It is very rare you get to see an advertisement of small saving schemes but then also more people invest in these schemes in comparison to bank deposits the reason being the interest given on these schemes and savings plans are tax free. But now these schemes won’t be as attractive as government is planning to reduce the rates on small savings scheme by 50-75 basis points to increase the bank deposits. Earlier in 2003 the rate was reduced by 100 basis points to the current eight percent. Government is thinking of setting up a committee headed by the former governor of RBI which will study the issues and recommend appropriate steps.
Analysts point out that in case the banks slash the deposit rates beyond a certain limit, then investors can get diverted towards small saving scheme. Therefore banks are abstaining from cut in the deposit rates. The industry experts say the reduction in deposit rates might not help in cut down of the lending rates also.
Some of the major small saving schemes are National Saving Certificates, Post Office Savings Account, Public Provident Fund, Kisan Vikas Patra, and Senior Citizen Savings Scheme. These saving schemes are in competition with the bank deposits as they have tax benefits under Section 80 C of the Income Tax Act.
Monday, June 22, 2009
Wednesday, June 17, 2009
Forum directed ABN AMRO bank to compensate for wrongly billing
The ABN AMRO bank has been directed by the district consumer forum bench comprising president TN Vaidya and member Rajesh Kumar to pay compensation and litigation costs worth Rs 6,000 for wrongly billing a resident, thus causing an undue harassment to the complainant.
The complainant Kanwal Khurana in his complaint alleged that he had opened a current account and got a credit card from ABN AMRO Bank by paying Rs 22,412 for using the credit card vide demand draft dated May 30, 2006. On 16.6.2006 the amount was credited to the account of ABN AMRO Bank.
But in spite of this the bank continued charging late payment charges and interest regularly in his statement. He stated in order to settle the matter in cordially manner he made a complaint to the bank on 28-11-2006 then also bank did not take any corrective measures.
The complainant appealed before the forum that the bank should be proceeded under the
the Consumer Protection Act for causing harassment. Bank did not defend its case in the forum therefore it was proceeded ex parte and the forum after hearing the arguments of the counsel for the complainant and scrutinizing the evidence presented by him, apprehended the bank guilty.
The complainant Kanwal Khurana in his complaint alleged that he had opened a current account and got a credit card from ABN AMRO Bank by paying Rs 22,412 for using the credit card vide demand draft dated May 30, 2006. On 16.6.2006 the amount was credited to the account of ABN AMRO Bank.
But in spite of this the bank continued charging late payment charges and interest regularly in his statement. He stated in order to settle the matter in cordially manner he made a complaint to the bank on 28-11-2006 then also bank did not take any corrective measures.
The complainant appealed before the forum that the bank should be proceeded under the
the Consumer Protection Act for causing harassment. Bank did not defend its case in the forum therefore it was proceeded ex parte and the forum after hearing the arguments of the counsel for the complainant and scrutinizing the evidence presented by him, apprehended the bank guilty.
Tuesday, May 5, 2009
Savings bank deposits are offering more than short term FDs
Almost all the banks have started reducing the interest rates on their deposits therefore the deposits kept for short tenure are earning lesser than the savings bank deposits. The public sector after renewing their deposits rates are offering very low interest rates on short-term deposits than the rates offered on deposits kept in savings bank accounts.
Therefore the customers will be in loss in case they have made short-term FDs than what they are earning by keeping the amount in their savings bank deposits.
According to bankers the trend aim towards the banks’ repulsion towards fresh deposits in a situation where the financial system is flush with liquidity that has no takers.
Some of the public sector banks on the maturities between seven days and 14 days are offering interest rates of as low as 3 per cent, whereas on the savings bank rate there is a uniform rate of 3.5 per cent for all banks.
However the Bank of India and Bank of Baroda are giving 3 per cent for maturities between seven days and 14 days, whereas Punjab National Bank (PNB) is offering as low as 2.5 per cent per annum for deposits of same maturities. On the other hand Union Bank of India is offering 3.5 per cent per annum on deposits, having maturities of 14 days or less, is similar to the savings bank rate.
Moreover on maturities of 30 days, some banks are giving less than 3.5 per cent. While, the PNB on one month is giving a meager 3 per cent interest, while Bank of India is offering its customers a measly 3.25 per cent interest.
However, State Bank of India, the country’s largest commercial bank, is giving 4 per cent even on deposits with maturity tenure from seven days up to 45 days.
The individuals with temporary excess liquidity and who might be requiring the money in the near future invest for short-term and they invest their excess cash in maturities that suit their requirements. In the recent months the banks have done sharp reduction in interest rate for short-term deposits with maturity tenure of up to 30 days. In October 2008, a customer was offered around 5 per cent on maturities of one month or so.
S Raman, executive director, Union Bank of India told Financial Chronicle, “Banks have been offering lower interest rates at the short end because there is ample liquidity in the system. In any case, banks are offering retail customers much more than what we are offering to bulk depositors”.
While on bulk deposits of such short maturities of similar tenure, banks are giving interest rates of around 2 per cent. Amid those offering the lowest rates is PNB with 1.5 per cent for seven-14 days bulk deposits.
“Prima facie the interest rate of 3 per cent on maturities of 30 days may seem lower than 3.5 per cent offered on saving accounts. But in actual practice, there might not be much of a difference. While a customer gets interest rate for all 30 days for a 30-day term deposits, he or she gets interest for a shorter period in case of savings bank account. This effectively lowers the interest rates,” informed L P Agarwal, chief general manager, PNB.
Currently banks give interest for only 20 days to the customers on a savings account that too on the least amount kept between 10th day and last day of a particular month.
Soon the calculation method of interest rate on savings deposit is going to change as the RBI has issued new directives for the calculation of interest on savings accounts on a day to day basis throughout the month from April 1, 2010.
Therefore the customers will be in loss in case they have made short-term FDs than what they are earning by keeping the amount in their savings bank deposits.
According to bankers the trend aim towards the banks’ repulsion towards fresh deposits in a situation where the financial system is flush with liquidity that has no takers.
Some of the public sector banks on the maturities between seven days and 14 days are offering interest rates of as low as 3 per cent, whereas on the savings bank rate there is a uniform rate of 3.5 per cent for all banks.
However the Bank of India and Bank of Baroda are giving 3 per cent for maturities between seven days and 14 days, whereas Punjab National Bank (PNB) is offering as low as 2.5 per cent per annum for deposits of same maturities. On the other hand Union Bank of India is offering 3.5 per cent per annum on deposits, having maturities of 14 days or less, is similar to the savings bank rate.
Moreover on maturities of 30 days, some banks are giving less than 3.5 per cent. While, the PNB on one month is giving a meager 3 per cent interest, while Bank of India is offering its customers a measly 3.25 per cent interest.
However, State Bank of India, the country’s largest commercial bank, is giving 4 per cent even on deposits with maturity tenure from seven days up to 45 days.
The individuals with temporary excess liquidity and who might be requiring the money in the near future invest for short-term and they invest their excess cash in maturities that suit their requirements. In the recent months the banks have done sharp reduction in interest rate for short-term deposits with maturity tenure of up to 30 days. In October 2008, a customer was offered around 5 per cent on maturities of one month or so.
S Raman, executive director, Union Bank of India told Financial Chronicle, “Banks have been offering lower interest rates at the short end because there is ample liquidity in the system. In any case, banks are offering retail customers much more than what we are offering to bulk depositors”.
While on bulk deposits of such short maturities of similar tenure, banks are giving interest rates of around 2 per cent. Amid those offering the lowest rates is PNB with 1.5 per cent for seven-14 days bulk deposits.
“Prima facie the interest rate of 3 per cent on maturities of 30 days may seem lower than 3.5 per cent offered on saving accounts. But in actual practice, there might not be much of a difference. While a customer gets interest rate for all 30 days for a 30-day term deposits, he or she gets interest for a shorter period in case of savings bank account. This effectively lowers the interest rates,” informed L P Agarwal, chief general manager, PNB.
Currently banks give interest for only 20 days to the customers on a savings account that too on the least amount kept between 10th day and last day of a particular month.
Soon the calculation method of interest rate on savings deposit is going to change as the RBI has issued new directives for the calculation of interest on savings accounts on a day to day basis throughout the month from April 1, 2010.
Monday, April 6, 2009
Barbie's adult collectible item!
A toy plays a very important role in our childhood as they just help us to imagine how things look like in real life. Every parent wants their child to provide the best sources so that they could face the world with full confidence. Barbie doll collecting has been around for quite a while time and has accomplished many things. She has been everything from a fashion model to an astronaut. It is safe to say that Barbie is so popular that almost every little girl owns at least one. But Barbie is not just for little girls, she is a highly collectible doll. There are Barbies made for play and there are Barbies made for collectors.
People when they enter into teenage just forget the all fun but it should be done. Nowadays Barbie collections are specially designed for the adults also. Barbara Handler is the daughter of Barbie's inventor, Ruth Handler. Ruth Handler had noticed that when her daughter played with her paper dolls, she frequently pretended that the dolls were grown-ups. Most dolls available in the early 1950s were baby dolls so Ruth thought that might represent an opportunity for her husband Elliot's toy company, Mattel.
In this busy world we are lost in search of making life luxurious but nobody knows that this could cost you a much because your family which wants the most of your free time. Mattell wasn't all that interested in the idea, but fortunately Ruth didn't forget about it herself, so when she came across an interesting doll in Germany on a trip there with her children she bought three of them to take home. This doll was the Bild Lili. She was an adult doll based upon a German comic strip character and she had been popular in Germany since her release in 1955.
Are you tired of searching the toys don’t worry now Playdex offers you the great range of toys also buy cheap toys including toys games, Baby Born, Barbie and Disney toys.
Wednesday, March 25, 2009
Bankruptcy
The economic slowdown that started in United States and sent ripples across the globe is taking its toll on all the major macroeconomic indicators of the country. Reports suggest that the US Federal Reserve has reduced the GDP forecast for the FY 2009. It is being anticipated that United States economy would shrink by 1% or slightly more in the current fiscal year. It has affected employment and practically all sectors of the economy.
To cope up with the financial requirements of the prevailing market conditions, more and more individuals and business entities are filing bankruptcy.
Probable scenario in 2009
2009 has hardly seen the first 3 months, when financial experts are indicating that there are probable signs that 2009 will be a year when bankruptcy filings will register a record high. This will probably be the highest in the last 3 decades.
The incidence of corporate bankruptcies have increased manifold. And there are many companies in queue. As of February 20, 2009 33 cases of bankruptcy filings have been recorded. 33 cases include both Chapter 7 as well as Chapter 11. Bankruptcy filings during the same period in FY2008 was 14, the only difference is the companies filing for bankruptcy this year have comparatively more assets.
The pre-petition assets of these 33 companies when combined amounts to USD$65.7 billion. The figure has escalated by more than 7 times as compared to the same period last year. It has also been observed that majority of the companies that have declared themselves bankrupt, had sought protection in past (Chapter 22).
What’s new in bankruptcy?
With the introduction of the new bankruptcy law that took effect on 17th October 2005, filing for bankruptcy has become a tough job. Few changes have been made in the way consumers can file for bankruptcy. Given below is an overview of the same.
-Changes in the waiting period
If you have filed for bankruptcy, you could file for it again at frequent intervals. Under the new law, a considerable period of time should have elapsed before you can file for bankruptcy again.
-Eliminating all your debts
Previously, you could do away with all debts. As per the new law, there are only certain debts that can be eliminated.
-A bankruptcy lawyer for you
Earlier you could file for bankruptcy and take the decision on your own. The new law has made it mandatory that you need to consult a bankruptcy lawyer and if he deems it necessary for you to file for bankruptcy, you can go ahead.
Even though filing for bankruptcy will reduce your chances of getting new credit, it is sometimes the only option that a consumer is left with. Nevertheless, it has helped many recover financially.
To cope up with the financial requirements of the prevailing market conditions, more and more individuals and business entities are filing bankruptcy.
Probable scenario in 2009
2009 has hardly seen the first 3 months, when financial experts are indicating that there are probable signs that 2009 will be a year when bankruptcy filings will register a record high. This will probably be the highest in the last 3 decades.
The incidence of corporate bankruptcies have increased manifold. And there are many companies in queue. As of February 20, 2009 33 cases of bankruptcy filings have been recorded. 33 cases include both Chapter 7 as well as Chapter 11. Bankruptcy filings during the same period in FY2008 was 14, the only difference is the companies filing for bankruptcy this year have comparatively more assets.
The pre-petition assets of these 33 companies when combined amounts to USD$65.7 billion. The figure has escalated by more than 7 times as compared to the same period last year. It has also been observed that majority of the companies that have declared themselves bankrupt, had sought protection in past (Chapter 22).
What’s new in bankruptcy?
With the introduction of the new bankruptcy law that took effect on 17th October 2005, filing for bankruptcy has become a tough job. Few changes have been made in the way consumers can file for bankruptcy. Given below is an overview of the same.
-Changes in the waiting period
If you have filed for bankruptcy, you could file for it again at frequent intervals. Under the new law, a considerable period of time should have elapsed before you can file for bankruptcy again.
-Eliminating all your debts
Previously, you could do away with all debts. As per the new law, there are only certain debts that can be eliminated.
-A bankruptcy lawyer for you
Earlier you could file for bankruptcy and take the decision on your own. The new law has made it mandatory that you need to consult a bankruptcy lawyer and if he deems it necessary for you to file for bankruptcy, you can go ahead.
Even though filing for bankruptcy will reduce your chances of getting new credit, it is sometimes the only option that a consumer is left with. Nevertheless, it has helped many recover financially.
Tuesday, February 10, 2009
Public banks deposit growth rise, private, foreign banks see drop
The public sector banks have shown growth in their credits in comparison to their private and foreign competitors. According to latest data released by the Reserve Bank of India (RBI) in due course the depositors have withdrawn funds from private and foreign banks and are investing their money with public sector banks which has resulted in a significant decline in growth of deposits with private and foreign banks.
By the week ended January 2, 2009 there has been significant drop in deposit growth of private and foreign banks which in turn pulled down the overall growth in deposits on year-on-year (y-o-y) basis, of all scheduled commercial banks to 21.2 per cent from 25.1 per cent in the corresponding period a year ago.
Although for foreign banks the deposit growth went down to 12.1 per cent from 34.1 per cent, the private sector banks saw their deposit growth dipping to 13.4 per cent from 26.9 per cent on y-o-y basis.
On the other hand in the same period, for the public sector banks, deposit growth was projected at 24.2 per cent, the same growth rate as last year.
Standard Chartered Regional CEO Neeraj Swaroop, remarked that the picture got twisted due to the performance of a few banks, which were saw a rapid rise in the last three-four years. He informed, “We have not seen a drop in growth rates. It may be the case with some of the US-based banks that operate in
In recent months big companies such as Infosys moved their deposits from private and foreign banks to public sector banks, largely because the state-owned players were offering higher interest rates. While in December, the public sector players had taken decision to reduce bulk deposit and focus more on current account and saving account balances.
While on lending side, bankers, notified that as overseas funding sources were drying up therefore companies were finding difficulty in accessing money from the equity markets, the demand has shifted to the domestic arena.
Likewise, as per the data public sector banks has seen a sharp increase in lending for the year up to January 2, 2009. However private and foreign banks have seen a drop in credit growth during the period.
| Bank group-wise deposits and credit | ||
| In per cent | Jan 4, 08 | Jan 2, 09 |
| Deposits | ||
| Public sector banks | 24.2 | 24.2 |
| Foreign banks | 34.1 | 12.1 |
| Private sector banks | 26.9 | 13.4 |
| Commercial banks* | 25.1 | 21.2 |
| Credit | ||
| Public sector banks | 19.8 | 28.6 |
| Foreign banks | 30.7 | 16.9 |
| Private sector banks | 24.2 | 11.8 |
| Commercial banks* | 21.4 | 24.0 |
| * Includes regional rural banks (RRBs) | ||
From the records on a y-o-y basis, the public sector banks, credit growth increased to 28.6 per cent in January 2009 from 19.8 per cent in January 2008, whereas, credit growth of private banks dipped 105.1 per cent from 24.2 per cent to 11.8 per cent in January 2009.
While the foreign banks, growth rate is on average partly due to the experience of their global parents.
On a year-on-year basis, the credit growth of foreign banks operating in
But in case of Indian private banks, the drop was steep as many of them, including the likes of ICICI Bank, the largest in the segment, are in an asset shrinking mode. A bank executive stated, “These banks are now consolidating their business to control non-performing assets (NPAs) and improve recoveries.”
Tuesday, January 27, 2009
Cheap car rental services
WOW! Vacations coming and we all start on planning for some lovely trips. Children wants to go Disneyland, wife wants to go Hollywood but I want to go for a long trip in France. If you're thinking of taking a holiday abroad, one of the main points to consider when deciding on a destination is how easy it is to get around the surrounding destination. If you're going to a resort that is not too far from the airport, your best option would be to make use of the local public transport during your stay, although your travel company will usually provide coaches to get you to your hotel upon arrival at the airport.
If you'd rather explore the resort and the surrounding areas by yourself, car hire could be the best option for you. Hiring a car can provide you with a lot more freedom to explore the attractions and historical sites outside of the resort.
Indeed, with many of the more recognizable sights to be found outside of the main resorts, many like to make use of their car rental services and embark on a day of exploration and escape the bustling resorts in order explore more of the local area.
Holiday car hire can also give you the chance of a scenic drive, particularly in coastal and mountainous areas. Whilst the majority of attractions can be found around the resort itself, many tourists are usually eager to explore the smaller tourist attractions, as well as heading to the coast in order to participate in activities such as diving and water sports.
Car rental prices will differ depending on your holiday destination and the size of the vehicle you are looking for. You may also get easily car hire europe. Many companies will have a large selection of vehicles that can be collected from the airport upon arrival at your destination. So whether you're looking to hire a smaller economy car or a people carrier to fit your family and their entire luggage into, the variety of choice available means that you can cater a car hire plan to your holiday plans.
Finally, if you do try this adventure you’ll find that car hire France is not so hard to arrange on the web before you go, or if you are going on spec, you’ll probably pick up a reasonable vehicle at the your airport without booking.
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