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5 Things To Learn About Annual Interest Returns

5 Things To Learn About Annual Interest Returns

Here are 5 things you need to know about annual interest returns:

1. The World Bank Estimate

The World Bank estimates that up to 2014, the penetration of banks in all segments of India increased from 35% in 2010 to 53% in 2014. When the ruling political parties at the centre changed in 2014 and the present government floated its Jan Dhan Yojana Scheme, a further proliferation of savings bank accounts took place. The scheme aimed at financial inclusion for all classes and masses of Indian society – and by January 2015, over 125 million new bank accounts had been opened.

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The implications for more savings accounts and interest to be earned on them are tremendous. It would appear that savings account holders can keep their idle finds for longer periods of time and earn interest on them, so as to increase the size of the deposit. Today, a majority of nationalised and private Indian banks offer 4% interest on savings deposits. However, people are also choosing other avenues of increasing the size of their savings instead of merely depending on 4% annualised interest rate returns.

2. How the interest used to be calculated before year 2010

Prior to the year 2010, interest on saving accounts were calculated on the basis of the lowest available deposit amount in the savings account. The savings account interest rate was calculated at 4% for the days from the 10th of the month to the final day of that month. The prominent condition on this interest rate calculation was that any money deposited into the account during this month was not considered for the computation, but withdrawals were counted. Thus, one would need to deposit money before the 10th of every month only, to bulk up the deposited amount and thus earn more money by way of the 4% interest.

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3. How the interest is calculated post 2010

In the year 2010, from April 1 to be precise, the RBI mandated that banks rework their computations for interest on saving accounts. Thus, banks started calculating the interest on a daily account basis. Let us use the example of Rupesh Kumar to illustrate the calculation:

Say Rupesh has an opening balance of Rs 30,000 on the 10th day of the month. On the 15th day, he was paid Rs 40,000 by a client. So the bank calculates interest on the deposit from the 10th to the 15th day. On the 25th of the month, Rupesh makes a prepayment of Rs 50,000 on his home loan. Thus, the bank computes interest on the balance from the 15th to the 25th day. Finally, it calculates the interest on the balance between the 25th day to the final day of the month. This way, every rupee in Rupesh’s account earns interest and there is no need to time money deposits.

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4. Larger returns on savings bank accounts

After the RBI deregulated the 4% cap on savings account interest rates in India in October 2011, Indian banks were free to impose their preferred interest rates on savings deposits. Today, while most banks have stuck to 4% interest rates, some other banks in India offer up to 6% or even 7% interest on savings accounts.

Naturally, banks are keen to entice customers to open savings bank accounts with them, but they are also encouraging customers to maintain their deposits over a longer spell of time to earn higher interest on them. Premier banking institutions in India are also offering ‘Sweep in/Sweep out’ accounts, which provide the benefits of larger deposits in the form of fixed deposits; these can be liquidated in times of need. These accounts make it possible to earn decent sums of money by way of savings account interest.

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Now you know more about interest rates. Hopefully this will be able to help you in opening up your own or managing your current one.

Featured photo credit: ih Money Smarts via ihmoneysmarts.org

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Bhavik Sarkhedi

Founder of Write Right - A Content Marketing Company

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Last Updated on November 5, 2019

How to Use Visual Learning to Work More Effectively

How to Use Visual Learning to Work More Effectively

Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

The Importance of Knowing Your Learning Style

Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

But it all starts when you’re able to first identify the best way you learn.

As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

The four most popular types of learning styles are:

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  • Visual learning style (what this article talks about).
  • Aural or auditory learning style (learning by listening to information presented).
  • Verbal or linguistic learning style (learning that involves speech and writing).
  • Tactile learning style (learning by touching and doing)

But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

How to Know If You’re a Visual Learner?

When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

How to Use Visual Learning for Success

Here’re 4 ways to use visual learning to boost your career or business:

1. Bring back the to-do list. Then add shapes and colors to boost productivity.

We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

2. Add graphs, charts and symbols to your reports.

Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

3. Effectively brainstorm with mind-mapping.

Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

4. Add video streaming to meetings.

What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

Is Visual Learning Better Than Other Learning Styles?

No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

More About Learning Styles

Featured photo credit: Unsplash via unsplash.com

Reference

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