All of us are aware of the convenience offered by credit cards. Card issuers also lure customers with various benefits and add-ons. But before you fall bait to and opt for a credit card, there are a number of issues you need to consider. The most important issue being, whether you really need a credit card. Though credit cards have their advantages, the availability of a credit card can lead to impulsive purchases, which otherwise could be avoided. These little purchases add up to a substantial amount in your bill. Hence you need to weigh the pros and cons before taking a credit card and once you own a card, plan your purchases by restricting to only essential items.
You may already be thinking of savings in your life and looking for best savings plan. But, you are worried about the recent scam in financial markets in India. Here, we are presenting some food for your thoughts on your smallsavings to draw your savings plan efficiently. In present market condition, the best savings bet for investor could be bank fixed deposits, LIC money back policy or RBI relief bonds from the safety angle. There could be several other ways to save effectively but the credibility of LIC or RBI is still unquestionable as long as we consider safety as our highest priority. The RBI relief bond presently gives 8.5 percent returns compounded half-yearly for a period of 5 years whereas your bank fixed deposit gives you 9 to 9.5 percent returns. But, in case of RBI relief bond, the interest is tax-free and you also have the convenience of holding them in demat form. You can also avail a loan against your RBI relief bonds by mortgaging it to banks. The bank fixed deposits, on other hand are subjected to TDS and therefore, interest is not taxfree. LIC money-back insurance policy gives us the returns of 7 to 8 percent in average, which is still good to realize in regular intervals. One more option in your savings kitty could be post-office recurring deposit plan with an attractive interest rate of 9 percent compounded quarterly for a period of 5 years. You can also manage a loan on your savings from the second year onwards to fund any emergency cash requirement. You can enjoy a loan of up to 50 percent of your savings available in your account.