Introduction Underbanked individuals/households have minimum access to basic banking services like loans, credit cards, and savings accounts. This could be due to a lack of credit history, a poor salary, or living in places where banks or financial services are less or unavailable. Being underbanked can majorly affect a person/household's financial well- being. It will reduce their ability to save, invest, and grow wealth. Meaning of Underbanked Being underbanked involves having limited access to common banking institutions' financial services and their products. Some of the examples include checking and savings accounts, credit cards, and loans. These financial products help people ... Read More

Introduction Tax-saving bonds are a popular strategy to minimize taxable income and save money on taxes. These bonds are long-term investments. They have a lock-in period of 5 to 10 years, during which the investor cannot redeem the bonds. In this tutorial, we will learn about tax-free bonds and their advantages. Define Tax-Saving Bonds Tax-saving bonds are financial instruments issued by the government or public sector undertakings (PSUs) to provide tax benefits to investors. These bonds are purchased with the idea of profit in the long run. The investments are kept in a lock-in period for 5- 10 years. ... Read More

Introduction Mutual funds are the best investment option for people who want to expand their investment choices. This method will help them earn larger returns. Mutual funds allow investors to move their investments from one mutual fund to another via switch option. What Switching in Mutual Fund Means? Switching in mutual funds refers to transferring your investment from one mutual fund to another within the same fund family. Fund families are groups of mutual funds managed by the same investment company. For instance, if you invest in an NYC mutual fund, you can convert to another NYC mutual fund ... Read More

Introduction A prospectus must be submitted to the SEC, a regulatory authority, when a firm wants to go public. A prospectus is a legal document containing thorough information about the firm, business activities, financial performance, etc. However, before the final prospectus is issued, companies often release a preliminary prospectus known as a red herring prospectus. Meaning of Red Herring Prospectus RHP is the first document filed by the firm that wants to go public through an IPO. The document is called a "red herring" because there is a disclaimer on the cover, written in red, stating that the herring is ... Read More

Introduction Individuals and businesses depend on outward remittances as it is important to international trade and commerce to send money from India to other nations for various needs. It is essential to understand the rules and regulations governing remittances abroad to guarantee smooth transactions and avoid legal problems. Outward Remittance in India An outward remittance refers to sending money from India to a foreign country. It could be for various purposes, such as education, medical expenses, investment, or family maintenance. Individuals and businesses use various transfer modes, including wire transfers, credit card payments, or online money transfer services. Significance ... Read More

Introduction Buying a home is a significant investment that requires considerable money. Most people usually apply for a mortgage to finance their home purchases. However, traditional mortgages can be expensive and take a long time. An offset mortgage is an alternative option to help you reduce your mortgage interest and pay it off faster. Define Offset Mortgage An offset mortgage is a home loan that enables borrowers to link their savings and current accounts to their mortgage. The interest payable on the mortgage is calculated based on the outstanding balance minus the savings in the linked accounts. The borrower ... Read More

Introduction Loans are a common financial tool used to finance various ventures, including personal expenses, business ventures, and investments. However, lending comes with risks, and lenders must protect their investments. That's where a loan agreement comes in. It is a legal contract that has terms and conditions for the loan. It includes payment terms, interest rates, and any collateral required. What is a Loan Agreement? A loan agreement is a bond signed between a lender and a borrower with certain rules that must be followed. It is a legally binding document specifying both parties' obligations, including the repayment schedule, ... Read More

Introduction The traditional idea of retirement involves working for several decades and saving enough money to comfortably retire in your 60s (common benchmark in several countries). However, the FIRE movement challenges this traditional approach by encouraging people to retire much earlier, often in their 40s. An important factor in achieving early retirement is by becoming financially independent. It means we need enough money to cover our expenses without taking a job. FIRE Meaning The acronym FIRE stands for "financial independence retire early." The concept of FIRE is based on the idea that if you can save and invest aggressively ... Read More

Introduction The Euro Interbank Offer Rate (Euribor) is a benchmark interest rate for borrowing between banks. It is a daily reference rate based on the interest rates banks offer to lend unsecured funds to other banks in the euro wholesale or interbank market. EURIBOR is a crucial benchmark for financial institutions and borrowers, as it prices various financial products such as loans, mortgages, derivatives, and other financial contracts. Define Euribor Euribor is a daily reference rate calculated by the European Money Markets Institute (EMMI) based on the average interest rates. A panel of 18 banks partake in computing this ... Read More

Introduction A method of transferring ownership of unclaimed assets or property to the state when the true owner cannot be found is referred to as escheatment. This approach is taken to avoid misplacing or abandoning the item and ensure it is put to good use. Escheatment can occur in various circumstances, including when a person dies without leaving a will or any heirs or when a company goes bankrupt, and its assets cannot be distributed to its shareholders. Define Escheatment Escheatment is a legal term that is used worldwide. When the actual owner of the property is not found, ... Read More