Inflation - Your Deposits Earning are going -VE
Sandeep Gupta
"Inflation jumps to 7.31 in Dec" -------- Does it make any difference to you and me? The answer is Yes.

This is the rate at which price rise. All commodities, will rise by some percent in coming months. This is not the only impact, it has it's impact on your fixed earnings as well.

Suppose, you opened a FD in a bank at 6.25% PA. You will get 106.25/- for every 100/- saving after an year. But, if inflation goes at the same rate, rupee value will erode at the rate of 7.31%. The stuff, you were getting at RS 100/- will be available at RS 107.31/- after an year. Whereas you FD will fetch only RS 106.25/-. The effective returns will be less than actual returns after paying TAX on the returns.


What needs to be done to keep the pace with inflation?
-You need to identify the sources, having more returns as compared to inflation rate.
-You need to take bit higher risk and aim for high returns.

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Add Pinch of Technology in Financial Accounting
Sandeep Gupta

GnuCash is personal and small-business financial-accounting software, freely licensed under the GNU GPL and available for GNU/Linux, BSD, Solaris, Mac OS X and Microsoft Windows.

Designed to be easy to use, yet powerful and flexible, GnuCash allows you to track bank accounts, stocks, income and expenses. As quick and intuitive to use as a checkbook register, it is based on professional accounting principles to ensure balanced books and accurate reports. 

  1. Double-entry bookkeeping
  2. Scheduled Transactions
  3. Mortgage and Loan Repayment Druid
  4. Small Business Accounting Features
  5. Transaction-Import Matching Support
  6. Multi-Currency Transaction Handling
  7. Stock/Mutual Fund Portfolios
  8. Online Stock and Mutual Fund Quotes

For further help visit: Help

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PPF Account - FAQ
Sandeep Gupta

After analyzing the hits on this blog, I found that PPF related stories are read by maximum readers and they had few queries. I have written few of FAQ's about PPF account.
  • The Scheme has lock in period for 15 years and best for long term investment.
  • The rate of interest varies and currently it is at 8%.
  • One has an option to deposit anything between 500/- and 70,000/- in a financial year.
  • One can deposit entire amount in one go/ year or at his convenience.
  • If you stop depositing on YOY basis, the account is treated as discontinued account and such account cannot be closed before maturity.
  • The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.
  • Account can be opened by an individual or a minor through the guardian.
  • Joint account is not permissible.
  • If someone is contributing to GPF Fund or EDF account can also open a PPF account.
  • PPF account can be extended for any period in a block of 5 years on each time.
  • Account holder can keep his account open/ running after maturity (15 years) for any period without making any further deposits and earn interest at normal rate as admissible on PPF account till the account is closed.
  • One withdrawal in each financial year is also allowed for such accounts.
  • The PPF scheme is run by Post Office and Nationalized banks.
  • No age limit for opening a PPF account.
  • 50% of total sum can be withdrawn in the 7th year and thereafter once in every year.
  • PPF account can be closed before due date by nominee , only if person dies.
  • Nominee of PPF Account holder on death of the account holder cannot continue the account, but account had to be closed.
  • Account is transferable from one branch to another.
  • TAX benefits are passed under section 80-C of Income Tax Act.
  • The interest on deposits is totally tax free.
  • Deposits are exempt from wealth tax.
  • The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.


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