Nine stories that created an impact on your wallet this week

On Money Matters, we bring top personal finance stories of the week that will directly impact your wallet. From stories related to employment, escalating debt, dealing with unexpected expenses, insurance, market updates, etc., we have covered it all for you. It is a unique show that focuses solely on the stories across India that will give you a better perspective on day-to-day finances as well as update you with recent investment and financial developments happening in the country.

Here’s a look at some of the top personal finance stories 

1. TDS-related rules to change from July 1; here are the details

After the implementation of the Finance Act 2021, important changes have been made in TDS. These changes will be enforced from July 1. The new TDS rules are expected to make the society more tax complaint and also make sure to facilitate this process easily

2. Senior Citizen FD rates: Here’s what HDFC Bank, Axis Bank, and Yes Bank are offering

For a comfortable life post-retirement, it is important to invest in schemes that provide higher returns and come with negligible risks. One of the best investment options that are considered for senior citizens are fixed deposits. They are safe and can provide stable income in old age. Senior citizens or those who have retired, need regular income to meet their household expenses. Fixed income instruments are popular mostly among retirees and senior citizens. During the retirement phase, the regular inflow of income either stops or falls.

3. Plan to retiring soon? Here’s how you can boost your savings

If you are planning to retire early, chances are, as an investor, you already must have defined your investment objective/purpose and, after that, determine your periodic quantum for savings after adequately providing for any emergency/contingency fund and social security benefits such as life and medical insurance.

4. Insurance companies not offering group Covid covers due to high claim ratio

In contrast, when several corporates including start-ups are seeking to protect their employees against Covid-19, the insurance companies have either exorbitantly increased the premium rates or have completely stopped offering the cover. Experts say the claim ratio for insurance companies has gone up with the increase in severity of Covid cases leading to hospitalisation. This has put pressure on insurance companies to increase the premium or stopped offering the policy.

5. Should you join the sectoral funds’ growth bandwagon?

For many years, the Indian pharmaceutical sector has been mired in the tangle of regulatory difficulties, competition, pricing pressures, and enormous R&D investments that did not result in revenue visibility. However, the Indian Pharmaceuticals had a complete bull cycle from 2009 to 2015, followed by a significant slump from 2016 to 2019.

6. Enhance your insurance cover with inexpensive top-up plans

Healthcare has become expensive. With the outbreak of the pandemic, hospital stay has become much longer leading to high hospital bills. It is, therefore, important to buy an adequate sum insured for fully covering the increasing cost of hospitalisation. For example, besides covid treatment, the surgery cost for black fungus can be as high as Rs 10-12 lakh depending on the severity of the case.

7. Eyeing a higher interest rate? Company FDs offer up to 7.95%

Fixed deposits are one of the secure investment avenues that guarantee consistent interest rates, and therefore, are a darling of many. While the interest rates in FDs in banks are declining, some companies are still offering higher returns across different tenures. As a rule, a fixed deposit with a company carries a higher risk than one with a bank.

8. PAN-Aadhaar: Failure to link will hit you hard financially

The Central Board of Direct Taxes (CBDT) has fixed June 30 as the last date for linking PAN with Aadhaar. If the two are not linked by that date, the PAN will be rendered inoperative. Besides, one will be slapped a fine of up to Rs 1,000 as a penalty. This dateline was supposed to expire on March 31 and was extended for three months to June 30 due to a pandemic outbreak. Failure to link PAN and Aadhaar cards will attract more tax on the interest earnings on bank deposits of the person concerned.

9. Gold loans: All you need to know about the EMI option and overdraft facility

Generations have believed that investing in gold is worthwhile in every country since it means safety for the future. In any financial emergency, gold can get you a loan and help overcome the situation. During the pandemic loans raised by households by pledging gold rose by 82% in FY21 compared to the previous year. It is still rising, says, bank officials. A gold loan is a secured loan and, therefore, interest rates are lower than the rates for a personal loan making it a much-preferred avenue.