This
post is about providing financial information which will help you in
managing money especially for those who are starting their career.I
have also discussed about various money transfer options available
with all the details.
This information will be very helpful to you because without this you might make some
mistakes which will cost you a lot of money which i want to avoid.
So
now after entering your job you will have to choose your bank in
which you will be opening a salary account.
The
following options will be available to you after you open a salary
bank account:
-debit
card
-credit
card
-net
banking
Apart
from this i will discuss about health insurance policy,the decision
which you make regarding this has a great effect on your salary every
year.
So
lets start with debit card.
Debit
card:
As
you all are aware it is used to withdraw money from bank and perform
online transactions.Apart from this,your bank may provide you with
points for using it which can be redeemed.So eventhough you have net
banking,credit card if you use this you may earn some points which on
reaching certain limit can be redeemed for money or some banks will
give some coupons which can be redeemed on purchase of a product.
Now
coming to credit card.
Credit card:
-You
will be provided with certain credit limit on your credit card.The
limit may differ for each individual even though salary is same.This
decision is made by the bank.
Facilities
provided:EMI,Cash withdrawal,Special features
EMI:
While
purchasing any item using emi you need to check the following things:
-Whether
any interest is being charged.
-Whether
any processing fee is being charged.This is the one which many shops
exploit particularly where you find item is cheaper because of this
hidden cost.While buying the dealer says that there is no processing
fee but after making the purchase you can find that you are charged
for opting emi.This happened to many times,so do not fall in this
trap.But not all shops do like this.
Cash Withdrawal:
You
will be provided a PIN which can be used to withdraw money from ATM
using you credit card.But it is better not to use this anytime as
they charge high interest rate on it.
Special Features:
You
may also have some special offers such as cash on call by hdfc or
Personal Loan On credit card by kotak depending on your bank.You can
use these options in case of emergency.
Monthly billing procedure:
Every month
you have a certain date on which your bill will be generated.The
transactions performed until this day will be billed.You will be
given another date on which you have to pay this bill.Do not ever
delay paying the bill because you will be charged very high interest
rate and it will effect your credit score which i will discuss later.
Here
many of us will be confused.So lets say my billing date is 18th and
my payment date is 5th.So on Aug 18th i will receive my bill which
contains all the transactions i have made using credit card until
18th.As my bill payment date is 7th i have to pay this bill amount by
Sept 7th.After 18th if i buy anything that transaction will be billed
in Sept 18th bill.So i have to pay that by Oct 7th.This is how it
works.So first of all know your bill generation date and payment date
as it will give an idea when you will have to pay the bill.
Net
banking:
Mainly
it can be used for money transfer.There are three ways for this:
-NEFT,RTGS,IMPS.
NEFT:National Electronic Fund Transfer.
There
is no limit either minimum or maximum on the amount of funds that
could be transferred using NEFT.
The
charge depends on the amount being transferred and the maximum charge
per transaction is 25 INR.
NEFT
cannot be done on Sundays & National bank holidays
RTGS:Real Time Gross Settlement.
The
minimum amount of money which needs to be transferred to use RTGS is
2 lakhs and maximum is 5 lakhs.
The
charge for transfer depends on bank,amount being sent.
RTGS
cannot be done on Sundays & National bank holidays
IMPS:Interbank Mobile Payments Service.
You
dont have to give account number for this transfer. Instead you need
to give the other party MMID and your mobile phone number.
The
maximum amount which can be transferred is 50K through IMPS.
By
using IMPS an inter-bank transfer can be done any time of the day and
anytime of the year. So be it Sunday or public holiday you can still
transfer funds across banks.
Net
banking can also be used for the following:
Online
transactions.
Account
balance details.
Transaction
details.
Blocking
debit card in case you lost it.
Checking
debit card and credit card points.
Recurring
Deposit and Fixed Deposit information.
Now
coming to health insurance policy:
After
you join any company you may have to take a health insurance
policy.It may be mandatory for you but optional for your parents.
First
find out whether your parents are having any policy or not.If they do
not have any then it is better to take one as it is very helpful in
case of emergency situations.
If
they do have one then have a look at it to compare it with the policy
which you are provided with and decide whether to take it or not.
Most
of the time,freshers dont know whether their parents have a policy or
not and later regret after realizing that they have one and still
they are paying a premium for another.So dont make this mistake.
Hope
this information helps you in avoiding some mistakes.All the best in
your career :)
