Money Matters

Money Matters
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First Published: Mon, Sep 07 2009. 12 01 AM IST

Updated: Mon, Sep 07 2009. 12 01 AM IST
Can I invest in bank term deposits and get monthly interest? If not, what are the other options available?
— Roel Rodriguez
Since your requirement is for monthly income, not all bank deposits can help you, because most banks’ interest periods are of longer duration than what you are looking at. In banks, the interest on term deposits is payable at quarterly or longer periods, not monthly. Therefore, it will not suit your needs. In the case of monthly deposit schemes, the interest is calculated for the quarter and may be paid monthly at the discounted value. Alternatively, you can look at post office monthly income schemes (Pomis), under which you will get monthly income. Before reaching a final decision, however, do check whether the interest rates will be what you want.
I applied for a credit card in June and submitted all the necessary documents to the bank. The background checks by the bank were carried out. However, in mid-July, I got a letter from the bank stating that they would not be able to offer me a credit card now. Is the bank right in not approving my application?
— Ramesh Shah
The bank is within its rights not to offer you a credit card right now. Apart from assessing your credit profile, credit card-issuing companies look into other aspects before approving your application. These would include things such as total number of years on the job and average number of years with one particular organization if you have worked for multiple organizations, location of your residence, any current liabilities, previous credit history, if any. Also, at the end of the credit card application, under the “Sign up and Declaration” section, there is usually a clause that states: “I further understand that the Bank may, at its sole discretion, accept or reject this application.”
In the last week of July, I opened a savings bank account. The bank personnel said that I would receive the welcome kit containing the ATM-cum-debit card, personalized chequebook, welcome letter and other documents within seven working days. However, it’s been more than 15 working days and I have not received the kit. What should I do?
— Vidya
Banks usually send the welcome kit within seven working days to the address of correspondence mentioned in the application form. You should approach the manager of the branch where you have opened the account and tell him your problem. Also, verify with him if the correspondence address is listed correctly in the bank’s database. Chances are high that some error has been made while entering your correspondence address. Request the branch manager to make the corrections. For this, you will have to write an application and attach proof of the correspondence address.
Regarding the welcome kit, check if it’s there with the bank. If it has not been delivered at the address, it is usually either returned to the bank or the person from the courier company tries to deliver it again. If it’s not with the bank, ask them to get it delivered.
I want to convert Indian rupees into euros and would prefer to go to a bank. Do all banks offer the same exchange rates? If not, will I have to contact each one separately?
— Pravin
You can approach any authorized dealer or the bank with which you have a banking relationship. Typically, all banks have exchange rates published on their website which is updated on a daily basis. These rates will not be the same across banks. You can get the euros from the bank with which you have a banking relationship. The reason being that once you are back from your foreign trip, getting the unused foreign exchange converted will be a bit easier.
There are, however, restrictions on the amount of foreign exchange that you can take. This will depend on the purpose of your visit. In the case of leisure/tourism, you can avail a maximum of $10,000 or its equivalent in one calendar year. In the case of a business visit, it is $25,000 per trip. In the case of education, immigration or employment, you can avail up to $100,000 per trip.
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First Published: Mon, Sep 07 2009. 12 01 AM IST