The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "The best time to start thinking about your retirement is before your boss does." ~ Anonymous

Recent personal finance news items you make like to note

Some new developments w.r.t. to our day-to-day money matters that may be of interest to you, are listed below.

Number of free ATM transactions
I had earlier warned that henceforth you must count your ATM visits or else pay for it.

Sometime back RBI had announced reduction in the no. of free transactions at the ATMs. With effect from Nov 1, 2014, customers in the six metros cities viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad can make only three free transactions at "other bank ATMs". This no. of five earlier.


However, RBI has now clarified that if people transact at ATMs both at the metro cities and other locations, then such customers can make five free transactions i.e. three in metro cities and two more at other locations. This is a welcome step for frequent travellers.

Exit loads in mutual funds go up

As you are aware, mutual funds normally charge a small percentage as exit load if you withdraw your investment before a specified period. Both the percentage and the minimum period vary across different types of funds.

Some mutual funds have now, for some of their funds
- either enhanced the minimum specified period till when the exit load will apply, and/or
- hiked the percentage of exit load.

This is done primarily to deter people from quitting too soon. This too is a good development.

Past trends show that equity delivers best returns when kept for long term. And now, with the change in tax laws for non-equity funds [See 'Many ways to rejig Debt MFs post-budget'], debt, gold, international and MIP funds too should ideally be held for at least 3 years to enjoy minimal tax on the capital gains.

Easy transfer of money to those with no bank accounts

Now you can quickly and conveniently transfer money to even those persons who don't have a bank account e.g. your children studying in a different city.

Some banks have started the facility of cash withdrawal at ATMs without the ATM card (other banks too can be expected to soon offer this facility). All that the beneficiary requires is a mobile.

You have to first register the name, address and mobile number of the recipient. Once this is done, you can start sending the money as and when you desire. All you have to do is to issue a request, which can even be done online. The bank will then send two codes... one to you and other to the recipient. You must forward your code to the recipient. To withdraw cash, the recipient has to input the amount, mobile number and the two codes at the ATM.  

A nominal fee would be charged to you for such transactions.

At present, the main constraint with this facility is that the withdrawal is permitted only at certain select ATMs, which may not always be easily accessible to the beneficiaries.

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