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When rumours about the financial health of a private bank began to circulate, people queued up at the bank’s ATMs in the wee hours to withdraw money. One of my friends who had large sums parked in fixed deposits with the bank called to enquire about the rumour.

When I asked him whether he had similar deposits across a range of banks, he replied that his entire surplus cash of Rs 8 lakh was parked with the same bank, as he did not have an account with any other bank! Shocked, I took the opportunity to explain to him how deposit insurance works in India. Here is what my friend, and others like him, needs to know.

How much is covered?

All deposits of up to Rs 1 lakh in a commercial or cooperative bank in India are insured by the Deposit Insurance and Credit Guarantee Corporation of India (DICGC) (a wholly owned subsidiary of RBI).The insurance coverage to the banks is extended by collecting premium from the banks, at half-yearly intervals at the rate of 10 paise per annum per hundred rupees. The insurance protection is made available to the depositors free of cost. The cover of Rs 1 lakh is applicable for your principal and interest dues taken together. Deposits in different banks are separately insured, with each deposit eligible for Rs 1 lakh cover.

What kinds of deposits are covered?

Insurance cover is available across savings accounts, current accounts, recurring and fixed deposits. All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are covered. At present, all co-operative banks other than those from the States of Meghalaya and the Union Territories of Chandigarh, Lakshadweep and Nagar Haveli are covered under the deposit insurance system. Primary cooperative societies are not currently covered by the scheme.

What are the ways to increase the cover for my bank deposits?

Spreading your surplus across many banks is the most direct way to increase the deposit cover. You can even make sure that your deposits in a single bank are insured, by having multiple joint accounts with different “first holders”. Insurance tends to be offered in the first holder’s name.

What happens to deposits in a joint account?

If more than one deposit account (whether savings, current, recurring or fixed deposit) is jointly held by individuals in one or more branches of a bank, then all the accounts in which their names appear in the same order will be aggregated for the Rs 1 lakh cover. However, if deposits are held under different first holders, then every such account will be eligible for insurance cover of Rs 1 lakh.

Is it possible to increase the insurance cover for my deposit by paying a higher premium?

No. It is not possible to pay premium and increase the cover. However, such provisions may come into being in future. Recently, with the financial turmoil in the US, as part of the bailout package, the US Government has increased the cover from $1,00,000 to $2,50,000. So it’s possible in India that the cover may be enhanced in future.

How are the settlement claims awarded?

In the event of the winding up or liquidation of bank, every depositor of the bank is entitled to payment of an amount equal to the deposits held by him at all the branches of that bank put together, standing as on the date of cancellation of registration of the bank. So, all my friend has to do to avoid sleepless nights at the ATM is to spread his deposits over several banks, to increase his overall insurance cover!

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One individual may have a single bank account. That is the typical scenario, but it is actually a wiser decision to open a few more accounts. Having more than a single bank account can actually help you manage your money better.  Here’s how it works:

Dealing with the daily money management can be quite a job especially if one regularly needs to do a number of transactions every month. The large volume of checks, ATM withdrawals, debit or credit card purchases, and pre-authorized withdrawals need careful and proper monitoring.

To make sure that you won’t end up paying extra bucks for bouncing checks, open a checking account that is solely dedicated to your regular bills. That includes your loan payments, mortgage, phone bills and others. Treat it like one of your bills and make a single payment to this checking account every payroll.
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Aching to own that cool set of wheels but don’t have the money? What do you do? Do you just wait until you get enough in your bank to pay off that rad SUV or the sleek beetle? Or, do you take that one reasonable step: consider a car loan?

Some prospective car owners shy away from used car loans because they think that if they go for it, they’d come off as, well, too eager. But, shouldn’t you be? After all, a car is a great investment – it not only works wonders for your dreams of traveling, it really is an advantage if you have a family, a business, or even a date as well.

First Question: What Are Car Loans?

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Recession is defined as an economic activity signaled by a decline in the gross domestic product (GDP) of a country. In the club par excellance business cycle, this is when there is low sales and profits, rampant lay offs to reduce expenses, and low investments rate.

There are three possible indicators of a  club par excellance recession. First, the stock market operation is fluctuating. Stock prices of different corporations fall. The real state market experiences decline too. While high yield stocks and growth stocks recover faster after the recession, decline in real state lasts much longer. Next, the unemployment rate is rising. Many people are being laid off. Lastly, the analysis of the economists results in declining economic growth.

When there is club par excellance recession, the people are taught to strategize in order to survive. In the side of the government, it may turn to deficit spending to induce economic growth. Other economists suggest tax cuts to give a good capital investment atmosphere. Sometimes, though it is not followed always, it is advisable for the government not to come in between and let the economic forces stabilize themselves.

Generally, it is stated that the government has always a participation in recession. It tends to worsen when the political situation of the country is unstable. The government cannot focus on the club par excellance recession problem. Instead, it implements solutions that are not properly assessed worsening the situation. Further, a recession in one country’s economy affects the other countries’ economy too. This is because the countries are interrelated shown by exchange rates.

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The rising price of most commodities nowadays has made even driving a car a very costly experience. However, this doesn’t make it a problem as drivers can also make use of a variety of gas saving tips that can help not only in lowering the budget that is spent on the car’s fuel but also in maximizing its efficiency and return.

The first thing that any driver must do is to learn how to drive the right way. This involves many things from learning the proper times to brake as well as to accelerate. This is because constant braking and accelerating causes the car to consume more gasoline. This is true especially during heavy traffic where many drivers tend to stop and go most of the time. Most of them think that doing this does not affect anything when in fact it uses additional gas. By learning how to drive the right way, drivers can achieve more mileage with every liter of gas that they put in their tank.

Another thing that can be done by drivers in order to save on gas is to maintain the condition of their car at all times. This means that their car must be in top physical condition as much as possible. This involve tuning up your car at regular intervals and making sure that each parts are all working without faults. This causes the car to use lesser fuel when it comes to doing all its functions.

Lastly, the driver must know some basic things when it comes to buying gasoline. Choosing the brand of gasoline is recommended as different brands offer different prices for the different types of fuel. Also, it is advised to buy gasoline during cold parts of the day as this is when the gas is usually the densest. Aside from that, try to avoid filling the gas tank to the top as to avoid any form of spillage or waste.

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Having thousands of dollars worth in student loans can become a bit too much to have hanging over someone’s head all the time and it comes at no surprise that many students who do have it are keen on getting it paid as quickly as they can. However as a fresh graduate there are very few ways by which one can get money and most of the time the money is just enough to pay for the bills and the necessities that come with starting a new life. So what are the things that a student can do in order to reduce this burden? One option that a student can take advantage of is Loan forgiveness. You should check if you are eligible for it or perhaps you could volunteer at AmeriCorps or Peace Corps. Volunteer work can help you qualify for loan forgiveness on a portion of your debt. So you should also ask about what kind of volunteer work is available as this would definitely take a load off what you owe.

Another popular option is to consolidate your loans. Loan consolidation is perhaps the go-to option for many students. You only get one chance to do this so if you have done it before, there is a good chance that you will not be allowed to do it again. A few reminders to keep in mind are; to research different lenders so you can learn about the different in prices and rates, keep in mind that getting an extension on your loan is not always a great idea no matter how enticing it sounds and to make sure that you know and understand everything that goes into the deal before you sign anything. In the end, you wouldn’t want to pay more than what you are supposed to so read and understand everything.

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Since olden times, loans and other forms of credit have been a crucial part of all our lives. It has been the major source of funds for anyone who wants to have the quickest way to acquire money. From the simplest method of lending money to be paid at a determinable future time, it has evolved to various and complex methods that make use of other factors such as interest rates and securities.

Nowadays loans are used for a variety of purposes. Any person with a good credit record can apply loans for furniture and other forms of property like cars and houses. Loans are available to anyone that it can be availed by students and businessmen alike.

How do you apply loans for furniture and other purposes? Here are some steps:

1.    Determine your credit standing. A higher credit standing will make it easier for you to avail of a loan. If you have a lower credit standing, you need to improve it first before you can apply. However, some financial institutions offer loans for people specifically with low credit standings. These types of loans usually provide high interest rates and unfavorable conditions.
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With so many things needed by an individual aside from the basic needs, it is very hard to save some money nowadays. From foods to gasoline, their prices had really increased a lot compare with the past decades.

Because of this, people now are doing their best to save and earn money. But most of us find it difficult because everyday we have also different expenses that includes unexpected ones. Our expenses differ by season. It means that our rainy season expenditures are different from that of summer season because our needs do change also.

Rainy days however are somehow the time that we should be more prepared. We never know what may come because there are diseases and calamities that might happen during wet season. So it is better to save money for unexpected incidents.

Despite of the difficulty of saving money for rainy days, we can consider the following ways to do it:

Identify all your expenses, and then categorize it based on their importance. When a particular expenditure is not that important, don’t spend your money for it for a while and save it instead.

Be a wise shopper. Department stores and supermarkets have a wide variety of products where you can compare their price. Choose the cheaper one that offers good quality. Be updated enough to all mall sales and promos.

Your everyday food should not be always expensive. Plan a weekly menu and choose affordable foods but can nourish you well. If still cannot resist dining out, eat to restaurants that offer great foods but in less prices.

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A lot of people are still hesitant about buying a life insurance. This is due to three primary reasons. One: a lot of people do not know the full extent of the benefits of life insurance. Two: there are major concerns when it comes to insurance costs. And lastly: potential clients have issues about being scammed out of their hard-earned money. These concerns and issues are actually valid, but there are ways to safeguard yourself from possible escalating rates, and the probability of being conned. The best way to get the most affordable rates is to really shop around for a policy. Not all life insurance policies are the same; some have better coverage Others, for the sake of affordability, offer very little coverage and even less benefits. If you do want affordability with all the benefits you think you would need, go over your insurance policy with your agent, and have him or her remove some of the additional policies that you really do not need or want to pay for.

When it comes to being scammed, try to shop around for companies that have been in the business for a long while. Choose an insurance company that preferable has a great track record. New and emerging insurance companies may be offering lower rates in order to attract customers, but there is no way of gauging whether or not you will reap the benefits of your policy in the end.

As for the benefits of life insurance, here is a list of the important things you ought to get in your protection policy.

If you have a spouse, and are living with your children or any dependents (who are still under the legal age,) a whole life insurance should, above everything else, cover death. And this scenario is not just applicable to the family’s breadwinner too. You should also have your stay-at-home spouse covered for such unfortunate event. Depending on the coverage you get, death benefits may include full or partial payment for funerary and burial expenses; full or partial payment (or reimbursement) of hospital and medication bills; and pension or legacies for the benefactors of the plan.

Legit employees may want to check the insurance coverage they have that is given out by their companies. Some may already be covered by a “death-in-service” plan, in which case, the company pays a lump sum when an unfortunate circumstance happens.

Serious illnesses and / or total permanent disability should also be covered, since these unfortunate incidences may result in prolonged or even permanent treatment; and thereby continuous expenses on the other family members. Some insurance companies also include accident insurance in this clause. However, the measure or limitation for the claims in this area is rather stringent. You may want to check what those limitations are before signing any policy. Additionally, some insurance companies are now offering more coverage for policy holders in their twilight years. This is to help with the rising cost of medications and possible expensive treatments for the elderly.

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Stocks are a great form of investment either for making a extra few bucks or helping to plan for your retirement. Stocks are a representation of a company, when you purchase a stock from a company your purchasing a piece of the company. What you benefit form that is when the company makes money you make money and when the company lose money well you lose money.

When you look at investing in stocks, you should consult a financial advisor who works with stocks and mutual funds as a career. The person should have knowledge of which stocks you should buy and which ones you should avoid. But of course never just take the word of your advisor. Spend some time researching those companies on your own eventually the money is yours to lose.

Once you have decided on some stocks you would like to purchase, you’ll need to pay attention to what the market is doing. In order to benefit the most from your investments, you’ll need to time when you buy, and when you sell, your stocks. If you choose some stable companies and buy stocks in them while prices are low, because of the market or because of a period of time where the company is not bringing in large profits, it is most likely that your stocks will increase in value.

When you are looking to sell your stocks, it is good to set a price for yourself and decide that when your stocks reach that price, you will sell them. Often, people hang on to their stocks, wanting to get the most out of them that they can, and then the market drops and they lose money.

You can see that there is frequent decision making in the process of buying and selling stocks. If you are willing to put some time and effort into your investments, you will be pleased to see how much you will profit from your stocks.

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