A bank’s job is to provide financial services to their customers. When you think of bank, the first thing that might come to your mind is saving account or fixed deposit but due to advancement in technology and increase in competition banks are offering different types of services to attract customers. Knowing about different types of financial services offered by banks can help you in deciding which services are most beneficial for you.
Budgeting helps you estimate how much of your income is required for monthly expenses and how much you will be able to save each month. Your budget is influenced by your income because you can only spend what you earn. It helps you to understand your spending and saving nature. Budget is the foundation of your financial plan, as it provides a base for making personal financial decisions.
Investment is about growing the money you have. The extra funds which you have can be invested in shares, bonds, mutual funds and property to earn a higher return. You may invest your saving in bank deposits for different periods with varied rates of interest if you wish to opt for a safe investment. Or if you are willing to take risk you may invest in the capital market, i.e., in shares or bonds or mutual funds. A risk return analysis may be done and funds may be invested according to your requirement.
Insurance is a way to protect your assets. It helps by sharing financial losses and minimising each individual’s risk in case of damage. Insurance companies offer different types of insurance policies with varying amounts of premium to be paid depending on the risk associated. Car insurance, house insurance, health insurance are some of the popular policies for different amounts.
Loan is taking money from someone else to finance your assets and then paying them back later with interest. Loans are available for House, Car, Education …etc. even for your personal appliances these days. Capacity to repay the loan is important factor in deciding what to get it for. The loan is usually repaid in Equated Monthly Installments (EMI).
Retirement brings in a new phase of life with it. Most of us can look forward to spending at least one-quarter of our lives in retirement. Every individual aspires to lead a life of dignity and financial independence even after one retires, so to attain this one needs to plan thoroughly.
Tax planning is to manage your financial affairs to minimize your tax liability in a legal way. So tax planning is the fundamental part of investment planning and your general wealth management. Many people pay more tax than necessary, so to optimize it tax planning is necessary. The less tax you pay, the more you have to spend or save for future.
Everyday someone or the other loses his hard earned money because of the fraud. We get to hear about lot of many new frauds. Debit card fraud, Lottery schemes, Get Rich quick schemes are some of the common ways. Criminals use new methods to do so, but you can minimize this risk by understanding their nature.