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Why Have The Prices of Gold Hit A 4 Year Low?

Gold rates in India have hit Rs. 23,500 for 22 karat gold and Rs. 25,133.69 24 karats per 10 gm, the lowest they have been in the last 4 years. How did this happen?

Gold price in India may fluctuate on a daily basis but if you look at historical data for the past 5 years, you will notice that starting from 2010, prices of gold rose steadily to slightly more than Rs. 2,800 per gram till the end of 2011 when they dipped to about Rs. 2,500 in the beginning of 2012. From there it rose again to reach Rs. 4,000 in the end of 2012 only to crash in the first half of 2013. It did manage to peak at a little over Rs. 3,000 per gram in the 3rd - 4th quarter of 2013 but the overall trend remained a declining one and today the prices stand at Rs. 2,249.03 per gram which is being called as a 4 year low for gold rates in India.

The question now is, how did this happen? The answer is far from simple. There are numerous factors that led to the fall in the price of gold but there are 2 factors that have affected gold the most.

US Dollar Becoming Stronger

(Image courtesy xe.com)

Ever since the last recession, the US dollar has been gaining strength against most of the currencies. In the case of the dollar vs the rupee, in 2010 it stood at a weak Rs. 46.05 to USD 1. But by 2013 it had gained strength and reached Rs. 67.09 to USD 1 in September of 2013. By August of 2015, it had come down to Rs. 63.98. Even though it has fallen in the last two years, the overall trend has been one of gaining strength which has led to a rise in the price of gold since gold is traded in USD. This rise makes gold more expensive to procure putting pressure on countries to acquire more gold to meet their needs thus lowering the demand for gold.

Low Demand

Having seen the prices fall, most investors are expecting to see a further decline in the prices of gold which is keeping them from investing in it. While the regular demand continues to remain in place, the seasonal peaks seen during festivals and weddings is not presenting itself for this reason. Even traders are not buying gold expecting the prices to fall further leading to a drop in the demand for gold. The expectation is that if the prices of gold fall by another Rs. 1,000 then the demand might pick up.

The expectation out of the price of gold is a further drop in the prices over the coming days. Analysts are hoping to see a revival in the demand for gold if the rupee manages to hold against the rising US dollar, specifically, if it manages to remain in the Rs. 61 to USD 1 bracket.

#prices of gold #gold rates in india

Know all about Fixed Deposit and related features of Fixed Deposits like Maturity, Tax, Renewals, Nominees etc...

#Fixed Deposit importance

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#FD Nominees

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#Fixed Deposit #Recurring Deposit

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#FD Rates Reduction

Ways to get rid of TDS on fixed deposits

Fixed deposits are a popular investment vehicle allowing investors the safety of their investment with assured returns. Almost every investor irrespective of his or her overall financial health parks some part of his overall investment as fixed deposits. While fixed deposits or FD as they are commonly know offer substantial assured returns, the interest earned through fixed deposits is liable for tax. Tax is often deducted at source for fixed deposits with interest rates of more than Rs. 10, 000 in one financial year. Let us take a look at TDS on fixed deposits and ways to avoid the same.

Understanding TDS on FD Interest: The interest earned for all investments made under fixed deposits is taxable if the overall interest received exceeds the minimum limit of Rs. 10,000 in a financial year. The tax liable for TDS on fixed deposits needs to be filled under income from other sources section while filling the income tax return. Tax deducted at source or TDS for fixed deposits interest is calculated as at 10% plus 3 per cent education cess. The total deduction for DS on fixed deposit interest rates is 10.3 % of the interest earned.

Example of TDS deduction: If an investor has earned an interest of Rs. 30,000 through fixed deposits inters in one financial year, banks would deduct TDS on interest earned calculated at 10.3 per cent of the interest amount. In this case the banks would deduct a TDS of Rs. 3090 and pay the investor a total of Rs. 26910 as interest earned from his or her fixed deposit earnings. It is imperative to note that the TDS limit for investors parking their funds in any companies' deposit schemes is calculated if the interest earned exceeds the sum of Rs. 5,000 in one financial year.

Ways to Avoid TDS:

Spreading Investment across Financial Years: Timing Fixed Deposit investments are a good way to offset any TDS deductions for interest earned. Divide the timing of fixed deposits in such a way that interest for any of the financial years does not exceed the minimum threshold limit of Rs. 10,000. If the sum of interest earned is divided across two financial years, the user is not liable for any TDS.

Splitting Fixed Deposit Investments: Rather than having all fixed deposits investments under the same individual one can diversify the investments under a personal bank account, a Hindu Undivided family or in the name of other family members. As an investor with a HUF, the fixed deposits is considered as a separate financial entity therefore the interest earned would not be added to the overall interest earned through FD's for the individual. Similarly opting to open a fixed deposit account in the name of any relatives or spouse is also a good idea considering that the overall interest earned remains below the minimum threshold.

Using Form 15G/15H: In case the investor has no taxable income the bank does not deduct any TDS for interest rates higher than Rs. 10,000 for one financial year. The investor needs to submit a declaration in a dedicated format through FORM 15G declaring that his or her overall taxable income is nil. The duly filled form must be submitted with the bank holding the fixed deposit account. In case of a senior citizen, Form 15H needs to be submitted instead of FORM 15G.

#Avoid TDS on FD #Fixed Deposit #TDS Deduction

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#Fixed Deposit Nominee

Check out Latest ICICI Bank Fixed Deposit Rates

#ICICI FD Interest Rates #ICICI Bank FD Rates

Axis Bank offers fixed deposits of varying tenors with interesting features, at competitive rates of interest. Fixed deposits are gaining ground as an investment avenue in 2014 given the government’s positive outlook on controlling inflation.

#Axis Bank FD Rates #Axis Bank Interest Rates

Know all about SBI fixed deposit interest rates

Fixed deposits are the man’s favourite investments as it guarantees the return with a negligible or zero risk. Why not to indulge in safer investments when we have an option available? Talking about SBI fixed deposit, we often get carried away with a Brand that is unquestionable and gives us a pride to get associated with a nation’s top bank. But, not only this is being preferred by customers, SBI pledges to give a remarkably unquestionable features and provisions to its customers, senior citizens, staff members and pensioners. With guaranteed returns and less risk SBI gives some more good and irresistible features and they are as below:

Sweep in facility available with a provision of getting cash out of your Fixed Deposits as and when required.

Premature withdrawal facility available with a negligible penal rate.

Period of deposit up to 10 years available.

Senior citizens will get 0.25% more interest rates on fixed deposits.

SBI customers can get 90% of loan against the amount of fixed deposits.

Automatic renewal facility is there.

SBI Fixed Deposit Calculator is available to calculate your interest amount with maturity amount in advance.

Aren’t you flown away with these remarkable features offered by SBI Fixed deposits? Let’s take you now to its mind blowing interest rates.

Interest rates offered by SBI Fixed Deposits for an investment below 1 crores, applicable from 18/07/2014.

For the period of 7 days to 90 days, the SBI Fixed deposit interest rates are 7.00% for the general public and 7.00% for the senior citizens.

For the period of 91 days to 179 days, the SBI Fixed deposit interest rates are 7.00% for the general public and 7.00% for the senior citizens.

For the period of 180 days to 210 days, the SBI Fixed deposit interest rates are 7.00% for the general public and 7.00% for the senior citizens.

For the period of 211days to less than 1 year, the SBI Fixed deposit interest rates are 7.50% for the general public and 7.50% for the senior citizens.

For the period of 1 year to less than 2 years, the SBI Fixed deposit interest rates are 9.00% for the general public and 9.25% for the senior citizens.

For the period of 2 years to less than 3 years, the SBI Fixed deposit interest rates are 9.00% for the general public and 9.25% for the senior citizens.

For the period of 3 years to less than 5 years, the SBI Fixed deposit interest rates are 8.75% for the general public and 9.00% for the senior citizens.

For the period of 5 years to up to 10 years, the SBI Fixed deposit interest rates are 8.50% for the general public and 8.75% for the senior citizens.

Interest rates offered by SBI Fixed Deposits for an investment above 1 crores, applicable from 18/07/2014.

For the period of 7 days to 60 days, the SBI Fixed deposit interest rates are 6.25% for the general public and 6.50% for the senior citizens.

For the period of 61days to less than 1 year, the SBI Fixed deposit interest rates are 6.75% for the general public and 7.00% for the senior citizens.

For the period of 1 year to less than 2 years, the SBI Fixed deposit interest rates are 8.25% for the general public and 8.50% for the senior citizens.

For the period of 2 years to less than 5 years, the SBI Fixed deposit interest rates are 8.50% for the general public and 8.75% for the senior citizens.

For the period of 5years to up to 10 years, the SBI Fixed deposit interest rates are 8.50% for the general public and 8.75% for the senior citizens.

There are some more interest rates for SBI Staff and SBI pensioners. These are as below:

SBI Staff and SBI pensioners will get interest rates on fixed deposits @ 1.00% more than the existing rates.

Resident Indian senior citizens will get 0.25% more than the existing rates.

SBI resident Indian senior citizens will get both 1% and 0.25% more than the existing rates,

NRO SBI staff deposits are not eligible for extra 1.00% interest rates.

After you have been flown away with SBI Fixed Deposit interest rates, get yourself acquainted with its premature withdrawal penal rate.

Penal Interest rates in case of premature withdrawal:

ü Premature withdrawal penal rate of interest is 0.50% for all the deposits for 1 year and above.

ü Premature withdrawal penal rate of interest is 0.50% for the deposits of 15 lacs for all the tenors.

ü If the deposit is of single amount of 15 lacs, then the premature withdrawal penal rate of interest will be zero, if the deposit is withdrawn before 1 year but after 7 days.

Note: All the above rates are subject to change. It is advisable to check the rates from time to time.

Therefore, these are the interest rates and other charges on SBI FD Interest rates. One can use SBI fixed deposit calculator to calculate the interest amount with maturity amount and can plan their investments well in advance. SBI focuses on individual benefit whether it be a general public, SBI staff, pensioner or senior citizen. Everybody can find their benefit in SBI’s products. Thus, it’s a bank for a common man.

#SBI FD Interest Rates #SBI Fixed Deposit Rates

Investing in various financial and non financial instruments is done for the sole purpose of attaining some substantial …

Investing in various financial and non financial instruments is done for the sole purpose of attaining some substantial returns over a period of time. For some investors higher returns over a long tenure are ideal while some investors seek quick returns from small timelines.

#Equity Markets #Insurance #Bank Fixed Deposit #REITs

Fixed Deposit is more preferred by youth than senior citizens, here is why?

Bank fixed deposits, commonly known as fixed deposits or FD’s have been a popular investment vehicle attracting people of all over the world. From the meager earning office goers to rich businessmen, everyone keeps some part of their investments in fixed deposits. The various intrinsic advantages of fixed deposit investments along with the security of assured returns have always made fixed deposits an investment vehicle of choice for the majority.

In recent times however a new trend is slowly emerging with more and more youngsters of preferring the fixed deposit route. Financial analysts and experts do not find anything surprising in this recent trend as senior citizens have a wide range of investment options offering better returns than fixed deposits while the secured nature of FD returns means a perfect starting place for youngsters as they grow into their adult life. Let us look at some of the reasons why fixed deposit investments have become a popular investment choice for youngsters.

Small Minimum Investment Limit: Fixed deposits have a small minimum investment limit making it an attractive proposition for youngsters who have just started earning. Even youngsters who are yet to take up their first job can use a part of their childhood savings and invest the same as a fixed deposit rather than keeping the money at home or in a bank saving account. Along with low minimums, opening up of a fixed deposit account does not require can big paperwork or long processes. The ease of operating a fixed deposit along with low minimums as low as Rs 1000 makes it an attractive proposition for youngsters.

Secured Returns: Fixed deposits offer secured returns making it ideal for youngsters who have just started earning and have a very low risk bearing capacity for their investments. While the quantum of returns may be a tad smaller than other investment options, the security of assured returns makes it a popular choice for youth. Elderly on the other hand need financial instruments that can offer substantial returns as they are usually dependant on the interest earned for their survival post retirement. Needless to say the senior citizens usually opt for an alternative investment tool other than a fixed deposit considering their monetary requirements.

Better Rate of Interest than Savings Bank Accounts: Rather than keeping money in savings bank accounts, youngsters are more prone to place the money as bank fixed deposits. With limited sum of money available to the youngsters especially those who have yet to begin their earnings or have just started earning, receiving a higher interest rate on the same principal amount kept as bank fixed deposits is a lucrative option.

Option of Availing Loan on FD: Fixed deposits come with an extra advantage allowing account holders to seek loans on their FD investments at any point. This loan seeking facility manifests as a perfect tool for the youngsters as they can keep their investments intact while seeking loans over their deposits in case of a financial emergency. In case of other investments, youngsters would have to break up their investment mid way attracting not only a penalty in some cases for opting out before schedule but also los of possible returns. In case of fixed deposits, the fact that they can continue receiving their returns even while they take a loan over the FD makes it an ideal investment tool.

Flexible Tenure: Youthtoday are known to be impulsive seeking quick results. Fixed deposit accounts with their flexible tenure periods make an ideal investment vehicle for the youth as they do not have to lock in their funds for a long time and can opt for smaller tenure of weeks to a few months as per their individual financial plan.

#Fixed Deposit #FD investments

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#Fixed Deposit #Features of FD

Use Fixed Deposit and save tax

Almost all of us are aware of fixed deposits. We are also aware that banks and financial institutions pay good FD interest rates. That is one of the reasons we compare the FD interest rates of various banks and financial institutions and invest our money in the institution or the bank that provides us with the best returns. Of course, most of us justifiably consider the safety aspect also before parking our funds in these fixed deposits. But in general, fixed deposits with banks are considered one of the safest methods of savings.

In short, we only know that fixed deposits are a form of investments in which, we deposit our funds for a specific period that is called the lock-in period. The bank will be paying interest on the amounts we deposit. We can choose either the monthly interest payment option or the quarterly interest payment option. This means that only a few of us know that we can use our fixed deposits for saving our tax also. Thanks to the awareness campaigns that are organized by banks and financial institutions, many of us are slowly realizing the fact that fixed deposits can be useful as a tax-saving investment option.

Tax Benefits That Can Be Got On FD's

We can get tax benefits from the five-year fixed deposit schemes of banks. This is as per Section 80C of the IT Act. As the name suggests, the lock-in period of this fixed deposit is 5 years. According to the income slab of the investor, he or she will get tax rebate. At the time of computation of income tax, the amount deposited in the five-year FD is reduced from the total taxable income of the investor and income tax is calculated only on the remaining amount.

But according to the IT Act, the interest payable on a five-year fixed deposit is taxable. Even when the interest is reinvested during the subsequent years, tax will be deducted at source. Investors can deposit up to Rs.1 lakh in a five-year FD during a financial year.

Benefits We Can Get By Investing In 5-Year Fixed Deposits

Risk-Free Investment

Five-year fixed deposits with banks are considered one of the best investment options because they are absolutely risk-free.

Returns Are Assured

Investors need not worry about the returns because nowadays, the interest rates offered by the banks on these deposits are quite attractive. These are assured returns also.

Capital Appreciation

Since the interest amounts are reinvested into the fixed deposits, the original amount deposited keeps appreciating. This is one of the most attractive features of this scheme and there is no wonder more and more people have started opting for this scheme.

Tax benefits

The amount deposited in these 5-year fixed deposits is deducted from the taxable income of the investor at the time of computing his or her income tax and hence, the investor gets tax rebate to that extent. This income tax benefit is governed by Section 80-C of the IT Act. So, most of the people opt for this scheme so that they can get appropriate tax benefits.

In a nutshell, the five-year fixed deposits with banks provide tax benefits as well as reasonably attractive FD interest rates.

#FD interest rates #Fixed Deposit Rates #tax benefits #Fixed Deposit

Financial Trends in 2014

With over six months of the year gone into the oblivion there have been quite a few financial trends in the market. With inflation finally going down, the Reserve Bank of India did not change the repo rates leading to a status quo for fixed deposit rates as well as interest rates for car loans and home loans. With a worry of a weak monsoon season however chances of inflationreaching a higher level in the coming months may dampen the market sentiment. Let us look at the top five financial trends that have made the headline in the first six months of 2014.

High Financial Expectations from Union Budget 2014-15:

With the change in central government and formation of a strong NDA government considered to be proactive and pro reforms, all eyes are set on the union budget to be disclosed by the finance minister on 10th July 2014. The stock markets are buzzing with activity as high expectations of tax reforms, introduction of GST and other pro investor measures are keeping common public as well as financial experts with an optimistic outlook.

SBI Extends Discount Scheme for Women Borrowers:

Women borrowers have had a good 2014 with State Bank of India, the country’s largest home loan lender announced the extension of its discount scheme for women borrowers. Under the existing scheme women home loan borrowers can avail home loans up to Rs. 75 Lakhs at a discounted rate of 10.10%. For loans above Rs. 75 Lakhs, the rate of interest has been reduced to 10.25% compared to 10.30% for other borrowers.

ICICI Bank Offers Discounted Home Loan:

Following the footsteps of SBI, ICIC Bank, the country’s largest private sector bank has also introduced a loan discount scheme for women borrowers. ICIC Bank has announced a 0.10 percent cut in home loan interest rates for all women borrowers of borrowers with women majority shareholders. This limited period scheme ended on 30th of July, 2014.

Repo Rates Unchanged:

Home loan borrowers have been having a good time in the recent few months with discount schemes galore and RBI keeping the repo rates unchanged in its last quarterly meeting. The repo rate was unchanged at 8% while the reserve repo rate was fixed at 7%. With real estate reforms likely to be introduced in the annual budget, home loan borrowers are hopeful of further benefits and perks in the near future.

NHB to Increase LTV:

If you are one of those who have had a hard time raising the margin money to avail your home loan, good news is around the corner. The National Housing Bank has suggested that it plans to increase the LTV ratio for home loans above Rs. 20 Lakhs to 90% of the property value. Once approved the rule could make taking loan a lot simpler as margin money requirements would come down drastically making home loan easily available for the common man.

#fixed deposit rates #financial trends #Financial Expectations

Best Citibank Deposit Schemes

Parking one’s hard earned money with the most secure and reliable banking institution has become a basic necessity of almost every individual in the nation. Several public and private banks, as well as other financial institutions, offer distinct services by offering the needed storage systems to customers in the form of deposit accounts. One just needs to pick up the right deposit scheme from the long list offered by a bank and park their surplus funds for a stipulated time period, thereby earning a decent amount of interest for that tenure period.

Seeing the increased demand of deposit schemes among the masses, Citibank, one of the premier financiers in India, has come up with an alluring deposit portfolio for the interested customers. Apart from its usual Citibank FD rates schemes, the bank is now offering the facility of depositing money in several other types of accounts, along with the convenience of flexibility, assurance of security, and guarantee of growth. Here is a quick look into the different deposit schemes offered by Citibank at present and their distinct features.

Citibank Fixed Deposit

Basically an investment scheme, Citibank fixed deposit enables one to deposit more amount of money for a fixed period of time and make a good income at impressive FD interest rates, which are in no habit of fluctuating every now and then. Customers can open a Citibank fixed deposit with as low as Rs.1000 for a minimum tenure of 7 days. The interest income can be credited to the account of the customers through two distinct options of Quarterly Compounded Interest or Simple Interest Quarterly Payout. Customers can also enjoy the facility of overdrawing up to 90% of their current deposit amount during financial suppressing times.

Multi Deposit Scheme

Unlike Citibank fixed deposit schemes, multi deposit accounts do not lock the amount for a certain time period. The customers are entitled to higher interest rates and are provided an instant access to their deposited amount in the times of financial emergencies. The withdrawal can be made in multiples of Rs.1000, without actually breaking the deposit. These accounts can also be opened for a minimum amount of Rs.1000 and for a minimum tenure period of 7 days.

Recurring Deposit

Under this scheme, customers can instruct the bank to automatically debit their account with a certain sum of money and open a recurring deposit account. Similar to a Citibank fixed deposit, one can open a recurring deposit account for a minimum amount of Rs.1000, with the maximum amount of deposit reaching as far as Rs.20000. The customers just need to choose a tenure ranging from 12 to 24 months, park their surplus funds into the recurring deposit account and enjoy zero tax deducted at source on the amount deposited into the account.

These are only a few deposit schemes provided by one of the leading banks in India. Apart from Citibank fixed deposit, recurring deposit and multi deposit schemes, the financier also offers senior citizen deposit and tax saver deposit schemes for the interested customers. All it takes is reviewing the personal needs and wants, and depositing the hard earned money in the account that proves to be a perfect match for them.

#Best Citibank Deposit Schemes #FD interest rates

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