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How to transfer money via SBI Instant Money Transfer (IMT)?

Shitanshu Kapadia
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How to transfer money via SBI Instant Money Transfer (IMT)?

SBI has recently launched instant Money Transfer (IMT) facility for the customer. Now SBI account holder can instantly transfer money to any mobile number in India. On the other hand, a receiver can withdraw the money from ATM machine without using a card. Features, benefits and usage details of SBI Instant Money Transfer are given below.

SBI IMT Online

SBI Instant Money Transfer Features

  • Transfer instant money to anyone anywhere anytime.
  • Only name, mobile number and address of beneficiary are required by the sender.
  • The beneficiary can withdraw money from SBI ATM with or without using ATM card.
  • No partial withdrawal allowed to the beneficiary.
  • An IMT created once cannot be cancelled.
  • The service charge applicable for the IMT is Rs.25 per transaction at sender end.
  • The minimum transaction amount is Rs.100 and maximum is Rs.10,000 per transaction with monthly limit Rs.25,000 per month per beneficiary.
  • The T+2 days are given to the beneficiary for the IMT withdrawal. If money is not withdrawn it will be automatically refunded back to the sender.

How to Transfer money via SBI Instant Money Transfer?

Step -1 – Register Beneficiary

The first step before IMT is registration of beneficiary. To register new beneficiary you need to send SMS on 567676 mentioning a mobile number, name and pin code of beneficiary in the following format.

BREG 9800000098 + Raviraj + Parekh + 394510

Step -2 – Instant Money Transfer using SBI ATM

  1. Visit nearest ATM Center.
  2. Insert your ATM card and select transfer option.
  3. Enter your debit card PIN.
  4. Select IMT option and IMT Initiate option.
  5. Enter beneficiary mobile number and your mobile number.
  6. Enter 4 digit code and enter the amount for money transfer.
  7. Select YES or NO on the confirmation screen.
  8. Select your account for the money transfer.
  9. Once IMT is initiated 15 digit IMT ID will be generated and 4 digit SMS code will be sent to Beneficiary mobile number.

Step -3 – Withdrawal of money by beneficiary

The beneficiary can withdraw IMT money from SBI group of ATM with or without ATM card.

  1. Visit nearest ATM Center.
  2. Click on IMT logo appearing at the bottom right touch screen.
  3. Enter your mobile number and sender code.
  4. Enter SMS code received on your mobile.
  5. Enter withdrawal amount and give confirmation by pressing YES.
  6. Collect the cash.

Over to you –

SBI Instant money transfer is very good innovative service especially when you want to do long distance remittances or emergency money transfer. This facility is also useful when you forgot your wallet or lost your debit card.

MIP – Monthly Income Plans for regular monthly income

Shitanshu Kapadia
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0
MIP – Monthly Income Plans for regular monthly income

Earning a regular monthly income is the prime need of every individual today. In order to generate regular monthly income, we generally do a job. However, there are many businessman or investors who generate regular monthly income by making investments.

 If you are a businessman with an irregular income and want to invest money for a regular monthly income you can go through 10 Best Investment options to generate regular monthly income. In this post, I will discuss MIP – Monthly Income Plans and also suggest some of the best MIP for investment.

monthly income

What is MIP – Monthly Income Plans?

MIP is a debt mutual fund scheme that invests its 70-75% funds in government bonds or other fixed income generating schemes. MIP offers regular monthly income in addition to dividend payout. However, income generated from MIP is variable in nature. MIP comes with two options.

MIP with Dividend Option –

As the name indicates MIP with dividend option provides you regular dividend income. You can receive this dividend monthly, quarterly, half-yearly or half-yearly based on the option selected by you at the time of buying MIP.

MIP with Growth Option –

In this option dividend is not paid to the investor it will be reinvested for the growth of fund hence the overall growth of fund will be high. The benefit of this growth will be paid to the investor at the time of redeeming funds.

Types of Monthly Income Plans – There are two types of monthly income plans available in the market.

  • Aggressive MIP Funds – This types of fund invest 15-30% of fund amount in the equity market.
  • Conservative MIP Funds – This type of fund invest 0-15% of fund amount in the equity market.

Features of Monthly Income Plans (MIP)

Unfixed Monthly Returns – MIP provides very good returns to the investor. However, returns from MIP is not fixed. The returns generated by MIP is based on the performance of the fund. If fund performance is good the return generated by the fund is high, whereas if fund performance is poor MIP may end up giving bad returns.

MIP returns depend on Interest rates – The returns generated by MIP is based on market condition and prevailing interest rates. As a majority of investment done by MIP is in debt component any change in interest rate by the government directly impacts the performance of MIP.

Comparison of MIP with Other Fixed return Options

A comparison of MIP with other fixed return options is given below for your better understanding.

Comparison MIP

When to Invest in MIP? – Practical Purpose/Examples

Well, as per the discussion above you must have understood the benefits of Monthly Income plans (MIPs). MIP is a boon for the investor who wants to generate regular income for meeting some fixed expenses. Let’s take a look at practical examples of the same.

Pocket Money for children – Giving fixed pocket money to children is a regular expense. One option of fulfilling is expense is directly paying money from your income. However, if you are a smart investor you can invest in monthly income plan to generate regular monthly income for paying pocket money to your children. By adopting this way you can easily keep track of child expenses.

Yearly Vacation – Taking a break and enjoying a yearly vacation is sometimes necessary. You can plan your yearly vacation without hampering your regular budget by making an investment in right monthly income plans.

Regular Monthly income after retirement – If you are a retired person you can generate monthly income by investing your money in monthly income plans. As per me, MIP is a better option compared to MIS and fixed deposit. You can enjoy a financially free retired life by investing in MIPs.

Conclusion –

MIP is one of the best investment options that helps you generate regular income and fulfilling your regular expenses. If you are planning to invest your money in fixed deposit I advise you to look at Monthly Income Plans before taking any investment decision.

Top 10 Long Term Investment Options in India

Shitanshu Kapadia
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0
Top 10 Long Term Investment Options in India

What are the best long term investment options in India? The average Indian always tries to find an answer of this question and sometimes he ends up making a big mistake while selecting Best Long Term Investment Option.

long term investment options

Let me share one incident with you. My relative was looking for long term investment option. He got advice from so call financial adviser to invest in penny stocks. He was new to stock market and without understanding consequences of investing in penny stock he invested money in few penny stocks. As an end result, he ends up making huge losses. Lesson learned from this incident is one should be cautious while selecting investment option.

So, if you are planning to make long term investment and don’t want to make any mistake here is list of Top 10 Long Term Investment options in India.

Top 10 Long Term Investment Options in India

Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of best long term investment options in India. PPF account can be opened by Indian resident at any authorized bank or post office.

Key features of PPF scheme

  • Annual Deposit amount – Rs.500 to Rs. 1.5 Lakhs per year
  • Tenure – 15 years
  • Interest rate – The interest rate is announced by the government from time to time.
  • Withdrawal – Partial withdrawal is allowed after 7 years.
  • Tax Benefit – The deposit amount can be claimed under section 80 C. Interest amount will be tax free.

Why Public Provident Fund is Best long-term Investment option?

PPF is one of the best investment options for long term as it offers multiple benefits to the investors.

  • Tax free returns
  • Low risk investment option with good returns
  • Useful for building retirement corpus

Sukanya Samriddhi Account

Sukanya Samriddhi Account (SSA) is next in the list of best long term investment options in India. Sukanya Samriddhi Account is launched to take care of education and marriage need of girl child. This account can be opened only on the name of girl child with age less than 10 years.

Key Features of Sukanya Samriddhi Scheme

  • Maximum Age limit  – 10 years
  • Annual Deposit amount – Rs.500 to Rs. 1.5 Lakhs per year
  • Tenure – 14 Years
  • Interest rate – Interest rate will be declared by the government time to time
  • Maturity -21 Years from date of opening account
  • Withdrawal – 50% withdrawal is allowed for the higher study after 18 years of age of girl child

Why Sukanya Samriddhi Account is Best long term Investment option?

Sukanya Samriddhi Account offers following benefit to the investor.

  • Attractive returns
  • Low risk Investment option
  • Tax Free returns
  • Useful for child education and marriage

National Pension Scheme (NPS)

National Pension Scheme is best retirement scheme for the long term investment. This scheme is regulated by PFRDA. All individual between age group of 18 to 60 years can join NPS.

Key Features of NPS

  • Amount of Investment – Minimum 6000 Rs. No limit for maximum investment
  • Returns – Depends upon % of investment in equity and debt
  • Tax Benefit – Up to Rs 50,000 under section 80CCD(1B) in addition to Rs 1.5 lakh under section 80C.

What benefit NPS offers to the investors?

  • High returns compare to traditional option as part of money is invested in equity.
  • Choice to select investment option, fund manager and annuity plans.
  • Offers multiple tax benefits.
  • It is portable account NPS account number remains same incase of change in employment.

Diversified Mutual Fund

Diversified Mutual Fund is next in the list of long term investment option. Mutual fund is best for the investor who is new to stock market and don’t want to risk the money. Mutual funds are managed by professionals.

Good mutual funds generally give very good returns to the investors. In addition to that mutual funds also offer liquidity, diversification and convenience to the investor.  You should invest your money in the mutual funds.

Benefit of Mutual Funds

  • Professional Management
  • Liquidity
  • Diversification
  • Good Returns

Stock Market Investment

Stock Market investment is next best long term investment option. Stock market investment can make you wealthy provided you invest in right stock at right time.

Example – If you have invested in Infosys IPO in the year 1993 you would have got 100 shares by an investment of 9500 Rs. After 6 bonus issues and 1 stock split, you would be holding 25,600 shares of Infosys today. The value of these stocks would be Rs 3 Crore (excluding dividend).

Another example is Stock guru Rakesh Jhunjhunwala. He has made portfolio of 5000 Cr from 50 Rs. Stock market investments gives benefit of liquidity and diversification. Knowledge and expertise are extremely important while making stock market investment.

Why Stock market is best for long term investment?

  • Best returns over the long term
  • Tax Benefits over long run
  • Liquidity
  • Diversification

Business or Startup

Next best long term investment is startup. Startup companies are like rising sun with huge upside potential and increase in valuation. A Small startup like Alibaba has made Jack Ma richest businessman in China. So, that is the power of startup. A Valuation of startup companies are increasing day by day. A prudent investor should invest in good startup company to make their money work.

Real Estate

Real estate is most popular investment option of India. Long term investment in real estate pays very good returns. However, you need to be careful while making investment in real estate. Real estate investment requires legal expertise and lot of black money. In addition to that location, facilities and age of property plays important role in deciding price of real estate. Don’t be in hurry to make investment in real estate. If required take help from experts.

Gold

Gold a yellow shining metal is also in the list of long term investment option. Gold is considered as a hedge against inflation. You should keep gold in your portfolio. However, as a thumb rule it should not exceed 10% of your portfolio value. Best recommended way to invest in gold is through Gold ETF. Gold ETF gives multiple benefits to the investor like –

  • No requirement of physical storage
  • Easy to buy and sell
  • No making charges
  • No chance of damage or theft

Fixed Deposit

Fixed deposit as name suggests it gives fixed return to the investor. Fixed deposit is best investment for the conservative investor. Fixed deposit is offered by bank and company. Anyone can invest in the fixed deposit. Fixed deposit offers following benefits.

  • Ease of operation withdrawal and availability
  • Capital safety
  • Reasonable interest rate

Recurring Deposit

Recurring deposit is special type of term deposit offered by bank. Recurring deposit allows you to deposit a fixed amount every month. Recurring deposit earns interest at the rate applicable to the fixed deposit. You can generate very good return over a long term by investing in recurring deposit.

Over to You –

Select your investment option carefully. Make sure investment option selected by you in aligned with your investment objective, your risk profile and age. If you are reaching retirement age it is better to select conservative investment option like fixed deposit or recurring deposit and if you are young you should opt for equity, mutual funds.

Hope this post about Top 10 Best Long term Investment options in India was useful to you. Do share your views in the comment section.

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