Are you making your money work smartly for you? In our busy schedules, we sometimes forget to check the status quo on various things. These might be small matters but can make a difference in your financial status and financial plan. I highlight a few items here –
Check auto-renewal of FDs
​The auto-renewal option is convenient for FD depositors. At the time of maturity, the FD gets renewed automatically. This saves FD depositors from the effort of visiting the branch or using the internet or mobile banking facility. But they might be at a disadvantage here. Banks regularly change FD interest rates for different tenures. Auto-renewal typically happens for the same tenure forward. So if you have an FD for one-year that is set to renew automatically, it will get renewed for one year on the date of maturity.
But you might want to change the tenure depending on the interest rate. This is even more relevant in a falling interest rate scenario. If you would like flexibility and want to manage your investment better, opt out of the auto-renew option.

Credit card top-up for Paytm
We are increasingly dependent on payment apps. Until recently, Paytm users had to pay a 2% fee on amounts greater than ₹10,000 added to their e-wallet using a credit card. Now the 2% fee is applicable to all amounts. If not careful, you will end up spending money unnecessarily. It is better to top-up using UPI or a debit card.

Set-off LTCG and STCG against basic exemption limit
If you file income tax returns as a resident and your calculated taxable income is below the exemption limit, you can set off your STCG and LTCG from equity products and LTCG of other capital assets against the short fall in your basic exemption. This can be done after all other income has been adjusted against it. For example, if you are below 60 years old and have a taxable income of ₹2,00,000 and have STCG of ₹1,50,000. Your basic exemption limit is ₹2,50,000. So you can set-off ₹50,000 of the STCG against the basic exemption. You will then pay tax on STCG of ₹2,00,000.

Take advantage of RBI’s Gold Monetisation Scheme
Make your gold work for you. Under RBI’s Gold Monetisation Scheme, you can deposit the idle gold lying in your locker in an RBI designated bank and earn interest on the same.
At maturity, you get gold or the value of gold (based on prevailing price) along with the interest earned on the same. You can get an interest rate ranging from 0.5% p.a. to 2.25% depending on the tenure of the deposit. Your gold will earn money and also be securely stored in the bank.

Watch out this space to get more tips on making your money work for you.