|
|
Name
of
Investment
|
Who
can
Invest
|
Yield
|
Life
/ Lock-in
period
|
Issuer
|
Tax
benefits
(see
notes below)
|
Min./Max.
amount
(see notes below) |
Liquidity
|
Capital
Appreciations
|
Nomination /
Joint Names
|
|
1
|
Public
Provident Fund
(PPF)
|
Individuals
*HUFs
(Now NRIs not
allowed though old
accounts may
continue on non-
repartriation basis)
|
8% p.a.
w.e.f. 1-3-2003
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
No TDS from interest
and withdrawal |
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 |
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
compounded 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 Certificates (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 from
interest and
withdrawal |
Min. Rs.
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
|
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. Rs.
1000
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 |
|
4
|
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 Bombay Public
Trust Act, 1950 |
8.4%
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
& 7 months
purchased on or
after 1-3-2003
Encashment possible
after 2½ years
|
Govt.
of India
through Post
Office
|
None
No TDS
from interest
|
Min. Rs.
100
Max. No
Limit
|
Easily
Encashable
after
2½ years
|
None
Accumulation of
interest Doubles in
8 years & 7 months.
.
|
Joint
ownership
and nomination
possible
|
|
5
|
Post
Office
Recurring
Deposit
|
Individuals
|
7.25%
p.a.
compounded quarterly
(Rs. 10 deposited
monthly becomes Rs. 728.90 |
Five
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 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
|
Individuals
|
8% for
deposits made on or after
1-3-2003 payable monthly. In addition bonus of 10% payable on maturity
only on a/c opened till 13-2-2006 & 5% bonus if new a/c. opened after
8-12-2007
|
6 years
|
Govt.
of India
through
Post Office
|
No TDS
from interest
|
Min. Rs.
1,500
Max.
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
|
Joint
ownership
and nomination
possible
|
|
7
|
Post
Office
Time
Deposit
|
Individuals
Trust
Regimental Fund
Welfare Fund
|
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
|
Section
80C Benefit
within the overall
limit of Rs. 100000
No TDS from interest
if held for 5 years
|
Minimum
Rs. 200
and its multiples
Maximum
No limit
|
Can be
withdrawn at any time
after 6 months but within one
year without any interest.
Premature withdrawal after
one year entails reduction
of 2% interest Scheme to
Scheme |
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
Rs. 5,00.000
Max. No Limit
|
Tranferable by endorsement
and
delivery after 30 days
|
None.
Accumulation of
Interest
|
Joint
ownership
possible
|
|
9
|
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
|
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 |
|
10
|
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
|
|
11
|
Equity/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.
Concessional capital gain tax benefit as above for equity oriented
schemes. |
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 |
|
12
|
Senior
Citizen
Saving Scheme
2004 (SCSS)
|
Individuals above
60 years.
(In certain cases
above 55 years)
(NRIs are not
allowed) |
9% p.a.
payable quartely
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 Rs. 100000
TDS applicable
|
Min. Rs.
1,000
Max. Rs.
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
|
|
13
|
Equity
Linked
Saving
Scheme
|
Any
entity
|
Variable returns (Dividend or
Growth
Option)
|
3 years
|
Mutual
Funds
|
Section
10 for dividend & Section 80C benefit up to 1 lakh.
Concessional capital gain tax benefit. |
Min. Rs.
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
|
|
14
|
Term
Deposits
|
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 Rs. 100000
TDS is applicable if
interest exceeds
Rs. 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
|
None
Accumulation of interest in case of cumulative bond
|
Joint
ownership
and nomination
possible |
|
Pension Funds: |
|
15
|
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 100000
|
Min. Rs
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
|
|
16
|
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 Rs. 100,000/- &
within the overall
limit of Rs. 1,00,000
of Section 80CCE
|
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
|
|
17 |
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 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
application |
Single holding and nomination
possible |
