Postal Savings Schemes
National Savings Certificate (NSC)
- Tenure: 5 years / 10 years
- Rate of Interest: 8.50% / 8.80% p.a. (Compounded Half-yearly)
- Tax Deduction: Section 80C
- Minimum / Maximum Amount: Rs.100 / No limit
- Loan facility by way of pledging.
- Pre-mature withdrawals are not allowed.
Recurring Deposit (RD)
- Tenure: 5 years (Can be extended for 5 years)
- Rate of Interest: 8.40% p.a.
- Minimum / Maximum Amount: Rs.10 p.m. / No limit
- Pre-mature withdrawal: Upto 50% of balance after 1 year.
- Rebate on advance deposit of 6 months and 12 months.
Monthly Income Scheme (MIS)
- Tenure: 5 years
- Rate of Interest: 8.40% p.a.
- Maximum Amount: Rs.4.50 lakh in Single a/c / Rs.9.00 lakh in Joint a/c
- Interest Payment: Monthly
- Premature withdrawal: After 1 year
Public Provident Fund (PPF)
- Tenure: 15 years (Can be extended for 5 years)
- Rate of Interest: 8.70% p.a.
- Minimum / Maximum Amount: Rs.500 p.a. / Rs.1 lakh p.a.
- Tax Deduction: Section 80C
- Withdrawal facility after 7th financial year subject to conditions.
- Loan facility available after 3rd financial year subject to conditions.
Senior Citizen Savings Scheme (SCSS)
- Tenure: 5 years
- Rate of Interest: 9.20% p.a.
- Maximum Amount: Rs.1,000 / Rs.15 lakh
- Interest Payment: Quarterly on 31st March, 30th June, 30th September, 31st December
- Premature withdrawal: After 1 year with deduction of 1.50% interest, 2nd year with deduction of 1% interest.
- Eligibility: Person above 60 years. (55 years subject to conditions)
- Tax Deduction: Section 80c
- TDS is deducted on interest if, interest exceeds Rs.10,000 p.a.
Time Deposit (TD)
- Tenure and Rate of Interest (Compounded Quarterly):
Period Rate
1 yr. A/c 8.40% p.a.
2 yr. A/c 8.40% p.a.
3 yr. A/c 8.40% p.a.
5 yr. A/c 8.50% p.a.
- Tax Deduction: Section 80C for 5 year T.D.
- Minimum / Maximum Amount: Rs.200 / No limit
- Pre-mature withdrawals: After 1 year subject to condition
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Bonds
RBI 8% Savings (Taxable) Bonds, 2003
- Tenure: 6 years
- Interest Rate: 8% p.a.
- Interest Options: Cumulative / Half-Yearly
- Face Value: Rs.1,000/-
- Minimum / Maximum Amount: Rs.1,000 / No Limit (in multiples of Rs.1,000)
- Eligibility: Resident Individuals / H.U.F. / Trusts / Charitable Institutions
Capital Gains Tax Exemption Bonds (54 EC Bonds)
- Tenure: 3 years
- Interest Rate: 6% p.a.
- Interest Options: Annually
- Face Value: Rs.10,000/-
- Minimum / Maximum Amount: Rs.10,000 / Rs.50,00,000 (in multiples of Rs.10,000)
- Eligibility: Individuals / H.U.F. / N.R.I
- Purpose of Investment: Save capital gains tax from sale of property (residential/commercial) within 6 months of the sale of the property.
- Issuer: Rural Electrification Corporation Ltd. (REC) and National Highways Authority of India (NHAI)
