back credit and debit card, and monitoring your spends.

Spending is usually regarded as a fun activity and saving, a solemn business. But truth be told, the joy of putting away your hard earned money and watching it grow is far more enduring and fulfilling. Unfortunately, not everyone is able to embrace the financial discipline or commitment needed to save on a regular basis. In this digital age, automating your finances offers an easy way out. Why this works is simple to understand from a behavioural point of view – you are more likely to stick to something if it gets done automatically in the background, without you having to take the trouble of initiating the process or intervening in it. Here are 3 key reasons why you absolutely should automate your savings followed by ways to do it with the help of a savings account.

Why Should you Automate your Savings?

Setting up automated savings eliminates the trouble of having to overcome the powerful forces of procrastination and temptation.
Automating reduces the amount of time you have to spend every month on routine tasks related to various aspects of money management such as paying bills.
With all obstacles removed, automating savings can help you meet your financial goals faster and more effectively.

5 Ways to Automate Savings with a Savings Account

1) Opt for a High-Interest Account

While saving is great in itself, can anything be better than watching your hard-earned income grow? Don’t just put your money in any savings account; look for a high-interest savings account to augment the returns of your automated savings.

2) Earmark Savings for Your Goals

From paying for that dream vacation to making the down payment on a home, each person has different – and usually more than one – savings goals. Instead of putting your money into a single savings account, it makes sense to set up a separate and new savings account for each goal and then make regular automated deposits from your salary account into each of these.

3) Automate your Bills

Automate all your regular payments to avoid having a penalty take a bite out of your savings. These could include your utility bills such as water, electricity, and telephone; credit card payments in full, car loan EMIs, and even rent payment. This will have a twofold advantage: no more hassle of manual payments and no more stress about deadlines.

4) Use a Cash-back Debit & Credit Card

Get a cash-back credit card and direct that cash-back into your savings account. Putting in the cash-back every month will enable your savings account to grow. With an IndusInd Bank savings account, you can even get cashback on your debit card spends.

5) Monitor your Finances

Successful financial management entails setting a budget and sticking to it. Instead of labouring over the process manually, deploy apps and other digital tools to keep track of spending in each category. This will give you a clear picture of where your money is actually going, indicating opportunities for cutting back.

IndusInd Bank Savings Account

IndusInd Bank offers a vast array of savings accounts, each packed with unique features and benefits to suit differing customer lifestyles and preferences. If you are looking to save more with a new savings account, there is no better way to begin than with an IndusInd Bank savings account! With features such as attractive interest rates, personalised account number of your choice, omnipresent banking services via a gamut of channels, irresistible deals and cash-back offers on your debit card, and availability of zero balance feature on select accounts, an IndusInd Bank savings account is sure to exceed your expectations. Best of all, the eligibility criteria is simple and the application process is a 100% online process entailing four easy steps including Video KYC.

Begin your automated savings journey with a new savings account from IndusInd Bank today!

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Investment

The Impact of Interest Rate Changes on Fixed Deposit Returns

May 9, 2023 ANAND BHIDE Leave a comment

Changes in interest rates can significantly affect the returns on fixed deposits, and investors must consider the impact of interest rates while making investment decisions. It’s important to use FD calculators to understand the impact of interest rate changes and to time investments and diversify portfolios to maximise returns. IndusInd Bank provides attractive interest rates and comes with several benefits for everyone.

Are you considering investing your money in a fixed deposit account to get higher returns? If so, you must consider the potential impact of interest rate fluctuations on your return. Interest rates can be volatile and highly unpredictable; what goes up today may go down tomorrow. Understanding the connection between varying interest rates and the returns provided by fixed deposits is essential. In this article, we’ll explore how changes in interest rate levels could affect the returns earned from fixed deposits so that you can make an informed decision and decide whether it’s right for you.

How Interest Rates Affect Fixed Deposits?

Fixed deposits are among the most popular investment options because of their guaranteed returns. However, the interest rates offered on fixed deposits are not static and are subject to change over time. Interest rate changes can significantly impact the returns of your fixed deposits. When the interest rates increase, the returns on fixed deposits also increase, and vice versa. This is because the interest rate is the most crucial factor determining the interest earned on a fixed deposit. Therefore, it is essential to understand how interest rates affect fixed deposits and their returns.

Factors That Influence Interest Rates

Economic conditions: Interest rates are primarily influenced by the state of the economy. When the economy is doing well, the demand for credit increases, and so do interest rates. Conversely, when the economy struggles, interest rates tend to fall to stimulate borrowing and spending.
Inflation: Inflation has a significant impact on interest rates. If inflation is high, lenders must charge higher interest rates to compensate for the decreased purchasing power of the money they lend.
Central Bank Policy: Central banks are crucial in influencing interest rates. They can raise or lower interest rates to control inflation and promote economic growth.
Repo rate: When the repo rate decreases, banks may lower their fixed deposit interest rates to encourage lending and stimulate economic growth. Similarly, when the repo rate increases, banks may raise their fixed deposit interest rates to attract more deposits and meet their lending needs.
Government policies: Government policies, such as tax cuts or increased spending, can also impact interest rates. For instance, if the government increases its spending, it can cause interest rates to rise due to increased demand for credit.
Global economic conditions: Interest rates in one country can also be influenced by global economic conditions. For example, a global recession can cause interest rates to fall in many countries, regardless of their economic conditions.

Impact of Interest Rates Changes on Fixed Deposit Returns

Higher interest rates lead to higher returns: When interest rates increase, fixed deposit returns also increase, making them a more attractive investment. Conversely, when interest rates decrease, fixed deposit returns decrease as well.
Longer tenures are affected more: Fixed deposits with longer tenures are more affected by changes in interest rates than those with shorter tenures. This is because the longer the tenure, the more time the deposit is exposed to changes in interest rates.
Opportunity cost of locking in funds: When interest rates rise, fixed deposits become more attractive but may also come with a cost. Fixed deposits typically require you to lock in your funds for a specific period, so if interest rates continue to rise, you may miss out on other investment opportunities.
Inflation can erode returns: High inflation can significantly reduce the real returns on fixed deposits. If inflation rates exceed the fixed deposit interest rate, the real value of the investment decreases over time.
Interest rate fluctuations can impact reinvestment: If you plan to reinvest your fixed deposit at maturity, interest rate fluctuations can impact the returns on your reinvestment. If interest rates have decreased, reinvesting at the lower rate may result in lower returns.

The impact of changes in interest rates on fixed deposit returns is evident, affecting both depositors and investors. With an understanding of the effect of changing interest rates, you can make suitable decisions according to your financial goals.

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Savings Account

Difference between Joint Savings Accounts and Individual Savings accounts

May 9, 2023 ANAND BHIDE Leave a comment

A joint savings account is similar to an individual savings account, except that the former is held by more than one individual. However, there are also differences between the two types of accounts in terms of access, benefits, accountability, and privacy.

The ubiquity of banking services today has made sure that nearly every individual begins their banking journey with a basic, individual savings account. But while many people continue operating such a savings account their whole lives, others veer towards a joint savings account, in view of their specific personal and financial priorities. As the name suggests, a joint savings account is a type of savings account which is held by more than one account holder unlike a single or individual account that can have just one account holder. Read on to know more about the differences between a joint and an individual savings account to figure out which one may be right for you.

Joint Savings Account: A Brief Overview

Contrary to what most people think, joint savings accounts are not just for spouses or married couples; they can be used by business partners, siblings or family members, and even between a parent and their child. Here’s a look at the different modes under which a joint savings account can be operated in India:

Either or Survivor: There are two account holders, a primary and a secondary account holder. Either or both can access and operate the account. If one of the account holders passes away, the surviving individual receives the final account balance.
Anyone or Survivor: It is similar to the aforementioned, except that it can be operated by more than two persons. All the account holders have equal access rights to the account. If one of the account holders passes away, others can continue using the account.
Former or Survivor: It can only be opened by two individuals; but only the primary account holder can use the account. The secondary account holder can operate the account only upon the death of the primary account holder.
Latter or Survivor: Unlike the above-mentioned, the secondary account-holder operates the account. The primary account holder can access and operate the account after the demise of the secondary account-holder.
Joint: It can be opened by more than two people. However, all the account holders must operate this account ‘jointly’ i.e. no account holder can make transactions without the consent of other account holders. If one of the account holders dies, the account is rendered inoperable.
Joint or Survivor: This is just like the above-mentioned joint account except that the demise of an account-holder does not render the account inactive.

Differences between a Joint Savings Account & an Individual Savings Account

The table below elucidates the key differences between the two types of accounts in various areas:

	Joint Savings Account	Individual Savings Account
Access	The right to operate – make deposits and withdrawals – the account depends on the chosen joint account mode.	The account holder can operate the account at will.
Privacy	There is complete visibility; every account holder can see the transactions in the account.	Only the individual account holder can see the transactions in their account.
Benefits	Top banks such as IndusInd Bank offer additional benefits on joint savings accounts such as debit cards & cheque books for each account-holder, double cash-back and discount offers.	Regular benefits apply depending on the type of single savings account selected.
Accountability	Mismanagement of funds by one account holder may well make the other/others liable.	Accountability for managing the account lies solely with the account holder.

Why Indus Partner Savings Account?

Indus Partner from IndusInd Bank is a one-of-a-kind joint savings account for married couples, and families with shared financial goals. Brimming with offers and services for managing your money, planning your investments, and meeting household needs, Indus Partner gives you (both!) everything you could wish for. The salient benefits are as follows:

1) Free movie tickets every year from bookmyshow.com (worth INR 5600 X

2) 100% discount on locker for year 1 (worth up to INR 10000)

3) Total Annual Discount on groceries on bigbasket.com (worth INR 6000 X 2

4) Total Annual Discount on online food delivery on Swiggy (worth INR 7200 X 2)

5) Cashback on shopping using Visa Signature Debit Card (worth INR 6000 X 2)

6) Facility to group accounts of up to 4 family members so as to provide relationship benefits across the grouped accounts

7) Free Insurance cover worth INR 33.5 lakhs with your Visa Signature Debit Card

8) Complimentary annual Times Prime Membership (worth INR 999)

The Indus Partner Joint Savings Account is available under the following modes of operation: Either or Survivor OR Anyone or Survivor.

With double the benefits and services, Indus Partner promises to be an ideal banking partner for you and your partner! Apply for the Indus Partner Joint Savings Account today!

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Get Started with Indus Delite Savings Account

5 Factors To Consider Before Investing In FDs

Why Should you Automate your Savings?

5 Ways to Automate Savings with a Savings Account

IndusInd Bank Savings Account

How Interest Rates Affect Fixed Deposits?

Factors That Influence Interest Rates

Impact of Interest Rates Changes on Fixed Deposit Returns

Joint Savings Account: A Brief Overview

Differences between a Joint Savings Account & an Individual Savings Account

Why Indus Partner Savings Account?