Mutual Fund: Jairam Sridharan

My parents are senior citizens. All their savings bank accounts and FDs are in their joint names. There is no nominee. Can I add my name as a nominee even if I don't have an account in their bank?
Yes, your names can be added as nominee to the account even if you do not have an account there. No additional documents are required.

I paid the premium for two insurance policies through NEFT. One transaction failed but my account still showed three debits. My bank said the failed transaction would be reversed in two working days. It has not happened. What should I do?
In the case of failed transactions, the amount is usually credited back to a customer's account within 48-72 hours. If there has been a delay in reversing the amount, you should approach your bank. If you don't get it resolved at the first attempt, refer to your bank's website on how to escalate your complaint to higher authorities.

I'm a retired senior citizen and most of my savings are in bank FDs. I have to pay tax on interest. If I opt for interest payout instead of cumulative interest, will I be able to reduce my tax?
Yes, you would reduce your tax burden but your yield would decrease even more. When you opt for cumulative interest, intermediate interest payouts keep getting added to the principal amount. This way, you earn more interest on the money you pay. This will stop if you opt out of the cumulative option. Your yield will fall, and so will your tax bill. In short, you are better off paying those taxes.

I've lost my debit card. Can I use my credit card to withdraw money at ATMs till I get a replacement?
Most credit cards offer the facility to withdraw cash from ATMs up to a limit. However, this facility should be used by the card holder only in emergencies, as the costs linked to this facility are quite high. There are usually flat transaction charges for withdrawing cash, besides interest charges which begin from the day of withdrawal. Therefore, unless there is some urgent requirement of money, wait for your replacement debit card to come.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Jairam Sridharan, president (consumer lending), Axis Bank, answers your questions