#post office monthly income scheme calculator

[lisakapoorblogs]

Comparative Analysis: Estimating Returns from Post Office RD vs. EPF Investments

When it comes to secure investment options in India, both Post Office Recurring Deposits (RD) and the Employee Provident Fund (EPF) stand out as popular choices. Each investment avenue offers distinct advantages and suitability depending on the investor's profile and goals. By employing tools like the post office RD calculator, investors can easily forecast the returns on their monthly contributions to a Post Office RD, which is known for its stability and government backing.

On the other hand, the EPF, primarily designed for the salaried workforce, offers a retirement savings plan that not only helps in building a substantial retirement corpus but also provides tax benefits. To estimate the growth of their EPF contributions, investors can use an EPF calculator. This calculator takes into account variables such as the current EPF balance, employer’s contribution, employee’s contribution, and the current interest rate, which is revised annually by the government.

The key difference between these two investment options lies in their nature and the returns they offer. Post Office RDs allow for a fixed monthly deposit into an account, which earns interest at a rate determined by the prevailing government guidelines. The simplicity of the RD scheme makes it an attractive option for individuals with consistent but limited investing capacity. On the other hand, the EPF is not only a savings tool but also a vital component of India’s social security system, offering interest rates generally higher than those of RDs, which makes it highly beneficial for long-term growth.

Moreover, while the returns on RDs are taxed according to the individual's income tax slab, the interest earned and the maturity amount of the EPF are tax-free under certain conditions, making EPF a more tax-efficient investment in the long run. This distinction is crucial for investors when planning their tax liabilities.

For potential investors, understanding these nuances is vital. Using a post office Recurring Deposits calculator helps in setting realistic expectations on the returns from RDs, providing a clear picture of what the maturity amount will be at the end of the investment period. Similarly, the Employee Provident Fund calculator aids in comprehending how one's money grows over time with the added interest, especially with the compound interest feature that EPF offers.

When comparing both, it’s important to consider factors like investment tenure, risk appetite, liquidity needs, and tax implications. Post Office RDs are typically preferred by those who seek less risky avenues and may need to withdraw their investment relatively sooner. In contrast, EPF is ideal for individuals with a longer investment horizon, primarily due to its focus on retirement savings.

While both Post Office RD and EPF are solid investments, they serve different purposes and offer different benefits. The post office Recurring Deposits calculator and Employee Provident Fund calculator help investors make informed investment decisions that match their financial goals and retirement plans. By carefully analysing and comparing these options, investors can optimise their portfolios for long-term financial goals.

[stock1market]

Introduction to Investment in Financial Market

Investment

The meaning of word investment is to commit money in order to earn a financial return or to make use of the money for future benefits or advantages. People commit money to investments with an expectation to increase their future wealth by investing money to spend in future years. Investment benefits both the economy and the society. It is an outgrowth of economic development and the maturation of modern capitalism.

Economic Investment: Economic investment includes net additions to the capital stock of the society for production of other goods, such as increase in residential or commercial buildings, machines and plants, inventories etc.

General Investment: General investment to a common man means buying a new house or flat or a new car or motorcycle or investment in banks or post offices in other deposits scheme or investment in shares, bonds of the companies. Such investments are very general in nature and most of such investments are without any rate of return or capital growth.

Financial Investment: It means and exchange of financial claims such as securities, real estate mortgages etc. but does not include consumer items investment.

How Do We Invest?

Investor manage their wealth effectively, obtaining the most from it while protecting it from inflation or taxes and other factors. Some people may wish to improve the return from their savings account funds by investing in alternatives.

Safety: - It is the foremost criteria for investment decision of anyone. It is the probability of getting back the money invested. Government securities, treasury bills and commercial papers are considered the safest instrument among all.

Liquidity: - The liquidity of an instrument refers to the ability of the investor to convert it into cash on short notice without incurring any loss. An instrument will give definite written if it is held till maturity but risk of loss is high if sold prematurely.

Return or Yield:- The age of an instrument is the return earned from it by way of interest dividend and capital appreciation. Some instrument does not pay interest but are redeemed at face value.

Maturity Period: - It is the life in instruments. While some instruments have a fixed original maturity is other can have tailor-made maturity like Certificate Of Deposit, Commercial Paper, Gilt-Edged security. Normally the longer the maturity the greater the return.

One of the best way to start studying the stock market to Join India's best comunity classes Investing daddy invented by Dr. Vinay prakash tiwari sir. The Governor of Rajasthan, the Honourable Sri Kalraj Mishra, presented Dr. Vinay Prakash Tiwari with an appreciation for creating the LTP Calculator.

Investment Activity

Types Of Investors

Mode of Investments

Securities for of investment

1. (a) Corporate Bonds/Debentures:

A bond is a debt obligation. A corporate bond is debt issued by a company in order for it to raise capital. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.

(b) Convertible Bonds: A convertible bond is a fixed-income corporate debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.

(c) Non-Convertible Bonds: Non-convertible bonds or debentures are a type of debenture that cannot be converted into equity shares or stocks, hence called non-convertible. The interest rate on non-convertible debentures can be paid either monthly, quarterly, or annually. NCDs also have a fixed maturity date.

2. Public Sector Bonds:

Like central and state governments, even public sector units (PSUs) can raise funds from the general public by issuing bonds known as Public Sector Bonds. These bonds are mostly issued by top public sector companies or institutions to fund their growth and expansion needs. They are relatively less risky than corporate bonds.

(a) Taxable: A taxable bond is a debt security (i.e., a bond) whose return to the investor is subject to taxes at the local, state, or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what they will have left in income after taxes are taken. Taxable bonds are those bonds where we will invest in that bond and will be taxed in return, meaning the government will also collect tax on its income from us, returns are always high in such bonds.

(b) Tax Free:  Tax-free bonds are issued by public sector companies with an aim to raise funds for specific projects. Tax-Free Bonds are one of the most sought-after bonds in India. And rightly so. Tax-free bonds help investors earn tax free interest income unlike ordinary bonds and fixed deposit. tax-free bonds are issued by the government, they are extremely safe and carry zero default risk. Apart from the zero risk, the biggest advantage of tax-free bonds is that they provide tax-free income. The interest you earn from tax-free bonds is exempt from tax under section 10 of the Income Tax Act, 1961. for the returns received from tax free bonds, the government says that you are exempted from income tax. But these are tax adjusted returns, we have to understand that these are tax adjusted returns, that means they will always give less returns than taxable bonds, that means the government has already adjusted its tax. That's why the government is calling it tax free. So let us not invest by being happy that it is tax free.

 Let us assume that it is taxable there, now every person can have his own capacity and invest in it according to his own accord, like, if a person is 30 % tax slab, and he is buying a taxable bond, then it is more beneficial for him, rather than he should buy tax free bond. Taking, if a person is in the tax slab of 5%, he is buying a taxable bond then it will be more beneficial for him rather than he buys a tax-free bond. In taxable he will get more return, in tax free he will get less return. Got more return and here he is already in 5% tax slab so he doesn't have to pay tax, maybe his tax is already adjusted, so he bought taxable bond, got high return also, and he doesn't have to pay tax here So it became beneficial for him here. But, if the same person is in the tax slab of 5% - 10%, and he buys tax free bonds, then it can be said that it is his ignorance, because he is buying tax free, he has got his tax adjusted, The government has adjusted the average tax of 10%-12%, if it is not in the slab of this percentage, then it can be harmful for him. If someone is in the 30% slab, and he buys taxable bonds, then it can be beneficial for him. Why can it be beneficial? Because he has got the tax adjusted, and now he does not have to pay tax on the income earned from it.

Preference Shares: Preference shares, more commonly referred to preferred stocks, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders.

Preference Shares: - Preference Shares Whenever any company is listed, before that if we invest in that particular company, then such shares are called Preference Shares. Means before listing means, now there is a company, it is seen that this company is very good, we have invested money in that company, we have not become the owner of that company, but we definitely have preference shares of that company. Yes, when that company will grow, then as it grows, my money will also keep increasing according to those shares. Once the company is going to be listed, during that time that company will ask us that the company is going to be listed, do you want to withdraw your money, or do you want to continue as a promoter in our company. Because now public money is going to come in that company, till now the company did not have public money. Till now the company had received some specific money.

Equity Shares: An equity share, normally known as ordinary share is a part ownership where each member is a fractional owner and initiates the maximum entrepreneurial liability related to a trading concern. These types of shareholders in any organization possess the right to vote.

New Shares: A share that is available for the first time buy.

Initial Public Offering: An Initial Public Offer (IPO) is the first sale of shares to the public by a privately owned company. The companies going public raises funds through IPO for working capital, debt repayment, acquisitions, and a host of other uses. If we talk about IPO, then IPOs are such that IPOs also come out in two ways. If any company has to take out an IPO, if the company has to raise money from the market, then what will it have to do? It will have to get its stock listed in any nationalized exchange in India, registered with SEBI, in such exchanges. For this listing he will have to contact a merchant banker, the entire process will be done by the merchant banker. Merchant banker is also a SEBI registered entity.  There is a rule in India that you cannot take money directly from the public for your business. You can even take a Limited. You will remember Sahara India. Many people know that a case is going on against Sahara India. But don't know why it is happening. After all, how did SEBI drag a company like Sahara India, which had nothing to do with the stock market, how did SEBI make such a big allegation, which has nothing to do with SEBI? SEBI said that in Sahara's case, Sahara has taken money from people, but the rule of taking this money is wrong. If you want to take money from a multiple number of people and want to develop your project with that money, then you can get that money only after getting listed in the market, you cannot take it directly, otherwise the work of a regulator like SEBI What's left

Follow-On Public Offering: FPO is the short-form of follow-on public offering. It is a process through which a company that is already listed on the stock exchange issues new shares to the existing as well as new shareholders. This is a corporate event which takes place after the company’s IPO.

Rights Shares: These are those type of share that an organization issue to their existing stockholders. This type of share is issued by the company to preserve the proprietary rights of old investors.

Bonus Shares: When a business split the stock to its stockholders in the dividend form, we call it a bonus share.

[assamreport]

Post Officeৰ এই আঁচনিয়ে আপোনাৰ ধন দুগুণ কৰিব আৰু বহুতো লাভালাভ আছে

Post Officeৰ এই আঁচনিয়ে আপোনাৰ ধন দুগুণ কৰিব আৰু বহুতো লাভালাভ আছে

Post Office Time Deposit Account: যেতিয়া বিনিয়োগৰ কথা আহে, ডাকঘৰটো আটাইতকৈ ঘূৰাই দিব পৰা সুৰক্ষিত বিনিয়োগ মাধ্যম বুলি গণ্য কৰা হয়। ডাকঘৰৰ বহুতো সঞ্চয় আঁচনিয়ে অন্যান্য চৰকাৰী বিনিয়োগ আঁচনিতকৈ অধিক লাভ কৰে। যদি আপুনি কৰবাত টকা বিনিয়োগ কৰাৰ কথাও ভাবি আছে, তেনেহ’লে ডাকঘৰটো আপোনাৰ বাবে এক উত্তম বিকল্প হ’ব পাৰে। ডাকঘৰৰ বহুতো আঁচনিৰ ভিতৰত এটা হ’ল টাইম ডিপজিট আঁচনি। এই আঁচনিখনক ডাকঘৰএফডি বুলিও…

[vilaspatelvlogs]

POMIS: हर महीने बढ़ जाएगी घर की इनकम, ID या एड्रेस प्रूफ है तो खोले ये खाता

POMIS: हर महीने बढ़ जाएगी घर की इनकम, ID या एड्रेस प्रूफ है तो खोले ये खाता

नई दिल्ली: भविष्य को सुरक्षित करने के लिए निवेश भी सही जगह करना जरूरी होता. ऐसा नहीं करने पर आपकी जमा पूंजी डूब भी सकती है. इसलिए हम आपको ऐसी स्कीम के बारे में बताएंगे जहां निवेश करने से आपको दूसरे विकल्पों के मुकाबले बेहतर मुनाफा मिल सकेगा. जी हां, हम बात कर रहे हैं पोस्ट ऑफिस की मंथली इनकम अकाउंट (Post office Monthly Income scheme) की जो आपकी जमा पूंजी को सुरक्षित रखती है. इसके साथ ही आपकी…

[postofficemiscalculator-blog]

Post Office MIS Calculator

Calculate monthly income from the post office on your investments with this online MIS calculator tool. All you need to do is enter the amount you have invested in the Post Office Monthly Income Scheme (POMIS), select the interest rate and click the 'Calculate' button. Find which are the best Post Office schemes to invest! https://miscalculator.xyz/

[sabkuchgyan]

पैसा बनाने वाली स्कीम: इस पोस्ट ऑफिस स्कीम में हर महीने 1 हजार जमा करें, आपको मिलेगे 69 हजार से ज्यादा

पैसा बनाने वाली स्कीम: इस पोस्ट ऑफिस स्कीम में हर महीने 1 हजार जमा करें, आपको मिलेगे 69 हजार से ज्यादा #PostOffice #Scheme #RDScheme #MoneyDouble #MoneyIncreaseTips #MoneyTips

Post Office Scheme : अगर आपके पास निवेश करने के लिए ज्यादा पैसा नहीं है तो आपके पास निवेश के कई बेहतर विकल्प हैं। इनमें से एक पोस्ट ऑफिस (Post Office) रिकरिंग डिपॉजिट (RD) है। कई लोगों को लगता है कि छोटी बचत का कोई फायदा नहीं है। अधिक धन का निवेश करें तभी आप उस निवेश पर अच्छा ब्याज अर्जित कर पाएंगे।

लेकिन, अगर आपके पास निवेश करने के लिए ज्यादा पैसा नहीं है, तो आपके पास निवेश के कई बेहतर विकल्प…

[lisakapoorblogs]

Diversifying Your Portfolio: Combining Nifty IT Investments with Post Office RD

Diversifying your investment portfolio is essential in today's volatile market. Combining growth-oriented investments like the Nifty IT index with stable, fixed-income assets like Post Office Recurring Deposits (RD) can provide security and growth. This balanced approach lets investors profit from India's growing IT sector and government-backed savings schemes while minimising risk.

This IT index comprises some of the most significant Indian companies in the information technology sector, listed on the National Stock Exchange (NSE). Investing in this index allows individuals to tap into the high-growth potential of the IT industry, which is renowned for its innovation, export earnings, and role in India's economic growth. As technology continues to evolve and integrate into every aspect of daily life and business operations, companies within this IT index are well-positioned for sustained growth. However, like all equity investments, they come with their share of volatility and risk, influenced by market conditions, global economic factors, and industry-specific trends.

On the flip side, the Post Office RD offers a contrast with its stability and government guarantee. Using a post office RD calculator, investors can easily forecast their returns from a recurring deposit. This tool helps in planning by providing exact figures on the maturity amount based on the monthly contributions and the tenure of the deposit. RDs are particularly appealing for risk-averse investors or those looking to balance their portfolios with a fixed-income investment. The interest rates on Post Office RDs are competitive, and the low minimum deposit requirements make it accessible to a broad audience. Additionally, the discipline of monthly deposits encourages a savings habit among investors, which is beneficial for long-term financial health.

Combining investments in this IT index with Post Office RDs offers a multifaceted approach to investing. Equity investments in the IT sector can provide significant returns but come with higher volatility and risk. Meanwhile, the RD offers a safe, predictable return, although lower than what might be achieved with equities. This blend allows investors to aim for growth through their Nifty IT investments, while the Post Office RD serves as a cushion, providing steady returns and reducing overall portfolio volatility.

Personal risk tolerance, investment horizon, and financial goals must be assessed before implementing this strategy. In the dynamic IT sector, equity investments should be long-term. Technology trends, global economic conditions, and currency fluctuations affect this IT index. Post Office RDs are good long-term savings instruments for emergency funds, educational savings, and other financial needs.

A diversified investment portfolio with Nifty IT and Post Office RDs can balance growth and stability. This strategy uses India's IT sector's high growth potential and a government-backed savings scheme's steady, guaranteed returns. As with all investment decisions, individuals should research or consult with financial advisors to tailor their investments to their financial situation and goals. This balanced approach can help navigate financial market complexities, offering security and growth.

[evergreenclub991]

Promising Investments for Your Retirement Money

One of the stepping stones to a peaceful post-retirement life is investing your retirement money in stable and efficient options. This allows you to sustain the lifestyle you had while working. Before choosing your plan, it is vital to keep in mind factors like your initial capital and monthly living expenses. There are many options available in the market and picking one that suits you best can be tiresome. To learn more about safe ways to build your ideal investment portfolio, keep reading!

Prerequisites for investing after retirement:

Review your profile and identify the associated risks. Try to keep your profile as balanced as possible and be well-informed about the consequences.

Calculate how much you will need to pay for your bills and other monthly expenses. Plan your investments so that these expenses do not deplete your initial amount.

Better safe than sorry, have a clear understanding of the investments you are making. Analyse the risk and returns of each investment before committing to it.

Divide your investments, don’t pour all your funds into one type of investment, and avoid losing more than you can afford.

Have a reasonable amount of emergency funds that can act as a safety net in the case of a medical emergency or a bad investment.

So, you’ve gone through all the prerequisites, checked all the right boxes, and are now looking at a vast ocean of investment opportunities. Here are some of the most recommended investment plans for retirees that allow you to avoid tax liability and have a steady source of monthly income.

1. Senior Citizens’ Saving Scheme (SCSS):

As the name suggests, this scheme is only for citizens above the age of 60. It is one of the most popular choices among retirees as it provides an assured way to protect your initial capital. It offers the highest post taxable returns compared to other fixed-income taxable products, allows premature withdrawal, and is eligible for tax benefits.

With an upper investment limit of 15 lakhs, the freedom to open multiple accounts, a five-year tenure with an extension of three years, and a current interest rate of 8.6% per annum, SCSS is a post-retirement investment opportunity you don’t want to miss out on.

2. Fixed Deposits (FD) For Seniors:

One of the safest forms of investments as it is free from market variables and provides a fixed monthly or quarterly return based on your preference. Banks generally offer higher interest rates on FDs for senior citizens, that range anywhere between 5 to 9%.

The tenure period ranges from 12 months to 60 months; FD also offers higher liquidity and enables you to withdraw money whenever you require. Everything considered, an FD is a stable option and you should include it in your investment portfolio.

3. Post Office Monthly Income Scheme:

This unique investment opportunity for seniors offers considerable returns at an interest rate of 7.6% as per rates announced in Q2 2019. The maximum deposit allowed is 4.5 lakhs for single ownership and not more than nine lakhs for joint accounts.

Like Fixed Deposits, POMIS offers monthly returns that are not affected by market fluctuations and are taxable. Unlike a Fixed Deposit, POMIS has a fixed maturity period of 5 years. The best part? The monthly interest is directly credited to your savings account, so you can add it to your arsenal of investments.

4. Mutual funds:

“Mutual funds Sahi hai.” we’ve heard this statement one too many times. To retirees who are economically stable enough to invest in higher-risk alternatives, mutual funds are an exciting option. Investing in mutual funds can provide high returns but they are also highly volatile and are subject to market risks.

Identify the right risk profile for your current situation and allocate your funds accordingly. Retirees are urged to steer clear of thematic and funds including mid or small caps.

5. Debt funds:

A debt fund is a type of mutual fund but doesn’t have as much risk involved because they focus on fixed-income investments. They can provide returns as high as 15% of your investment per annum, are flexible, and provide liquidity, but charges may apply, and money cannot be withdrawn immediately. Nevertheless, long-term debt funds offer high returns based on market performance.

After retirement, the money you have worked tirelessly to save should work on its own to provide for your monthly expenses. Retirees are advised to construct an efficient investment portfolio that distributes their funds to several options by weighing the risk involved and meets their monthly financial requirements.

Make your savings work for you while you sit back and get a kick out of your retirement.

To avail more important information and attend the helpful sessions for seniors you can install Evergreen Club which is one of the best social networking apps for older adults.

Respond

[findtnjobs]

PONMAGAN SAVING SCHEME | பொன்மகன் SAVING SCHEME

PONMAGAN SAVING SCHEME | பொன்மகன் SAVING SCHEME

பொன்மகன்சேமிப்புதிட்டம் 2022 | Pon Magan Semippu Thittam Tamil | Ponmagan Saving Scheme | Post Office | Ponmagan semippu thittam Tamil 2022 | Selvamagal semippu thittam Tamil 2022 | post office mis interest rate 2022 | monthly income scheme post office calculator | post office time deposit scheme in tamil | post office time deposit in tamil | post office time deposit account | time deposit…

[sharmaanika388]

Don’t have the appetite for big risks? Want a stable flow of income to get through the rigours of day-to-day life? Well, Post Office Monthly Scheme (MIS) is what you must have to align with your risk appetite and the stable flow of income that you want. It’s an income scheme that generates a regular flow of money to help investors live life free of tension. But you must make sure the income is sufficient enough to enable the same. For that, you must use the Post Office Monthly Income Scheme Calculator. So, come and read what the calculator has in store for you.

[healthhotspot]

The most effective method to Save Your Income Tax in India After the National Budget 2010

A current overview in India uncovers 67% of representatives got compensation climb in the year 2010. Which is past assumption. Indian money service pronounced another personal duty conspire for government and non-government workers. Here is some famous duty saving choice for Indian residents - charge saving security, reserves. At last legislature of India permits different duty exclusions on those monetary instruments.Here is a rundown of most famous expense saving common assets in India -

* HDFC Tax Saver

* Kotak Tax saver

* UTI Equity Tax Saver

* TATA Tax Saver

Pay your home credit ahead of time it is smarter to pay your home advance EMI ahead of time, in light of the fact that the specialists says - banks likely infers the new loan fee may ascending to 0.75 to 1 percent for medium term.In long haul it will make an enormous sum which you need to pay. So don't trifle with too your home credit EMI.

Precise Investment Plan - an incredible assessment saving apparatus - ongoing worldwide emergency don't influence Indian economy and presently a day Indian economy is top pick for worldwide monetary pioneers. So it is better an ideal opportunity to put resources into Systematic Investment Plan (SIP) or Equity Fund. Taste not just an amazing expense cutting device then again it is extremely powerful on long haul abundance creation.

Just as Reserve Bank of India Offers 6.5% Saving Bond, which is one of a kind and most impressive Tax saving instrument. This security has 5 years term and pace of interest is 6.5% per annum. Hold bank of India groups this bond under 2 classes -

* 6.5% Saving securities non-total security and

* 6.5% Saving securities total security.

Dissimilar to other expense saving instruments, the financial backer will get charge exception under the annual assessment Act 1961.

Charge Saver from Private Sector Bank in India - ICICI, Axis, HDFC and IDBI additionally offers charge saving securities to Indian residents.

In summed up structure, they group their monetary items under 2 classifications -

* 8% aggregate bond and

* 8% non-aggregate bond.

The Indian postal framework offers a wide scope of duty saving choices alongside higher loan costs. Most famous monetary instrument of Indian postal framework is -

* Post Office Time Deposits

* Post Office Monthly Income Plan

* Post Office Recurring Deposits

* National Saving Scheme

* Public Provident Fund

* National Saving endorsements post office monthly income scheme calculator.

Like Other Financial Instruments, Postal System monetary instruments save charge under segment 88 of the personal expense act, 1961.

Buying foundation bonds - framework bond will assist you with decreasing your assessment under segment 80CCF. One next to the other you can contribute on Gold ETF units, it is not difficult to make money and simple to hold.

At last, it is constantly suggested - prior to making any drawn out venture, talk with any monetary counsel for choosing the most ideal choice for you!

[weareyour4]

The Dangers of Multi-Level Marketing…

By Emmaf8

The world of multi-level marketing is based upon emotional language both positive and negative. The numbers are often misleading and with MLM recruitment growing during the pandemic its important to understand the hallmarks of an MLM, the language used to describe them and the pitfalls of joining one.

This time last year the number of redundancies in the UK had increased by 27,000 in the quarter between April – June 2020. This statistic happened to coincide with a rise in invites to join multi-level marketing companies arriving in my inbox but what might the correlation be? There are two ways of approaching it and two camps who broadly represent these views.

On the one hand, this was the highest level of redundancies since 2013 and understandably led to many people looking to subsidise their incomes or find a new job. MLMs offered good opportunities to work from home. This attitude leans into the kind of rhetoric used by MLM recruiters and the Direct Selling Association (DSA) (the only UK recognised trade body for MLMs) who talk about direct selling as a ‘flexible option’ to earn money around existing commitments. The second camp, comprised of those who are more sceptical about direct selling or who belong to the Anti-MLM community online would point to the rise in unemployment and rise in MLM recruitment as recruiters seeing an opportunity to cash-in on others financial uncertainty.

The DSA estimates that around 631,000 people in the UK play some part in the chain of direct selling (a rise of around 200,000 since 2019) and on average these sellers earn £481 per month. However, this is only an average and many could be earning much less. It also doesn’t reflect how much money is being earned from starter fees and how much comes from actual product sales. In addition, not all companies have the same protocols for calculating sales, so this £481 figure could partially come from sellers themselves purchasing stock to match monthly targets, and their upline profiting from those purchases. While MLMs are not technically pyramid schemes they do follow very similar selling practices and the numbers make clear that they are successful only for the very few and this success comes off the backs of others.

My contact with MLM sellers always began with a Facebook invite to join a private group or page where they were selling their products to friends and family. The Body Shop at Home, the multi-level marketing branch of the Body Shop UK, USA and Australia would soon become easily recognisable for me as multiple friends and acquaintances invited me to purchase through them rather than the prominent brick-and-mortar stores. The Body Shop at Home follows a direct selling business model where individuals sign up to sell the company’s products and earn commission from this while also recruiting other people, who form their downline. There is an initial fee of £49 which pays for your starter kit although you are encouraged to purchase additional stock. The posts you see online from people working for multi-level marketing companies like this one usually follow the same basic structure. This person is so lucky to have found this opportunity, they are so pleased to be controlling what they hours they work and encourage people to join their team and earn easy money.

The first invite I received to this effect came in August 2020 from a friendly acquaintance of mine who I’d met at university. She had recently graduated and in the financial uncertainty of graduate employment in a pandemic had joined the Body Shop at Home to boost her finances. What was initially a group invitation that I was indifferent about quickly became a daily bombardment of posts. Our limited relationship meant that I felt comfortable muting her posts and moving on. A short while later a woman I’d gone to school with added me to a Facebook group for the same company. She was in a similar position to the first woman, a second-year student, not working because of Covid, looking for extra funds.

Of the 631,000 MLM sellers in the UK 96% of them are female. In May 2020 the Institute for Fiscal Studies found that mothers are 47% more likely to lose or quit their jobs than fathers and MLM’s can appear to promise much needed revenue for stay-at-home parents. The third contact I received from a Body Shop at Home consultant reflects this. A woman I knew through her husband added me to a by now typical Facebook group. I was surprised at first because she had a job as a veterinary nurse, but it soon became clear that she had opted for this MLM role as the couple were expecting their first child and they wanted to subsidise their income while she was on extended maternity leave.

There is a disproportionate amount of recruitment materials aimed at young women, particularly new mothers which is made even more problematic considering that less than 1% of MLM participants turn a profit and over 99% break even or make a loss. These figures, presented by Dr Jon M. Taylor for the Consumer Awareness Institute reflect the ‘predatory and harmful’ practices of MLM recruitment. While the Body Shop at Home is a fairly low risk MLM, due to its low starting cost and lack of pressured sales targets it is still inadvisable to join. Other MLMs such as Forever Living cost £199.75 for its ‘Start Your Journey’ pack and a Nu Skin starter pack costs between £346 and £1,107.

In response to the vast number of horror stories available online, where people tell their personal stories of losing £1,000s into MLM memberships the Anti-MLM community is present. The largest discussions I’ve found come from Reddit and YouTube. Much of this community has a vested interest in informing people and encouraging them to choose other employment. They point out the common language used by MLM recruiters who are often referred to as ‘hunbots’ due to their overwhelmingly female recruitment pool and opening messages beginning with the words ‘Hey Hun’. While the activity of the Anti-MLM community is based out of a moral wish to challenge questionable business practices (which many of the Anti-MLM community members have fallen foul of at some point), language such as the labelling of ‘hunbots’ strikes me as alienating. Amelia Tait explains how uplines isolate their sellers by encouraging them to stay away from those who criticise the company. I worry that the dismissive language at times deployed by the anti-MLM community while offering fair critique of the immoral selling techniques of MLMs risks alienating and further fuelling the confirmation bias encouraged among direct sellers.

In conclusion, the business practices of MLMs are questionable to say the least and the figures speak for themselves in terms of the success to failure ratio. While the ethics of the higher ups in these companies are certainly questionable, I worry about the everyday sellers at the bottom of the pile, joining due to financial problems and lulled into a false sense of security by misleading language.

References:

Employment in the UK - Office for National Statistics (ons.gov.uk)

DSA UK – The Direct Selling Association UK

'They have you in a cultish grip': the women losing thousands to online beauty schemes | Beauty | The Guardian

DSA UK – The Direct Selling Association UK

Become A Consultant | The Body Shop At Home™ DSA UK – The Direct Selling Association UK

As many lose work in the pandemic, “multi-level marketing schemes” spot a recruitment opportunity (newstatesman.com)

00008-57281.pdf (ftc.gov)

00008-57281.pdf (ftc.gov) p.7 -1

'They have you in a cultish grip': the women losing thousands to online beauty schemes | Beauty | The Guardian

[marketinsights-blog]

Everything You Need to Know about Tax Saver Fixed Deposits

Tax saver deposit is a deposit under which you get tax deduction under 80C of the Indian Income Tax Act, 1961. Any person who makes an investment in the tax saver fixed deposit can claim a deduction on the investment of up to Rs. 1.5 lakh. Moreover, the investors can also appoint a nominee or some authorized personality who can withdraw the money after maturity or in the event of demise of the investor.

Though it sounds different, tax saving fixed deposits are the same as any other bank fixed deposits. The maturity amount (principal + interest) is directly to your bank account. The lock-in period of these deposits is 5 years and the tax saving fixed deposit interest rates range from 5.5% to 7.75% .

 However, the interest earned from tax saving fixed deposits is taxable. If you haven’t thought about any tax saving investments yet and need an easy bet, the tax saving fixed deposits can be the best fit for you.

 Significant features of tax saving fixed deposits

Easy mode of saving tax under the 80C section of the Income Tax Act.

Benefits of both high returns and tax savings

The minimum deposit is as low as Rs. 1000

The maximum deposit one can do in a single financial year is Rs. 150000

The lock-in (tenure) period is 5 to 10 years

The option to nominate is also available

 Things to keep in mind before investing in tax saving fixed deposit

Here are some key points to note before you make an investment in tax saving fixed deposit

  Tax saving fixed deposit eligibility - Only individuals and Hindu Undivided     Families (HUFs) can invest in tax saving fixed deposit schemes. However, a     person under the age of 18 years can also invest jointly with an adult.

Minimum     deposit - Tax saving fixed deposits can be opened with a minimum deposit     amount which varies from company to company that offers this scheme. The     maximum amount is fixed at Rs. 1.5 lakh in a financial year which is also     the maximum for the tax saving investments under the section 80C of the     income tax act.

Lock in     period - The lock in period for these deposits is 5 years.

Premature     withdrawal and loan facility - Loans or premature withdrawal under this     scheme is not available.  

Where to     invest - Investment in these fixed deposits can be done through any public     sector or private sector financial institution except for rural and     co-operative banks.

Post     Office Time Deposit - Investment in Post Office Time Deposit of 5 years is     also calculated for deduction under the section 80C of the income tax act     1961. Post Office Fixed Deposits are transferable from one post office to     another. These fixed deposits can be opened either in joint or individual     holding. If it is joint, the tax benefit will only be available to the     primary account holder.

TDS - The     interest earned is subject to tax deduction at source as per the     investor’s tax bracket. The interest is paid out either monthly or     quarterly basis or it can be reinvested. You can avoid the TDS by     submitting the form 15G to the company.

For individuals, TDS is applicable if the total amount of interest earned exceeds Rs. 40000 in a financial year.

Nomination     - Nomination facility is provided by these fixed deposits. However, the     nomination facility is not available if the FD is held by or on behalf of     the minor.

Tax     saving fixed deposits senior citizen interest rates - Most financial     institutions offer a higher rate of interest on fixed deposits for senior     citizens as compared to non-senior citizens. This variation in interest     rates exists for tax saving fixed deposits also.