Finance talks

 Provident Fund Deposits  Provident fund deposits are in two types. a) Public Provident Fund (PPF) b) Employees Provident Fund (EPF) a) Public Provident Fund It is a classic example for the attempt of the government to help people create savings for themselves. The Government of India put forward the public   Provident fund scheme to ensure that everyone could have some funds available in their old age. the minimum investment amount in public proud and fund is rupees 500 that year while the upper limit is rupees 7000 that air and investor can make up to 12 deposits in his public   Provident fund account every year. A lot of incentives like tax deduction 0 tax on interest etc are provided in public Provident fund scheme. Interest rate offered in PPF is 8 percentage per annum. Advantages and disadvantages of public provident fund scheme Advantages Reduce the tax liability of the investor The investor can make multiple deposits during a year Maturity value is huge in pu...

  Difference Between BANK FD v/s. CORPORATE FD Bank FD Corporate FD ·         Bank FDs are issued by Banks.           Corporate FDs are issued by nonbanking finance companies and other none finance companies. ·         Period of Bank FD range from as little as 7days to up to 10 years.           Period of Corporate FD range from about 6 months to 5 years. ·         Generally offers relatively lower interest rates than other deposits.            Generally, interest rates are 1-2 percentage higher than bank deposit. ·         Interest is paid out at periodic intervals or cumulatively on maturity if the deposit.        ...

  Investment Methods There are some investment methods to invest.        investment methods Bank deposit Post office deposit  Company deposit  Provident fund deposit  Commodities  Real estate  Bonds or debentures  Government securities  Money market instruments These instruments are very beneficial to earn a extra income.  Bank Deposit  Bank deposits are very good to eran extra income.  Through Bank deposit the banks are provide an interest to the investors. Ther are several bank deposit like fixed deposit, recurring deposit, and savings bank deposit. Post office Deposit Tis similar to savings bank deposit. There are many schemes to investors to invest. The important scheme is Post Office Monthly Income Scheme ( POMIS). In POMIS the investor can earn an income every month form his investment instead of getting a lum sum amount on maturity. Company Deposit The deposit placed by investors with the companies for ...

 Securities Market Securities Market is a place for buying and selling of financial securities. There are two types of Securities Market, they are Primary Market Secondary Market Primary Melarket In Primary Market, the issuing company offers the issue directly to the investors. Trusts, individuals, trusts,banks, financial institutions,mutual fundsetc. Any entities can participate in this market. Secondary Market  In Secondary Market, an investor who faild to getbthe shares from primary market or could not prticipate in the primary market cam go to the secondary market to acquire the securities of his choice. <iframe style="width:120px;height:240px;" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" src="//ws-in.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=IN&source=ac&ref=tf_til&ad_type=product_link&tracking_id=shopstore072-21&marketpl...

Investment Environment What is Investment? Investment means conversion of cash or money into a monetary asset or a claim on future money for a return. Investment is the parking at least one year in an investment avenue to get return in the future. There are some financial instruments to invest the money. The investor can buy or sell securities i.e financial instruments according to his choice. The financial instruments may be creditorship securities or ownership securities. There is a market Tu to buy or sell the securities. The market may be money market or capital market. Only through the market we can buy or sell securities. Creditorship Securities Creditor ship securities include public debt instruments, private debt instruments and special debt instruments. Public debt instruments are debt instrumnets which are issued by the Governmet for long and short periods. These instruments are risk free instruments.  Private debt instruments are debt instruments which are issued by the ...

 Steps for opening a Savings or Current Accounts in the name of Customers There are some steps to open an account in the bank. To open an account, we must follow that steps. The relationship between the customer and the banker begins with the opening of an account in the name of the Customer.  The steps to open an account in the name of the Customer are, Application on the prescribed form Introduction of the applicant Obtaining specimen signature Receiving initial deposit Opening the Account key Application on the prescribed form To open an account in a bank the customer has to fill the application form given by the Banker and submit it to the bank for the opening of the account. Filling out the application form is very easy. We just fill in our details like name, address, phone number, occupation, etc. Introduction of the applicant The next step is to open an account in the bank is introduce the customer itself. This is why is that the banker has to satisfy himself with the i...

TYPES OF DEPOSIT ACCOUNTS  Deposit Accounts  Deposit accounts are open in a bank. There are many types of accounts such as Savings Bank Account Current Accounts Recurring Deposits Fixed Deposit Account We can open any of the accounts from the above except current accounts, current accounts are managed only by businessmen. Savings Bank Accounts  Savings Bank Accounts are generally preferred by middle and low-income groups. Savings Bank accounts paid a certain rate of interest as prescribed by the Reserve Bank of India. The rate of interest of this type of accounts is less than a Fixed Deposit Accounts and greater than a Current Accounts. SB Accounts are mainly meant for Non-Trading Customers. A customer can deposit any amount subject to a minimum of 5 in Savings Bank Accounts. This type of accounts can be opened with a very small amount say Rs. 100. But a minimum balance of Rs. 1000 is required to open an account with a cheque facility. There are restrictions as to the num...