Wednesday, March 31, 2010

Your savings account to earn more from April 1


Here's some good news for savings account holders. The Reserve Bank has asked banks to start calculating interest rates on savings accounts on a daily basis from April 1.
This move will enable saving bank account holders to earn higher interest rates.
Currently, banks calculate interest (3.5 per cent per annum) on these accounts on the lowest available balance, between 11th and the last date of a month.
The new system would help saving account holders earn 16-18 per cent more from their deposits. According to bankers, the new system will amount to higher interest payouts and may even result in a slight rise in the cost of funds.
The RBI had announced this in the April 2009 and had given time to all banks to get their IT infrastructure in place for a smooth transition to the new system.
"We advise that payment of interest on savings accounts may be made by banks on a daily product basis with effect from April 1," RBI said in a notification, which also asked banks to ensure a smooth transition and work out the modalities in this regard.
Currently, interest rates on saving accounts are de-regulated, barring up to Rs 200,000. The RBI only administer interest rates on saving bank deposits up to Rs 200,000, and for the deposits above this amount, banks are free to give any interest rates.

A personal budget is a must!

Getting married? Starting a job? Getting further education? Starting your own family? Have you planned for these important phases in your life? Good control over your personal finances will help you achieve the goals you have set for yourself and cope with changes in your life. How can you achieve that? The answer is having your own personalized budget.
How do you draw a budget that suits your need? Say, you are interested in taking an educational course and are thinking of taking a student loan. How will you accommodate this additional expense? To begin with, you need to draw your personal budget.
a) The first step is to calculate your monthly income. Consider income from all sources including income from your investments. -----A
b) Next, make a list of your monthly expenses. For example, if you are a salaried employee, list your routine expenses like expenses on commute, food expenses, utilities, clothes, charities etc. Then think of any extraordinary expenses that you may have to incur during the budgeted period, such as home improvement projects or purchasing a car. -----B
c) It is a good idea to categorize your payments under different headings like daily living expenses, entertainment and vacation, health etc. This will give you a fair idea of how much you spend on different categories. It is easier to keep track and also control your expenses once you know how much portion of your earnings goes into each expense.
Calculate the difference (A - B = C).
d) The next step is to redraft your personal budget to include expenses related to the educational course like interest and principal payment, course fees, expenses on tuitions and books, loss of wages etc. If you still have a comfortable surplus of cash (C), you can finalize this budget. If not, consider the expenses that you can avoid and reconsider the amount of loan. Once you reach a bottom line that you are comfortable with, finalize your budget.
e) When you decide the cash surplus / short you will be comfortable with, you should also think of the percentage of income you would ideally like to save for your future. Think of short term as well as long term or retirement savings.
You may compile your budget into an excel sheet or use a physical book or diary. Alternatively, there are several free softwares available online for the taking.
Here are a few tips of a working budget:
Keep your working sheet as simple as possible and keep it clean. Each item and category should be clearly defined.
It is a good idea to create a flexible spreadsheet or if you have a hand written budget in mind, leave - enough space to add items of income or expenses in the existing budget.
Maintain budgets on a continuous basis. Ideally, one should have a monthly budget rolling into an annual budget. The annual budget should also be in line with the long-term budget.
An important part of budgeting is keeping track of actual income and expenses and calculating variances. If variances are beyond acceptable limits, then it is time to revisit your budget and make necessary changes.
If you have a long list of income or expenses, it is advantageous to use excel or other computer softwares. For example, by using excel you can add comments, format your sheet, create reports using certain information from the excel sheet. 

Doctors no longer advise women to eat for two during their pregnancies

Doctors no longer advise women to eat for two during their pregnancies as new research shows that overeating during this time can impact the health of their babies adversely.

Only a pregnant woman knows what it's like to be told repeatedly by both her mother and mother-in-law to eat "enough for two." It turns out that this advice may be wrong after all: New studies have shown that a high calorie diet could affect the gender, and more importantly, the health of the baby. According to this study, the high fat, high carbohydrate diet of pregnant mice impacted almost 2,000 genes in the developing offspring, including those involved in kidney function and smell.

Doctors in the city agree that a pregnant woman who overeats can harm her unborn child by exposing it to a host of health problems. "Pregnancy is the time when a women needs to exercise control on her diet and eat judiciously. The first three months is the time to have extra folic acid along with a balanced diet and a diet rich in calcium and iron is recommended for the rest of the pregnancy. But most women these days eat fatty foods which leads to all sorts of problems," says Dr Mala Srivastava, consultant gynaecologist, Sir Ganga Ram Hospital.

According to experts, the offspring of mothers who overeat are at risk for liver and pancreas damage, both of which can contribute to early onset obesity and diabetes. Another study by Rockefeller University scientists reported in The Journal of Neuroscience says that short-term exposure to a high-fat diet in utero produces permanent neurons in the foetal brain that later increase the appetite for fat. "A diabetic mother can pass on her health condition to the child. However, there are no established clinical studies which say that children of obese mothers run at a risk of early onset of obesity. Though mothers do pass on their unhealthy eating habits to their children and such children take after their parents," says Dr Mala.

FRAUGHT WITH PROBLEMS

For an obese woman, the experience of pregnancy - starting right from the time of conception to labour is fraught with problems. Even a simple ultrasound scan becomes a tedious affair for an obese mother as the excessive layer of fat makes it difficult to detect the foetus and monitor the heart rate.

Last year a country-wide study conducted on 4,621 women above the age of 35, in areas like cities such as Kolkata, Kochi and Jaipur reported high prevalence of obesity in this group. The study showed that the prevalence of overweight women is 64 per cent in urban areas and 36 per cent in rural areas. "Nowadays, most of the overweight women in urban cities find it difficult to conceive. This is because fat affect the production of hormone estrogen in women and therefore disturbs ovulation due to which conception becomes difficult. But I have commonly seen that the same women fall pregnant naturally the time they lose 5 to 6 kg," says Dr Asha Sharma, gynaecologist, Rockland Hospital.

Obese women who do conceive are more susceptible to complications during the pregnancy, and run a higher risk of miscarriage. This is because such women are usually at a risk of high blood pressure and gestational diabetes. "In a normal pregnancy a woman develops a mild form of insulin resistance. If a woman is obese, she is already insulin resistant, which induces gestational diabetes" says Dr H Pai, infertility expert, Fortis La Femme Centre for Women. Also, the incidence of Preeclampsia (elevated blood pressure in pregnancy) is about 4 to 5 times higher among pregnant obese women. Several complications due to obesity also lead to induced birth and caesarean. Stillbirth is also very common among obese women with the risk being 2 to 3 times higher than in normal weight women.

BABY AT RISK TOO

Researchers say overweight mothers not just put their own lives at stake, but that of their children too. Such babies are more susceptible to metabolic disorders and infections and require more care. And, in case of induced birth due to complications associated with high blood pressure and other factors, such women give birth to underweight babies, whose growth could be severely restricted. A study done at Newcastle University in Britain and recently published in the Journal of the American Medical Association compared women with a BMI 18.5 and 26 with obese women before pregnancy having a BMI of 29 or greater. The study found that obese women are more than twice as likely to give birth to children with spina bifida and more vulnerable to giving birth to babies with heart problems, cleft palate or cleft lip, abnormal rectum or anus development, and hydrocephaly, a condition in which excess spinal fluid builds up in the brain.

Another recent study by researchers from Duke University found that obesity in mothers causes cellular programming in utero that predisposes offspring to inflammation-related disorders such as Alzheimer's, Parkinson's, type 2 diabetes, stroke, heart disease. "Obesity in mother causes a major risk to foetus. But it's not the extra fat which harms the baby but the health conditions caused by obesity. For instance, hypothyroidism, which is common among obese women, can cause Intrauterine Growth Restriction (IUGR) in which the foetus is smaller than expected for the number of weeks of pregnancy. Similarly, if the mother transmits her diabetes to the foetus, it can have brain problems or spina bifida," explains Dr Sharma.

TOO FAT TO BE FERTILE

Four years ago there was a call for ban on fertility treatment for obese women in the UK. The British Fertility Society said free treatment should be limited to slim women, because obesity can reduce the success rate and lead to problems for both mother and baby. "The treatment of infertility using IVF techniques is more challenging in obese women. For instance, the pregnancy rates with IVF are lower in obese women than in women with normal weight as many obese women do not fully respond to the medications, and also because of the higher percentage of immature eggs in such women," says Pai.

Thinking job change?


First rule of job hunt: Be sure of why you want to leave a job. HR experts caution against any desperation to leave the current job and take up any offer that might come up your way. Just because you're unhappy in your current job isn't reason enough to change your job. Carefully analyse what exactly the problem is in your current job: does the issue lie with your role, your boss or your stagnant career?

Caution Boris Groysberg and Robin Abrahams, Associate Professor and Research Associate respectively at the Harvard Business School: "Candidates not only skimp on research in the belief that the grass has to be greener elsewhere but also fail to look strategically at their current companies for opportunities that might exist for them."

Plan your job moves as meticulously as you do your finances. Sanjeev Bikhchandani, Founder-CEO, Info Edge India, which runs popular job portal Naukri.com, likens career to financial investment. "The biggest mistake at the time of job hunting is that people look for returns whereas they should understand the risks involved." This is more true of entry-level executives who are not well informed about their job choice. Bikhchandani terms it as "snacking on jobs". "Young executives, mostly from not-so-good B schools, at the beginning of their careers try a few jobs before figuring out what works for them." Your job hunt will be only as good as your research. Be well informed about the financial stability of the company you are planning to work for and examine the role being offered carefully-the job title itself could be misleading.

Ask yourself if there is a clearly defined career path for you when you move into this role. HR experts cite instances of coveted roles in organisations getting redundant during last year's downturn. A careful assessment of risks involved will help you avoid setbacks. Carry out research about the culture of an organisation and decipher whether you will be a cultural fit. Eventually, your research will help you decode what you are good at, what you are interested in and where the opportunities are.

Groysberg and Abrahams, who recently conducted a research on the most common missteps of job hunters, put it in their research published in Harvard Business Review: "A hasty job change, made with insufficient information, is inherently compromised. When under time pressure, people tend to make certain predictable mistakes. They focus on readily available details like salary and job title instead of raising deeper questions, and they set their sights on the immediate future, either discounting or misreading the long term." What if you have taken up the wrong job? Cut your losses and move on, suggest Groysberg and Abrahams. "Don't hesitate to go down another road if it becomes evident that a certain kind of change won't be right."

ASK YOURSELF

1. What does this job involve and are the tasks to your liking?
2. Do you have the requisite skills to be a top employee in this job?
3. Are these the kind of people you would be comfortable working with?
4. What makes you different from other people vying for the same job?
5. Can you persuade the potential employer to hire you at a salary you need or want?

MUST DOs OF JOB-SWITCH

* Do homework on your industry or function.
* Pay attention to a potential employer's financial stability.
* Don't leave a job only for an increase in compensation.
* Make realistic assessment of your skills.
* Assess how the job will fit into your career plan.