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Types of investment - Bank fixed deposit

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BANK FIXED DEPOSIT A fixed deposit is an instrument which gives a higher rate of interest than a savings account, but the deposit has to be for a specified time period, for example, 7 days, 1 year, 2 years and so on. In India, a Fixed Deposit can be made for amaximum of 10 years.  For fixed deposits greater than 1 year, interest is compounded quarterly. People are  attracted towards fixed deposits because they offer fixed returns.  The interest rate is fixed in the beginning as per the terms and conditions of a particular bank and is valid till maturity of the fixed deposit. Types of Bank Fixed Deposit Depending on the need, one can opt for a normal fixed deposit wherein a certain deposit is made at a fixed interest rate which holds till maturity, or one can opt for tax saver fixed deposits wherein the deposit has a lock in period of 5 years.  In case of a Tax Saver FD, the deposit cannot be liquidated before 5 years. Senior Citizens are offered higher in...
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Types of investment - Banking

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Banking A bank account is an account maintained by a banking institution, in which it records financial transactions between the bank and the customer. In India, bank accounts are primarily of four types- Savings Bank Account, Current Account, Recurring Deposit Account and Fixed Deposit Account.  Current Accounts don’t earn any interest hence they haven’t been discussed here. SAVINGS BANK ACCOUNT A Savings Account is an interest-bearing bank account. The main idea of this account is to promote the habit of savings within people. Benefits of a savings account include -moderate interest on deposits, low risk, convenience, ease of use etc.  At the time of opening the account, the account holder gets a cheque book, a passbook and a Debit cum ATM Card.  This account has become popular because of its liquidity and low risk.There is a cap on the number of withdrawals and deposits in this account.  A Savings Account channels idle household cash into savings. Type...
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Succession Planning

In this chapter we will discuss about  the basics of succession planning,  need for succession planning, and  the various ways of doing Succession  Planning. Shall we start are you ready? Come on lets go into the chapter. 1.1 What is Succession Planning? “In this world nothing can be said to be certain, except death and taxes.” -  Writer Succession planning in simple terms refers to the passing of assets and investments down from one generation to another. You can decide how much of your estate whether be it property, cars, shares, bonds, Gold , mutual fund units and other financial investments, etc.  Its core objective is also to distribute wealth in a pre-determined manner to a certain beneficiary or beneficiaries to whomever the owner wishes. It is a dynamic exercise that needs to be reviewed at regular intervals to include any changes that might happen in our life or in the applicable laws of the country. 1.2 What is the need for Succession Planning? a)...
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