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Category: Personal Finance and Financial Planning

  • Apple launches high-yield savings account with 6.0% APY for iPhone users

    Apple launches high-yield savings account with 6.0% APY for iPhone users

    Apple today debuted a substantial addition to their financial services products, with the launch of a high-yield savings account available to iPhone users offering a 6.0% Annual Percentage Yield (APY).

    The push is expected to increase the competition in the digital banking arena and will include additional financial services offered alongside the existing portfolio of products within the Apple ecosystem.

    A Bold Step for High-Yield Savings

    The new savings offering, which users can access right from the Wallet app on their iPhone when they use their Apple Card, offers an APY that far outstrips the current market national average, and which is also among the best APYs available to U.S. customers currently.

    Most high-yield accounts right now have APYs from 4.0% to 5.0%, and Apple’s 6.0% APY is designed to draw a significant portion of its massive clientele to the bank. The service – with funds backed by Goldman Sachs Bank USA and insured by the Federal Deposit Insurance Corporation up to the maximum allowed by law of $250,000 – has many pluses:

    • Seamless Experience: Users can open and manage a savings account directly from the Wallet app, alongside their Apple Card. This deep level of integration is part of Apple’s overall strategy is to keep us inside its digital universe.
    • Automatic Daily Cash Redemption: Apple Card customers will have the new option to automatically redeem their Daily Cash as a statement credit. These rewards can add up over time for big savings on Apple products or that dream vacation everyone is looking forward to.
    • No Frills, No Minimums: The account has no monthly fees, no minimum deposit to open, and no minimum balance required to earn the APY offered, putting interest within reach for large numbers of consumers.
    • Simple deposits: Savings can be deposited to the savings account and removed from the savings account back to the linked bank account or Apple Cash balance.

    Intensifying Competition in Fintech

    The introduction is a serious escalation of Apple’s push into financial services and could be a challenge to traditional banks and other fintech companies. With its massive user base and integrated hardware-software ecosystem, Apple is poised to be a powerful force in consumer banking.

    Apple initially rolled out a high-yield savings account with a 4.15% APY in April 2023, but the decision to aggressively raise the APY to the headline-grabbing 6.0% now could be a strategic statement to capture the market quickly, or a reflection on a change in economic outlook and interest rates.

    The decision comes as high-yield savings accounts are in transition, with rates having been high across the board because of interest rate increases by the Federal Reserve in recent years. However, recent economic indicators, like the Bank of England’s surprise rate cut, point to the potential for changes to the world’s monetary policy down the line, which in the context of the current environment makes Apple’s 6.0% APY quite appealing.

    For millions of iPhone users, the new high-yield savings account has the potential to offer a seamless way to get more from their savings in the one device they carry everywhere they go — and to upend what people have come to expect from their personal finances.

  • IRS Announces 2026 Retirement Contribution Limits: 401(k) Rises to $23,500

    IRS Announces 2026 Retirement Contribution Limits: 401(k) Rises to $23,500

    Savers nationwide will get more chances to fatten their retirement savings accounts after the Internal Revenue Service announced today that 2026 contribution limits will be higher for some types of retirement plans.

    The biggest increase is in the elective deferral limit for 401(k) and similar workplace plans, which rises to $24,500 from $19,500 in 2025. The changes, spurred by cost-of-living adjustments, are meant to assist Americans in more efficiently saving for retirement against continued inflationary headwinds.

    The official guidelines reflecting these changes are generally released in late October or early November of the prior year, and estimates from financial experts mostly have come in line with these projections. The IRS has announced the 2026 retirement contribution limits, raising the 401(k) cap to $23,500. Learn how this impacts your retirement savings strategy.

    Key Changes for 2026

    Here’s a breakdown of the new limits for the 2026 tax year:

    • 401(k), 403(b) and 457 Plans: The employee elective deferral limit for these plans will go up by $1,000 to $24,500. That goes for both pretax and Roth 401(k) contributions.
    • IRA Contributions: The maximum amount that millennials can contribute to an IRA in 2020 will likely be the same as in 2019 – $7,000 for both Traditional and Roth IRAs.
    • Catch-Up Contributions (50 or Over):
    • The contribution limit for catch-up contributions to 401(k), 403(b), and most 457 plans for those age 50 and over will be $8,000, up from $7,500. In other words, those who qualify can contribute up to $32,500 ($24,500 + $8,000).
    • For people 60, 61, 62 and 63, the “super catch-up” limit in an existing law raised by the SECURE 2.0 Act of 2022 is even higher, at $11,250 for 2026.
    • The IRA catch-up contribution for people 50 and older will also remain the same at $1,000.
    • Total Defined Contribution Limit: The most that can be contributed to a defined contribution plan (including employee and employer contributions, but not catch-up contributions) is expected to rise to $72,000 for 2026, up from $70,000 in 2025.

    SECURE 2.0 Act’s Impact on Catch-Up Contributions (Effective 2026)

    One major change for 2026, a result of the SECURE 2.0 Act, alters the way certain high earners contribute their catch-up amounts:

    • Mandatory Roth for High Earners: For tax years beginning after 2025, individuals with prior year Social Security (FICA) wages that exceed $150,000 (as indexed for inflation from the $145,000 in 2024), the catch-up contribution shall be made as an after-tax Roth contribution. This means that contributions to the account aren’t tax-deductible in the year they are made, but qualified withdrawals in retirement are tax-free.
    • Implication for Plans without Roth: When a 401(k) plan doesn’t allow Roth contributions, participants in this high earner group would not be eligible to make any catch-up contributions. This provision, which originally was scheduled to take effect in 2024, was postponed by the IRS to allow employers and payroll service providers additional time to update their systems.

    Planning Ahead for Retirement Savers

    These higher limits can be an excellent way for people to turbocharge their retirement planning. Financial advisors recommend reassessing existing contribution strategies to make the most of the higher thresholds, especially for those nearing retirement and able to take advantage of catch-up contributions.

    Since the law’s effective date approaches, employers should also make sure that their retirement plans are updated to be compliant with SECURE 2.0 requirements, including the new mandatory Roth catch-up contributions for highly compensated employees.

    The changes support a continued focus on increasing retirement savings security for America’s workers by promoting broad access and enhancing savings opportunities in an evolving economy.

  • Challenger to FICO Credit Scores Gets Green Light for Use in Mortgages

    Challenger to FICO Credit Scores Gets Green Light for Use in Mortgages

    There’s a shake-up occurring in the U.S. mortgage market, and it’s regarding something you might not think about very often — credit scores. A large portion of home loans are being paid with money from investors.

    Described by the Federal Housing Finance Agency (FHFA) on July 8, 2025, and supported by the European Parliament on July 10, 2025, the landmark decision looks to spur competition, lower costs for consumers and push homeownership opportunities to millions of Americans.

    The implications of a new credit score alternative gaining approval for mortgages. Learn how this challenger to FICO could benefit borrowers.

    Breaking FICO’s Monopoly

    FICO (FICO) scores have long been the gold standard for home mortgages bought and sold by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which back most home loans in the US. With the acceptance of VantageScore 4.0, the monopoly to be the only credit score in town has been shattered, welcoming the beginning of a new era of competition in the credit scoring environment.

    FHFA director William J. Pulte (Bill Pulte) made this announcement on social media, writing in a post on his official page that “Effective immediately,” lenders working with Fannie Mae and Freddie Mac can opt to use VantageScore 4.0. He stressed that this action is in line with President Donald Trump’s “landslide mandate to decrease costs” and raise competition.

    What VantageScore 4.0 Offers

    VantageScore 4.0, created by the three major credit bureaus (Equifax, Experian, and TransUnion), includes some important changes that should amplify the number of people benefiting from them:

    • Inclusion for “Thin Files”: One of the biggest benefits of VantageScore 4.0 is that it can score more consumers, especially people with little credit history, or “thin files”. It does so by including additional data points like rental payments, utilities, and telecom payments in the mix. What that means is that timely payments for these vital services can now be used to create or enhance a borrower’s credit profile for a mortgage. It’s a game-changer for people who don’t have traditional plastic credit cards or long loan histories.
    • Trended Data Analysis: Instead of providing a “snapshot” of credit at a moment in time, like old FICO models, VantageScore 4.0 uses “trended data”. This lets lenders view trends in a consumer’s financial planning over time, including whether credit card balances are being reduced consistently or minimum payments are made most of the time. This “video” of credit history has the potential to paint a much richer risk assessment.
    • Potential Cost Reductions: Introducing competition for the purchase of credit scores likely will reduce licensing fees for credit scores, lowering costs for lenders and potentially benefiting consumers with lower origination fees or interest rates.

    Impact on Homebuyers and Lenders

    The immediate impact is significant. VantageScore also says that its use would help an additional 4.7 million potential homebuyers, including first-time buyers, people of colour and those with an income on the low end of the scale, who cannot get a mortgage using scores supplied by the three national credit bureaus.

    For lenders, it means added flexibility and possibly less expensive access to credit reports, as the tri-merge (three-bureau) infrastructure is staying in place, making for a simpler move over. The move is being widely cheered by housing advocates and industry participants like the National Association of Realtors (NAR) for putting more credit options in the hands of consumers and burning off some sluggish competition.

    But some experts warn that lenders could still take a more cautionary approach with borrowers who don’t have a traditional credit history, perhaps leading to slightly wider interest rates in today’s market. But certainly, this is a big step toward modernizing the U.S. mortgage market, making homeownership more accessible for a wider swathe of the population.

    The FHFA’s move implements the 2018 Credit Score Competition Act — signed into law by then-President Trump — delivering on a long-time goal of modernizing the credit scoring system.

  • US House to Vote on Major Crypto Bills, Mortgage Rates Remain High

    US House to Vote on Major Crypto Bills, Mortgage Rates Remain High

    The US House is headed for key “Crypto Week” from today, July 14, 2025, with historic votes planned on a number of bills for digital asset legislation. This regulatory push is the result of attempts to implement clearer regulations for the developing crypto industry.

    At the same time, U.S. home buyers continue to see stubbornly high mortgage rates that are making homes less affordable and discouraging the home buying process.

    House’s ‘Crypto Week’ Begins

    After years in which the crypto industry has called for clarity from regulators, the House is now preparing to take major steps. Members of Congress are set to vote on three pieces of legislation:

    • Digital Asset Market Clarity Act (CLARITY Act): This legislation would create a path for digital assets to be offered and sold as securities and identify how these assets are treated under securities law and is also meant to resolve conflicts between the SEC and the CFTC. This bill has been reported by both the House Financial Services Committee and the House Agriculture Committee with overwhelming bipartisan support.
    • Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act): The GENIUS Act would establish the first federal statutory framework for payment stablecoins and would require payment stablecoins to be one-to-one backed by cash. This bill has already been approved overwhelmingly by the Senate, and House passage would send it directly to the desk of President Donald Trump, who might sign the first large crypto law into effect.
    • The Anti-CBDC Surveillance State Act: This bill would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), amid worries from certain lawmakers about privacy and potential government abuse.

    The “Crypto Week” schedule reflects a desire among many in Washington D.C. to move forward with digital assets and establish the U.S. as a global leader in financial technology, an effort that President Trump is personally directing. Market participants are watching these votes closely for a more favourable and predictable environment to conduct a crypto business or invest in one.

    Hotel Loans: Soness At Hotel Maturities Return – Mortgage Rates Still Near Highs

    Meantime, the U.S. housing market faces high borrowing costs. Average rates for a 30-year fixed-rate mortgage increased slightly this week to 6.72 per cent, according to Freddie Mac data released on July 10, 2025, in what had been a five-week string of loosening. The average on the 15-year fixed-rate mortgage increased to 5.86%.

    These stubbornly high levels — they’ve largely been between 6.5% and 7% for much of 2025 — are more a function of external economic conditions, such as the Federal Reserve’s monetary-policy setting and the movement of the 10-year Treasury yield. Yet despite some hopes for interest rate cutbacks later in the year, most economists say mortgage rates are likely to stay in the 6% to 7% range in the coming months unless there’s a dramatic change in inflation or economic reports.

    The higher borrowing costs remain a major headwind for potential buyers, in particular for first-time buyers, and have led to a sales downturn in the housing market that commenced in 2022. There is plenty of demand for housing, but plenty of obstacles, too, both in the form of high interest rates and high home prices, which are keeping many on the sidelines. Refinance activity also has been tepid, with rates not low enough compared with the existing level of rates that many homeowners have.

  • New Biden administration plan expands debt forgiveness for 3 million borrowers

    New Biden administration plan expands debt forgiveness for 3 million borrowers

    Millions of Americans with student loan debt are poised to receive huge relief after the new Biden administration on Tuesday announced that the Department of Education would significantly expand its debt relief efforts.

    With the plan, an estimated 3 million borrowers are expected to see their debt forgiven, extending current programmes and fixing past administrative errors to lay out a clear way for people to attain financial freedom.

    Broadening the Reach of Relief

    This new release from the Department of Education offers further evidence of a sustained effort to provide relief for the student loan crisis that has affected millions of families.

    The revised programme centres on a number of core components, all intended to streamline the forgiveness process and address borrowers who faced barriers or didn’t know they were eligible.

    An essential element of this approach is to build on our current systems, such as Income-Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). The department has taken aggressive action to identify these borrowers and provide relief to them automatically, even though their forgiveness was not automatically granted as a result of errors by the subcontracts.

    These are people who have paid for 20 or 25 years, depending on their loan type, and are beginning to see their remaining balances zeroed out.

    Addressing Public Service and Hardship

    The plan also hits public servants hard. Although the Public Service Loan Forgiveness programme has offered a helping hand to more than a million borrowers, the details of how it was previously run have left many borrowers angry and confused.

    This new expansion seeks to simplify the process and make sure that qualifying payments by teachers, nurses, government workers and other public service workers are correctly recorded, driving more rapid forgiveness after 10 years of service.

    The administration is also targeting borrowers who are suffering from financial hardship and borrowers who were exploited by predatory institutions.

    Although it is still unclear about new categories for “hardship relief”, the aim is to give the Secretary of Education more discretion in cancelling the debt of borrowers with serious financial planning, which makes repayment impracticable.

    That includes continuing relief for students whose schools collapsed or engaged in deceptive practices.

    The Role of the SAVE Plan

    One of the key pillars enabling all of this greater relief is the Saving on a Valuable Education (SAVE) Plan. The SAVE Plan has been challenged in court, and parts of it have been suspended as a result of the litigation, but the administration is implementing other parts of the plan that are not affected by court orders.

    The SAVE plan reduces monthly payments substantially for many borrowers as a percentage of their income and the number of people in their family, and for those with lower initial loan balances, it offers forgiveness in as few as 10 years.

    The continued work to stand up SAVE, in the midst of a legal fight, is crucial to helping millions of people in repayment manage and ultimately obtain forgiveness.

    Effects on Borrowers and the Economy

    For the 3 million borrowers affected, this expansion means less financial strain, more take-home pay, and the freedom to work toward other milestones in life, like purchasing a home or saving for retirement.

    The action was also expected to have broader economic benefits as it encourages consumer spending while eliminating debt that has been a drag on economic growth. The Biden administration says that these moves are part of an overall strategy to fix a “broken” system of student loans, making good on the promise of higher education as a path to opportunity and not crushing debt.

    Although the student loan terrain is not static, this newest plan represents a significant development in relieving those who need it most.

  • ⁠Millennials say they need $847,000 to feel ‘comfortable’ financially. Here’s how much Gen Z, Gen X and boomers want.

    ⁠Millennials say they need $847,000 to feel ‘comfortable’ financially. Here’s how much Gen Z, Gen X and boomers want.

    New York – What does it take to reach the lofty goal of feeling “financially comfortable”? That elusive figure varies widely by generation, the survey found, with Millennials saying they’ll need an impressive $847,000 to feel secure. This figure is higher than the national average and exposes the differing financial hopes and circumstances of varying generations.

    The most recent Charles Schwab Modern Wealth Survey 2025 (published July 9, 2025) makes that generation gap plain, detailing the net worth each group thinks is needed to feel financially secure. The average American now estimates it takes $839,000 to be financially comfortable, more than the $778,000 of last year.

    Millennials Leading the Pack

    For the most part, Millennials (29 to 44 years old, in this case) are looking for the highest comfort level. Their request for $847,000 is symbolic of a generation wrestling with such seismic economic forces as student loan debt, escalating housing costs and inflationary pressures, all while also carving out their own paths in the workplace and at home.

    Their own journeys into work in the aftermath of the financial meltdown of 2008 may also give them a different sense of how much capital it takes to achieve security.

    Gen Z: Lower Threshold, More Positive

    And Gen Z (ages 21-28) has set the leanest bar for financial comfort, saying they need $329,000. Gen Z may be dealing with their own economic issues – however, there’s a lot of optimism coursing through this generation.

    43 per cent of Gen Z and 42 per cent of Millennials think they will become wealthy (or already are), at rates far higher than other generations. In addition, this younger generation is more likely to have written down their financial plans, suggesting that they approach financial wellness more consciously even though they are less comfortable.

    n X and Boomers: Different Needs, Greater Averages

    Generation X, also known as the sandwich generation because many in that age group support children and ageing parents, says it needs $783,000 to feel financially well. This number is a bit lower than the national average, but 2 million people is still a tonne of people.

    And Baby Boomers (ages 61-77), most of whom are approaching or are in retirement, believe that they need surprisingly the highest amount among all generations to feel comfortable: $943,000. They do this because they want to ensure they live a financially comfortable retirement in the face of spiralling medical costs and longer lives.

    Beyond the Numbers: Defining Wealth

    The survey also looked at what Americans think is “wealthy” and found it to be much more than a number. No comment about your physical or mental health or personal relationships: Unfortunately, while the average net worth to feel “wealthy” is $2.3 million by 2025 (or so think the survey-takers), they also place just as much weight on happiness (45%), physical health (37%), mental health (32%), and strong personal relationships!

    The changing definitions of financial comfort from generation to generation illustrate how economic security is anything but static in a shifting world. The actual numbers might be different, but the need to be secure in one’s position and to be able to live without constant financial anxiety is universal.

  • Trump threatens to impose up to 200% tariff on pharmaceuticals ‘very soon’

    Trump threatens to impose up to 200% tariff on pharmaceuticals ‘very soon’

    In a major decision announced Tuesday, July 8, 2025, President Donald Trump said his administration plans to levy tariffs of as much as 200% on pharmaceuticals imported into the U.S., and implementation of the levies could occur “very shortly” and be implemented after about a yearlong transition period.

    This is a provocative initiative to encourage domestic drug manufacturing and lessen dependence on overseas supply chains for national security reasons. The threat sent an immediate chill through the global pharmaceutical industry and led to concerns that there could be effects on drug prices for American consumers.

    The Tariff Threat: Details and Context

    President Trump directly indicated that his administration would “reshore” the manufacturing of drugs to the United States. At a Cabinet meeting, he announced, “We’ll be announcing something on pharmaceuticals soon.”

    He, however, said the tariff would perhaps be set “at a very high rate, like 200%,” and allowed a period of adjustment — “We’re going to give people about a year, year and a half to come in, and after that they’re going to be tariffed if they have to bring the pharmaceuticals into the country.”

    This announcement comes after a probe of drug imports was launched in mid-April 2025, according to Section 232 of the Trade Expansion Act, authorising tariffs on national security grounds. US Commerce Secretary Howard Lutnick said investigations into both pharmaceutical and chip imports are set to end at the end of July.

    This threat is part of a larger package of recent tariffs declared by the Trump administration – which also includes 50% tariffs on copper imports and a new round of “reciprocal tariffs” on 14 countries – that are set to be implemented on August 1, 2025, unless new trade agreements are negotiated.

    Dependence on Foreign Pharmaceutical Supply Chains

    The relevance of these suggested tariffs is that the United States is heavily dependent on international supply chains for its medicines. The US pharma industry imports a lot, especially the Active Pharmaceutical Ingredients (APIs) and generic finished drugs. The US imported approximately $234 billion worth of medicinal and pharmaceutical products in 2024.

    The largest suppliers include Ireland, Switzerland, Germany, Singapore, and India by value. On the other hand, by value, China and India remain the largest suppliers, with a combined share of 57.6% in the drug import total in 2023. China alone is a major supplier for a number of critical drugs, and most imports for medicines like ibuprofen, hydrocortisone and penicillin rely on the country.

    The administration’s justification for these tariffs is a concern that this large reliance on other countries, particularly for life-saving drugs, is actually a major national security vulnerability.

    Potential Effects: Prices, Supply, and Industry Reaction

    The fallout over the 200% tariff on pharmaceutical imports is feared to be the main drawback. The most immediate and farthest-reaching effect would be a sharp increase in drug prices for American consumers, especially for generic and lifesaving drugs that depend on these imports.

    Even if companies can quickly switch to domestic manufacturing or find new, tariff-free sources, such a sharp tariff could also result in widespread supply chain disruptions and exacerbate drug shortages that already plague the United States.

    Some drug manufacturers had already started announcing plans for US production ahead of policy changes, albeit before President Trump took office, a trend which these new tariffs are sure to accelerate.

    Pharma shares, especially Indian drug makers with a prominent US presence such as Lupin, Sun Pharma and Dr. Reddy’s, closed mixed on Wednesday after the news was reported, reflecting the overall market uncertainty.

    Yet moving complex pharmaceutical production would be costly and time-consuming, making it next to impossible for the industry.

    Outlook and Policy Path Forward

    President Trump’s overt threat to impose steep pharmaceutical tariffs opens a new chapter in his trade agenda, which is set on a sweeping remake of the United States’ drug supply chain.

    While the precise extent to which the industry will be affected by any proposed policy remains uncertain, it is undoubtable that the administration’s commitment to increasing domestic pharmaceutical manufacturing and decreasing reliance on exports highlights the urgent need for global pharmaceutical companies to focus on future prospects of the pharmaceuticals in the U.S. market. More on the Section 232 investigation into pharmaceutical imports can be found in this DLA Piper insight.

  • Global Personal Finance Navigates Inflation, BNPL Trends, and Stable Savings on July 8, 2025

    Global Personal Finance Navigates Inflation, BNPL Trends, and Stable Savings on July 8, 2025

    As of today, July 8, 2025, people face an increasingly convoluted personal finance story, as global personal finance navigates inflation that refuses to go back to normal anywhere around the world; Buy Now, Pay Later (BNPL) takes off at a blistering rate of speed; and stockpiles of savings continue to fight against economic shifting.

    Together, these ingredients are altering how households manage their budgets, spend and plan for the future. In this article we will give insight into how consumers are adjusting and offer advice from financial professionals on staying financially healthy.

    Exorbitant Inflation on Household Budgets

    The inflation picture as it stands today is still a significant drain on personal wallets. Headline inflation remained elevated above pre-pandemic levels in many economies, at least to date, with the OECD’s most recent data available as of July 3rd, 2025, showing 4.0% in May 2025.

    In other words, the cost of living is still climbing; it’s just doing so at a slower pace than during periods of peak inflation. The direct effect on personal finance is obvious: reduced purchasing power, higher everyday expenses as items like food, fuel and utility bills rise, and a squeeze on discretionary spending.

    This is especially challenging for savers. While nominal savings may be accumulating, their real value after adjusting for inflation is being eroded, keeping one of life’s quests — that of stable, inflation-beating savings — as an uphill journey for households the world over.

    Convenience, popularity, and growing concerns about BNPL

    The popularity of Buy Now, Pay Later (BNPL) continues to skyrocket, with the value of global BNPL payments forecasted to hit US$39.79 billion in 2025 – year-on-year growth is striking. The attraction of the option is the freedom it offers and the illusion of no-interest payments, especially to younger demographics such as Millennials and Gen Z, who are used to working with it for online sales.

    But there is a downside to this convenience. A majority of users regret BNPL – in a recent survey a good 40% of Americans regret after they comprehend the total costs. What’s more, late payments are increasing, with 41% of users of BNPL services reported making a late payment in the last 12 months versus 34% a year ago.

    The downsides to such services include racking up multiple BNPL debts, losing track of payments (almost one-third of users say as much) and the threat to credit scores from missing instalment payments. More statistics on BNPL usage and concerns can be found in the Motley Fool’s 2025 Buy Now, Pay Later Trends Study.

    Developing Financial Resilience: Astute Savings in a Changing Environment

    Finding ways to handle this effectively calls for some smart and practical savings plans. Firstly, people should focus on finding savings accounts with competitive interest rates that can outpace inflation. In India, RBI’s Floating Rate Savings Bonds are still going strong at 8.05% returns for the July-December 2025 period, which stands to trump many conventional bank fixed deposits and give a government-backed, less-risky option for conservative investors.

    Second, the ancient virtues of budgeting and expense tracking are just as important as ever. Knowing where the money’s going is how you start to find potential savings. Thirdly, prioritize debt. High-interest debts such as credit cards should be prioritised for aggressive repayment, and while BNPL payments are usually interest-free, they need to be responsibly managed to avoid late fees and an impact on credit scores.

    And ultimately, consider saving more broadly than money, focusing on longer-term goals, to provide more insulation against the disintegrating effects of inflation.

    Final word

    “The state of personal finance on July 8, 2025, is one heavily influenced by the persistent global inflation attack on household budgets, the two-faced BNPL phenomenon—a lurking convenience or debt risk.”

    In order to attain fiscal wellness in today’s economy, it is essential to actively manage personal finances, which has to do with smart savings plans, a vigilant budgeting system and being mindful of business practices. We would advise readers to check things should their circumstances be in any way complicated, as well as seek professional advice to protect their financial future.

  • RBI Savings Bond Rates Unchanged, Gold & Silver Dip, and ATM Fee Hikes Impact Daily Transactions

    RBI Savings Bond Rates Unchanged, Gold & Silver Dip, and ATM Fee Hikes Impact Daily Transactions

    For those Indians who are responsible for their own financial planning, Monday, July 7, 2025, is a day of stability and new challenges. The Reserve Bank of India (RBI) has left interest rates on its popular Floating Rate Savings Bonds unchanged, and precious metals including gold and silver have come down.

    At the same time, we can expect an increase in the fees for ATM transactions that will influence our daily banking behaviour.

    Fixed Returns – RBI Floating Rate Savings Bonds

    In a significant update for savers, the RBI has decided that the interest rates on its Floating Rate Savings Bonds (FRSB 2020 (T)) would continue to be at 8.05% for the July 1-December 31, 2025, period.

    This rate, 0.35% higher than the prevailing National Savings Certificate (NSC), provides an attractive and safe investment avenue for those looking for assured returns on the money invested.

    Interest on these bonds is paid twice a year (on 1 January and 1 July). They start at an investment of ₹1,000, and with no cap, they are affordable for different kinds of investors. For official information regarding the RBI Floating Rate Savings Bonds, refer to the Reserve Bank of India’s website.

    Important Considerations for FRSB Investors

    Even though FRSBs are secured instruments, investors have to note that there is a lock-in period of seven years. Early withdrawal is generally limited, but seniors are afforded some leniency based on their age, even if they are penalized.

    It is important to note that the interest income generated by such bonds is fully taxable, and TDS (Tax Deducted at Source) is applicable if the annual interest amount crosses ₹10,000.

    That makes it crucial, then, for investors to consider the tax on investments as part of the overall returns and to incorporate these bonds into their overall financial planning tips.

    Gold and Silver Prices See a Decline

    Gold & Silver: In the commodities market, on July 7, 2025, the value of gold and silver has also declined according to global trends. Prospects for lower demand lifted spot gold prices internationally. On the domestic front, gold prices today in India showed little change as 24-carat gold was being sold at ₹98,993 per 10 grams in the Indian capital, New Delhi, and other major cities.

    Likewise, the silver price today in India also registered a fall to trade at ₹108,370 per kilogram. The pressure on the precious metals may be coming from what appears to be a few global economic signals and some possible headway in an international trade conversation.

    ATM Costs Mount for Daily Transactions

    In a move that will make everyday banking even more expensive, several leading banks like Axis Bank, ICICI Bank, etc., have revised their ATM transaction charges with effect from July 1, 2025. For Axis Bank, for bank customers who exceed the free transaction limit, it has been raised from ₹21 to ₹23.

    These new fees impact different account types and are intended to compensate banks for growing back-office expenses. Heads up – People need to be aware of these changes in order to avoid additional fees or revise their budgeting pointers.

    This Indian personal finance news for July 2025 reminds us that it is still necessary for people to track the markets and banking rules to manage personal finance well.

  • ITR Filing Deadline Confirmed: Navigating Financial Changes in July 2025 Amidst Rising ATM Fees and Tatkal Rules

    ITR Filing Deadline Confirmed: Navigating Financial Changes in July 2025 Amidst Rising ATM Fees and Tatkal Rules

    July 2025: It is an important month for personal finance in India, as it announces an extension date for ITR Filing Deadline Confirmed 2025 and various changes that can affect daily financial transactions.

    While taxpayers are paying attention to being compliant, they should also get prepared for increasing ATM charges and new guidelines for Tatkal train bookings by taking proactive steps towards money management.

    ITR Filing Extended Date for Salaried Employees

    In a sigh of relief for the salaried class, the Income Tax Department has officially announced that the last date for filing ITR 2025 for the financial year 2024-25 (assessment year 2025-26) will be extended from July 31 to September 15, 2025.

    This extension, news of which was informed on July 3, would help taxpayers in getting more time for accurate compliance as certain ITR forms (like ITR-2 and ITR-3) are being made more user-friendly, which required more time, for which the last date was being extended.

    Taxpayers can now utilise this additional time for filing returns to compile details like borrowings, capital gains and other investment income during the extended period. For an official press release regarding the ITR filing extension, refer to the Press Information Bureau (PIB).

    How Increasing ATM & Bank Fees are Affecting Everyone

    ATM finders: can be used for other banks as well. Some banks, such as Axis Bank and ICICI Bank, have revised their ATM transaction charges from July 1, 2025. At Axis Bank, the charge on such transactions above the free limit has been hiked from ₹21 to ₹23 a transaction for a gamut of accounts – savings, NRI and so on.

    ICICI Bank is also revising service fees on ATM transactions, cash deposits and withdrawals and IMPS money transfers. The rate revision due to higher operating expenses will apply to customers in metro and non-metro markets.

    That’s why it’s important for them to review these changes so they don’t get saddled with surprises and so they can tweak their budgeting strategies and transaction habits accordingly to better manage their personal finances.

    Tatkal Train Rules Changed: Other things to know

    In what is another layer of complication to regular financial and travel planning, new guidelines for Tatkal train ticket booking will be effective from July 15, 2025. Wait no more! For from this very date, all online Tatkal ticket transactions will need to be Aadhaar-based OTP authenticated!

    The same is intended to prevent false bookings and improve the security of the booking system. The masses have to link and validate in the coming days for a seamless experience while keeping security in place and adding yet another layer of protection to their daily digital transactions.

    Proactive Financial Planning is Key

    Apart from these immediate switches, financial planning-related challenges in India are constantly changing. But with the EPFO increasing the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh (certain categories of withdrawals in three days for different types of needs) and little better to do with savings at this juncture, the need for caution, in the larger interest of the economy, stands reinforced.

    Experts also continue to caution against holding large amounts of cash in low-interest savings accounts that don’t even keep pace with inflation and recommend other high-yield investment options. This personal finance news in India for July 2025 tells us that the need of the hour is that we should all stay informed, agile and proactive in managing our personal finances if we don’t want to be hurt financially when it all unfolds in the years to come!