1. Savings Account :
Once we join a job , we need to open a bank account to which the salary from the employer gets credited automatically. We should keep this as the salary account to which all our earnings apart from salary income can be deposited .
we can have have another savings bank account in wife's name and our name as second preferably in a nationalised bank close to our home ideally within walking distance.
Few names of the banks are:
Axis Bank, Canara Bank, Dena Bank, Indian Overseas Bank , Karnataka Bank, Citi Bank, HDFc Bank, ICICI Bank, Indian Bank, Syndicate Bank, Corporation Bank.
Transfer the money periodically to Fixed Deposits to earn higher interest.
Please do help your servants and other associates to open the bank account
2. Safe Deposit locker:
If the bank offers locker facility to keep valuables better take it and pay an annual rental . It is advisable to keep all jewels in safe custody.
3. Fixed Deposit:
The money from savings bank can be accumulated to a sizable amount and Fixed Deposit can be opened .Today bank are offering Money Multiplier and do opt for it. The interest earned is taxable in India .
The interest rates are getting changed often in India and it is better to review it periodically .
We can prematurely close the Fixed Deposit and reinvest as a new FD to gain more interest.
If you need some urgent money , take loan on Fixed deposits.
4. Insurance :
A Life Insurance policy for about 40 years can be taken at an early age so that the child gets the maturity benefits when they are about to retire. It is also a good way of saving money. Every year LIC gives good bonus. Also we get the premium exempted under 80C of income tax act. Today there are some more private players in the life insurance business in addition to LIC ( www.licindia.com).
Some are :
Tata AIG life Insurance.
Metlife
Religare
Reliance Life Insurance
Bharti AXA
HDFC Standard Life Insurance.
5. What to do once your child is 18 in India?
* First get a voter's id. This will help you to vote as well as an address proof whenever it is needed.
* Apply for a PAN ( Permanent Account Number ) card from the income tax department . You can approach any UTI service centre for the same. You need to fill up a Form 49 for the same. Once you get PAN , you can start accumulating/saving money for there higher studies/marriage.
* Open a Savings Bank Account in a nationalised Bank with the child' s name as the first and your name as a joint name.
* Open a Public Provident Fund account in a State Bank or Post Office and start saving money for them. The interest 8% you get is non taxable as on today. You can invest up to Rs 70000 per year . Please deposit the money in the first 5 days of the month so that you get interest for that month.
* Apply for a Learner's License and let them learn Two wheeler and Four Wheeler. Once they get a license it will be helpful for them always. Nowadays it is very common for young children going abroad for higher studies . The reason being getting in to IIT , IIM is becoming extremly difficult. It is easier to get admission in foreign Universities.
* Take a Life Insurance policy for about 40 years so that the child gets the maturity benefits when they are about to retire. It is also a good way of saving money. every year.
Once we join a job , we need to open a bank account to which the salary from the employer gets credited automatically. We should keep this as the salary account to which all our earnings apart from salary income can be deposited .
we can have have another savings bank account in wife's name and our name as second preferably in a nationalised bank close to our home ideally within walking distance.
Few names of the banks are:
Axis Bank, Canara Bank, Dena Bank, Indian Overseas Bank , Karnataka Bank, Citi Bank, HDFc Bank, ICICI Bank, Indian Bank, Syndicate Bank, Corporation Bank.
Transfer the money periodically to Fixed Deposits to earn higher interest.
Please do help your servants and other associates to open the bank account
2. Safe Deposit locker:
If the bank offers locker facility to keep valuables better take it and pay an annual rental . It is advisable to keep all jewels in safe custody.
3. Fixed Deposit:
The money from savings bank can be accumulated to a sizable amount and Fixed Deposit can be opened .Today bank are offering Money Multiplier and do opt for it. The interest earned is taxable in India .
The interest rates are getting changed often in India and it is better to review it periodically .
We can prematurely close the Fixed Deposit and reinvest as a new FD to gain more interest.
If you need some urgent money , take loan on Fixed deposits.
4. Insurance :
A Life Insurance policy for about 40 years can be taken at an early age so that the child gets the maturity benefits when they are about to retire. It is also a good way of saving money. Every year LIC gives good bonus. Also we get the premium exempted under 80C of income tax act. Today there are some more private players in the life insurance business in addition to LIC ( www.licindia.com).
Some are :
Tata AIG life Insurance.
Metlife
Religare
Reliance Life Insurance
Bharti AXA
HDFC Standard Life Insurance.
5. What to do once your child is 18 in India?
* First get a voter's id. This will help you to vote as well as an address proof whenever it is needed.
* Apply for a PAN ( Permanent Account Number ) card from the income tax department . You can approach any UTI service centre for the same. You need to fill up a Form 49 for the same. Once you get PAN , you can start accumulating/saving money for there higher studies/marriage.
* Open a Savings Bank Account in a nationalised Bank with the child' s name as the first and your name as a joint name.
* Open a Public Provident Fund account in a State Bank or Post Office and start saving money for them. The interest 8% you get is non taxable as on today. You can invest up to Rs 70000 per year . Please deposit the money in the first 5 days of the month so that you get interest for that month.
* Apply for a Learner's License and let them learn Two wheeler and Four Wheeler. Once they get a license it will be helpful for them always. Nowadays it is very common for young children going abroad for higher studies . The reason being getting in to IIT , IIM is becoming extremly difficult. It is easier to get admission in foreign Universities.
* Take a Life Insurance policy for about 40 years so that the child gets the maturity benefits when they are about to retire. It is also a good way of saving money. every year.
