I always make payment by cheque for my credit card dues. Last time I had dropped my cheque in the bank ATM before the due date but it was debited late from my account. Now they have charged me a penalty of Rs 350. Can I ask them to waive the penalty?
Due date for credit card payment is the date on which the issuing bank should receive the credit in their account. It is always recommended that when you pay by local cheque, you should keep a margin of four to six working days between your cheque deposit and the due date.
You can approach the bank and request them to reverse the charges, if possible. Please note that this is not binding on the card issuer. A better solution is to provide an electronic debit instruction into your main account so that the payment is automatically made on the due date.
Even if you decide to dispute the penalty, pay it up under protest and file a grievance with the bank. This will ensure that your credit report is not affected. In cases of contingency, would credit card loans make sense or withdrawing cash using the card?
Loan on credit card is similar to personal loans, but this is pre-approved and comes without the need for any documentation.
But the interest rate charged on loan on credit card will be much higher than that of a personal loan while interest on cash withdrawal on credit cards tends to be even higher. The loan on credit card may carry a prepayment fee but cash withdrawn can be paid back at any time.
Thus if you are in a position to pay back the amount in a few days then the cash withdrawal may be a better option.
Kindly guide me to short-termo liquid mut-ual funds which have no entry or exit load.
If the investment amount is more than Rs 1 crore you should look at the recent State Bank of India unfixed deposit for 7 days to 180 days which will give you a guaranteed return of 8.50 per cent per year.
You can also look at liquid funds like Magnum Insta-cash Liquid Floater Growth option. All liquid funds have no exit or entry loads but will have varying minimum investment requirements. If the amount is not significant you might just be better off keeping it in a bank FD.
(Harsh Roongta is the CEO of Apnapaisa.com. You can send in your queries to movingmoney
@deccanmail.com)