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SCHEMES

Worried about the rising cost of living?

There are various schemes cater to diverse investors; many are government-supported, guaranteeing attractive returns. However, interest rates, tax treatment, and lock-in periods vary among various schemes. Therefore, investors should carefully review the options and choose the most suitable one based on their financial goals.

Combining different savings schemes can optimize wealth growth for individuals. Listed down are few such schemes where general public may get benefited:

  1. National Savings Certificate
  2. Kisan Vikas Patra
  3. Sukanya Samriddhi Yojana
  4. National Pension scheme
  5. Public Provident Fund
  6. Post Office Monthly Income Scheme
  7. Post Office savings account
  8. Atal Pension Yojana
  9. Pradhan Mantri Jan Dhan Yojana
  10. Sovereign Gold Bonds
  11. Equity Linked Saving Scheme

For certain category of citizens, some special schemes are also floated by Government of India such as

  1. Senior Citizen Savings Scheme
  2. Employees Provident Fund Organisation
  3. Mahila Samman Savings Certificate
  4. National Savings Recurring Deposit Account

Small savings schemes are the household saving schemes notified by the Central Govt., such as Public Provident Fund, Senior Citizens Savings Scheme, Post Office Recurring Deposit, Sukanya Samriddhi Scheme, etc. The rate of interest on such small saving schemes is notified quarterly.

Savings Schemes” means the government savings schemes notified by the Central Government to promote household savings in the country. The Government can notify the schemes from Government Savings Promotion Act 1873. The notification may include the provisions relating to who shall be eligible to deposit in a Savings Scheme, the manner of calculation, frequency of payment and rate of interest payable on the deposit, the maximum and minimum limits of deposit, etc.

These schemes guarantee returns with minimal risk and volatility. They can be opened in various ways and start with – monthly, quarterly, half-yearly, and yearly schemes.

Some of these schemes are also eligible for deduction under Section 80C.

SchemeIn whose name
the account can be opened
No. of accounts permissibleRate of InterestMaturity PeriodInvestmentSection
80C  deductions on deposit  i.e.
the principal amount invested
Taxability of interestWhether fixed rate
of interest or
interest
rate can change after the account is opened
Sukanya Samriddhi
Scheme
Girl Child18.4%p.a.21 years
or date of Marriage
Min.Rs.250 Max.Rs.1.5 lakhsAllowedInterest is exempted from taxInterest rate can change
from
time to time
Public Provident
Fund  
(PPF)
Any individual
 
17.9%p.a.
 
15 years
 
Min.Rs.500 Max.Rs.1.5 lakhsAllowedExempt from tax.Interest rate can change
from
time to time
Kisan Vikas Patra  
(KVP)
Any individualNo limit7.6%p.a.
(approx.)
9 years & 5 Months
 

 
Min. Rs.1,000
Max. No limit
Not allowedResident
Indian senior citizens (those aged 60or more) can
Claim section 80TT B deduction for interest up to Rs. 50,000.
Fully taxable for others.
Fixed
interest rate
Senior Citizen Saving SchemeSenior Citizens (those aged 60 or more) can
open an account with funds from any source. Retirees aged 55or more but less than 60 must Open an account with
Retirement benefitsonly.
No limit8.6%p.a.5yearsMin. Rs.1000
Max. Rs.15 lakhs
AllowedResident Indian senior citizens (those aged 60or older) can claim sect ion 80TT B deduction for interest upto Rs. 50,000.
Fully taxable for others.
Fixed
interest rate
NSC VIII IssueAny individual
 
No limit
 
7.9%p.a.
 
5years
 
Min. Rs.1,000 
Max. No limit
AllowedResident Indian senior citizens (those aged 60or older) can claim sect ion 80TT B deduction for interest upto Rs. 50,000.
Fully taxable for others.
Fixed
interest rate
Post Office Saving
Scheme
Any individual1(if single account)4%p.a.No maturity periodMin. Rs.500
Max. No limit
Not allowedTaxable after claiming exemption and deduction under section80TTA/80TTBInterest rate can change
from time to
time after the account is opened
National Savings (Monthly Income
Account) Scheme
Any individual
 
No limit7.6%p.a.5yearsMin. Rs.1000 Max. Rs.4.5 lakhs (single account) andRs.9lakhs (joint account)Not allowedResident
Indian senior citizens (those
Aged 60or more) can claim section 80TTB deduction in respect of interest upto Rs. 50,000. Fully taxable for others.
Fixed
Interest rate
National
Savings
Time
Deposit
Scheme
Any individualNo limit6.9% p.a. & 7.7%p.a.1year/2 years/3 years/5yearsMin.Rs.1,000
Max. No limit
Allowed for 5year
Time deposit.

Not allowed for  1year/2year/3year time deposit
Resident
Indian senior citizens (those
Aged 60ormore) can
claim section
80TTB deduction in respect of interest upto
Rs.50,000.
Fully taxable for others.
Fixed
Interest rate
National
Savings Recurring Deposit Scheme
Any individualNo limit7.2%p.a.(approx.)5yearsMin. Rs.100
Max. No limit
Not
Allowed
Resident
Indian senior citizens (those
Aged 60ormore) canclaim section 80TT B deduction in respect of interest upto
Rs.50,000.
Fully taxable for others.
Fixed
Interest rate

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