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A travel n gadget freak and @ the same time I try and make some Sense in the #Sensex

Thursday, August 27, 2009

Lalbaugcha Raja 2009 !!!


Friday, August 21, 2009

All you want to know about investing in fixed deposits

Ask any youngster these days about investments and they will talk about stocks, mutual funds, unit linked insurance plans, real estate... the list will go on.

Investing money in safe and secure bank fixed deposits (FDs) will figure in the end, if at all. Rakesh, my neighbour, who was all of 19 and into her first job in a trading company is one such example.

She was happy that her first job as a sales assistant was fetching her a cool salary of Rs 14,000 per month and after her expenses she managed to save more than Rs 7,500 every month. She wanted to buy her own house before 30, and after discussing it with her friends, she wanted to invest in all the investment avenues mentioned above but not in fixed deposits.

Why not fixed deposits? Because she didn't know much about this investment opportunity and her friends told her that investing in stocks and mutual funds would get her higher returns. Though investment in stocks and mutual funds would give her superior returns in the long term (that's what the common belief is and history too supports this claim) she wanted her investments to bear her safe and steady returns so that she could use the money saved to chip in with her contribution for buying a house.

Investing a neat sum of money in fixed deposits every year would help her achieve that.

Here are the most commonly asked questions -- and their answers -- about fixed deposits by youngsters like Rakesh

Who is eligible to apply for a fixed deposit account?

Any individual or institution is eligible to apply for the account.

How do I apply for an FD account?

You can get a bank FD at any bank.

You have to open an FD account with the bank to make the deposit. Some banks may also insist that you maintain a savings account with them to operate an FD account.

When you open the FD account, you are issued a deposit receipt or an account statement. This statement can be updated, depending on the duration of the FD and the frequency of interest calculation. Make sure you check deposit receipts carefully to see that all particulars have been properly and accurately filled in.

How will investing in fixed deposits benefit me?

Apart from the fixed rate of return on your FD investment, you can withdraw the FD at any time before maturity without any difficulty. You can avail loans up to 85 percent of the principal, that is, the amount you invested in the FD. You can also avail of a loan with overdraft facility from the bank against the FDs.

Is there a minimum amount that can be deposited into a fixed deposit account?

The minimum deposit amount required for the FD account is Rs 1,000. There is no fixed multiple or upper limit.

Can I redeem my fixed deposits before the original term?

Yes, an FD can be closed before its original term. If the FD is closed before completing the original term of the deposit, the interest will be paid as per the interest rate applicable on the date of deposit, for the period the deposit has remained with the bank.

Some banks may also charge a penal rate of interest as prescribed by the bank on the date of deposit.

Do senior citizens get any extra benefit on the fixed deposits (FD)?

Yes, senior citizens get higher interest rates on their FDs.

Do I have to pay tax deducted at source (TDS) for FDs?

Tax is deducted at source on the interest accrued on FDs as applicable, as per the Income Tax Act, 1961.

What is the range of tenure for which I can open an FD account?

You can deposit money for a period as short 15 days to as long as 10 years.

Now that Rakesh knew how bank fixed deposits work she was happy and ready to invest a lumpsum amount at the end of each year. This she said would help her save a tidy sum of money in the next 11 years which she will use to buy her dream house.

When she joined her first job Rakesh had set herself a target to buy her own dream house before 30. And she was convinced that saving money in a fixed deposit will help her achieve her dream.

Wednesday, August 19, 2009

Charity, for the sole


Nandan Pandya of Belapur distributes sandals among the poor people he sees barefoot at traffic signals or at railway stations



In a country where millions struggle for the bare necessities of food, clothing and shelter, a young engineering student,Nandan Pandya (in pic), is trying his best to meet the gap between the rich and the poor – by distributing footwear among those who do not have the financial capacity to purchase.


So, don't be surprised if, on any given day, you happen be in Navi Mumbai and see a young lad surrounded by street urchins. Pandya (21), who recently moved with his family from Kandivli to Belapur, is trying to understand his new neighbourhood better. Not by looking around for the nearest malls and cineplexes, but by looking for the spaces where poor people can be found in abundance — and small footwear shops.


The philanthropist in Nandan awoke one day in early 2008 when he noticed an old man near a temple at Kandivli walking barefoot. Upon enquiring why he didn’t wear any sandals to protect his feet, the man had replied that due to old age, his feet had expanded and he was unable to find cheap sandals for his large foot size anymore. A shaken yet determined Nandan bought a pair of slippers the next day and gave it to that man. Thus began the beginning of Nandan’s fascination with people’s feet.


“Then I would buy sandals randomly and would never have a plan about where would I being distributing them. I would give the sandals to whomever I would see was without any footwear. And Mumbai abounds with such kind of people; you will see them anywhere, from traffic signals to railway station platforms,” says the shy Nandan, who prefers to live and do his work in oblivion.


At the time, Nandan was studying at KJ Somaiya College in Sion and he had located the shops from where he could purchase sandals, at each station on his way from Kandivli to Sion. On any day, his notebooks would jostle for space with at least three pairs of average size rubber sandals in his bag, and he would spend Rs 800 a month buying them. Nandan is now extending his help around Belapur, as he tries to familiarise himself with the place.


“I feel it is necessary to buy sandals from the small shops so that they too can get a chance to earn. If I see someone without sandals at a particular place and I am not carrying the sandal of that size on that day, I buy it the next day and give it to them. When I am with my friends, I am no different and my friends have no qualms either,” says Nandan.


Nandan ensures to buy only rubber sandals as they are more durable, especially given Mumbai’s monsoon and flooding history. However, there have also been times where a person he remembers giving away a pair of sandals to was seen with no sandals the next day. But he shrugs it off, saying, “The poor cannot do much with a pair of sandals other than just passing it off to someone else. Of course, since the person to whom the sandal is being passed does not have a pair for himself or herself, I am fine in giving a pair of sandals twice to the same person.”


Just out of college, it comes as no surprise that Nandan is contemplating about starting an initiative with his friends, which will distribute food among the poor. All he needs is a push, some help from corporates to fund his work, and the constant encouragement from his parents who are proud of their young son.


'Indian executives happy with their jobs'

In a contrast to the gloomy sentiment in the US, Indian executives have higher morale and are more satisfied with their current positions, a survey has said.

According to an Executive Quiz by global executive recruitment firm Korn/Ferry International, close to 50 per cent of the Indian executives surveyed are either extremely or satisfied with their current position compared to just 37 per cent in the US.

"Despite the lacklustre job market (Indian) executives are happy with their jobs, have high employee morale and trust for corporate leadership. There was a 10 per cent variation that was seen with the satisfaction levels in their current position where 37 per cent were satisfied in the US and 47 per cent in India," the survey stated.

In terms of employee morale within their company, 79 per cent of Indian executives said it was 'good' or 'outstanding', followed by 'fair' by 21 per cent but no one said it was poor.

However, 45 per cent of employed executives in the US said the morale was either 'fair' or 'poor' followed by 55 per cent who said 'good' or 'outstanding', the survey revealed.

"In this economic environment, it is heartening to see Indian executives are showing positive signs across parameters such as trust, employee morale and aspirations to climb corporate ladder," Deepak Gupta, managing director, Korn/Ferry International said.