Common Features of Credit Cards and Debit Cards

Some of the characteristic features of credit cards and debit cards include:

Both these cards allow cardholders to make cashless transactions and purchases, both online and offline.

Both these cardholders are offered online banking facilities wherein they can check their purchases and transactions, statements of account, etc.

Both these cards offer robust security features such as unique PIN codes, SMS-OPTs for online transactions ensuring that your cards are not misused in case these are lost or stolen.

Both these cards can be easily blocked, either using online banking or contacting the customer care of the issuer of the card in case the card has been lost or stolen.

Difference Between Credit Cards and Debit Cards

Here are some differences between Credit Cards and Debit Cards:

While Debit cards allow you to make transactions using the money you already have in your bank account, Credit cards act as short-term lending to the cardholder to make purchases and transactions.

While Credit card expenses need to be paid back by the cardholder, debit cardholders pay for their transaction directly from their bank accounts at the time of their transaction.

While Credit cardholders can access details of their transactions and expense on their credit card statements, debit cardholders need to refer to their bank statements to track their payments and transactions

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What is Sensex?

The BSE or the Bombay Stock Exchange is the 11th largest stock exchange in the world and is the oldest Asian Stock Exchange. The Bombay Stock Exchange is located on Dalal Street in Mumbai and also referred to as one of the fastest stock exchanges in the world.

Sensex is known as the market index of the Bombay Stock Exchange and also is known as the BSE30. The Sensex consists of 30 of the most well established and financially robust stocks listed on the Bombay Stock Exchange. These 30 stocks are spread across multiple sectors and industries, offering an equal representation of the entire stock market.

The Sensex functions a market movement indicator for the Bombay Stock Exchange, which means if the Sensex falls, the prices most of the stocks listed on the BSE also fall, and if the Sensex rises, the prices of most commodities listed on the BSE also rises.

What is Nifty?

NIFTY is the market index of the National stock exchange and also is known as the NIFTY 50. Just like the Bombay Stock Exchange, NIFTY comprises of 50 of the most well established and financially robust stocks listed on the National Stock Exchange. These 50 stocks are spread across multiple sectors and industries, offering an equal representation of the entire stock market.

The NIFTY consists of 50 of the most well established and financially robust stocks listed on the National Stock Exchange. These 50 stocks are spread across multiple sectors and industries, offering an equal representation of the entire stock market.

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To evaluate which analysis method is better, we need to understand what exactly are these techniques of financial analysis.

Fundamental Analysis

Fundamental analysis is a technique of financial analysis that aims towards discovering the prevailing value of a business. This means calculating the intrinsic price of the company and its stock. Fundamental analysis takes into account economic factors such as revenue, profit margins, earnings per share, P/E ratio, sectoral fundamentals, and industry analysis.

Fundamental analysis analyses and compares the growth or decline of structural factors such as revenues, profit margins over some time. For instance, analyze whether the revenues or profits of a company have increased or declined compared to previous financial years, etc.

It also compares the financial performance of a business with its industry peers during the same period. For instance, if company A has a net margin of 10% and the company has a net margin of 12%, in such a case, investing in the stock of company B can be considered much attractive.

Technical Analysis

Technical analysis can be referred to as a methodology used for the evaluation of stocks and securities with the aid of market generated statistics. Technical analysis heavily relies on charts, patterns, and other statistical tools. 

Some of the most widely used charts and patterns used for technical analysis include price trends, trading volume, changes in moving averages, statistical indicators, etc.  

The Verdict

While the fundamental analysis was the most preferred form of financial analysis for stock traders and investors during most of the 20th Century, technical analysis has gained widespread popularity and acceptance as a financial analysis tool.

But coming back to the question, which is the better financial analysis technique? It is difficult to provide an accurate answer as both fundamental and technical analysis have their pros and cons. Nonetheless, both these techniques have the same end-goal, i.e., maximizing your returns on investment. Rather than wondering which method is better, it is crucial to focus on the importance of doing your research and financial analysis before making an investment decision. 

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While most people might think all savings accounts are the same, there are different types of savings accounts that are offered by most banks.

Salary Accounts

Salary accounts are offered by most banks wherein the salaries and wages of employees and workers are credited by their employers directly into these accounts. Most salary accounts offer a zero balance and provide customers with debit cards, net banking, and online payment facility.

Children’s and Minor Savings Accounts 

These accounts are opened for children and minors to encourage children to develop a habit of saving from a very young age and also allow parents to save for their children’s future. Some banks might insist one of the parents be the joint-holder this account. This account operates similarly to other savings accounts.

Woman’s Savings Account

These savings accounts are targeted towards women who allow these account holders to avail loans at an attractive rate of interest and can also offer a marginally higher rate of interest compared to other forms of savings accounts.

Jan Dhan Accounts

These savings accounts can be opened with minimum paperwork and are zero balance accounts offering minimal banking services to the account holders. Prime Minister Narendra Modi introduced these accounts with an attempt to bring every Indian within the ambit of the Banking sector.

Senior Citizens Saving Accounts

These savings accounts are targeted towards senior citizens and are designed to offer them greater security during the retirement years. These accounts provide a preferential rate of interest on savings accounts and fixed deposits.

Family Savings Group Accounts

These savings accounts are targeted towards families wherein a single joint-account can be maintained for the entire family. Most banks offer a discount on locker rental, free debit cards, etc.

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In a review meeting of the Monetary Policy Committee of RBI held on 6th June, the RBI had made the transactions free of cost through real-time gross settlement (RTGS) and National Electric Fund transfer, giving a significant gift to the general public. The rule came into effect from July one. NEFT means national electronic funds transfer. Neft is used for transactions up to two lakh rupees through the internet. Through this, money can be sent to the bank account of any branch from any bank account of any office.

The rare condition is that both the sender and the money receiver must have internet banking service. If both accounts associate to the same bank, the money can be transferred within a few seconds in reasonable condition.

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How much is locker registration fee

In addition, SBI also levies a one-time locker registration fee of Rs. 500 plus GST for small and medium-size lockers. While for large and XL lockers, the fee is Rs 1000 plus GST. If customers delay paying locker charges, one has to pay 40 percent as fine.

33 percent increase

SBI branches provide semi-urban and affordable locker services in rural areas. The customers for lockers pay from Rs 1,500 to Rs 9,000. Locker charges in SBI branches has been increased by 33 percent. Let us say that this new rate will be applicable only to Metro and urban cities. It does not include goods and Services Tax (GST).

The bank has permission to open lockers

According to the Reserve Bank of India (RBI) rules, if customers do not open their lockers at least once a year, banks are allowed to open your locker. Before doing so, the bank sends you a notice.

Read also: Why you need a better Financial Planning for a stable future: How to set small economic goals?

What to do when you need a loan? How and from where to get it

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The strike has been called against the bank’s merge. It may be recalled that on Wednesday, the central government had finally sealed the decision to make four of the 10 public sector banks. The decision will come into effect from the next one April. The decision was taken at a cabinet meeting held on Wednesday under the chairmanship of Prime Minister Narendra Modi, and the next day two major unions in the banking sector announced the strike.

Earlier on March 11, the unions had also announced a three-day countrywide strike. But later on, the bank employees avoided the strike. The organization said it was decided to postpone the strike due to positive progress in the meeting held with the Indian Bank Organisation (IBA) in Mumbai. The strike was called by the United Forum of Bank Unions, a group of banking sector employees’ organizations.

We would like to inform you that the Government had decided to merge 10 public sector banks into four banks in August last year. United Bank of India and Oriental Bank of Commerce are to be merged with Punjab National Bank. After this merger, PNB will become India’s second largest bank from April one this year. In addition, Syndicate Bank is to merge Canara Bank and Allahabad Bank with Indian banks. Similarly, Andhra Bank and Corporation Bank will be merged with Union Bank of India.

Read also: Big blow for SBI customers: Now you have to pay extra charges from 31st march

Why you need a better Financial Planning for a stable future: How to set small economic goals?

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SMS Charge also waived

The bank has also waived SMS charge keeping in way the ‘customer first’ approach. The move will benefit all customers of the bank significantly.

According to the chairman, the bank will increase customer Confidence: 

Announcing the announcement, SBI chairman Rajnish Kumar said, “This announcement will further enhance the smile of our valued grass. Waiving AMB is another essential step of the bank that has been taken for a more convenient and better banking experience for customers. We believe that this move will connect our customers to SBI and the bank in a forceful manner and further strengthen their confidence in the SBI.”

State Bank is the largest bank in the country in terms of assets, deposits, branches, customers, and employees. As per the data of 31st December 2019, the bank’s deposit base is more than Rs 31 lakh crore. The bank had earlier announced a cut in MCLR-based interest rates in the day. SBI had also announced a reduction in the interest rate on Fixed Deposit.

Read also: Why good necessary to have a better Credit score? How you can improve itBank Strike: Complete your bank work before March 27 as Unions planned three-day strike

Why good necessary to have a better Credit score? How you can improve it

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How is Circuit Breaker determined?

The BSE and NSE daily determine index circuit breakers at 10 percent, 15 percent, and 20 percent based on the previous day’s closing level.

What is the Lower Circuit Breaker?

As per SEBI guidelines of 2 July 2001, Indian stock exchanges have to use index-based circuit breakers. The index-based circuit breaker is implemented in 3 steps, looking at the movements of the system indices. It is levied at the level of 10 percent, 15 percent, and 20 percent. Trading in equities and equity derivatives is stopped after a circuit breaker is applied. If either of the two major exchanges in the country – the NSE and BSE’s sensitive indices, the NIFTY or the SENSEX – crosses the level of 10 percent, 15 percent or 20 percent, business is stopped on both exchanges.

When and how long does the business stop after the circuit is installed?

Given the level and timing of the decline in the stock market, it determines how long the business will stop.

Pre Open Session begins after the circuit is removed

There is a 15-minute pre-open session before starting the business again after the circuit is set up. It shows the depth and position of the stock market. The pre-open session does not begin when the business is stopped for the whole day.

How long will the business stop

45 minutes stir before 10 O’clock. 10% stir between 1 pm and 2.30 15 minutes. After 2.30 pm, 10% of the stir will not stop the business. 1 hour 45 minutes of stirring 15 percent before 1 O’clock. 1% to 2pm 15% movement 2 hours 45 minutes. After 2 O’clock, the stir of 15 percent closed the business for the whole day. Business closes for the entire day, whenever there is a stir of 20 percent. 

Read also: Big news for SBI customers: No more charges on the minimum account balance: Read full report

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Reduction in external benchmark lending rates

Bank of India has cut external benchmark lending rates by 75 basis points, or 0.75 percent, on Sunday. After this cut, the external benchmark lending rate has come down to 7.25 percent. The cut in interest rates by the bank will come into effect from April one.

Repo rate cut biggest in 15 years

The Reserve Bank had cut the policy rate repo by 0.75 percent in the 7th bi-monthly monetary policy review announced on Friday. This is the most significant cut in the last 15 years. It has been reduced from 5.15 percent to 4.40 percent. The central bank has also allowed banks and financial institutions to stop payment of loan installment for three months because of the impact on people’s income and economic activity in view of the 21-day lockdown (bandh) to prevent the coronavirus.

MCLR also reduced

In addition, the bank has also cut the marginal cost of lending rates (MCLR). It has come down by 0.25 percent. This deduction has been made for all periods. A cut of 0.25 percent was made for a period from one year to one month, compared to 0.15 percent for the overnight period. The bank’s MCLR for a year has now grown to 7.95 percent annually.

SBI gives full benefit of repo rate cut to customers

After the RBI cut the repo rate, SBI has said in a statement that its new reduced rate will be applicable to customers availing loans under the external standard rate linked debt rate (EBR) and repo rate linked debt rate (RLLR). The new interest rate will come into effect from April 2020. SBI lowered the external standard rate lending rate from 7.80 percent to 7.05 percent per annum, while RLLR was reduced from 7.40 percent to 6.65 percent.

Read also: Are you applying for Home Loan? Be aware, or you may lose your money: Read here how?

Want to invest in Mutual Funds? Keep these things in mind before investing your money

How to save tax? What is the best investment option: Read here

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