2017 – Page 3 – My Money Streets

May 22, 2017

Sovereign Gold Bonds, SGB, Have you missed buying? No worries.. you have chance to buy it better

*Buy SGB on secondary market through your trading account

Gold, the Godly metal of Indian household, are nowadays available in fancy formats to woo the prospering Indians. Since the economy watchdogs kept repeating the perils of buying the physical format, the rush for paper gold nd electronic gold has become a statement. While GoldBEES (GOLD ETF) is here around for sometime, Indian Government has taken a bold step by introducing Sovereign Gold Bonds, which is issued periodically with an attractive interest rate payout attached to it.

The first two tranches of the SGB offered 2.75% taxable interest on the investment beginning September 2015, the third issue onwards it remained stable at 2.5% half-yearly or as they call it semi-annually. But what if you have missed the issues due to lack f cash crunch, indecisiveness or merely being lazy, you still have a chance. Not only chance to buy, but also to decide which one of the 7 listed bonds currently available in the list.

Plan your life-goals with the new age ULIP!

Yes, that is absolutely true. You can choose the SGB Bonds listed on BSE/NSE from your stock broker, even better if you have a trading account. The bonds which come with 8 years of maturity, can be bought on the trading app with few clicks, now at reduced time period (as the maturity date is pre-decided). So, if you buy Sep 2015 SGB, the maturity stands at 2023 which is about 5 years and few months, much less than 8 years maturity. And, guess what, if you stay invested till maturity you will be exempted from paying any capital gain tax. Moreover, you earn 2.75% interest on each unit based on the issue price.

Looks like a win-win situation for the new investors, as because of volatile markets, Gold prices have come down and many of these SGB is trading below their offer prices. Hence buying below offer price means better interest income (better yield). I am not fond of investing in Gold and recommend investing a maximum of 8-10% of total portfolio, but for somebody who likes the divine metal, it makes a smart choice to invest in SGB through the secondary market.

5 ways they sell you wrong financial products

*LTCG in Gold is applicable as debt instruments

*Selling SGB in secondary market will attract as per tax laws

*Tax-exemption benefit is available for only holding until maturity

*The volume of SGB is not very high in secondary market, difficult to trade in large quantity

* 1 unit of SGB is equal to 1 gm of Gold

* The price of SGB OF different tranche varies in trades, though having same underlying asset

May 13, 2017

5 ways they sell you wrong financial products

#Mis-selling is rampant in financial services and it spares none! Beaware and take decisions rationally. Here in this post we would focus on how they sell you wrong financial products and how can you fight it.

Financial literacy is important. Even more important is to know how to manage own finance. Be it loan, insurance, stocks, or simple savings account in banks, on a regular basis we need to deal with some decision making with our finances which defines our financial habits and saving behaviour. Many people are averse to discussing this important aspect “money” as they dislike numbers, or even hate to keep a check untill a major decision needs to be taken like tax saving, taking housing loan, or god forbid some medical emergency. The sales representatives of various forms like advisors, brokers or plain simple sales executives of the financial industry mints money during these emergencies without providing the right guidance for which they are paid for. Not only the less educated people, even financially aware people fall in the trap lured by bonus, rewards and false promises. Let us look at what are the common methods are used for misselling the products. Surprisingly in many cases the buyer is partially aware that product is not right for them. Let us look at 5 common ways of getting conned.

1. Buy an insurance to open new bank account – without taking the name, this is a common feature in India’s largest public sector bank. Public sector bank account pass book is often used as a address proof. So, when somebody especially new in the city tries to open an account in the branch of this Bank, he/she is politely directed to the branch manager, where the applicant is almost forced to buy a life/health insurance in exchange of a savings account. It has been a personal experience in large city as well as smaller towns. Besides account opening this method is openly encouraged by seniors in the system for any work/favor a customer asks for (within the scope of banking services )

2. Hiding the hidden charges – This is also common, cold callers luring potential customers with half information. It is seen that despite probing multiple times, the executives dont give out details. And, the customer only comes to know once he start using the product, hence, trapped for short time or for ever. It is common for life insurance and credit cards.

3. Emotional black mailing by family and friends – Rampant in life insurance industry, driven by incentive model, the large number work force is part-time advisors, highly crowded by house-wives, retired professionals or somebody looking for an extra income. They often sell highly incentivised product for quick buck without bothering about the need of the person. Being family or friends, buyers often give-in to save the relationship or motivate them. This emotional buying cost them dearly. They mostly don’t even go back and complain even unsatisfied.

4. The vanish act – Selling a product takes the seller closer to his target. Spilling the beans about the risks involved or fee structure can take them one step back and a 10 pitches back. To avoid the hassle, they simply sell the product to never return to service their customer.

5. Not explaining the complex products – They are in a hurry or simply they don’t understand the product. Often, they sell complex products like ULIP plans, endowment plans even pension plans without taking out time to explain the details unless asked for.

Take accountability

Though regulatory bodies like SEBI, IRDA doing their bit, it is important for every individual to basic research on the product you are buying. The basic Google search on the product can throw up a lot of information on the product. The aggregator sites on insurance, loans, deposits can further help with additional information and best rates.

Ask the broker for written guidelines on product usage and costs involved , especially on insurance and credit cards. Do read the terms and conditions, however pathetically time consuming it may feel. It is your duty to do double check as much as it is the with the sellers. And don’t buy the product if you find discrepancy in what the seller said and mentioned in the written document.

If any official/broker/advisor sell you wrong products, do reach out to consumer grievance cell.

Beware. Take charge!

May 3, 2017

Plan your life-goals with the new age ULIP!

Often my friend Sheena is found daydreaming about her stress-free retired life, zooming past the country sides on a road trip with her husband, painting on a Goa beach and having detox SPA at Kerala. All of 35, Sheena is a school teacher and mother of a 5-year-old. One fine day, she called me up and asked me if it’s a feasible life goal she has and if her current investment style will be enough to take care of future needs? Averse from the new age financial instruments, her FD returns promised very low return and her worry of not able to fulfill her dreams weighed her down.

Like her, there are many of us, who undermine the new age financial products. There are many products like mutual funds and ULIPs which offer higher return and over the long term with some planning and discipline, reducing the risk with a disciplined approach. ULIPs offering SWP, a tax-free regular income can be generated for a long term period by selling units, which can work very well as pension or second income.

In this post, I would like to elaborate on one such product with smart features to suit the need of investors and help them realise their goals, and how one can make most out of it.

#ULIP, known to be insurance cum investment product, is actually an investment cum insurance product with some awesome features and thanks to stringent guidelines by IRDA.

And if you already consider the new age ULIP as a dynamic investment tool with an additional life cover, you are a sorted investor. The main hurdle we find with the investments is choosing vehicles with irrational expectations because of lack of understanding and product and mis-selling.

One such plan actually broke my misconception about ULIP is Wealth Ultima by Edelweiss Tokio Life Insurance. The ultra-low cost ULIP rewards you for being a disciplined long-term investor.

Edelweiss Tokio Wealth Ultima, a new product on the block comes with some amazing flexible features given the multiple life goals it aims to attain.

Notable Features

< >EdelweissTokioLife- Wealth Ultima is bundled with insurance cover with investment options of equity, balanced and bond funds
Policy Term and Premium Paying Term as per your need:
- Policy Term ranges from 10 years to ‘till age 100’.
- Premium Paying Term* ranges from 5 years to ‘till the end of the policy term’
Policyholders also have a choice to switch portfolio in funds o his/her own
ULIP’s are a good choice as they allow an investor to choose market tools to invest in, and change their choice depending on how the market turns
The approximate cost per year based on the tenure chosen
Policy term – Minimum 10 years of maximum 100-entry age
Entry age – Minimum 0 years to maximum 70 years
Policy payment term – Minimum 5 years, maximum 70 –entry age or 100-entry age (depending on the policy chosen)

The disciplined approach
Systematic monthly (Investment) plan – This feature gives the investor the freedom to invest a pre-decided amount monthly in the plan. It helps to address the short-term volatility of the market and rupee cost averaging of the investment
Systematic transfer plan – Based on requirement one may choose to protect their investment by systematically transferring the profit amount into less risky bond funds, which can be done with target profit booking/ life stage and remaining duration analysis, one also have a choice to self-manage the portfolio
Withdrawal – Retirement planning through SWP – Often we are worried about accumulating wealth, seldom we think on how to manage and withdraw investments in a logical manner. SWP in #Wealth-Ultima gives an opportunity to the investor to choose SWP after 10 years of lock-in period, wherein investor can withdraw the specific number of units according to his choice (Monthly/quarterly/semi-annually/annually) to fund their sabbatical/ retirement or just a second income. This unlike pension products don’t attract tax enjoying the triple tax benefit under section 80c

Special features of the products
Double indemnity benefit under Little Champ benefit – Little champ benefit aiming to protect the future of a child is taken by one parent and can be started at ‘0 years’. In the case of the death of parent, the future premiums are waived but the plan continues for the child. Top-Ups – you may choose to top-up your investment flexibly
Reduction / Increase in policy payment term allowed
It pays to stay – “Additions to the fund”
- Loyalty additions – Loyalty Additions will be added to the Fund Value at the end of every Policy Year, starting from the end of sixth Policy Year till the end of the Premium Paying Term
- Booster additions – added to the Fund Value at the end of every fifth Policy Year starting from
- end of 10th Policy Year till the Maturity Date of the Policy
- Guaranteed additions – Guaranteed Additions are added to the Fund Value at the end of every Policy Year, starting from the end of sixth Policy Year till the Maturity Date of the policy
  
  My take – I also introduced this product to Sheena and she found that ULIP is one of the most cost-effective investments cum insurance tool for a long term horizon. The product offers dual benefit of investment and insurance, which makes it a complex in nature. Also, the product demands long-term disciplined approach and commitment. Looking at the above two points, it is prudent to consult a financial advisor and insurance company to make an informed decision. You must ask the advisor about the product features, lock-in period, policy charges and all benefits.
  
  If the investment is made with thorough understanding, one can enjoy maximum benefit.
  
  Please visit the website and download the product brochure for better understanding.
  
  Thanks to Edelweiss Tokio Life Wealth Ultima, it gave Sheena a chance to fulfil her dreams!

April 20, 2017

Save money smartly with digital wallets

When banks are in news for charging customers under unheard expenses, the new found digital payment methods offer some cool in the summer for us. Post digitization drive, there is a considerable amount of competition between the digital wallets for customer acquisition and retention and in the battle, consumer is the clear winner.

Also read – Are you forex ready for the summer vacation abroad?

The independent digital wallets are fighting head on with home grown banks as well as government baby BHIM and Adhaar PAY. while I wish there is a long and healthy battles between the companies, let’s quickly look at how best we can save some smart cash. Every penny saved is every penny earned. And you are much important customer than you think 😊

I am listing down some key ways to earn extra cash using these digital wallets.

1. The referal program – Have a friend? Refer your wallet to him/ her and get some cash/ discounts on their first purchase. It’s the most common feature amongst wallets.

2. Don’t forget the joining bonus – Yes, thats right, you are rewarded handsomely for choosing them. Some loyalty points, discounts are mostly on offer. Just do a basic Google to find promo codes /joining offers

3. Check for the partner offers on discounts – there are loads. Food delivery companies, online shopping portals and many more are queuing up for your attention with attractive discounts by partnering with these wallets. Check out!

4. Keep an eye on the wallet recharge deals – there are many deals floating on the wallet recharge. What you need to do is just Google the recharge “wallet name” coupons, there s A chance you may get some extra cash on recharge, some up to 20%. How that’s big!

5. Have you explored Utility payments – Now it’s possible to pay your electricity bills with your wallets, besides some attractive offers it saves you from long view and previous time. Time saved is money saved.

6. Have you won cashback on your purchases – big discount offers on airline tickets, movies and other purchase. Not of research always helps.

Hope you enjoy summer and the offers. Have a good time. Happy spending and happy saving.

Next read – Have you heard of peer2peer lending?

April 18, 2017

Packed for summer holidays? are you forex ready?

It is about time that travelers are set for summer holidays abroad. I am sure the destination, tentative itenary, and bookings must be done by now. Two important things for foreign travel you should carefully plan is a comprehensive travel insurance and arrangement of foreign currencies.

While traveling to other countries, one can carry about USD 3000 per trip as a cash component. Individual limit for forex expenses per year is capped at USD2,50,000 which can be used with traveller’s cheque and #Forex-cards.

In this post, I would like to focus on forex cards, a must hassle-free card for your foreign travel. Forex cards are pre-loaded currency card for your expenses abroad.

IndusInd Bank recently launched indusforex.com wherein the travelers can by prepaid forex cards and reload anytime, anywhere. The portal allows a user to carry out the foreign exchange on the overseas trip in an innovative and secured ways. The portal also allows customers to buy and sell foreign currency with zero conversion charges, send money abroad with no extra charges and processing fee. Visit https://indusforex.indusind.com/ for a quick process for getting your #forex-card.

How it works –

· Select what you wanna do – buy Forex Card or cash and send money abroad, the portal fetches the best rates for you

· Complete a few details, upload your documents online and select your preferred mode of delivery

· Book your rate online by paying a token amount, and pay remaining later

Get your order completed within 24-48 hours

Multiple currency cards available in 16 currencies, allows you to add up to 8 currencies at a go. you can reload the card for your next trip from any of these 8 currencies.

Advantages of Indus Forex cards –

It is the safest form to carry money
It is PIN protected, hence safe and can have configurable spending limits
Cards are accepted in establishments like Hotels, shopping centers, without any charges
The cards usually offer better rates than travellers’ cheques (TC). Travellers’Cheques is a dying business with very few accepting establishments
You can reload currency anytime
Better than debit /credit cards which charges extra 2-5% for transaction. Also offers free ATM Transactions.
Also, come with insurance cover, (Customers can buy online for lost baggage, trip cancellation, hospitiasation)
8 currencies available on card and cash. 16 currencies for wire transfer

Happy holidaying 🙂
Do share your experienes

April 14, 2017

Small and short term loans are new flavors of the season

High time we change our view about loans and make most of it!

Loans and debts are usually not the favourite words of Indians! It generally reminds of all negative emotions! But no more, if you are a good money manager, it helps you live a better life. It is no more just about emergency, loan has become a convenience tool too. The misselling and misusing credit card has left Indians with a bad taste for debt. Let us see how the short, quick and small loans are actually much more than just convinience. Prudence in repayment approach is a must.

There are series of offerings by non-banking loan providers and innovative concepts launched in last couple of years by Start-ups to attract Indian investors and borrowers, gradually making an entry. The target audience is specially the young 20 something’s and early 30 population who are comfortable with their financial positions.

The #peer2peer lending companies like i2i funding, lendbox are few names which is a new concept of getting landed and borrower at the same platform The loan amount, payment terms are flexible.

The NBFCs are joining hands with apps to provide #short-term-loans of up to 1 lakh rupee for a period of 3 months, 6 months and 9 months. PAYSENSE is one such app. The interest is 1-2% per month.

What is #short-term-loan?

it is nothing but unsecured personal loan taken for a short period. Generally a short term indicates time period less than a year. Few companies offer repayment period of 3-6-9 months.

What is a #small-loan?

small loan in individual context is Rs. 1

When do you use it?

As the name goes, you should take this loan only when you are sure of repaying it comfortably within the stipulated time limit without any struggle. It’s best for unplanned small expenses, which you are sure of repaying in splits within the boundary of salary in few months. It could be for a small vacations, medical expenses, buying a gadget without breaking your bank FDs or Mutual Fund savings.

How is it beneficial?

It has some interesting benefits –

1. It can help you build your credit history, which will help you for future big ticket purchases like home loan, personal loans etc.

2. On timely repayment, it helps you get a better CIBIL score which may be useful for negotiating interest rate for big loans

3. It helps you get a better understanding of documentation for loans, which will help in future

4. It helps you avoiding untimely withdrawal of your long term planned investments and plan repayment within your few instalments from your salary

5. Makes you financially more aware and responsible

6. It can help you bridge the liquidity gap, when you are sure of getting the sum in short period like salary or maturity of FD within a short period of time.

Word of caution

1. Loan amount shouldn’t be more than your 2 months salary

2. You should be well prepared and calculated about your repayment ability and sources of funds

3. The interest rate in these products are higher than bank loans, so choosing minimum amount with shorter tenure is advisable.

4.On non-repayment, the penalties may ruin your pocket as well as credit history.

5. Check with the borrower thoroughly on the term and conditions, required documentation, actions in non-timely repayment and interest rates

6. The interest are higher than Banks. So checking the exact interest viz a viz banks and NBFC would be prudent.

It’s a convinience product and should be used with a proper repayment plan. It will be unwise take a hasty call taking such loans on emergency without understanding the implication

March 29, 2017July 18, 2020

What are the liquid mutual funds? who should Invest in liquid fund?

If you have a question on should you invest in Debt Fund? This is the place to begin. Liquid Fund is considered to be safest, and most liquid fund, with easy investment and withdrawal options.

Beginners’ guide to Liquid Funds

• What is a liquid fund?
In financial terms, “Liquid” means asset which is as good as hard cash. Liquid Fund is a debt fund – mutual fund which invests in money market instruments, (Money market – Market for short term lending and borrowing – Commercial papers, Company bonds, treasury bills etc.) with maturity less than a year. This fund can be redeemed in as less as 24 hours.

• Why would you invest in liquid funds?
o No entry/ No Exit load (if not withdrawn within the lock-in period )
o Annual fee 0.30 to 0.70%
o Better tax benefits than FDs (Interest is taxable according to the tax bracket of the investor) [In the dividend option returns are tax free at the hand of investor]
o The return on liquid funds is generally 50 – 100 basis points more than savings account interest
o Maximum of 10 per cent or less mark-to-market component, indicating a lower interest rate risk

• How to invest in liquid funds?
Every Mutual Fund house have liquid fund. You can check a few, also may compare in Moneycontrol/ Valueresearchonline. You can invest in these funds through online easily through the mutual funds website or CAMS app/ Karvy app or normal offline procedures.

Liquid funds are good way to get introduced to the mutual funds – for the first timers. You can SIP in this fund to create a contingency fund/ emergency fund. This Debt fund is ideal for short term goals/ purposes like 6 months – 1 year tenure.

*When we put our money in Fixed deposit, that is also investing in debt.

March 24, 2017

i2ifunding – UBER for a quick loan and high fixed returns!

How many add-ons is right for your car insurance?

This is a post for the savvy investors! the investors who really want to make their money work hard and enjoy the returns!! the newest financial product in the block!! and you must know about it!!

Are you a comfortable investor with diversity in mind? Have done some investments in Equity, mutual funds, and fixed deposits? You will be pleased to know that there are few more investment opportunities opening up your way with some interesting #alternate-investment options.

One such concept I came across last week and wanted do a basic research before sharing with you all. After checking online, I realised, the concept is globally recognised. The concept is peer to peer lending. Globally a well-known concept, it is slowly but steadily catching up in India, RBI has already published consultation paper on the same.

What is peer to peer lending?

It is an easy concept of lending and borrowing, where the investor and the borrower both are individuals and not institutions like Banks or Non-banking finance companies. P2P lending in India concept thrives on high income for investors on unsecured personal loans. #i2iFunding is one of the first movers in this space.These platform focuses on high vigilance and smooth interface.

How does it work for the investors?

Investors need to do a simple registration on https://www.i2ifunding.com/.

Registration– A simple form needs to filled including personal details
Register as an Investor – Upload profession details, and upload address proof and PAN Card for verification purposes
Review pre–approved loan projects – #i2iFunding only reflect the loan projects which ae pre-verified by the team basis the borrower profile and requirement. The loan request of the borrowers are verified by proprietary credit-score model and recommend interest rate
Wallet – The investor can start investing from Rs. 5000 and multiple of 5000 upto Rs. 5 lakhs
Physical verification and documentation– Once the loan approved by the borrower, i2i funding does a physical verification followed by signing a legal contract. Investor has to provide undated cheque equal to EMI amount for each investor. #I2ifunding shares the digital copy to each investor.
Transfer funds and receive payments from next month – After all the legal formalities, investor needs to transfer funds directly to borrower’s account, and repayment starts next month onwards.
Building a portfolio – Investors can give multiple loans and as per his risk appetite and earn monthly returns. ‘My Account’ section helps track investment details

Benefits for the investors-

Diversify portfolio with high fixed income
Freedom to chose loan projects based on risk apetite and return expectations
Cap on funding each borrower at 20% of the loan amount, reducing over-exposure, concentration and mitigating risk
Capital protection guarantee for the investors subject to the risk profiles of the borrower’s of the loan projects (investing in loan projects of cat A borrower has highest protection)

Process for Borrowers-

Once you are registered,

Create a borrower account – Register with your personal details, income detail, employment status etc
Loan assessment by i2i – 40 parameters including education background, CIBIL Score
Make loan live on i2i funding website – Post the assessment, make your loan live on i2i platform
Get funding commitment from Investors – Registered invetors across India can see your requirement and apply
Physical verification and documentation – i2ifunding will do verification of original documents, you also have to share 3 EMI cheques for investors to hand over
Loan disbursal and repayment – Once the verification done, lenders will directly transfer the money in borrower’s account and borrower need to start repaying from next month

Benefits for the borrower

Low Interest rates
Quick hassle free process
No pre-payment penalty
Funding in few days

Borrowers are categorised based on their credit profile, employment status and few other criteria. The category A-F reflects the credit profile order, A denoting the safest category and F is for the riskiest category. With increase in risk category, cost of borrowing increases which is illustrated in the table below.

Charges you need to keep in mind –

Charges

Investor

Borrower

Registration

Nil

Create a borrower account

N/A

Rs 100

Create an investor account

Rs 500

N/A

Increase in the wallet

– Nil up to first Rs 50,000

– 1% for additional increase

N/A

For Salaried Borrowers

Loan processing fee payable before physical verification. (Minimum processing fee is Rs 2000)

–

Risk Category	% Fees
A	3.0%
B	3.5%
C	4.0%
D	4.5%
E	5.0%
F	6.0%

For Self employed Borrowers

Loan processing fee payable before physical verification. (Minimum processing fee is Rs 2000)

Risk Category	% Fees
A	4.0%
B	4.5%
C	5.0%
D	6.0%
E	7.0%
F	8.0%

Other Charges

	Investor	Borrower
In case of prepayment	–	No Charge
In case of change in loan amount before receiving any funding commitment post listing	–	Rs 100
In case of change of bank account details	Rs 200	Rs 200

My take – It is an interesting #alternate-investment option, with stringent guidelines. However, it is new in India. Investors with moderate to high risk appetite can look at it. One may look at borrowers with high ratings like A-D for good yet safe return on investments.

Checkout the website https://www.i2ifunding.com/ for partnership program too!!

March 18, 2017

Shout out to HR Teams – Save some tax for your employees with Zeta Optima

Looks like a dream come true offer for the employees! The days of punching the bunch of colleterals while submitting the reimbursements seem over! I found this info and sharing as is, as it looks very interesting but only HR personnel would be rightly placed to evaluate and take it ahead.

HR TEAM needs to look at this –

These offers can help save tax and resources for both employees and employers.

(Information sourced from ZETA – Information included as is)

The Zeta payment suite gives users access to over 11 lakh outlets and can be used to make online payments as well.

Zeta Optima is fully compliant with the Income-tax act and RBI guidelines. It’s the only solution that has been certified compliant through a written opinion by every one of the big 4 Accounting firms: KPMG, Ernst & Young, PriceWaterHouseCoopers and Deloitte.

Optima is used by over 70,000 users, across 600 organisations that:

● have eliminated paper while managing employee benefits

● send grants instantly to employees

● outsource claim verifications

● customise the programme and set usage rules

● generate on-demand digital reports

● receive audit-ready statements

The Optima suite of smart benefits includes:

Optima Meal Vouchers

An electronic meal voucher programme that replaces non-compliant paper vouchers and meal cards, with a 100% compliant, fully digitised solution. Optima Meal Vouchers can be spent via the Zeta app and the Super Card at 3 lakh+ outlets and can help your employees save up to Rs 11,880 every year. Optima Meal Vouchers can also be spent at office cafeterias with the Zeta Super Tag.

Optima Medical Reimbursements

The first fully digitised medical reimbursements programme in India, Optima Medical Reimbursements lets employees file claims on-the-go via the Zeta app. Through Optima Medical Reimbursements, employees can save up to Rs 4,500 in taxes, every year. Optima Medical Reimbursements grants can be spent via the Zeta app and the Super Card.

Optima Fuel & Travel Card

A digitised solution to manage fuel and transport expenses, employees receive grants from their organisations on their Optima Fuel & Travel Card. The balance in this virtual card can be spent at any fuel or vehicle maintenance station via the Super Card. Employees also have the option to upload bills via the Zeta app and file for fuel or transportation reimbursements. Employees can also use the Fuel & Travel Card to file claims against costs incurred during their commute to work. On the whole, employees can save up to Rs 11,880 in a year.

Optima Communications Card

The Optima Communications Card is a digital solution that helps users save up to 30% in taxes on communications bills. Employees receive their communications grants on their Optima Communications Card, which they can use to pay mobile, landline, data card and internet bills via the Zeta app.

Optima Gadget Card

The Optima Gadget Card not only allows employees to save up to 30% in taxes on the purchase of gadgets, it also helps organisations save tax on the gadget’s depreciation. Employees receive grants to purchase gadgets in their Optima Gadget Card, which they can either claim on a monthly basis or accumulate to purchase a gadget at the end of the year with the Super Card or via the Zeta app.

Optima LTA Card

Definitely the most compliant LTA programme out there, the solution is the first digitised LTA claims platform in India. Optima LTA Card ensures your claims are in line with all compliance guidelines and gives organisations the flexibility to outsource verifications of travel documents to Optima. Employees can upload relevant documents via the Optima LTA Card on the Zeta app and receive reimbursements. They can save up to 30% in taxes with the Optima LTA Card.

Optima Gift Card

With the Optima Gift Card, employees can receive tax-free electronic gift vouchers of up to Rs 5000 in value from their employer. These gift vouchers can be spent at over 11 lakh outlets and online through the Zeta Super Card or the Zeta app.

Optima Books & Periodicals Card

Designed to encourage, sharpen and develop new skills, the Optima Gift Card is a digital solution to claim reimbursements on journals, reading materials, books and more. Employees receive grants in their Optima Books & Periodicals Card, which they can spend using the Zeta Super Card. Through the Optima Books & Periodicals Card, employees can save up to 30% in taxes.

Optima is built to be comprehensive, it can be tailored to include any tax perquisite that a company may wish to offer. It is also flexible, allowing organisations to customise how each programme is implemented.

This table will give you a break-up of how employees under different tax brackets can save maximum amount of tax:

March 15, 2017

‘1 Crore’ – the new catchword in health insurance

The buzz word first introduced by Mr. Amitabh Bachchan, Kaun Banega Crorepati, in the beginning of this millennium had opened a dream world for the common Indians. However, it took sometime for us to sink in and consider the figure as a real achievable target. Until the early last decade till about 2005 to be precise, 1 crore was not even distant dream for most of us. Indian population was very happy with endowment plan for 1-5 lacs rupees and felt content with the ‘suposedly’ financial planning. Then came the disruption! hail the magic word Rs. 1 crore.

Insure for 1 crore

The two new words changed the financial services of India forever. The two words were ‘Term plan’ and ‘SIP’ – systematic investment plan.

The ‘term plan’ the true insurance product came in force in India in early 2000. The product came frill free sans the investment component. So, the newly formed private insurers began launching term-plans of 10 lakhs, 25 lakhs, 50 lakhs, 75 lakhs and 1 crore for a fraction of a cost which LIC sold its’ endowment policies and the newbie ULIPs. The country reacted in disbelief! It took a decade, but 1 crore has became a new normal of Indian middle class, thanks to to the term insurance plans.

SIP to 1 Crore

Not to forget the aggressive promotion of ‘SIP’ by mutual fund companies harping on ‘power of compounding’ often projected 1 crore as target figure. Be in advertisement on personal finance stories, saving a few thousand rupee every month for 20 years could yield 1 crore was used as a magic figure in numerable instances catching the fancy of Indian salaried class.

Now – Health cover for 1 crore

However, this wasn’t yet the case for health insurance industry until recently. Rs. 3 lakh to 20 lakh at the premium side was a common norm until about 2 years back. However, the healthcare cost of India has multiplied over last few years and surging way ahead of the inflation numbers. Incase of critical illness, one may have to cough-up upto INR 25-30 lakh easily only on the treatment procedure, let alone the aftercare and other financial loss causing a big dent on the resources. So, looking at the surging medical expenses and preempting the future trends, the insurance companies have launched premium insurance products with higher sum insured from 50 lakhs upto 6 crore even above. Though the product positioning may look premium, including very specialized services like global hospitalization benefits, maternity cover, organ donation etc. But eventually these services are aligining India with the global standards of healthcare. Though the premium of the products are on the higher side for now, the 1 CRORE is becoming a new normal for the health Insurance Industry too!

The few products in this category –

CARE Global – Religare Health Insurance

ProHealth – Cigna TTK

Apart from these, many companies do provide fixed benefit insurance for persona accident and insurance for critical insurance.