1

Public Provident Fund (PPF)

Individuals *HUFs (Now NRIs not allowed though old accounts may continue on non-repatriation basis)

8.7% p.a w.e.f.
1-4-2013 8.8% p.a w.e.f.
1-4-2012 calculated on monthly balance and credited annually. (Compounded annually)

15 years. Optional extension for block of 5 years at a time

Govt. of India through Nationalised Banks and Post Office

Sections 10 and 80C within the overall limit of ₹ 1,50,000 No TDS from interest and withdrawal

Min. ₹ 500 p.a. Max.
₹ 1,50,000/- p.a. w.e.f. 1-09-2014 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

Nomination possible except for minors

2(a)

National Savings Certificates VIII Issue (NSC) (Available in demat form at select post offices)

Resident Individuals

8.5% p.a w.e.f
1-4-2013 8.6% p.a w.e.f.
1-4-2012 compounded half yearly.

5 years. If purchased after 1-12-2011 6 years Premature encashment possible after 3 years with lower yield as per Rule 16 of National Savings Certificates (VIII issues) Rules, 1989

Govt. of India through Post Office

Section 80C. Investment and Accrued int. eligible u/s. 80C except 6th year. within the overall limit of
₹ 1,50,000 No TDS from interest and withdrawal

Min. ₹ 100 Max. No Limit

Can be transferred (but not encashed) after one year. Premature encashment after 3 years with discounted interest. Can be pledged against loan.

None. Accumulation of interest

Joint ownership and nomination possible

b)

National Savings Certificates IX Issue (NSC) (Available in demat form at select post offices)

Resident Individuals

8.8% p.a w.e.f
1-4-2013 8.9% p.a w.e.f.
1-4-2012

10 Years Premature encashment possible after 3 years with lower yield

Govt. of India through Post Office

Section 80C. Investment and Accrued int. eligible u/s. 80C except 6th year within the overall limit of
₹ 1,50,000. No TDS from interest and Withdrawal

Min. ₹ 100 Max. No Limit

Can be transferred (but not encashed) after one year. Premature encashment after 3 years with discounted interest. Can be pledged against loan.

None. Accumulation of interest

Joint ownership and nomination possible

3)

Kisan Vikas Pata (KVP)

Resident Individuals

8.5% p.a w.e.f
1-4-2015

Double in 8 years & 4 months

8 Years & 4 months Premature encashment possible after 2 & ½ years with lower yield

Govt. of India through Post Office

Section 80C. Benefit not avialbale

No TDS from interest and Withdrawal

Min. ₹ 1000 Max. No Limit

Certificate can be transferred from one person to another and from one post office to another can be encashed after 2 & 1/2 years

None. Accumulation of interest

Joint ownership and nomination possible

4

8% Savings Bonds, 2003 (Taxable)

Individuals, HUFs, Charitable 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. TDS is applicable

Min. ₹ 1,000 Max. No Limit

Not Transferable Premature encashment not possible

None Accumulation of interest in case of cumulative bond

Joint ownership and nomination possible for single holder only and not available for joint holdings or minor investors

5

Post Office Recurring Deposit

Resident Individuals

8.4% p.a w.e.f.
1-4-2014 8.3% p.a w.e.f.
1-4-2013 Compounded quarterly
(₹ 10 deposited monthly becomes
₹ 728.90)

Five years. Extension for another 5 years possible

Govt. of India through Post Office

None

Min. ₹ 10 per month or any amount in multiples of ₹ 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. Premature closure of accounts is permissible after three years, interest @ applicable to post office savings a/c.

None. Accumulation of interest

Joint Account & nomination possible

6

Post Office Monthly Income Scheme

Resident Individuals

8.4% p.a w.e.f.
1-4-2013 8.5% p.a w.e.f.
1-4-2012 No Bonus

5 years. After
1-12-2016 years

Govt. of India through Post Office

No TDS from interest.

Min. ₹ 1,500 Max.
₹ 4,50,000 Single Account
₹ 9,00,000 Joint Account One time deposit only Minor can invest with separate limit of
₹ 3 lakhs

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 but no Bonus.

None

Joint ownership and nomination possible

7.

Post Office Time Deposit

Resident Individuals

8.4% - 8.5% p.a. w.e.f.
1-4-2014 8.2% - 8.4% p.a. w.e.f.
1-4-2013 Interest payable annually but calculated on quarterly basis

Either
1 year,
2 years,
3 years or
5 years

Govt. of India through Post Office

Section 80C Benefit within the overall limit of
₹ 1,50,000 if held for 5 years No TDS from interest

Minimum
₹ 200 and its multiples Maximum No limit

Can be withdrawn at any time after 6 months but within one year with interest rate applicable to saving account. (w.e.f.
1-12-2011) Premature withdrawal after one year entails reduction of 1% interest Scheme to Scheme (w.e.f.
1-12-2011)

None. Accumulation of interest

Joint ownership and nomination possible

8

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
₹ 5,00.000 Max. No Limit

Transferable by endorsement and delivery after 30 days

None. Accumulation of Interest

Joint ownership possible

9

In the name of girl child. Max two. Girl child Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.

9.2% p.a w.e.f
1-4-2015 compounded yearly.

Account can be closed after completion of 21 years

Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

Normal Premature closer will be allowed after completion of 18 years /provided that girl is married

Govt. of India through Post Office & Banks

Sections 10 and Section 80C. Investment within the overall limit of
₹ 1,50,000

No TDS from interest and withdrawal

Min. ₹ 1000 Max. 1,50,000

Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

Normal Premature closer will be allowed after completion of 18 years /provided that girl is married

None. Accumulation of interest

nomination possible after she becames major

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 for investment in Infrastructure Bonds Discountinued from A.y. 2013-14

No Limit

Illiquid, though saleable in the open market (can be in demat form also)

None Accumulation of interest in case of cumulative bond

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 tax @ 15% and long term capital gain tax NIL - conditions apply.

No Limit

Very Liquid

Max. scope for capital appreciation by increase in market values

Joint ownership and nomination possible

12.

Equity Oriented Schemes of Mutual Funds

Any entity

Variable returns (Dividend or Growth option)

No lock-in-period Certain funds carry exit load if exist within certain specified period

Mutual Funds

Section 10 for income. Concessional capital gain tax benefit as above

Varies from scheme to scheme

Can be withdrawn at any time subject to exit load which varies from scheme to scheme

Equity Scheme Max. scope for capital appreciation

Joint ownership and nomination possible

13

Senior Citizen Saving Scheme 2004 (SCSS)

Individuals above 60 years. (In certain cases above 55 years) (NRIs are not allowed)

9.3% p.a . w.e.f. 01-04-2015 9.2% p.a w.e.f.
1-4-2013 9.3% p.a w.e.f.
1-4-2012 It will be a 5 years account and extendable by another 3 years, on extension, interest rate as of that time shall be applicable)

5 years

Govt. of India through Post Office and Nationalised Banks

Sec. 80C Benefit within the overall limit of
₹ 1,50,000 TDS applicable

Min. ₹ 1,000 Max.
₹ 15,00,000

Deduction of 1.5% if account is closed after 1 year and 1% if it is closed after 2 years

None. Accumulation of Interest

Joint ownership and nomination possible

14.

Equity Linked Saving Scheme

Any entity

Variable returns (Dividend or Growth Option)

3 years

Mutual Funds

Section 10 for dividend & Section 80C benefit within the overall limit of
₹ 1,50,000 . Concessional capital gain tax benefit.

Min. ₹ 500/- Max. No Limit

Can be withdrawn at any time after 3 years

Equity Scheme Max. scope for Capital Appreciation

Joint ownership and nomination possible

15.

Term Deposits (Tax Saving)

Individual or HUF

Varies from time to time from bank to bank

a) For a fixed period of not less than five years with a scheduled bank and

b) which is in accordance with a scheme framed and notified by the Central Government in the Official Gazette for the purposes of this clause

Scheduled Banks

Sec. 80C Benefit within the overall limit of
₹ 1,50,000 TDS is applicable if interest exceeds
₹ 10,000 per annum per branch of each bank

No limit

For a fixed period of not less than five years with a scheduled bank. No premature withdrawal allowed & cannot be pledged to secure any loans

None Accumulation of interest

Joint ownership and nomination possible

16.

Rajiv Gandhi Equity Saving Scheme

New Retail Investor

Variable returns (Dividend or Growth Option)

3 years

Mutual funds

Income tax deduction u/s. 80CCG (Over & above Deduction u/s. 80C) of 50 per cent to new retail investors, who invest up to
₹ 50,000 directly in equities or in units of MF and whose annual income is below 󌡐 lakh. Exempt from Wealth tax.

Max.
₹ 50,000/-

Can be withdrawn at any time after 3 years

Investment in Equity Shares / ETF/Mutual Funds Max. scope for Capital Appreciation

Joint ownership and nomination possible

17.

Company Deposits

Any Entity (NRI Not Allowed)

Varies from time to time as per the market and other conditions Generally between 10% and 13%

As per Co. Policy Generally 6 months to 5 years

Companies

None

Varies from Co. to Co. Generally Min –
₹ 5000/-

Premature withdrawal Varies from co. to co. Generally not allowed till 6 months & thereafter allowed at 2% to 3% reduced rate of interest

None Accumulation of interest in case of cumulative Deposit

Joint ownership and nomination allowed

18.

Pension Plans of Mutual Funds

Individual, HUF

Variable returns (Dividend or Growth Option)

3 years

Mutual Funds

Section 10 for dividend & Sec. 80C benefit up to ₹ 1,50,000 100000

Min. ₹ 500 Max. No Limit

Can be withdrawn at any time after 3 years

Not more than 40% in equities Scope for Capital appreciation

Joint ownership and nomination possible

19(a).

NationalPension Schemes

Individual,

In Traditional Schemes as per bonus rate announced & in unit linked schemes as per market conditions.

As per policy term

LIC & other private Life Insurance Companies

Sec. 80CCD(2) benefit up to ₹ 50,000over & above limit of ₹ 1,50,000 U/S 80C w.e.f. 2016-17

Upto a.y. 2015-16 up to 50,000/- but restricted to 10% of salary for employee or GTI for others over & above limit of ₹ 1,50,000 U/S 80C

Minimum as per policy Max. No Limit

On maturity at the age of 60 years An Individual can withdraw 60% of the accumulated value as per policy term which will be Taxable Balance should be commuted for pension. Under annuity scheme & monthly pension will also be taxable.

In case of traditional schemes accumulation as per current bonus rate & In case of unit linked Plans equity scheme Max. scope for Capital appreciation.

Nomination Possible

19(b).

Pension Schemes

Individual above 18 years

In Traditional Schemes as per bonus rate announced & in unit linked schemes as per market conditions.

As per policy term

LIC & other private Life Insurance Companies

Sec. 80CCC benefit up to ₹ 1,50,000 within the overall limit of ₹ 1,50,000

Minimum as per policy Max. No Limit

On maturity. An Individual can withdraw 1/3rd of the accumulated value as per policy term which will be Tax free u/s. 10 & Balance should be commuted for pension.

In case of traditional schemes accumulation as per current bonus rate & In case of unit linked Plans equity scheme Max. scope for Capital appreciation.

Nomination Possible

20.

Unit Linked Insurance Premium (ULIP)

Individual

Variable returns with Risk cover

5 years

LIC & other private Life Insurance Companies

Section 10 for dividend & Section 80C benefit up to ₹ 1,50,0001 lakh. Concessional No tax on maturity u/s. 10(10D)

Minimum as per policy Max. No limit

Can be withdrawn at any time after 5 years

Various options but under Equity Scheme Max. scope for capital appreciation

Single holding and nomination possible

21.

Tax Free Bonds

Any Entity (NRI Allowed)

8.20% to 8.60%

Generally 10 to 20 years

Infrastructure Financial Institutions/Companies— Both Public and Private

None. Interest is tax free u/s 10

Min.
₹ 5,000/- Max. No Limit

Liquid as Bonds are generally listed in the stock exchange. (can be in demat form also)

None Accumulation of interest in case of cumulative bond

Joint ownership and nomination allowed

22.

Inflation Indexed National Saving Securities- Cumulative (IINSS-C)

Individual, HUF, Charitable Institute regd U/S 25 of Co.s Act, & Specified Universities (NRI Not Allowed)

Interest rate would be linked to Consumer Price Index (CPI). Rate would comprise two parts -- fixed rate (1.5 per cent per annum) and inflation rate based on CPI. The same will be compounded in the principal on half-yearly basis.

After 10 Years Prematured withdrawals – after 1 year for senior citizen above 65 years & 3 after 3 years for others

Banks & Stock Holding Corporation of India

None

Min.
₹ 5,000/- Max.
₹ 5,00,000/-

Prematured withdrawals – after 1 year for senior citizen above 65 years & after 3 years for others

None Accumulation of interest Linked to inflation

Joint ownership and nomination allowed

23.

Debt Oriented Schemes of Mutual Funds

Any entity

Variable returns (Dividend or Growth option)

No lock-in-period Certain funds carry exit load if exist within certain specified period

Mutual Funds

Section 10 for income. In case of redemption between
01-4-2014 to 10-7-2014 - if held for more than 12 months LTCG @ 20% tax with indexation & @10% Tax without Indexation. In case of redemption after
10-7-2014 - if held for more than 36 months then only LTCG @ 20% tax with indexation & if held for less than 36 months STCG without any concessional rate of Tax.

Varies from scheme to scheme

Can be withdrawn at any time subject to exit load which varies from scheme to scheme

Equity Scheme Max. scope for capital appreciation

Joint ownership and nomination possible