Field Service Management Market Size Analysis And Growth (2020-2025)

Field service management software helps companies deliver effective onsite service by tracking requests, managing personnel, and maintaining visibility into operations.

Field service management refers to a system for efficiently managing end-to-end activities in a field service organization and delivering work. The rising need for mobility with IoT, increasing technology in the computerization era which leads to the adoption of cloud-based applications, is driving the growth of the Field Service Management market globally.

Key Benefits For Field Service Management Market Reports

Some of the key points of the field service management market reports are mentioned below: 

• The global market report covers forecast analysis.

• It also includes historical data in a vast amount.

• The report evaluates the growth rate.

• The global market research report provides detailed and comprehensive information about market analysis and strategies. 

• The report includes the Market Introduction, Global market Revenue, Market Restraints, Market Opportunities, and Competitive Analysis.

• The report gives an in-depth insight into the industry.

• The global market report also helps to identify opportunities in the market.

• It analyses the Market value based on Market dynamics.

• It covers extensive analysis of emerging trends as well which can be very beneficial in newer times.

• It provides a holistic understanding of the current and expected market fluctuations. 

Covid Affect

The market has also been affected by the COVID situation. The estimated plans are regenerated in order to steady the income and recast the forecasting. The analysts are constantly tracking the impact of this rapidly evolving situation on the market. The current market trends are taken into account and will definitely reflect the effects of the epidemic. 

Field Service Management Market Segmentation:

The global field service management industry can be divided on different bases such as organization size, deployment types, and applications.

Based On The Components

It is classified into two categories:

Solutions

• Route Optimisation

• Customer Management

• Inventory Management

• Analytics and other

Services

• Consulting

• Integration and Implementation

• Training 

• Support

Based On Organization Size:

Large Enterprises

Small and Medium-sized Enterprises

Based On Type:

On-premises

Cloud

Based On Application:

IT and Telecom

Healthcare and Life Sciences

Fuel

Manufacturing

Real estate

Transportation and Logistics

Construction 

Energy

Utilities

Regions/Countries 

Countries that are involved in the field service management market size analysis and growth are North America, USA, Canada, Mexico, Europe, the UK, France, Germany, Russia, Asia-Pacific, China, South Korea, India, Japan, Latin America, Middle East, Africa.

Year Considerations

The base year considered is 2019, which suggests market size was available for years 2014-2019 and the forecast period will be 2020-2025.

Past Analysis

The field service management market was estimated at almost 3 million USD in 2019. Now, it is expected to grow at a CAGR of 16% during the forecast period which is the year of 2020 to 2025. 

Report Outcome

The reports will provide you an in-depth analysis of the current situation of the market and therefore will build your knowledge about the subject. This will help you make the decisions effectively. 

It will show the opportunities and will help you avoid the mistakes other companies could make. Furthermore, it will strengthen your analysis of your competitors. 

Indeed, will help you to maximize the profit of your company. And will keep you up-to-date about the market and its ongoing conditions. You can overview your business and then act accordingly to the trend. 

Questions Which Will Be Answered By Our Reports:

Some of the questions which may cross your mind in order to know about the market conditions, and which we will answer to you in our reports are:

• What are the Upcoming opportunities?

• What are the trends in this market?

• Which are the main factors responsible for a new product launch?

• How far will the market grow in the forecast period in terms of revenue, sales, and production?

Data Collection

The data is collected from various different sources. Some of the data is driven from interviews with multiple industry stakeholders.

We have contacts with industrial professionals who have precise insight into the market. The interviews are held via mail, phone calls, or personal meetings. We interview both our buyers and consumers to view the market from both sides.

Also, we study the financial reports of the key players of the industry to know the strategies. 

Competition

The report presents a detailed analysis of the following competitors in the global field service management market: 

• Oracle Corporation

• Astea

• Microsoft Corporation 

• ClickSoftware Technologies 

• FieldAware

• ServiceMax 

• Jobber

• Infor

• Trimble

• Comarch 

• Zinier

• Comarch

• Overit

Conclusion

Field services management market reports provide market analysis in the best way possible, which will give direction and guidance to the customers. The report provides an in-depth analysis of market data for segments such as technologies, services, and opportunities. The report evaluates the strategic options carefully with genuine data and provides open innovative ideas.

The analysis of the market status and competition, opportunity, challenge, restraints, and risks analysis, all are estimated in the reports. It presents key manufacturers, development, and status.

3 Reasons Why You Should Upgrade Your Credit Card

Most of us start off our ‘plastic’ life with a basic credit card because that is all we are eligible for in the beginning of our careers. As we start using our cards, we realize our spending and repayment patterns.

So, you’ve had your card for some time now, and are wondering whether you should trade it in for a shinier, new plastic. Here are 3 reasons why you should upgrade your credit card:

Higher Credit Limit

The credit limit that you are offered on your credit card is based on your monthly/annual income. So, if you’ve seen an increase in your income, you will be eligible for a higher credit limit. Having a higher credit limit increases your purchasing power, and at the same time can positively affect your credit score as well. There is a component in your score called ‘credit utilisation ratio’ that takes into account the amount of credit you have used in relation to the total amount of available credit.
So, if you increase the credit limit on your card, then your total available credit will also increase. And if you keep your spending habit consistent, then your credit score could increase as well because a low credit utilisation ratio = higher credit score.
If you’re considering increasing your credit limit, you have two options: you can either increase the limit on your existing card or get a new credit card with a higher limit. This decision should be based on what perks you are currently offered on your existing card and if you can find a card to better suit your financial and lifestyle needs.

Credit Card Rewards

Basic credit cards, as the name suggests, offers ‘basic’ rewards. It’s a starting point to build your credit score and may not benefit you much when it comes to rewards. There is no dearth of credit cards in the market today – you can find a card that rewards every inch of your lifestyle whether it is shopping, eating out, travelling, and so on.
If your existing card is not rewarding you well enough as per your spending pattern, then it might be time for an upgrade. Using a card that rewards your spending behaviour can help you save significantly. There are credit cards that offer reward points, cashback, and air miles on eligible spends that you can redeem for gift vouchers, flight tickets, merchandise, discounts, and offset future transactions.
So, if you dine out frequently but currently have a card that rewards grocery spends, then you’re not reaping the rewards, literally, and it might be time to trade your card in for a dining credit card.

You’re Paying a High Annual Fee

If your current card rewards your purchases, but at the same time charges a high annual fee, then the benefits cancel out the cost, i.e. you’re not really saving or earning anything by using your card. One of the biggest incentives to use a credit card is to save on purchases by earning and redeeming rewards. But if your card is “high maintenance”, emphasis on the ‘high’ and does not offer higher benefits for the price, then it might be the right time for a change. Choose a card that either comes with no or low annual fees with good perks or even if it charges a high annual fee, it offers even better rewards.
You should also read the most important terms and conditions of your card to see what other charges you’re incurring. These could be the interest rate, late payment fees, and so on and compare it with other cards to see the difference in pricing.
Want to upgrade your credit card? In addition to saving on money, if you wish to save time on research as well, you can visit credit card comparison websites such as BankBazaar, compare the perks, fees, and charges of various cards, and apply online conveniently.

Learn About These Credit Card Charges To Make Smart Credit Choices

Credit cards have rapidly become a key ingredient of the growing paperless economy. These help you to increase your purchasing power. You can make quick and easy payments even if you do not have the required funds at your disposal. Many card issuers also reward their customers with attractive offers, discounts, cashback deals and exclusive benefits on select purchases. Credit cards also offer an opportunity for you to build your credit unlike debit cards. However, credit cards must be considered as a short-term loan. It includes regular interest payments among other charges.
Every credit card company attaches interest rates and charges based on their discretion. It is important to learn about the charges and compare the interest rates before opting for a credit card.
If you are looking to apply for a credit card, consider the following costs and charges attached to a credit card:

Annual fee payment, fees for joining and renewal

Every credit card is accompanied with an annual fee which needs to be paid once in the lifetime of a card. The fee associated with each card varies. It usually ranges between 0 and Rs.30,000. The amount is usually billed in the card statement of the particular month. A number of card issuers have now introduced ‘zero or lifetime free’ annual fees or offer a limited period for with no annual fees.
When your application for a credit card gets sanctioned, most card issuers charge a joining fee which ranges from 0 to Rs.1 lakh. A credit card renewal fee is a predetermined amount which needs to be cashed once every year.
Charges related to finances
Most credit card companies offer an interest-free period to the cardholders. However, if you are unable to make timely credit card bill payments, an interest rate within 23%-47% would be charged to your account. The interest-free period becomes reactivated only after payment of the pending dues.
Fees for cash withdrawal
Cash withdrawal fees or cash advances fees are billed to your account if you withdraw cash from an ATM using your credit card. This fee is usually 2%-3.5% of the withdrawn amount or Rs.500, the higher of the two. The total amount to be paid is tallied from the day of the withdrawal until repayment.
Penalty for late payment
You can be charged with an overdue penalty if you are unable to make timely payments as per the bill statement or at least pay the minimum balance. Credit card issuers decide the value of the penalty depending upon the balance on the card.
Over limit-related charges
If you surpass the predetermined credit limit, you could be billed with an over limit penalty. The penalty could fall anywhere between 2.5%-3% for a minimum withdrawal of Rs.500.
Surcharge payment
In case of credit transactions, surcharge is the tax associated with goods and services. 2.5% is charged for railway-related expenditure and 1% or Rs.10 is charged for fuel-related cost. If the transaction for fuel exceeds Rs.400 or Rs.500, it is free from surcharge.
Charges for transactions in foreign currency
A conversion fee is applied if a credit card is used overseas. Credit issuers can charge up to 3.5% for an international transaction.t
Additional charges
A credit card is loaded with other charges such that are associated with deposits, delayed payments, fraudulent transactions and card replacement.
Bottom line
It is important to remember that, even though credit cards can be a helpful financial tool, it needs to be utilized responsibly. Factors such as delayed payments, outstanding dues and penalties can detrimentally bring down your credit score. The only way to enjoy the rewarding offers and benefits offered by credit cards is to make timely payments and regulate your credit card utilization.

How do I Convert HDFC Credit Card Purchase into EMI?

Even before converting your HDFC credit card purchase into EMI, ensure that the credit card purchase or transaction which you wish to convert into EMI is eligible for HDFC’s SmartEMI facility. You can check the same through your HDFC NetBanking account or by calling HDFC customer care, in case you don’t have an online banking account.

To check the eligibility of your HDFC transaction through NetBanking and to convert the same into EMI, follow the instructions mentioned below.

• Login to HDFC Bank NetBanking account.
• Click on ‘Cards’ from the main menu
• From the left side menu, Click Transact > SmartEMI
• Select credit card
• Choose transaction type as ‘Debit’ and click on ‘View’
• All the transactions eligible for conversion into EMI will be displayed along with an option ‘Click here to know your eligibility’.
• Click on the option corresponding to the transaction you wish to convert into EMI.
• Details of the EMI facility will be displayed
• Select the tenure in months to know the EMI details
• Check the terms and conditions box and click on ‘Continue’
• The SmartEMI details including loan amount, interest rate, tenure and monthly EMI will be displayed.
• If you’re okay with the interest, tenure and EMI, you can click on ‘Confirm’

The EMI facility will be approved immediately and the respective reference number and loan number will be displayed. The EMI will be effective from your next billing cycle and will be included in the minimum amount due.

What Lenders Look for When You Apply for Credit Card

When you apply for a credit card, there are multiple factors lenders consider before approving your application. Potential lenders always check your CIBIL score before issuing you a credit card. There are other factors that affect your credit card application such as your income, the organisation you work for, age, the city you reside in, and your payment history.

Factors lenders consider before approving your credit card application

• Credit score: Credit score is a 3-digit number that indicates your creditworthiness based on your credit history. Lenders check your credit score to analyse the risk and your repayment capacity. Your credit score can range anywhere between 300 to 850. A high credit score indicates that you are a financially trustworthy person in the eyes of the lender. If you have a low credit score, your credit card application may be rejected straightaway. Credit Information Bureau (India) Limited (CIBIL), one of the leading credit reporting agencies in India keeps a track of all your credit-related activities and issues your credit score. A credit report is a comprehensive document issued by the credit bureaus in India which list out all your borrowing and repayment history. There are many ways you can improve your credit score even if it is low currently.
• Debt-to-Income Ratio: A Debt-to-Income (DTI) ratio is determined by taking the sum of all your debt and dividing it by your income. Generally, your debt-to-income ratio should be less than 30%. If you have a high Debt-to-Income Ratio, any changes in your income level will put you in a financial crisis. So, if you have a high DTI ratio, consider closing one of your existing loans, clearing your Equated Monthly Instalments (EMIs), or paying off your credit card balance in full. Save the money you spend towards clearing your debt. This will lower your DTI ratio.

• Income and employment: If you have applied for a credit card, you would know that you have to submit your recent payslips if you are employed or your income documents if you are self-employed. Lenders analyse your employment and income details before issuing your credit card. While viewing your credit card application, lenders also check if your employment is stable.

• Credit Card Utilisation Rate: Apart from your payment history, your credit card utilisation rate is also an important factor that affects your credit card application. If you have multiple credit cards or had a credit card in the past, your credit utilisation rate can tell a lot about you. If you have over utilised your credit limit, your credit card application may be rejected. However, if you maintained a good credit utilisation rate, you would get a better deal on your credit card application.

• Delinquent accounts: If you have a delinquent account in your credit report, it could affect your credit card application negatively. A delinquent account is a credit account on which the customer hasn’t made the minimum due amount within the due day. When the account is 30 days past due, the credit provider will contact the customer to make the payment to restore the account. If the account is 90 days past due it will affect your credit score significantly. Before applying for a credit card, check your credit report and make sure you do not have any delinquent accounts.

Credit card application tips

• Before applying for a credit card, make sure you check your credit score and read your credit report. You can get a free copy of your credit report from each of the credit reporting agencies in India namely, TransUnion, Experian, and Equifax. You could also get a free copy of your credit report from one of the neutral financial advisory websites like BankBazaar.
• Close your existing loans if possible and lower your Debt-to-Income Ratio.
• If you have multiple credit cards, make sure you clear your credit card balance and maintain a good credit utilisation rate.
• Pay all your bills on time. This will increase your creditworthiness.
• Do not apply for too many credit cards or loans at the same time. The number of loan applications you submit has a negative impact on your credit card application.

If you have a low credit score or a high Debt-to-Income Ratio, make financially healthy changes and wait for few months before you apply for a credit card. Once you have made some changes like closing a loan or clearing your credit card debt, wait for a month for it to appear on your credit report.

How do I pay my credit card bill with another credit card?

Banks that issue credit cards in India do not let a cardholder use one credit card to pay the bill of another. A cardholder cannot use a credit card directly to pay another's bill. However, there are other ways in which one can pay a credit card bill using another credit card. Listed below are two ways in which a cardholder can do that:

• Balance Transfer: Using the balance transfer feature, a credit cardholder can transfer the entire or a part of the debt that has accumulated on another credit card to a different credit card. This feature helps the cardholder to keep a track on their balance and payments. This is also a wise way to save on the interest that one needs to pay.
• Cash Withdrawal: The cardholder can withdraw cash using a credit card that has ample amount of unused credit limit and use the cash to pay off the debt on the credit card that has accumulated debt.

What is the billing cycle for the HDFC credit card?

Most banks in the country decide the billing date for the credit cards that they issue to their customers. Also, banks mention the billing cycle details in the monthly e-statement that they issue. The RBI has a set of rules and regulations in place that the banks need to follow. The bank asks the customer to pay their billing within this set billing cycle. Generally, the billing cycle of an HDFC credit card is a minimum of 20 days and a maximum of 50 days.

How To Make The Best Use Of Supplementary Or Add-on Credit Cards

It is a truth universally acknowledged that credit cards unlock a world of financial freedom for the cardholders. With constant evolution of the financial world, more and more options are opening up in terms of products and services. So now, one can easily share this financial freedom with their family members, thanks to the introduction of supplementary cards. Supplementary or add-on cards, as they are popularly known, give the primary cardholders an option to share the benefits of the credit card. Supplementary cards can be issued for the primary cardholder's family members including their spouse, children or parents. Almost all the major banks in India issue supplementary credit cards. However, there is a limited number of supplementary cards that is issued by the banks. Also, a supplementary cardholder should be at least 18 years or above to be able to use the card.

Listed Below Are Some Of The Important Properties Of A Supplementary Credit Card:

• 
  Gathering reward points: The reward point system of a credit card lets the cardholder earn bonus or points each time they swipe the card. After gathering these reward points, the cardholder can claim exciting products from the bank's catalogue. It works in the same manner with supplementary or add-on credit cards. The number of reward points that the supplementary cardholder earns for subsequent swipes is the same as on the primary card.
  
• Benefits for the supplementary cardholders: Contrary to popular belief, supplementary cardholders get to enjoy the same set of benefits that are provided to a primary cardholder. From air miles to cashback offers to fuel surcharge, supplementary cardholders receive the same benefits that the primary cardholders enjoy. Most banks even allow the supplementary cardholders to earn airport lounge visits (depending on the credit limit, expenditure made on the card and maintenance of the card).
  
• Cash withdrawal facility on supplementary cards: Supplementary cardholders can withdraw cash from an ATM using their credit card any time of the day. However, the limit of cash withdrawal will be the same as that of the original credit card. In some cases, the banks set a lesser cash withdrawal limit.
  
• Monitoring usage: The primary cardholder can monitor the usage of the supplementary cards. In case the primary cardholder has given supplementary cards to family members who are dependent on them like their children, they can keep a check on their spending habits. In fact, if the primary cardholder wishes to set a separate credit limit on the supplementary card, they can do that as well.
  
• Credit limit – In most cases, the credit limit on a supplementary card is the same as that of the primary credit card. However, at times, some banks might allow a lesser credit limit to a supplementary card (in comparison to the primary credit card). For example, if a cardholder has been issued five supplementary cards and their primary credit limit is Rs.2 lakh, the sub-limit for their supplementary card should be distributed equally amongst all the add-on cards. So, the cardholders will be entitled to a limit of Rs.40,000 on each of their add-on cards. Similar sub-limits will imply on their cash withdrawal also.
  
• Fee: Most banks in the country do not levy any charges to issue a supplementary card. In fact, at times, banks issue supplementary cards as a complementary service. However, there is a limit to the number of free supplementary cards that a primary cardholder can apply for. A few banks charge a certain amount of money to issue more than four supplementary cards. Also, most banks waive the annual fee of the supplementary cards.
  
• Statements of supplementary cards: Every bank that issues a supplementary card generates a consolidated statement of account that includes the expenditure made on the primary card as well. This not only makes tracking easy, it also helps in keeping a check on the expenditure made on each and every card. These statements can be obtained in hard copy as well as via email. Most banks do not charge their customers for availing this service.
  
• Payment of balance on the supplementary card: While expenditure made on supplementary cards are individual, payment of the outstanding amount must be done through the primary card. Cardholders, both primary and supplementary, are expected to pay the consolidated outstanding balance together. The due date of the same is also the same. In case of delay in payment or failure to make a payment, the primary cardholder will be held responsible.
  

While supplementary cards ensure the financial freedom of the family members of the primary cardholders, it is also important to be meticulous when it comes to their maintenance. Any negligence in terms of payment of the outstanding amount can affect the credit score of the primary cardholder. Hence, while getting supplementary cards for the family, the primary cardholder should make sure that the add-on cards are maintained with as much care as the parent card itself.  

How to link Aadhar Card with PAN Card

How to Activate Your Deactivated Pan Card 2017 Online

Procedure to Reactivate Your PAN

1. Once, PAN is de-activated by department, income tax e-filing login of assessee also gets blocked

2. To Activate your PAN again do following:

3. Write an Application to your PAN AO Code(in duplicate) for activation of your PAN. Following documents need to be attached to application:

1. Indemnity Bond in favour of the Income Tax Deptt.
2. Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.
3. Copy of last 3 years Income Tax Returns filed on the PAN de-activated.

4. Reactivation of PAN is 10-15 days process for Income Tax Department

5. If you have received any notice/intimation from ITD for which an online response needs to be filed but your e-filing login is blocked then you should file that physically to your AO and as your PAN gets activated file that in online mode too.

6. There can be a scenario where you haven’t filed earlier returns then in that case add another declaration in the Indemnity bond explaining the scanerio.

Format of Letter To AO

The Accessing Officer of Income Tax,                                                            Dated:*************

Ward No. ****

Do you want to become an Expert in GST?- Click here to Join

Civic Centre

New Delhi-110002

Sub: Request for Activating PAN Card no. ********** in the Name of Mr. ***************

Respected Sir/Madam,

Through this Application, I bring to your notice that PAN CARD No ********** was deactivated and the current status on the Income Tax Department website is also Deactivated as message “Your PAN card is deactivated by department” is being displayed while login. Due to this I am unable to file the Income Tax Return for the Assessment Year 2017-2018.

In this regard I request to you to please look into matter and activate my PAN card so as to enable me for Income Tax Return filling for the AY 2017-2018. The activation will also help me in migration to GST.

For the Purpose of activation of PAN Card, I am enclosing the following documents

1. Photo copy of my PAN CARD
2. Indemnity Bond and
3. Copies of last 3 years ITR filed as enclosure to this application are not available since my Income for last 3 Assessment Year was below taxable limit. In lieu of these documents I have added another declaration in the Indemnity Bond enclosed in this letter vide point A.

Kindly do the needful at the earliest and help me in being compliant with other laws also.

Details in respect of the PAN mentioned in Subject

1. Name in PAN Card: ***************
2. Father’s Name : *************
3. Date of Birth: *************
4. Residential Address : **********************

Yours faithfully,

***************

Format of Indemnity Bond

(Include Point 7 if You do not have last 3 year ITR Copies)

I,*******************, R/o *****************, do hereby solemnly affirm and declare as under:

1. My PAN is: **********
2. I am regularly assessedin your ward/jurisdiction with PAN: **********.
3. I have only one PAN i.e********** which isused for last many years for the purpose of Income Tax Procedures and Proceedings, if any.
4. I do not have any other PAN with me neither I applied for any other PAN, if any other PAN is allotted in your records, kindly deactivate the same and activate the PAN for which I have submitted the Application.
5. I undertake to indemnify the income Tax Department for any loss that may be caused in the future.
6. Kindly activate my PAN: ****************.
7. I also declare that my income for earlier years for which I didn’t filed my return was below taxable limit. Therefore, I do not have copies of Income Tax Return for last 3 years as aksed by the Income Tax Department.

That the above statements are true to the best of my knowledge and belief.

(Deponent)

PAN card to be given instantly

In a bid to back Prime Minister Narendra Modi's endeavor to promote digitization in India, the Central Board of Direct Taxes is making efforts to issue the Permanent Account Number (PAN) quicker with the help of Aadhaar's e-KYC facility. This facility helps the user to authenticate details using the biometric identification option.

Pan Card 

A report quoting an authority from the PAN department has announced that this step will minimize the number of steps included in the process of getting a PAN card. It will also reduce the time taken from three weeks to a few minutes. However, though the applicant will receive the PAN number instantly, the office will deliver the card after a while.

After this, the Income Tax Department is contemplating the alternative of creating a smartphone app that will help taxpayers to pay their taxes with ease. This app will not only help them keep a track of their investments and returns but will also help them in applying for a PAN card online.

Recently, the government announced that it will issue PAN cards that have been newly designed. These cards will feature added security that will turn them tamper-proof. The content of these cards will be available in English and Hindi.

Why Liquid Funds are a Good Idea

Why Liquid Funds are a Good Idea

With the demonetisation drive that took the country by storm, liquidity has seen a tremendous increase and while the drive did stir up the pot, it managed to bring a lot of the currency back into the banks. The demonetized currency has almost entirely (close to 95%) been deposited back into the accounts and the overall financial ecosystem is currently seeing a great degree of liquidity.

This feature has consequences that reach farther than the lines at the ATM. Banks are now flush with cash which has caused them to reduce interest rates. Borrowers with car loans, personal loan or home loans can enjoy this brief respite but investors’ better start looking at other options rather than traditional fixed deposits. Lowered interest rates also imply that the bank pays lower rates for deposit amounts thus reducing the returns.

The reduction in rates are meant to deter people from further depositing cash into the system. Investors can still opt for time tested methods of deposits that are extremely safe but give poor yields. Other options investors could consider are Liquid Funds.

Features of Liquid Funds

Liquid funds are money market funds that fall under the debt fund category. These funds give better returns than bank deposits and consist of investments such as short-term treasury bills, commercial papers, term deposits and certificate of deposits. The maturity period of assets invested in have an average period of 91 days

Liquid funds are offered by a wide range of fund houses. Entry or Exit loads are not imposed on these funds. Unlike equity funds, the management fees levied on liquid funds are lower as well ranging between 0.5% and 1%. Even the investment amounts are very affordable for those just starting off. Investments can be made through lump sums or through SIPs used in a manner similar to mutual funds. Lump sums invested in liquid funds can be as low as Rs.5,000.

Tax benefits

This is the realm in which liquid funds are far superior. Bank deposits usually offer lower interest rates but come with no risk. The interest rates on deposits can range from 4% to 7% and when you take tax deductions into account, the returns are further diminished. For those investors falling under the 30% tax bracket and holding a fixed deposit that offers an interest rate of 6.5% per annum, the interest rates received after tax deduction will wilt down to 4.55%

Liquid funds on an average have been earning more than bank deposits with interest rates averaging out at 8% to 9% per annum. This trend has been consistent over the past few years and even with a slump in interest rates of liquid funds as was witnessed last year, the funds still earned a rate of 7.5% which is comparatively higher than rates offered on bank deposits.

Another tax benefit of liquid funds is that the tax paid on annual interest rates does not occur annually as is the case with bank deposits. The tax is paid only when the fund is liquidated. Tax paid on returns is of two types. One is short-term capital gain tax which is levied on redemption of debt funds in less than 3 years or less than one year for equities. The second is long-term capital gain tax which is levied on redemptions made on debt funds after a period of three years.

New to Credit Cards? Here’s All You Need to Know

New to Credit Cards? Here’s All You Need to Know

So you’ve decided to take the plunge and get yourself a credit card. Unwrapping that shiny little piece of plastic opens you to a world of benefits and privileges. However, there are certain rules to live by if you want to avoid falling into a debt trap that could see your credit worthiness spiral downwards and make you a financial persona non grata.

A credit card gives you the freedom to spend money that is not debited from your bank account up to a certain sum for a fixed period of time. Thus, credit cards make credit available to you as and when you need it. The amount is to be repaid based on your billing cycle to avoid penalties and fines. While the initial rush of swiping your card everywhere you go might seem the way to go, here are some points to keep in mind so card debt does not loom on your financial horizon:

• Credit Card Charges:

A credit card usually comes with a whole list of Credit card charges, beginning with the joining fee. Additional charges include the annual fee, statement fees, service tax, surcharge, late payment fee, card replacement fee, etc. Exceeding your credit limit on your card will attract a charge as well. Delayed payment of your dues will also result in a penalty, which will be levied on your subsequent bill.

Not paying off the total amount due on your credit card will attract interest charges, which could be anywhere from 3%-4% a month. Doesn’t seem like much, you might scoff, but when annualised, the rate amounts to a whopping 48% on the higher end of the interest spectrum. This amount is also levied on each successive bill that has a balance carried over, which will inflate your overall amount due by a significant amount.

• Picking a Credit Card that Suits Your Needs:

Picking a credit card that suits your needs is important, as this could be the deal breaker between you enjoying the perks of a card and drowning in a sea of debt. If you’re looking for a card merely to help you keep up with payments and aren’t looking for any perks, a no-frills card is the best bet for you. Looking for discounts each time you swipe at a store? A shopping credit card that offers cashback or in-store rewards is the one for you. Frequent travellers can benefit from a travel card, which converts points into air miles redeemable on flights or hotel stays.

• Dates to Remember:

With your new credit card comes a host of important dates that you have to keep in mind, such as your bill payment date, the date the bill is generated etc. The date your bill is generated on marks the end of your billing cycle and lists your outstanding dues for that period only. The bill payment date is the date by which you are expected to pay off the outstanding amount or the minimum amount due to avoid late payment charges.

• Credit Card Application Status
  Different banks have different ways of credit card application status but most of them have an online facility, where you can apply for a credit card online as well. The process then involves furnishing all required documents and information to the bank. Once, the application process is complete, you must track your application status to check how far long has it been processed by the bank so that you can follow up with the bank accordingly. Usually, it takes up to three weeks to receive your credit card from most banks. Credit card may take a month from the date of registration, as it undergoes processing request, followed by dispatch to your home address.
  

• Minimum Due versus Full Payment:

Credit cards offer you the chance to pay off your debt in instalments, either before the due date or after it. It is always advisable to pay off your outstanding amount by the due date to keep your credit score and repayment history healthy. However, if you are unable to pay off the whole amount, you are required to pay a minimum amount, usually a percentage of your total outstanding amount.

Getting away with paying just the minimum amount brings with it a set of charges though, since you will be paying interest on the balance amount. You will also lose out on the interest-free period, meaning every successive transaction will incur interest from the day the purchase is charged to your card.

As seen above, there are quite a few pitfalls associated with credit cards that, if you aren’t careful to avoid, could leave you in debt for a considerable amount of time. Being prompt with payments, avoiding maxing out your credit card and being prudent with what you charge to your card will ensure that you reap the many benefits that come with credit cards.

Advantages of a Fixed Deposit Account

Many times you may have heard people advising you to invest your money in a FD account. So what is FD? Fixed Deposit or FD is a type of term deposit that gives you a fixed rate of interest until maturity. By investing in FDs you can save and earn money at the same time. It also offers a higher rate of interest compared to a regular savings account. Apart from this, there are other advantages of having a FD account.

Mentioned below are a few advantages of having a FD account:

• Assured Return – If you invest your money in a fixed deposit account, you are assured a return. You will earn interest on your deposited amount, but the rate of interest depends on the tenure you have chosen. Banks in India are offering around 7% to 8% interest on Fixed Deposits at present.
• Flexible Payment – FDs allow you to choose how you wish to receive interest. You can choose to be paid annually, monthly or during maturity.
• Flexible Tenures – Fixed Deposits have flexible tenures. You can open a FD account for as less as 7 days. The tenure options are not the same for every bank. Also, it is not mandatory for you to have an account with a particular bank to open a FD account with it.
• Helps during Emergency – During emergencies when you are in need of money, a FD can help you a lot. Many banks offer loans against Fixed Deposits. Up to 90% of the deposit can be availed as loan. Some banks allow partial withdrawals of FDs as well.
• Risk Management – Financial instruments such as mutual funds, gold, etc., may provide high returns, but are also very risky. To adjust this market risk, it becomes important to invest in debt instruments. FDs will help you manage this risk as the returns are fixed.
• Easy to Withdraw – You can withdraw the amount you have deposited in your FD account at any time. For premature withdrawals, banks may charge you a small penalty.
• Saving Habit – Fixed Deposits help people in developing a habit of saving money. When you invest a certain amount in FD, that amount cannot be used until you withdraw it or maturity.

These are some of the benefits of investing in fixed deposits. You can open a FD at any time and the application process is also very simple. Just make sure that you select the right tenure.