Bankbazaar gives you the guide for your prepayment hierarchy: Costliest loan first: The costliest loan is definitely the debt your credit card carries, an interest rate 45% per annum. It is very important to clear this debt off as soon as possible. If you think that it is fine to maintain the minimum balance, then… Read More »
There are a lot of things you need to bear in mind when you think about prepaying a loan. Prepayment penalties and various other charges differ from bank to bank. In such situations, the actual amount to prepay becomes slightly higher. The first thing that your lender is going to look at is the source… Read More »
While bank fixed deposits of up to Rs. 1 lakh per bank branch are secured by Deposit Insurance and Credit Guarantee Corporation, there is no such guarantee on CDs. Investing your hard earned money and losing it, will be highly undesirable as it will lead to extreme conditions of you getting into a debt trap… Read More »
If you do not have any financial responsibilities which you have to fulfill in the next 1-3 years, it is best you direct your investments to higher equity exposure. Assuming that you are in your late 30s and have kids who are in their primary classes and have your own house by now, no loan… Read More »
As the gold rates go up, you can avail higher loan amounts on your gold. For instance, on 18 March 2010, you would have got a loan of up to Rs1.50 lakh for 100g of gold, worth Rs16,701 per 10g then. While on 18 March 2011, when gold was at Rs20,776 per 10g, the same… Read More »
PPF is generally not recommended for senior citizens because of its lock in period of 15 years. So, getting interest rates after 15 years, during post retirement age, would not make much sense. If you have been a prudent investor, and managed to build a good corpus which not only debt and equity assets but… Read More »
The time horizon: If you as an investor, are looking forward towards a short-term time horizon, then a short-term bond fund or a money market fund, preferably a liquid fund, would be ideal, as the capital would be protected and you can enjoy current income without being bothered by the daily fluctuations of the bond… Read More »
The fund managers prefer to invest in securities with high credit rating. This ensures that there is the least possibility of default by issuers offering safety to investors’ capital. Given the shortterm nature of investments, the portfolio as a whole does not carry much of interest rate risk. Due to which, your chances of entering… Read More »
The RBI’s hawkish policy stance on loans in the country has forced lenders to hike interest rates for existing borrowers of home loan, education loan and vehicle loans by up to 75 basis points. While SBI is the only major bank in the country to refrain from hiking its Benchmark Prime Lending Rate (BPLR), Punjab… Read More »
The reasons to emphasise on savings and investments are many. If you manage to start saving early in life, you can manage to build a huge investment corpus, which you and your wife can enjoy post-retirement. The options of availing a Car Loan or a home loan may not be necessary at all. Since you… Read More »