Smaller Savings Schemes for CFP Exams

Find the rates of smaller savings schemes which are applicable from 1st  February, 2014 in CFP exams.

National Savings Certificate (NSC) 5 Years

Interest	8.5%
Compounding	Half yearly
Minimum Investment	100
Maximum Investment	No limit
Tenure	5 years
Tax Benefit	U/S 80C. Accrued interest qualifies under 80C cause deemed to be reinvested
Premature Withdrawal	NA but Encashment is allowed
Who can invest?	Individuals, HUF cannot purchase from 13th May 2005

National Savings Certificate (NSC) 10 Years

Interest	8.8%
Compounding	Half yearly
Minimum Investment	100
Maximum Investment	No limit
Tenure	10 years
Tax Benefit	U/S 80C. Accrued interest qualifies under 80C cause deemed to be reinvested
Premature Withdrawal	NA but Encashment is allowed
Who can invest?	Individuals, HUF cannot purchase from 13th May 2005

PO Monthly Income Scheme

Interest	8.4% payable monthly
Compounding	NA
Minimum Investment	1500
Maximum Investment	Single Account – 4.5 lakh Joint Account – 9 lakh
Tenure	5 years and 0% bonus on maturity
Tax Benefit	NA
Premature Withdrawal	After 1 year
Who can invest?	Individuals

PO Time Deposit

Interest	1 year: 8.2% 2 year: 8.3% 3 year: 8.4% 5 year: 8.5%
Compounding	Quarterly
Minimum Investment	200
Maximum Investment	No limit
Tenure	1, 2, 3 and 5 year
Tax Benefit	5 year deposit U/S 80C
Premature Withdrawal	NA for first 6 months

PO Recurring Deposit

Interest	8.3%
Compounding	Quarterly
Minimum Investment	10
Maximum Investment	No limit
Tenure	5 year tenure, extend for 5 years and can make deposits for the Same
Tax Benefit	NA
Premature Withdrawal	After 3 years
Who can invest?	Individuals
Maturity benefit	Rs.10 invested monthly becomes Rs.738.62

Senior Citizen Savings Scheme

Interest	9.20% payable quarterly
Compounding	NA
Minimum Investment	1000
Maximum Investment	Rs. 15 lakh. If husband & wife are eligible to invest, then each of them can invest up to Rs.15 lakh taking the total to Rs.30 lakh
Tenure	5 year tenure, can extend for 3 years Min. Age should be 60 years on opening of A/c Age can be >=55 & < 60 if retired under VRS or SVRS
Tax Benefit	Section 80C benefit (Since AY 08-09)
Premature Withdrawal	NA

Public Provident Fund

Interest	8.7%
Compounding	Yearly
Minimum Investment	500
Maximum Investment	1,00,000
Tenure	15 year tenure, extend in a block of 5 years
Tax Benefit	80C
Loan	After 3 years – 25% of the 2nd preceding year @ 2%
Premature withdrawal	After 5 years – 50% of the 4th preceding year At extension – 60% of the closing bal of 15th year
Who can invest?	Individuals

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Small Savings – Kisan Vikas Patra

Kisan Vikas Patra (Discontinued from 1st December, 2011)

Interest	8.41%
Compounding	Yearly
Minimum Investment	100
Maximum Investment	No limit
Tenure	Money doubles in 8 years 7 months
Tax Benefit	NA
Premature Withdrawal	NA
Who can invest?	Individuals