Monthly Archives: February 2009

How banks pay interest on your savings account balance – Part 2

Read Part I before reading this article.

Basically it implies that the bank gets to use your money for 51 days free of cost. Therefore, the banks have the option of leveraging these zero-cost funds and lend them at higher rates of interest. This is one of the most important sources of their profits.
At the same time a sharp cookie will deposit Rs 100,000 on April 10th instead of April 11th and remove the money on May 1st. The minimum between April 10th and April 30th now is Rs 100,000 and hence he gets 3.5 per cent a year for just keeping the money for 20 days. Continue reading


How banks pay interest on your savings account balance – Part 1

How many of us have actually checked our savings account to see how much interest gets credited into our account for the deposits we make? A lot of people might know the answer to this one.
Now let’s change the question to “How many of us know the way interest is calculated and credited into our account?” Not too many. The answer to this one will surprise many depositors and a bigger surprise is that crores of rupees are lost through millions of savings accounts in our country. The numbers as you will see are staggering. Continue reading


Contra Fund

Contra Fund stands for contrarian and is supposed to be the opposite of value investing.

Contrarian approach is supposed to be very complex. It involves many complex ways of identifying the stocks and investment approach. In this approach, the fund managers look out for stocks which are at cheap prices today but they have potential growth and value in the long run. These stocks are not picked up by many people due to various reasons and the fund manager identifies such stocks and invests the money that is generated from the funds. Continue reading

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Questions Regarding HRA

The following information is for educational purposes only and please consult your financial adviser or financial planner for further details.

These were some of the questions that I wanted answers and I am glad that I found them.

1. Can I pay to rent to my father if he owns a house? Is it legal? Continue reading

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Assets and Liability


In business and accounting, assets are everything of value that is owned by a person or company. It is a claim on the property your income of a borrower. The balance sheet of a firm records the monetary value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. The two major asset classes are tangible assets and intangible assets. Continue reading

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