Welcome to Money Matters – our new personal finance column which will give you an opportunity to clear your doubts and ask questions that you may have when while dealing with a bank, advisor or financial agent. Or even just questions about how to manage your own personal financials or investments.
Our in-house expert, Tejal Gandhi, has over 25 years experience in the finance sector and she will help you to clarify any financial doubts you may have.
1. Have a Savings account which only earns about 4%. I have heard money works for money but how can I make my money work ?
Your money should not be lying idle in a savings account for a long time since you lose interest. You should transfer the surplus to a higher interest-generating instrument such as Fixed deposits or Equities – if you have a risk appetite. Then your money will work better for you.
2. My bank has offered me a loan on my credit card to buy household gadgets. What should I do ?
My advice would be tp not take a loan on your credit card since the interest charged is high ranging from 12% to 36% p.a. You would be paying a fixed amount every month which would effectively increase the interest rate you are paying month on month.
3. I am 60 years old and have retired. I have recently been approached by my bank to take a savings plan which will insure me. I will also receive a lump sum amount after 10 years. What should I do?
Please understand this is an insurance plan for which you will have to pay a premium for at least five years. For a retired person, you need regular cash payouts to meet your expenses, not investments in insurance premiums. The benefit of this plan will be available to you only after 10 years which would block your surplus funds should you need them.
Write in with your finance related queries and Tejal will give you her best advice!