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Short-Term Vs Long-Term Fixed Deposits: Key Differences

One of the greatest features of a fixed deposit is its flexibility. Based on your monetary goals, you can either book a short-term FD or go for a long-term FD. This versatility makes it a suitable option when you are aiming to diversify your portfolio with a low-risk investment.

A long-term FD will help build your wealth, and a short-term FD will take care of upcoming goals. By understanding their differences, you can better assess your financial objectives and choose the best option. Read on to understand how to pick the best one or achieve a balance between them both.

What is Short-term FD (STFD)?

As the name goes, STFDs are ideal for investing your money for a shorter tenure. It can be as short as 7 days or as high as 2 years. Depending on your preferences, you can choose the tenure, and accordingly, you will earn interest on your deposit.

Pros and Cons of Short-term FDs

Here’s a brief overview of how it benefits you as well as its drawbacks:

Pros of Short-term FD	Cons of Short-term FD
You have liquidity within easy reachYou can choose a flexible tenureYou can reinvest the returns to get better interest	It usually has lower interest rates than long-term depositsYou may not get a high interest rate on reinvestmentYou may not be able to leverage all the benefits of compounding for wealth accumulationIt may not help you get a loan against FD due to its short tenure

What is Long-term FD (LTFD)?

With this type of FD, you invest your savings for a longer period. With this option, you can invest your money from 2 years up to 10 years, based on what aligns with your financial goals. The interest rates are relatively higher, so your returns are generally higher with this option.

Pros and Cons of Long-term FDs

Here is a short overview of how a longer tenure can help your financial objectives as well as some of its drawbacks:

Pros of Long-term FD	Cons of Long-term FD
1. You can earn a higher interest rate 2. It helps you meet long-term financial goals 3. It allows you to benefit from the power of compounding 4. It helps you get a loan against your FD with ease	1. You cannot liquidate your funds easily 2. You cannot get the benefit of higher interest rates while your funds are locked in

Short-term FD vs Long-term FD

To understand which one may work best for you, see the table below:

Topics	Short-term FDs	Long-term FDs
Investment Period	It can be invested for 7 days to 2 years	Over 24 months to 10 years
Interest Rates	Generally, short-term deposit rates are lower than long-term FDs	Higher interest rates offer better returns on maturity
Liquidity	Delivers quick liquidity and easy access to funds	Limited liquidity, as it has an extended lock-in period
Financial Goals	Suitable for meeting immediate needs	Aligned with long-term goals like education or retirement planning
Flexibility	Provides flexibility to respond to changing market conditions	Offers less to no flexibility, and premature withdrawal may incur penalties
Wealth Accumulation	Best for short-term payouts	Gives you to opportunity to build your wealth over time
Risk Tolerance	Lower risk due to shorter tenure and flexibility	Moderate risk due to a more extended lock-in and rate rigidity

How to Choose Between Them?

While choosing which type of FD will suit you the best, consider the following options:

STFDs have lesser risk than LTFDs, so you can choose according to your risk appetite
You must consider the minimum investment amount of the issuer for each type of FD while choosing
If you want higher interest, choose a long-term deposit
Choose a short-term deposit for higher liquidity
If you do not have access to emergency funds, choose short-term fixed deposit

The key to growing with FDs is to find a balance between short and long-term fixed deposits. Thus, it’s best to have funds deposited for long-term gains while keeping a short-term FD that you can reinvest regularly. In this way, you can have the following benefits:

Diversification: This will take care of your short and long-term goals
Wealth Building: Your long-term FD will build your wealth
Access to Emergency Funds: Your STFD can work as your emergency funds

For both of these investments, premature withdrawal can result in interest penalties. Thus, it’s best to have other options available in case of any financial or medical emergency.

FAQs on Short and Long-term FDs

Which FD option offers more liquidity: short-term or long-term?

Short-term deposits offer more liquidity. However, short-term deposit rates may be lower than long-term fixed deposits, so compare them before you proceed.

Should I choose a short-term or long-term FD during rising interest rate periods?

Short-term FDs are best during this time as you can access your funds quickly and reinvest them at a higher rate with ease.

Joint Bank Account: Steps, Process & Rules to Open Account

With a joint bank account, multiple individuals can manage finances jointly, which simplifies management and makes it easier to track spending. You can open a joint bank account online with anyone you prefer. It can be your parents, your spouse or your business partner.

With a joint account, you can save for common financial goals with your loved ones. However, while opening a joint account, make sure you have the following with your joint account partner:

Communication and clarity
Understanding requirements and creating budgets
Maintaining an individual account

What is a Joint Bank Account?

A joint bank account means an account with two or more collaborators. Each account holder will have similar ownership to this account. These accounts are mainly designed for couples and family members. However, business partners can also benefit from it.

How to Apply for a Joint Account?

There are majorly two ways to open joint bank account online and offline:

Online Process

Step 1: Select a bank with which you wish to open the account
Step 2: Go to the bank’s website or mobile app and check joint account options
Step 3: After selecting the account, click on ‘Open Account’
Step 4: Fill out the application form
Step 5: Read all the terms and conditions
Step 6: Submit your documents
Step 7: Wait for approval

Offline Process

Step 1: Choose a bank where you want to open an account
Step 2: Visit your bank’s nearby branch
Step 3: Ask for a joint account application form
Step 4: Fill out the form and attach the documents
Step 5: Make your initial deposit
Step 6: Read all the terms and conditions
Step 7: Sign and submit

Also Read : What is a Current Account?

Joint Account : Know Rules of Joint Account

While maintaining your joint account in bank, there are some joint account rules in India you must know:

Account Operation

After you open a joint bank account, each member will have the same access and contributing options to maintain the account in India. While applying for the joint account, you will need to choose any one of the following operational methods:

Joint: If one of the account holders dies, the account will be inoperable.
Either or Survivor: The account has two account holders and both can operate equally.
Joint or Survivor: After one of the account holders dies, the survivor can decide whether to continue the account.
Former or Survivor: This account is operable only by a primary account holder. Upon the demise of the primary account holder, the second holder can operate the account.
Latter or Survivor: The second account holder operates such accounts. In case of their demise, the primary account holder can take over.
Anyone or Survivor: This type of account is operated by multiple account holders without any restriction.

Funding

Based on how the account will be operated, you can decide whether all or one account holder will deposit the funds in this account. You need to make this decision when you open a joint bank account.

Withdrawal

Every joint account holder enjoys the benefit of withdrawing funds from the account. Regardless of who funds the accounts, the account is accessible to every account holder.

Account Closure

Regardless of whether you are the primary account holder or not, anyone can close a joint account at any point. However, each account member needs to sign for the closure of this account.

Perks of Joint Accounts

The rules of a joint account are meant to offer convenience and security to the account holders. Here are some of the key benefits of joint accounts in India:

Convenience
Better savings
Shared financial responsibility
Potentially larger account balance
Collaborative decision-making
Easy financial management

Selecting your bank and deciding on the operational measures is an important step before you approach the bank. Joint accounts are a great way to manage your finances and work towards your fiscal goal. In case you need funds for individual use or to upgrade your life as a couple, you can get instant cash up to ₹5 lakhs via the Fibe Cash Loan.

Competitive rates of interest with a flexible repayment period of 3 to 36 months are some of the perks you can enjoy. To top it off, you can foreclose your loan without any added charges. To get started, register on our website or download our Personal Loan App.

FAQs on Joint Accounts

Who can open a joint account?

Anyone can open a joint bank account with their:

Family members
Spouse
Siblings
Friends
Children
Business partners

How many individuals can be joint account holders?

To start a joint account requires at least two people. While some banks limit the number to four, others have no such limits.

What happens if one account holder wants to close the joint account?

One account holder can decide to close the account, but each of the members should sign the closure documents to proceed.

Can unmarried couples open a joint account?

Unmarried couples, partners or friends can all open a joint account with each other’s consent.

How to Open a Bank Account for Minors Online

If you’re wondering how to secure your child’s future, opening a minor account online is a simple and smart choice. A minor account opening online lets you build savings for your child’s education, dreams, and unexpected needs while teaching them about money management early on.

Many banks and financial institutions now offer convenient online processes with special benefits for minors, making it easier for parents to plan ahead. This blog explains how you can open a minor account online, its key benefits, and what you should keep in mind while choosing the right bank for your child.

To get started, learn about its benefits and the process of opening a bank account for a minor.

Opening a Bank Account for Minor

You can go for minor account opening online or offline, depending on your convenience. It is a simple procedure requiring nominal documentation. The process needs two sets of documents: one includes verification of the minor and the other of the parent.

After getting all the documents ready, you can proceed to open a bank account for a minor.

Online Process to Open Minor Saving Account

Opening an account for your child digitally is both quick and convenient. Follow these steps:

Step 1: Visit the bank’s website and choose the appropriate savings account for a minor

Step 2: Complete the application process, providing the necessary details

Step 3: Submit the digital copies of your documents

Step 4: Complete the e-verification process (this may include a video call showing your documents for authentication purposes)

Step 5: Transfer funds to the new account

Step 6: You will receive a confirmation upon successful verification

Also Read: How to Switch Bank Accounts?

Offline Process to Open Minor Saving Account

This procedure is similar to opening a minor account online. You can follow these steps and complete the procedure with ease:

Step 1: Visit the nearest branch of your selected bank

Step 2: Ask for the application and fill it out with the necessary details

Step 3: Attach the required documents of both the child and guardian

Step 4: Pay the needed amount to activate the account

Step 5: Upon approval, you will receive all the account details and login credentials

You can also ask the representative for internet banking access and debit cards according to your preferences.

Rules to Open Minor Saving Account

The Reserve Bank of India has set certain guidelines that are referred to as minor account rules. Remember them when you are thinking about opening an account for your child.

A minor of any age can open a recurring bank deposit account, FD account or savings account.

A minor over 10 years of age can start and manage a savings account on his or her own.

Banks can have their own policies in terms of age limit and amounts up to which minors can operate such accounts independently.

Once the minor is 18, the bank needs to confirm the account balance and take fresh signatures to transfer the operation and management.

Banks need to ensure that minor accounts are not overdrawn by adding safety checks.

Benefits of Opening Kid’s Saving Account

Teaching kids about managing finances

Having funds on hand for emergencies related to the child’s education or health

Saving for the child’s future. Educating kids on making investments

Purchasing electronics or a cycle/motorcycle for the child

Spending on a child’s travel, sports or other academic and non-academic activities

Factors to Consider Before Opening an Account for a Minor

The process can be empowering as it encourages you to save for your child’s future and your child can also become financially aware and disciplined. Both you and your child will be joint holders of such savings accounts. Once the child turns 18 years of age, the account may be converted from a minor’s account to a regular account.

While this can be a rewarding experience, consider certain factors for the best experience:

Consider ease of access and control of the account via net and mobile banking

Compare interest rates and see if you can get the benefit of compound interest to enhance savings

Know the minimum balance required and the charges in case the balance falls below this threshold

Check the features and services offered to you, such as a debit card for you and your child as well as savings incentives, if any.

Also Read: Best Saving Accounts in India.

Opening a bank account for a minor can be a good investment, becoming a financial bedrock to support your child’s future. To make regular expenses for your child’s education, entertainment and more, you can rely on the Fibe Axis Bank Credit Card.

As India’s first numberless credit card, it links to your UPI ID and offers 3% cashback on eligible transactions. With it, you can save more as you spend and avoid any joining and renewal fees. What’s more, you get free domestic lounge access too!

Download the Fibe App or register on our website to get this credit card today.

FAQs on Opening a Minor Savings Account

Can a guardian withdraw money from a minor bank account?

Yes, a guardian can withdraw money from a minor savings account and also set the limit.

Is the interest on a minor savings bank account taxable?

Yes, the interest gained on the balance of a savings bank account for a minor is generally taxable.

Do we get an ATM card for a minor account?

Yes, you can get an ATM card for a minor account. This also depends on the bank, so make sure you check beforehand.

Can we transfer money to a minor account?

Yes, you can transfer money to a minor account via cash, cheque or digitally.

Are the interest rates the same for minor bank account holders?

Interest rates can vary from bank to bank and account to account. Compare the interest rate before opening a minor savings account.

Switching Bank Accounts? Know These 7 Simple Steps

Are you interested in switching bank accounts? All banks offer different kinds of benefits to their customers, which give you the liberty to choose your preferred options. If your current bank is not giving you the services you want, then swap your bank account.

Switching to a bank with all the facilities you need can help you attain maximum financial growth. To learn how to change bank account easily with just a few simple steps, read on.

Evaluate Why You Want to Switch

Before making this decision of switching bank accounts, you must evaluate why you want to switch your bank. In most cases, you may be looking for better opportunities and services. Here are a few reasons that may be responsible for making you consider a bank switch:

Moving to a new location
Opening a joint account
Paying exorbitant fees on existing account
Getting poor customer services
Getting higher interest rates from another bank
Not being upgraded to better debit and credit cards

How to Switch Banks

You must follow these 7 steps to switch your account to another bank.

Step 1: Find Another Bank

Find a bank that works for you and fulfils all your requirements. This ensures that you are getting an upgrade as compared to your previous bank. While searching for a new bank to swap bank accounts, you can look for these qualities/factors:

Fees and charges
Interest fees on savings accounts
Customer service
Location
Bill payment options
Mobile banking services
ATM availability
Value-added services
Debit and credit cards and their benefits

Step 2: Make a List of Linked Payments

You may have multiple auto-debit payments linked with your current bank account. Before closing your existing account, make a note of these mandates to efficiently manage your payments:

Automatic bill payments for utilities
Recurring subscription payments for OTT platforms, magazines and more
Recurring money transfers
Automatic deposits

Also Read: How to Get Bank Account Statements?

Step 3: Open Your New Account

After making all the necessary arrangements, you can open a new bank account by visiting your local branch or online. Here are common steps you can follow:

Fill out the application form
Submit self-attested photocopies of ID and address proof
Submit your application
Complete other formalities

Step 4: Set Up a New Banking App

Within a few days, you will receive your banking kit with your passbook, debit card, and chequebook. These documents prove that you have successfully opened a new bank account. Review the details carefully to further complete the process.

Upon receiving all these details, log in to your net banking account online as well as the mobile banking app and set up your debit card PIN. This way, you can continue using your new bank account and slowly replace the old one.

Step 5: Switch Bank Details

Once your new banking app is set, you can start switching bank account details. Make sure you set up mandates using your new details for automatic payments.

Step 6: Move Your Money

When everything is set up and ready to go, transfer funds from your previous bank account to the new one. The process can be completed within a few moments. However, this may take a while if you have a large amount in your account. This is because most transfer modes only allow you to send and receive a limited amount daily.

Step 7: Deactivate the Old Account

Finally, you can close your account when your funds have been successfully transferred to this new account. To close your account, you will have to:

Contact your bank and share your request
Pay off the outstanding due (if any)
On approval, destroy your debit card and chequebooks

People often swap bank accounts to another for better financial gains or premium services. If you’re looking for funds to upgrade your life or achieve a goal, the Fibe Instant Cash Loan can help you to get up to ₹5 lakhs with a flexible repayment tenure.

Get your loan and repay via fixed instalments from 3 up to 36 months. Once you have the funds available, you can also foreclose your debt without any charges. Download our Personal Loan App or register on our website to apply for this instant loan now!

FAQs on Switching Bank Accounts

Does switching banks affect credit score?

No, credit scores depend entirely on how you repay your loan and credit card bills. You can switch your bank account as often as you prefer, and this won’t hamper your credit score.

Can I switch banks if I have a loan?

Most banks will let you close your account and open a new one even with an existing loan. However, it depends on the bank’s policy. In this case, reviewing the terms and conditions or speaking to customer care before deciding is best.

What if I encounter issues during the account-switching process?

If something goes wrong during the switch, get in touch with the customer service of both banks. The banks will get it resolved as soon as possible.

Can I keep my old bank account open for a while during the switch?

Your old bank account will remain open until you close it. You can also maintain both accounts while you use the newer one more frequently. It is completely up to you.

How to Own One of the Best Smart TVs in India

When it comes to buying a smart TV, price may be one of the first things on your mind. However, you should also look at audio-visual specifications, size, resolution and more before making a final decision.

Upgrading to a smart TV is now a must as all the devices are becoming smart in this digital era. Such TVs are the new norm and provide a better experience, no matter whether you are into sports or movies. Start by knowing what constitutes a good smart TV in India and also about easy ways to finance your purchase.

What is a Smart TV?

A smart TV is one that’s connected to the internet for extended access to content across OTT platforms, apps and video providers. For a TV to be smart, it must:

Have internet connectivity
Run on an operating system
Have an independent app service

Similar to smartphones, these TVs stream content via the Internet. Not only can you watch movies, sports and news on these TVs, but also play games, watch videos and more. These TVs do not require cable, aerial dish connections or separate streaming devices.

Also Read: Led Tv Price List 2024

Features of a Smart TV

Most top-rated smart TV brands offer a range of exciting features on their models. Some of these are:

Access to top streaming platforms

Stream your favourite shows, movies and more on Netflix, Amazon Prime Video, Sony LIV and more

Browse the web

Surf through the web to enjoy what you love and discover content that piques your interest

Watch videos on YouTube

Watch your favourite content creators right on your TV without the hassle of switching to your mobile phone or laptop

Listen to music

Enjoy an enhanced music experience by playing your favourite tracks directly on your smart TV

Scroll on social media

You can scroll on your favourite social media apps on your TV itself

All-in-one remote

Most smart TVs come with a universal remote, which can access all the functional features of the TV unit

Use voice-control

Most smart TVs come with voice commands so you can communicate with them easily

Cast to your device

You can cast media from your phone or laptop straight to your TV

Smart TVs vs Regular TVs

From convenience to wider access to content, several key aspects set smart TVs apart from regular TVs. Some of these features are:

Feature	Regular TV	Smart TV
Internet Access	Cannot connect to the internet	Can connect to the internet, facilitating Browsing App downloads Social media access
OS	No operating system and lacks processing power	Dedicated operating system User-friendly interface
Video Streaming & Apps	Cannot download or stream content	Provides apps for:StreamingGamingProductivity (skills, knowledge, etc.)
Latest Viewing Technology	Typically lower, may not support 4K or UHD	Stream high-quality video content with:4KUHD
Features and Updates	Static device with no future feature update possibilities	Over time, software updates help to:Expand features Boost functionality

Smart TV Financing Options

Some of the top-rated smart TV brands are LG, Samsung, Acer, Sony, OnePlus and Xiaomi. Buying a smart TV is usually more expensive than a regular one, as the smart TV cost takes its wide-ranging features and technology into account.

If what’s holding you back is the smart TV price, the good news is that there are multiple ways to shop without putting a strain on your pocket. Some of the financing options for buying a smart TV are:

Credit Card EMIs

Your credit card can reduce the financial strain that may come with buying a smart TV. With your card, you can break down the total price into several smaller payments across a duration of your choice.

Personal Loans

A personal loan can help you not only buy a smart TV, but also any accessories that you may want to add. You can select your smart TV and buy motion LEDs, surround sound stereo speakers and more. You can then apply for a personal loan and also choose the tenure over which you want to pay the amount in EMIs.

Also Read: How to Finance a Tv Loan Online

BNPL Options

Another popular facility to finance your TV purchase is using Buy Now Pay Later facility. Leveraging it, you can buy a smart TV and upgrade other home electronics easily. Such an option allows you to repay at either no-cost or low-cost EMIs and gives you access to instant approval.

Smart TVs to Consider in 2024

While the list of top 10 smart TV models varies with new launches every month, here are 5 models from the latest series you can consider this year. Compare their features against newer launches to get the best deal and top specifications.

Xiaomi Smart TV X Series

Audio – 30W Cinematic speakers with Dolby Audio, DTS X and DTS Virtual X
Video – 4K Display with up to DCI-P3 93% colour gamut and HDR 10 and HLG enhancers
Design – Up to 98% Bezel-less design
Size – 43”, 50”, 55”, 65”
Operating System – Google
Special features – Patchwall and Patchwall + for better content and live TV experience

OnePlus TV Y Series

Audio – 20W Speakers with Dolby Audio
Video – Up to 1920×1080 resolution with a DCI-P3 93% colour gamut and a gamma engine
Design – Up to 93.8% Bezel-less design
Size – 32”, 40” 43”
Operating System – Android TV 9.0
Special features – OnePlus Connect that allows you to control your TV with your smartphone

Acer Advanced I Series

Audio – 30-40 W High Fidelity Speakers with Dolby Audio/Dolby Atmos
Video – 4K UHD up to 3840×2160 resolution with a wide colour gamut and Dolby Vision
Design – Frameless design with a 178˚ -wide viewing angle
Size – 43”, 50”/55”, 65“, 75”
Operating System – Google
Special features – Built-in Chromecast and pre-installed apps

Also Read: How Buy Tv Under 20000 Rs?

Kodak 32” 7XPRO Series

Audio – 24 W Speakers with 6 sound modes
Video – A resolution of 1366×768
Design – Frameless design with a 178˚ -wide viewing angle
Size – 32”
Operating System – Android TV 9.0
Special features – Google Assistant, 5000+ apps, and built-in Chromecast

VW 32 inches HD Ready LED TV

Audio – 20 W Speakers with power audio
Video – A resolution of 1366×768
Design – Frameless design with a 178˚ -wide viewing angle
Size – 32”
Operating System – Android
Special features – Built-in WiFi, Browsing, Screen Mirroring, EcoD and Android,

Smart TVs give the traditional television experience computer-age interconnectivity. This has led to great innovation and can upgrade your experience, whether you’re looking for entertainment, exercise and fitness, work, or more.

Buy the TV of your choice with financing of up to ₹10 lakhs via either BNPL or an Instant Cash Loan from Fibe. These options offer flexibility with customisable tenures and competitive interest rates. So, you can buy a Smart TV from any of the top-rated smart TV brands in India without hesitation! Download the Fibe Loan App or visit the website to explore your options today.

FAQs on Smart TVs

Which brand is best for smart TV in India?

The best smart TV brand is subjective to individual tastes and requirements. Some of the well-established smart TV brands in India are LG, Samsung, Sony, Xiaomi, TCL, Xiaomi and OnePlus.

Which smart TV is better, Google TV or Android TV?

Both alternatives are good in their own ways. The main difference between the two is the approach. Google TV gives you a personalised experience with a content-focused interface. Android TV is app-focused, enabling you to navigate easily through apps. Which of the two is better for you depends on your viewing habits, content preferences and the smart TV experience you are looking for.

Which brand of TV is the most reliable?

Samsung, Sony, LG, TCL, Mi (Xiaomi) and Panasonic are often referred to as the most reliable. These brands’ models are known for their innovation and durability.

Which is better, LED or LCD TV?

Although LED TVs are generally more expensive, they tend to be better. Some of the reasons as to why that is the case are:

Eco-friendliness: LED TVs are more energy-efficient than traditional LCDs
Design: They have a sleeker build
Picture Quality: They offer better brightness, contrast, and a wider colour range for a vivid viewing experience
Lifespan: They generally last longer due to higher quality components and construction

Transfer Your Car Loan with a Few Simple Steps

Do you want to transfer car ownership but have an existing car loan. The good news is that you can transfer your car loan as well. A few simple steps will allow you to transfer your loan to the person buying your car.

Getting a loan to buy a car is quite common. There may be various reasons why you want to sell your car and transfer vehicle loan. To complete the process and transfer your loan to another person successfully, read on.

Understanding Car Loan Transfer

You can easily get a motor loan to buy your car. The challenge is when you want to sell your car before your loan tenure ends. Thankfully, lenders have a solution for this. You can transfer car ownership along with your loan balance to another bank account. Alternatively, you can transfer the loan to a family member or friend. The entire process may seem complicated, but you can complete it in a few steps.

Transfer Your Car Loan to Another Bank: Step-by-step Guide

You can follow these steps to transfer vehicle loan to another account.

Step 1: Verify Your Loan Terms

This is one of the initial steps that you will have to complete to transfer car loan. Not every financial institution offers this option. So, read the terms to understand whether your lender has this clause.

Step 2: Find a Buyer for your Car

If this option features in your terms, you can start finding a buyer for your car. It would be best to have someone willing to buy your car and repay the remaining loan amount.

Step 3: Review the Buyer’s Profile

Once you have a buyer, review their profile and understand whether they match the loan’s eligibility criteria before initiating a car loan transfer to another person.

Step 4: Seek Approval from the Lender

After you have selected and reviewed the buyer’s profile, you can seek the approval of the financial company. After submitting your request, you will have to wait for the approval of the lender who will check the creditworthiness of the buyer.

Step 5: Transfer the Car Registration

After the lender approves the transfer, you can transfer car ownership to that person. The loan balance will also be transferred to the new borrower’s name. To complete the process, submit the necessary documents and complete the paperwork.

Step 6: Notify the Involved parties

The lender will inform both parties as soon as the process is completed.

Step 7: Manage the Insurance

Finally, your car loan will be transferred to another bank account.

Step 8: Pay the Fees or Charges

Lastly, you will have to pay the charges for this procedure to transfer car loan. You can handle all the fees on your own or divide them with the buyer. Decide on this beforehand to avoid hassles.

Charges Involved in a Car Loan Transfer

There are a few charges involved with this process. These include:

Fees for loan transfer
Stamp duty charges
RTO charges
Legal fees
Insurance

If you are selling your car to manage your finances, consider getting a quick instant loan as additional support. With a Fibe Quick Cash Loan, you can get up to ₹5 lakhs with a flexible repayment term of up to 36 months. Competitive interest rates and zero foreclosure charges makes this a smart solution. To proceed, you can download our Personal Loan App or register on our website.

FAQs on Transferring a Car Loan

Can the car loan balance be transferred?

Yes, you can transfer vehicle loan balance to another person. Follow the lender’s guidelines to carry out a balance transfer. In addition, you can opt for a car loan c to a new financial company if you get better terms. This may allow you to repay your loan more affordably.

Can I use a balance transfer to pay off a car loan?

Yes, you can transfer an auto loan to a new lender if you get better repayment terms, such as a lower rate of interest or a longer tenure. This may help you repay easily and more comfortably. Review the balance transfer charges before you go ahead to ensure this saves you money.

Can I transfer my car loan to a family member or friend?

You may want to transfer a car loan balance to a friend or family member for various reasons. In that case, you need to follow these steps:

Check the person’s ability to repay
Talk to the lender about the transfer
Get approval from the lender
Submit the required paperwork
Transfer the registration and insurance
Pay the fees

Can the person I’m transferring the car loan to be from a different city or state?

Yes, car loans can also be transferred to another city or state. This involves transferring the car registration and insurance documents as well as getting approval for your existing lender.

Will my car’s ownership also transfer with the loan?

You will have two options for carrying out a car loan transfer to another person. Firstly, you can sell off your car and transfer your loan. Secondly, you can ask a family member or friend to pay off your loan. The car ownership will change in the first option and not in the second case.

What is Token Money and How to Use it?

Understanding the meaning of token money is vital if you are planning for real estate purchases and others. It enables you to formalise a transaction by transferring a small amount to the seller’s account.

This procedure can be recorded as an agreement in your deal with the seller. While it is not a compulsory process or mandate by law, it is common practice as a part of the sale. To learn what token money is to streamline your finances, read on.

Understanding the Concept of Token Money

In order to assure your interest, a percentage of the sales amount paid to the seller beforehand is the token amount. You can negotiate the token amount with the seller to decide the percentage of the total amount payable.

The amount you pay as a token is part of the total payment amount. When making the final payment, you will have to pay a deducted sum. However, it is essential to note that this is non-refundable. You may have to forfeit the token amount if you fail to make the rest of the payment.

Important Factors to Consider

Before you pay the token amount when making any purchase, consider the following components to make the procedure safe and smooth:

Register a Sale Agreement

Generally, you need to execute this paperwork using stamp paper having a value equivalent to 0-1% of the sale value. It is a legal document giving essential rights to the related parties. Any breach in terms and conditions related to the agreement is considered as a breach of contract.

Sign a Memorandum of Understanding (MoU)

While this isn’t considered a legal document, it represents an agreement between the parties. This can include the intent, desire or will of the related parties on a common line of interest. Despite not having a legal agreement, it doesn’t signify that money paid under an MoU isn’t safe.

It is advisable to notarise the MoU when paying the token amount. This process makes it binding and secure, safeguarding you from legal disputes.

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Get a Payment Receipt

As both parties may have hesitation about the other party backing out, buyers generally pay the token amount for a very short duration. Getting a payment receipt provides an assurance of payment of this amount. Depending on the state government rule, you can get it on a ₹2 or ₹10 stamp paper. The buyer and the seller acknowledge the receipt of the token amount payment by signing on it.

Points to Include

When preparing the above-mentioned documents, it is crucial to include essential details relating to the buyer, seller and the purchase. The following are several points to include to protect your interest as a buyer:

Include the complete property details
Include all the necessary details like name, address, father’s name of both the buyer and the seller
In case of death of the buyer/seller, the immediate heirs have the same rights
Include a termination clause and mention in the MoU the conditions under which the agreement can be terminated
Include proper clause regarding refund
Include clauses like the seller can’t sell the property till the MoU is in place
Mention the value of the token amount which you both have mutually agreed upon
Include the terms and conditions in the MoU, like a timeline of payments

Knowing the token money meaning and considering the dos and don’ts, you can negotiate better deals and prevent fraud. While it is a vital step representing your seriousness, the process may require a large sum that you need to pay upfront.

In that case, opting for the Fibe Instant Personal Loan can be a smart choice. We offer you a loan of up to ₹5 lakhs and flexibility with customisable tenures. You can enjoy competitive interest rates without requiring any collateral. You can use the funds without any restrictions and pre-close the loan at no additional cost.

You can apply for a loan within a few minutes by meeting simple eligibility criteria with minimum documentation. Download the Fibe Loan App or log in to our website to get a quick loan.

FAQs on Token Money

Is token money a mandatory part of financial transactions?

The legal system in India doesn’t mandate the payment of token money. However, sellers usually demand it to have an assurance of payment of the remaining and completion of the sale of high-value products or properties.

Is there a legal requirement for token money in transactions?

You can get a payment receipt or sales agreement to legalise your token money payment.

What happens if the seller refuses to return the token money?

If you’ve added the refund clause in your sales agreement, you can send a legal notice if the seller refuses to refund the token money.

Can token money be used in business contracts?

Yes, token money can be used in business contracts. It binds both parties to the agreement and shows the buyer’s intention to purchase a property.

How long is token money held during a deal?

The payment of the token money can be held up to the transaction’s closing during a deal.

Asset Allocation: What It is? Why is It Important?

Allocation of assets should be one of the most important aspects when you are planning to invest. It simply means how you decide to divide your portfolio among different assets to gain maximum returns. You can choose your investment path based on:

Risk-tolerance
Investment goals
Comfortable time horizon
Preferred asset class

If you aspire to be a long-term investor, correctly allocating your assets is essential.

What is Asset Allocation?

Allocation of assets means investing or distributing your assets across various asset classes. These asset classes include cash, secure incomes, equity, and other investments. The main motive for allocating your assets is to invest in a way in which you the probability of getting returns is higher and risks are lower.

Asset Allocation Portfolio

There is no specific way to introduce yourself to better investment opportunities. If you want o to have a better sense of financial security, then this probably is the best way to strive. However, there are two approaches which you can avail.

Age-based Allocation

Many financial advisors will advise you to use the five-year method. It is using your money on a specific investment for five years or more to get the maximum result. The main agenda is to grow your wealth. This time-based allocation can contribute to your returns optimally.

Life-cycle Funds

Certain types of mutual funds are called life-cycle funds. This type of portfolio addresses the investor’s age, investment goals and risk appetite. Thus, it has a higher exposure to risk at the beginning, but it gradually reduces as you approach 60 years of age. As such, these are called age-based or target-date funds.

Whatever method you choose, assessing your financial goals before investing is always smarter.

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Benefits of Asset Allocation

Every investment brings you an opportunity to grow your wealth, so it is better to combine asset classes rather than stick to your comfort zone. Here are some benefits which you can avail with this process.

Ideal Path to Growth

To expose your funds to long-term growth, choose a variety of options from government bonds to equity. Based on your age, current earning abilities and future goals, you can add fixed income securities, liquid funds or hybrid funds to your portfolio.

Nominal Risk

If you have leveraged asset allocation, you can invest securely by reducing risk. This is because your riskier investments are balanced with debt or fixed income investments. With time, your returns can also be high.

Allocation Discipline

Financial growth requires self-control and restraint. By utilising asset allocation, you can invest in a more disciplined manner by understanding which percentage of your funds you want to invest in assets of different risk profiles.

Stable Returns

By allocating assets across classes, you can have a potentially stable source of income. Since your investment in not concentrated in one type of asset, if it fails, you can make up with returns from your other assets.

Diminished Anxiety

This approach is an efficient way to improve your finances without feeling stressed when one of your investments doesn’t pan out the way you wanted. Since high-return investments involve inherent risk, you can bank on low-return yet safe classes, too. This helps you stay positive and achieve your life goals.

To reach a state of financial stability, asset allocation plays a key role. If you are facing an emergency or want to keep your investment intact when facing a cash crunch, you can opt for Quick Cash Loan.

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FAQs on Asset Allocation

What is the asset allocation meaning?

It means splitting your investment among assets with different risk profiles, such as debt, equity, real estate and gold.

Can asset allocation reduce investment risk?

Yes, by investing in assets with varied risk exposure you can potentially balance your portfolio and reduce your overall risk. However, it depends on the asset classes you choose.

Are mutual funds and ETFs part of asset allocation?

Yes, Exchange-traded funds (ETF)s and mutual funds can be a part of asset allocation and help you build wealth. However, these may be high-risk options so you can balance them with debt or fixed income securities.

Can I adjust my asset allocation based on my risk profile?

Yes, your entire asset allocation approach can be managed based on your risk appetite. For instance, if you are a conservative investor, you can go for 10% equity and 90% debt in your portfolio.

How can I diversify my portfolio with asset allocation?

To diversify your portfolio, you can invest in various asset classes. Spread your investment in several options to acquire the maximum benefit based on your appetite for risk. For instance, if you want to go for medium risk, divide your portfolio between equity and debt instruments.

A Simple Guide to Understand Fixed Deposit Auto-renewal

If you’re thinking of investing in India’s most popular investment option, learning about auto-renewal rules that apply to fixed deposits is vital. Once you’ve invested in an FD, you can withdraw your investment or renew it in two different ways:

Manual process on maturity
Auto-renewal process that doesn’t require manual intervention

Auto-renewal saves you from the hassle of remembering the maturity dates and losing out on interest for even one day. To understand when it is right for you, read on.

What is Fixed Deposit Auto Renewal?

Auto-renewal, meaning the automatic process where banks or NBFCs renew your investment for the same term, can be a hassle-free process to remain invested in a safe instrument and earn interest.

The manual FD renewal process requires you to be aware of the maturity timeline and give instructions to the issuer. If not, the amount is credited to your savings account. Since its interest rate is not as high as a fixed deposit, you lose out on interest. This can also decrease the value of your funds due to inflation.

Benefits of Fixed Deposit Auto-renewal

To understand why auto-renewal is an excellent way to manage your FDs, see some of the advantages it offers:

Seamless Process

Auto-renewals are a smart choice that does not require you to remember maturity dates or take any action regarding your investment.

Financial Growth

You can maintain your financial growth at a steady pace as the deposit is booked on the same terms as your initial investment.

Convenience

With auto-renewal, you can eliminate manual processes, making it more convenient.

Avoiding Funds Lying Idle

A large amount sitting in your savings account doesn’t accumulate as much as it can with an FD.

Financial Discipline

With FDs, you can build discipline as they prevent you from withdrawing early due to interest rate penalties.

Loss of Income

Your unattended fixed deposit will be credited to a savings account which offers a lower rate of interest and inflation will further erode its value over time.

While auto-renewal brings many benefits to the forefront, it is not the ideal approach when interest rates are rising. On maturity, you may be able to invest for a different tenure to benefit from higher rates, which is impossible with auto-renewal.

Even if you have chosen this option, you can change the instructions before the FD matures. So, keeping track of your maturity timeline may be the best way to decide if you want to let your instructions stand for auto-renewal. New rules by the RBI in January 2024, as per circular RBI/2023-24/105 DOR.SOG (LEG).REC/64/09.08.024/2023-24 also aim to increase transparency for these investments. They ask banks to:

Transfer the funds in operative accounts that have not been claimed for over 10 years to the Depositor Education and Awareness (DEA) Fund Scheme, 2014
Issue detailed guidelines on classifying accounts and deposits as inoperative and unclaimed

Also Read: Term Deposit vs Fixed Deposit

How to Choose Your Fixed Deposit

Now that you know how to monitor your investment, assess your approach to the opportunity keeping these factors in mind:

Investment Goals

Whether for retirement or other goals like a child’s education, a family vacation or buying a home – invest keeping your objectives in mind. This will help you choose the right FD tenure and even decide if the auto-renewal feature is useful for you.

Requirement of Liquidity

Understand whether you need to have access to quick funds and then invest. Tax-saver FDs do not allow premature withdrawals before 5 years and other FDs may not allow it before 6 months. See the terms and make sure you have an emergency fund before you choose your FD.

Interest Rates

Compare FD rates across financial institutions before you book one. Check their safety ratings to make an informed decision, too.

Renewal Structure

You must understand banks auto-renew the principal and repay interest to fathom the process better. See if the renewal structure truly suits you by keeping the pros and cons in mind.

Fixed deposits are a very efficient way to embark on financial growth. However, your returns are impacted if you withdraw early. If you need funds during this time, you can apply for a Fibe Instant Personal Loan.

You can get up to ₹5 lakhs with a flexible reimbursement period of up to 36 months. You also have the power to become debt-free before your tenure ends with zero foreclosure charges. To get started, you can download our Personal Loan App or register on our website.

FAQs on Auto Renewal of Fixed Deposits

Will I receive a notification before my FD is auto renewed?

While applying for your FD, you must mention whether you are opting for the auto-renewal option. If you opt for it, the bank will renew the FD automatically. Otherwise, your maturity amount will be credited to your savings account.

Is there any additional charge for auto-renewing a fixed deposit?

There are no specific charges for this facility.

Can I break my auto-renewed fixed deposit before maturity?

Yes, you can withdraw from the FD even if you have chosen the auto-renewal option. This will affect your returns as it may impact the interest rate applied as per the policies of the financial institution. Check this beforehand.

Can I transfer my auto-renewed fixed deposit to another branch?

Yes, FDs can be transferred to another branch of the same bank. File your request and wait for the bank to comply.

What happens if I have multiple fixed deposits and want them all to auto-renew?

Yes, you can opt for this facility by contacting the financial institution and choosing this option.

What is MAB in Banking? Meaning, Full Form & How It Works

When you open a savings account, you typically need to maintain a specific balance in your account, known as the Monthly Average Balance (MAB). By maintaining this amount, you can avoid MAB charges. Financial institutions require an MAB to manage funds in an effective way and provide various services without added charges.

It is a crucial component that allows you to maintain your financial well-being while promoting more stability. By getting more information on what the monthly average balance is and what MAB charges means, you can get more clarity on why it is crucial.

What is Monthly Average Balance (MAB)?

MAB full form in banking refers to monthly average balance. It is the average balance you must keep in your savings or current account throughout a calendar month. The requirement of MAB can vary depending on the type of account. At the end of the month, the bank calculates the MAB and imposes a penalty in case of any failure to maintain the minimum balance.

Some banks offer zero-balance current accounts, which can be an excellent option if you are looking to avoid fees or find it difficult to maintain a specific balance. However, these accounts typically lack the advanced features available with a minimum balance.

How Monthly Average Balance (MAB) is Calculated?

Your Monthly Average Balance (MAB) is the average of your closing balance at the end of each day for a whole month.

Here’s how it works:

Note your bank balance at the end of each day.

Add up all these daily closing balances.

Divide the total by the number of days in the month.

Example of MAB Calculation

Day	Closing Balance (₹)
Day 1	5,500
Day 2	5,100
Day 3	…
…	…
Day 30	5,400
Total	₹1,62,000 (Assumed amount)

Monthly Average Balance (MAB)

= Total of daily closing balances ÷ Number of days

= ₹1,62,000 ÷ 30

= ₹5,400

So, your MAB for that month is ₹5,400.

If the month has 31 days, simply divide it by 31 instead.

Reasons to Maintain a Minimum MAB

Having a minimum MAB doesn’t only help you avoid the penalties – it also ensures a good financial well-being and banking relationship. You can get these advantages by maintaining a minimum balance.

Chances of Earning More Interest: Banks provide interest on the funds in your savings account. The more funds in the account, the more interest you can earn on them. The interest rate may vary depending on the bank.

Privilege to Access Offers: With more funds in your account, you can get benefits like reward points and lifestyle benefits. There is also a chance of getting a personal loan at a preferential interest rate and discounts on other financial products.

Favours Financial Discipline: MAB charges also restrict you from withdrawing funds unnecessarily and can promote savings in the long run. You can keep track of your expenses and stick to the budget. It also encourages investment habits over time, too.

Impact on Credit Score: When you take on a debt, being unable to repay it can affect your credit score. Having a MAB as your safety net, you can maintain your credit health by repaying on time.

Tips to Maintain the MAB

Here are some tips for successfully maintaining the MAB:

Selecting a banking account that matches your financial habits with a lower MAB requirement.

Setting a standing instruction for scheduled fund transfers from other accounts in order to maintain minimum MAB.

Tracking your expenses using mobile app or internet banking to ensure that you don’t cross the MAB limit.

Reviewing your statement from time to time to make any related adjustment.

Also Read: How to Get Bank Account Statement?

Maintaining a monthly average balance can not only help you avoid penalties but also lets you access a range of rewards and services free of cost. Maintaining a substantial balance in your bank account is a testament to your financial discipline and stability. This can also be a key factor in securing favourable terms for credit cards.

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FAQs on Monthly Average Balance

Can I set up alerts to track my monthly average balance?

Yes, you can set customisable alerts to track your MAB via net banking or mobile banking.

Can overdrafts affect my monthly average balance?

Overdraft is a short-term loan to withdraw money against your savings or current account. Hence, it doesn’t affect the MAB.

Are there any rewards for maintaining a high monthly average balance?

By maintaining a high MAB, you can get some advantages. You can get rewards such as lifestyle benefits, personal loans at a preferential interest rate and discounts on other financial products.

What does mab stand for?

MAB is commonly known as Monthly Average Balance in banking term.