Thursday, 26 September 2013

Seventh Central Pay Commission for Government Employees

Government of India decided to constitute a Seventh Central Pay Commission, which will benefit to about 80 lakh employees and pensioners.

The constitution of the Seventh Central Pay Commission has been approved by the Prime Minister of India. The recommendations the 7th CPC is supposed to be implemented with effect from 01st Seventh Central Pay CommissionJanuary, 2016 which is exactly after 10 years of the implementation of the 6th Central Pay Commission.

About 50 lakh Central Government Employees and around 30 lakh pensioners will get the benefits of the recommendations of this newly constituted seventh central pay commission.

Pay commissions are constituted to study and revise the pay & allowances of government employees which is helpful to compensate the increasing trend of day to day expenses. The state government also considers these recommendations to revise the pay scales and allowances of their employees.

Let us await the recommendations of this new seventh Central pay commission with all government employees.

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Wednesday, 25 September 2013

Don’t Get Caught in These Credit Card Traps

Credit cards are serious financial tools that are often demonized but are neither inherently good nor bad. Handled responsibly they offer conveniences and benefits; in the wrong hands they can result in overwhelming debt and poor credit scores. Making poor choices and several traps within many credit card agreements only make a bad situation worse. Establishing better money management skills and avoiding certain credit card terms are the keys to improving how well credit cards work for you.

Deferred Interest Solicitations
Retail credit card promotions are notorious for offering deferred interest while making it sound like a benevolent service. At first glance, 0% interest for 12 months seems generous and helpful, but look deeper and you’ll see the hook. If you don’t pay the entire balance by the end of the introductory period, you’ll be charged the interest that would have accumulated from the opening of the account, which can be a substantial amount with APRs often in the 20 percent range.

Zero APR Limitations
Zero percent APR credit cards are the easiest way to save money when using credit. The downside is that there are often limits to the agreement that can catch you off guard.

• No guarantee of 0% approval.
• Introductory rate time frame is less than advertised. Don’t accept less than six months.
• The 0% rate may only apply to purchase OR transfers and NOT both.
• Pay late and lose the 0% rate.

Default Penalty APR
This penalty imposes a huge jump in the APR on an account for minor transgressions. Make two late payments in a six month period or default on any other account with the bank and you could be paying up to 35% APR on the balance. Your account will stay in the penalty zone interest rate for as long as the bank chooses to keep you there.

Interest Rate Calculations
The disclosure statement for every credit card provides a variety of interest rates for different types of transactions. This is where you will find how interest rates will be calculated. Different rates may apply for transferring a balance, taking out a cash advance and penalty rates for delinquency or late payments. Credit card providers can change rates at their discretion – interest, fees and other terms for any reason. This is why every piece of communication you receive from your credit card company needs to be read and not just assumed to be junk mail.

Discretionary Fees
There are fees that may come as a surprise in the terms of some credit card agreements. One that has cropped up recently is a non-usage fee that is imposed if you do not use the card within a specified period of time. Another is a monthly fee for sending you a paper statement, a way to encourage e-billing.

The worst offenders by far are banks that provide secured credit cards. These are accounts typically used by people trying to build or repair their credit history. Charges may include an application fee, an annual fee, a monthly fee, a payment processing fee and a charge for calling their customer service number.

Foreign Transaction Rates
While less common, there continue to be cards that charge a fee of up to 3% for transactions outside the United States. This may include cash withdrawals as well as all purchases. If you travel extensively, the amount you’ll pay in foreign transaction fees can be substantial. Look for a card that doesn’t charge the fee; there are plenty to choose from.

Also, keep in mind that a lender may substitute another credit card with different terms and rates, if they determine that you don’t qualify for the one you originally applied for.

Good and Bad News on Rewards
First, never choose or use a credit card based on a rewards program. If it fits into your lifestyle and makes sense to use one, than it is most assuredly a wise move. Obviously, if you have the discipline to make rewards work for you and the ability to pay the balance off each month, a reward credit card is a benefit that you shouldn’t pass up.
Spending to earn rewards is a losing proposition that leads to bigger debt. If you’re paying on a balance over a long period of time, any reward will be negated by the interest you’re charged in the first few months. In addition, some programs are so convoluted as to make them useless for most consumers. One example is programs that offer bonus rewards for specific purchases at different points in the year - confusing and too time consuming for many people.

One last trap to avoid has to do with how you manage your credit card accounts. Drawing out paying off credit card debt by paying only the minimum required will mean the debt will hang over your head for years as it increases the lender’s profits. There are few things more discouraging than paying month after month and seeing little progress in getting out from under the debt. Pay as much as you can each month and keep more of your hard earned money in the long run.

Vanessa May is a regular contributor to Wow’s Smart Credit Card Blog along with other financial sites throughout the web. Her goal is to educate consumers with the assistance of government and other reputable sources to provide relevant news and helpful information on money management, debt services, credit card comparisons and a wide range of finance related topics.

Friday, 20 September 2013

10% DA from July 2013, 10% DA Increase from July 2013

Central Government Employees get 10% DA from July 2103. A 10% increase in DA makes the Dearness Allowance to 90%. The DA from January, 2013 was 80%. Now an additional installment of Dearness Allowance by 10% is approved by the Union Cabinet with effect from 01st July, 2013.

The benefit of this 10% DA from July 2013 is for around 50 Lakh Central Government 10% DA from July 2013Employees and around 30 Lakh Pensioners. Dearness relief of pensioners is also increased by 10% as per the new DA increase from July 2013.

The Government has an additional burden around Rs. 11000 crore due to the new 10 DA from July 2013. When The DA touches 100% some special allowances will be increased by 25% as per 6th central Pay commission. Then the benefit will be doubled to those who get such allowances.

The order of New 10% DA from July 2013 is yet to be issued.

Download DA July 2013 order

10% DA from July 2013, 10% DA Increase from July 2013

Tuesday, 17 September 2013

DWS Hybrid Fixed Term Fund – Series 16

Deutsche Mutual Fund issues DWS Hybrid Fixed Term Fund – Series 16. This is a close ended income fund which has no entry load or exit load. The objective of the scheme  is to generate income by investing in fixed income securities maturing on or before the date of the maturity of the Scheme and to generate capital appreciation by

[caption id="attachment_5543" align="alignright" width="300"]DWS Hybrid Fixed Term Fund - Series 16 DWS Hybrid Fixed Term Fund[/caption]

investing in equity and equity related instruments

The DWS Hybrid Fixed Term Fund – Series 16 is already launched in the market today, 17th September, 2013 and the New Fund offer will close on 01st October, 2103.

The DWS Hybrid Fixed Term Fund – Series 16 is for 42 months and you cash withdraw the investment only at the maturity. The issue price of one unit of the NFO period is Rs. 10 and the minimum required investment must be Rs. 5000 and in multiples of Rs. 1 thereafter.

The mutual fund wish to collect Rs. 20 Crore in the NFO period. Read more about the New Fund Offer

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Monday, 16 September 2013

HUDCO tax free secured redeemable bonds

HUDCO (Housing and Urban Development Corporation Limited) promotes housing and urban infrastructure projects. It is a government owned Mini-Ratna Company which provides long term finance and support to housing and infrastructure development. HUDCO tax free secured redeemable bonds issues with tax free 8.76% interest.

Issue of HUDCO tax free secured redeemable bonds opens on Spetember 17th, 2013 and the closes on 14th October, 2013. It is tax free secured redeemable NCD in nature and will be listed in Bombay Stock Exchange.

Face Value of Rs. 1000 is for one unit of HUDCO tax free secured redeemable bonds and the minimum required investment is Rs. 5000 which is 5 NCDs. The NCD issues in 3 different series called 1A, 2A & 3A with a slight difference in interest rate and with various time periods.

1A series gives an interest of 8.39% p.a for retail investors and 8.14% for all other investors and the NCD is for 10 years.

In case of 1A Series, 8,76% interest for retail investors and 8.51% for all other investors and the NCD is for 15 years.

The interest of 3A series is 8.74% p.a for retail investors and 8.49% for all other investors and the NCD is for 20 years.

The payment of interest for all series of HUDCO tax free secured redeemable bonds are annually.

Read the prospectus for more details

Sunday, 15 September 2013

6 Ways to Invest Without Going into Debt

You may laugh at the idea of investing in this current economy. However, even though, times may seem tough, the best time to invest for your retirement is now. For instance, if you should invest $1,000 right now and it had a 5% yearly return, in 30 years, your investment would yield more than $4,300. If you could add $100 to that amount on a yearly basis, your investment yield in 30 years would be $11,300. A little can go a long way. Not everyone has the same financial goals. When you decide to invest, it is best to determine your specific objectives. Learn as much as you can about your investment product and you will have more confidence in pursuing your objective.

One word of caution before considering any form of investment: put away at least three months of your salary to cover emergencies. Here are six ways that you can invest without incurring debt.

US Saving Bonds

Rather than keeping your money in a low interest savings account at your local bank, consider US Saving Bonds. This is the simplest and most practical way to invest. The government guarantees that you will never lose your money invested in US Saving Bonds. The Series 1 savings bond combines a fixed rate of return that is guaranteed to adjust if there is inflation. If prices increase, you will never lose your purchasing power. If you already have a Series HH savings bond in your portfolio, don’t cash in. These saving bonds are special because they can no longer be acquired. In addition, they recurrently generate steady income that you can use to pay your monthly bills. You will earn a fixed rate of return on a Series EE saving bond investment. These bonds will never change in value. You will be able to re-sell them for the full value in addition to the earned interest, with little or no penalty.

Real Estate

Real estate has been a popular way to invest your money; particularly if you are going to rent or lease the property for a steady monthly income. If done correctly and if you choose the proper location, this form of investing can be quite lucrative over the long run. Find low cost homes that you can fix up and rent, lease or sell.


Purchasing metal such as gold bullion is another popular form of investment. Although the returns are not high, this type of investing is one of the most secure. When other investment values decrease, the value of precious metals is always on the rise.

Certificate of Deposit

CDs or Certificates of deposit may not seem interesting to some, but they are some of the safest forms of investments. If interested, you can shop around with different banks and credit unions. It is likely that you will find a rate that considerably surpasses the return on a similar U.S. Treasury security.

Corporate Stocks

Investing in corporate stocks allow you partial share in a company. However, your return is dependent on how the business does overall. The safest business to invest in is the ones that remain consistent despite economic climate. You cannot go wrong with Disney World.

Mutual Funds

The LEXCX Corporate Leaders Trust Fund has been around for more than 75 years; before computer programming was invented and yet, it is one of the most consistent funds to date. It has 22 stocks that have outdone the S&P 500. The only drawback is that it requires a $10,000 investment upfront. However, if you can afford it, then go for it!


There are some investments that you need to stay away from. Penny Stocks are inexpensive and not worth much. They are usually feeding ground for scammers. The Futures market is volatile and uncertain. Stay away from Initial Public Offerings, which are new companies that decide to go public. Experts have confirmed that many of these companies will go broke within five years.


Dave Landry Jr. is a start-up business advisor and has been writing finance and business-related blogs for the past three years. Dave is also an associate contributor for National Debt Relief.

Thursday, 5 September 2013

Steps to Selling Structured Settlements

Structured Settlements are periodic payments made by an insurance company following an accident or injury. Many choose trading these payments in return for a one off lump sum payment. This is a straightforward transaction; however, there are numerous factors that go into selling structured settlements. It is important therefore to familiarize yourself with the steps needed to sell your settlement in order to guarantee you agree on the best deal for your financial circumstances.

What is the value of your settlement?

In order to make sure you get the best deal for your money, you need to ensure you know the exact face value of your settlement. There are two ways of calculating this; consulting a financial adviser who will calculate both its value, and the amount on inflation that will incur from the date you meet until the date the final payment of your settlement is paid. This will cost you but the results will be 100% accurate. If you are strapped for cash, you can use a current value calculator which can be found online. You will need to input certain information, and make certain that it is correct. Through using the online calculator you will be able to view the current value.

Which company to use?

A thorough investigation should take place when choosing which companies to get a quotation from. To begin with it is worth using the Better Business Bureau in order to eliminate those companies that are not registered on their database and those that do not have a good rating. It is also worth reading all comments and complaints in order to understand the pros and cons of each company. This will prepare you for your first meeting with them and may give you the upper hand when it comes to negotiating. Make sure you use a reputable company which specializes in buying structured settlements for the best deal possible. Once you have chosen a few well known companies you can apply for quotes from each. There are two possible ways to do this’ many will have online forms to fill in and others will have a customer service helpline. Whichever you use, remember that you should only be asked for your name, address, e-mail id and telephone number. If they ask for any more information, do not continue with your application.

Which quote should I choose?

This is completely up to you! Only you know your financial needs, so asses which quote will best fulfill your needs. The buying company should agree to pay you 80% or more of the agreed price in one lump sum. If it is any lower than this it is best to decline their offer. Remember that it is ok to ask each company to give you a little time while you decide. These companies are obliged to give you a cooling off period to ensure you are 100% committed before accepting their offer. Any buyer who hurries you in to accepting cash for structured settlements is likely to be unscrupulous and should be avoided. This is your decision and your decision only. You are entitled to as much time as you want.

Should I hire a lawyer?

If you are unsure of your agreement it may be best if you hire your own lawyer who specializes in structured settlements. This would allow you to go over the agreement and clarify any issues or concerns, checking that the contract is worded correctly and prepare you for any tax consequences which may occur once you accept the settlement. Fully understanding the transaction will allow you to be in control and prevent and company from taking advantage of you. Once this is done, you can accept the agreement and sit back and wait for the transaction to be completed.

Author Biography

Selling structured settlements has been Mark Long’s area of expertise for over a decade. After a successful career as a financial adviser, he decided to start offering advice for those seeking cash for structured settlements.



Monday, 2 September 2013

Personal Life Investments that are good for Business

If you have your own business that you rely on for a monthly income, then it is important to make sure that you can manage financially. A business cannot always guarantee a fixed income, which means that you need to make sure that you have something to back you up, if your business does not pay out. Making certain personal life investments, can be a good way to make sure that you do not put undue pressure on your business income. It is also important that you look after yourself and get the right people to help you.

Having some insurance such as health insurance or life insurance means that your business should be secure should anything happen to you. You will be able to get the medical care that you need without having to take money from the business. Hopefully you will also be able to afford to employ someone to take over from you because you will not need to find money for medical care so you may have enough to do this.

‘Emergency’ savings

Having some emergency savings in a personal account is a really good way to make sure that your business is safe. This is because if you run out of money it can be tempting to take money from the business to help you. You may have business savings for emergencies, which is very sensible, but may decide to use them for personal use if you run out of money. Also having emergency savings means that if you cannot pay yourself as the business is not doing well; you have some money to fall back on.


Having a pension can be a good thing for the business. It means that when you come to retirement age, you will have an income. You will no longer have to rely on the business to support you and this could mean that you can sell it to someone or pas sit on to your children to run. Having that security for the future means that you may be more willing to take risks with the business that could help it to be more successful.

Keeping Fit and Healthy

This is certainly not a financial investment, but making sure that you stay fit and healthy is a big bonus to your business. You will benefit by having less days when you are unwell and have a clearer head for thinking. This has to be a really positive thing for your business. You should be able to make better decisions and spend more time working.

Getting Family Involved

It can be really useful if you get your family involved with your business. They will be able to help you run things, which can be useful if you want some time off or are unwell. It is also satisfying to give the opportunity of an income to a family member so that you can support them. If they are as passionate about the business as you it can be much better than if you are employing workers who do not share that vision.

It can be tempting to think that personal life investments are separate to your business. However, one has to support the other and so they are both important.

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