6 Changes To Come Into Effect From December That Will Impact Your Finances

We are almost through calendar year 2021 and close to usher in the new year 2022. Nevertheless, as every month brings in new changes in the financial world, here we list down few such changes that shall come into effect from December 2021:

1. Term insurance to get costlier:

Pure life cover plans also known as term insurance in the insurance parlance will see a hike in premium price. This is as reinsurance rates in the international markets have been climbing. Also, the hike is to do with the increased mortality rate given the ongoing pandemic. Importantly, this price surge has already been discounted in group term insurance cost which has seen a sharp rise in premium of between 30-100 percent and now the same shall follow in case of individual term insurance policies.

For term plans, nominees in the event of the unfortunate death of the life assured is entitled to receive the sum assured value.

2. Processing fee to be charged on all EMI transactions via SBI credit card:

The credit card company has informed via an e-mail that beginning December 1 it shall be charging Rs. 99 plus applicable taxes for all EMI purchase transactions done using SBI credit card. The said charges will be applied to both retail outlet and online e-commerce transactions.

3. LPG Rates increase for commercial LPG cylinder:

Month on month oil marketing companies review LPG rates and revise them based on international pricing. For now, as a respite to domestic LPG consumers, prices continue to be the same. Non-subsidised 14.2 kg cylinder in Delhi is availabe for a price of Rs. 899.5, while the rate of 5 kg domestic cylinder is Rs. 502.

However for the commercial cylinders of 19 kg, prices have gone up by Rs. 103.5. In Delhi, the price of this cylinder is Rs. 2014 from today as against Rs. 2000.5 earlier.

4. Reliance Jio prepaid plans rate hike:

Following tariff hike by Airtel and Voda, Reliance Jio on Sunday informed about the tariff hike in its prepaid plans from December 1 onwards. The new unlimited plans will go-live on 1 December and can be opted from all existing touchpoints and channels, Jio said.

For details on new tariff plans. Read here.

5. Savings rate on PNB account gets reduced:

As per the bank's site, henceforth i.e. effective December 1, 2021, Saving Fund Account Balance below Rs. 10 Lakh will get an interest rate of 2.8 percent while that with balance of Rs. 10 lakh and more will be offered an interest rate of 2.85 percent per annum. This is for both domestic and NRI savings account.

6. Rising prices for FMCG, clothes, phones, TV among others getting expensive:

From food to eating out to electrical appliances, apparel, footware, personal care products all are getting expensive. This is precisely on unprecedented raw material price hike. Say for instance as international coffee prices are at 10-year high and production in domestic markets has been hit owing to excess rainfall, the food product has gone costlier. Likewise tomato prices have gone for a toss and will remain higher for some more months until the new harvest becomes available.

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