|
Sr.No. |
Name of Investment |
Who can Invest |
Yield |
Life/Lock-in Period |
Issuer |
Tax Benefits |
Min./Max. amount |
Liquidity |
Capital
Appreciations /
Risk |
Nomination / Joint
Names |
|
1
|
Public Provident Fund (PPF) |
Individuals (Now NRIs not allowed though old accounts may
continue on non-repatriation basis) |
8%
p.a. w.e.f. 1-3-2003 calculated on monthly balance and credited
annually |
15
years. Optional extension for block 5 years at a time |
Govt. of India through Nationalised Banks and of Post Office. |
No TDS on interest and withdrawal.
Investment eligible for deduction u/s 80c and interest is exempt u/s 10. |
Min. Rs. 500 p.a. Max. Rs. 70,000 p.a. in respect of individual and minors
taken together. |
No
withdrawal till expiry of 6th F.Y.Then one withdrawal up to lower
of 50% of
the balance
at the end
of 4th
preceding
year or the
year
immediately
preceding
the year of
withdrawal.
Loan (of up
to 25% of
amount at
credit at the
end of 2
preceding
years) can
be applied
for after
2 years but
before
5 years from
the end of
year in which
initial
subscription
is made. |
None. Accumulation of interest. No Risk |
Nomination possible except for minors |
|
2 |
National Savings Certificates
VIII Issue (NSC) (Available in demat form at select post offices) |
Any Entity |
8% p.a. w.e.f.1-3-2003 compo-
unded half yearly. Maturity value shall be Rs.160.10 principal and Int.
for every Rs.100/- |
6 years. Premature encashment
possible after 3 years with lower yield as per Rule 16 of National Savings
Certificate (VIII issues)
Rules, 1989 |
Govt. of India through Post
Office |
Section 80C Investment and
accrued int. eligible u/s. 80C except 6th year. No TDS on interest and
withdrawal |
Min. Rs.500 Max. No Limit |
Can be transferred (but not
encashed) after one year. Premature encashment after 3 years with
discounted interest. |
None. No risk |
Joint ownership and
nomination possible |
|
3 |
Savings Scheme, 2004 |
Senior Citizens (NRIs Not
allowed) |
9% p.a. |
5 Years
& can be extended for a further period of 3 years. |
Govt. of India through Post
Office. |
No TDS |
Min Rs. 10,000/-Max Rs.
15,00,000 (Per Couple) |
Not Transferable no
withdrawal up to 3 years thereafter subject to condition. Premature
closure facility is available after 1 year with nominal penalty. |
None Accumulation of int for
cumulative bonds. No Risk |
Joint ownership and
nomination possible for single holder only and not available for Joint
holdings |
|
4 |
8% Savings Bonds, 2003
(Taxable) |
Individuals, HUFs, Creditable
Institutions and Universities, Hospitals (NRIs not allowed) |
8% p.a. interest on
Non-Cumulative bonds will be received half -yearly (on 1st August & 1st
February)
and interest on
cumulative
bonds will be compounded
with half yearly
rests (1000
becomes 1601
in 6 years) |
6 years. |
Govt. of India |
None. |
Min. Rs.1000 Max. No Limit |
Cannot be encashed before
maturity |
None Accumulation of Interest
in case of cumulative Bond. |
Joint ownership and
nomination possible |
|
5 |
Kisan Vikas Patras (KVP) (Now
Available in demat form at select post offices) |
Individuals and Trust.
Government of Maharashtra has declared KVP as a public security under the
provision of Mumbai Public Trust Act, 1950 |
8.4% p.a. annually compounded
of certificate issued on or after 1-3-2003 Every Rs. 1000 will become
Rs. 1170.51
after 2½ years
or more but
less than
3 years; &
Rs.1850.93
after 8 years or
more but less
than 8 years &
7 months. |
8 years and 7 months
purchased on or after 1-3-2003 Encashment possible after 2½ years. |
Govt. of India through Post
Office. |
None. No TDS on Interest |
Min Rs. 100 Max. No Limit |
Easily encashable after 2½
yrs |
None Accumulation of interest Doubles in 8 years and 7 months No risk |
Joint ownership and
nomination possible |
|
6
|
Post Office Recurring Deposit |
Individuals |
7.5% compounded quarterly payable on maturity |
5 Years Extension for another 5 years possible |
Govt. of India through Post Office. |
None |
Min Rs. 10 per month or any amount in multiples of Rs. 5. Max. No Limit |
One withdrawal up to 50% of the balance will be allowed after
one year and
if up to
12 deposits
have been
made.
|
None Accumulation of interest No risk
|
Joint Account & nomination possible |
|
7 |
Post Office Monthly Income Scheme |
Individuals |
8% for deposits made on or after 1-3-2003 payable monthly.
In addition bonus of 5% payable on maturity |
6 years |
Govt. of India through Post Office. |
No TDS on Interest |
Min Rs. 1,500/- Max. Single A/c - Rs. 4,50,000 single Account - Rs. 9,00,000
Joint Account One time deposit only |
Can be withdrawn at any time after 3 years with 1% reduction but no bonus and also after one year with
a reduction
of 2% from
deposit
amount
|
None. No risk |
Joint Ownership and
nomination possible |
|
8 |
Post Office Time Deposit |
Individuals, Trust |
6.25%-7.5% p.a. Payable on maturity for deposits made on or after
1-3-2003. Interest payable annually but calculated on quarterly basis |
Either 1 year, 2 years,3 years or 5 years |
Govt. of India through Post Office. |
None, no TDS on Interest |
Minimum Rs.200/- and its multiples Maximum No limit |
Can be withdrawn at any time after 6 years but within one year without any interest. Premature withdrawal after one
year entails
reduction of
2% interest from
Scheme to
Scheme
|
None Accumulation of interest No risk
|
Joint Ownership and nomination possible |
|
9 |
Certificates of Deposits |
Any Entity (NRIs can invest only on
non-repatriable basis) |
Varies from time to time from bank to bank
|
Between 91 days and 365 days |
Scheduled Commercial banks excluding Regional
Rural Banks
|
None |
Minimum Rs. 5,00,000 Max. No Limit |
Transferable by endorsement and delivery after 30 days
|
None Accumulation of
interest No risk
|
Joint Ownership possible |
|
10 |
Financial Institutional Bonds |
Any Entity |
Varies from time to time as per the market and other conditions |
Generally 3 to 7 years period |
Financial Institutions-Both public and private |
Section 80C is invested in infrastructure Bonds
|
No Limit
|
Liquid. Saleable in the open market (can
be in demat
form also)
|
Nominal Risk |
Joint Ownership and nomination allowed |
|
11 |
Listed shares of Limited Companies |
Any entity other than firms and trusts |
Dividend rate varies |
Shares continue till the dissolution of issuer company |
Limited Companies |
Section 10 for dividend short-term Capital gain at lower rate i.e 15% and
long term
Capital Gain
not taxable if
sold through
recognised
stock
exchange
paying
securities
transaction tax
|
No Limit |
Very Liquid |
Max. Scope for capital appreciation by increase in market values High risks |
Joint Ownership and nomination allowed |
|
12
|
Equity oriented schemes of Mutual Fund |
Any Entity |
Varies depending on performance and pay out policies of asset management
companies |
Open ended No Lock-in-period. Close ended Lock-in-period fixed depending on
scheme |
Various AMC's |
Section 10 for income. Tax benefits same as that of listed shares of limited
companies |
Varies from scheme to scheme |
Can be withdrawn at any time
|
Max. scope for capital
appreciation High risk |
Joint Ownership
possible |
|
13 |
Debt oriented schemes of Mutual Fund |
Any Entity |
Varies depending on performance and pay out policies of asset management
companies |
|
Various AMC's |
Section 10 for income. Tax benefits as per terms of issue |
Varies from scheme to scheme |
Can be withdrawn at any time. |
Moderate scope for appreciation depending on intrate policies
of Government & money supply moderate
Risk
|
Joint Ownership possible |
|
14 |
Fixed Deposits of Companies |
Any Entity |
Varies from 8% or 12% depending on financial rating
and goodwill of
the company
|
1 year to 3 years |
Limited Companies |
None |
No Minimum or maximum limit |
As per terms of Issue |
None/ depending on credit rating
|
Joint Ownership &
nomination possible |
|
15
|
Fixed Deposits and Term Deposits of Banks /Financial
Institutions |
Any Entity |
Varies from 8% or 10% |
1 year to 10 years |
Banks and Financial Institutions |
Section 80C if done for 5 years on specified deposits in scheduled banks the maximum amount of Rs.
1,00,000/- |
No minimum or maximum limit. |
Highly Liquid except for tax saving fixed deposits. Can be withdrawn any time. Premature withdrawal interest
depends on
banks Policy
|
Low Risk |
Joint Ownership &
nomination possible
|
|
16 |
Pension Schemes |
Individual above 18 years
|
In traditional Schemes as per bonus rates
and in unit linked as per
market conditions |
As per policy term |
LIC and other Life Insurance Companies |
Section 80CCC benefit upto Rs. 1,00,000/-within limit of Rs. 1,00,000/-of
Section 80C |
Minimum as per policy. Maximum No limit |
On Maturity up to 1/3rd can be withdrawn by the individual and reamaining to
be commuted for pension. |
No Risk in traditional Schemes. Capital appreciation as per bonus declared in traditional schemes and as per
market
conditions in
Unit Linked
schemes
|
Nomination possible |
|
17 |
New Pension
Scheme |
Individual’s
aged between 18-55 years, including NRI’s |
In traditional
Schemes as per bonus rates and in unit linked as per market conditions |
As per policy
term |
22 entities
prescribed by PFRDA. These Include LIC, State Bank of India, ICICI Bank,
UTI Asset Management. |
Section 80CCC
benefit upto Rs. 1,00,000/-within limit of Rs. 1,00,000/- of Section 80C |
As per issuer
terms. |
At age of 60
years compulsory withdrawal of at least 40 per cent of the
pension
wealth to be
invested in
purchasing annuity. Flexibility to withdraw before
60 years subject to condition. |
Moderate scope
for appreciation and low risk |
Nomination
possible |
