Skip to main content

How to manage your Bank Savings account efficiently?

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Gone are the days when we used to stand in serpentine queues to withdraw money from our local savings bank accounts. Even though the procedure was cumbersome, it ensured that we estimated or budgeted the monthly cash requirement before we filled in the withdrawal slip so we could avoid the trouble of again standing in the queue. Today with the help of automated teller machines (ATM's) we can conveniently withdraw our monies from several locations. The ATM technology has definitely made our lives a lot easier but if not used in the right manner, it can also leave you high and dry.

Take the case of Mr. Aditya, 36 who work for an MNC firm in the senior managerial category and earns a net income of Rs. 75000 per month. His family comprises of his homemaker wife Sarita, 34 and Son-Arnav-5 and they stay in their self owned flat in one of the suburbs of Mumbai. Their monthly expenses including a home loan EMI ( Rs. 31300 for a 30lakh loan) and other living expenses comes to Rs. 60000 per month. Another Rs. 5000 goes towards an SIP in an equity diversified fund bringing the total outflow per month to Rs. 65000 thereby leaving a surplus of Rs. 10000 per month.

From the day the salary is credited which is usually on the 1st of the month, the ATM cum debit card is put to maximum use for initial cash withdrawals, Grocery purchases and a few additional purchases at malls with family in the weekends. Aditya has no track as to what his exact monthly expenses are but takes care to maintain sufficient balance for his home loan EMI debit. No fixed pattern is applied for cash withdrawals. The withdrawals range in various amounts of Rs. 15000 to 20000 initially in the beginning of the month and then small withdrawals ranging from Rs. 2000 to Rs. 5000 in the latter part of the month and at times he is not even left with minimum balance.

Following this pattern of unplanned withdrawals and expenditure, will never let Aditya realize if he is overspending or making impulsive purchases on things which he doesn't need. Secondly not maintaining funds for contingency can prove to be fatal if faced with an emergency situation such as a sudden medical expense.

Here are a few guidelines which can be followed to ensure that your savings account is maintained in the most prudent manner.

  1. Prepare a family budget: Maintain a simple budget book in which you can jot down the monthly income and expenditure. This exercise needs to be done in consultation with your spouse as there are a host of family related expenses such as grocery, utility bills, etc which the home maker or working women would be managing directly. Joint consultation helps in including all the possible expenses that the family has to cater to every month and enables near accurate results. Don't forget to include periodic or annual expenses such as Insurance premiums, Vacation, etc which can be one time or spread over different months. For those who don't know what their exact monthly expenditure is, can begin with writing down their daily expenses for a month or two and monitor the same which should be good enough to give you a fair idea of what your expenses are going to be. Doing this exercise over several months will enable you to reach near accurate levels.

 

  1. Control your ATM withdrawals: Once you have prepared your budget the next step is to withdraw the amount required for the whole month. Take care to see that you don't withdraw cash for expenses such as insurance premiums, society maintenance etc. You can keep provision for those payments by maintaining the required amount in the bank and issuing cheques towards those expenses. For eg. If your monthly expenditure on groceries, consumables, utilities, etc is Rs. 20000, while insurance premium and society maintenance is Rs. 10000 and Rs, 3000 respectively then withdraw only Rs. 20000 and maintain upwards of Rs. 13000 to be paid vide cheque. The budget based expenses will avoid excess withdrawals way beyond your requirements and prevent several trips to your ATM's.

 

  1. Maintain a separate record of your bank transactions. How many times do you visit the ATM to check the balance in your savings account or to take a mini statement? Others take recourse through their online banking platform. These routine visits can be eliminated if you maintain a small record of your income and various transactions in a separate book or in an excel sheet of your PC.

 

 

  1. Maintain a contingency fund: There could be events such as a medical emergency which may require urgent or immediate funding. Try and maintain a contingency fund of minimum of 3 times of your monthly expenditure in your savings account. The contingency fund may vary across different families and depend on various factors such as job stability, dependent parents, etc and can be decided in consultation with your financial planner.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now