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SCHEMES
Small saving schemes are meant for to mobilize the savings from the small
investors as they carry attractive interest rates, sovereign guarantee and
tax benefits. All these schemes carry interest rates administered by the
Central Government. An attractive feature of small saving schemes is
favourable tax treatment. While contributions to certain schemes
carry tax concessions, returns on almost all schemes have some tax-
exemptions.
The high safety levels coupled with the attractive returns make small
savings schemes a 'must- have' option for most investors.
Types of Small Saving Schemes
All small saving schemes tend to be characterized as the
same despite the fact that they vary on parameters including
tenure, returns and liquidity.
You can open a PPF account at any branch of the State Bank of
India. You can also open an account in any head/selected grade
post office or a General Post Office.
Contd…
Only individuals and Trusts can purchase the certificates. An adult can
also purchase certificate in the name of the minor under guardianship.
Contd…
The certificates can be purchased for any amount, as there is no upper limit
on investment.
NSCs are transferable instruments but after one year of holding them.
Maturity proceeds not drawn are eligible to Post Office Savings account
interest for a maximum period of two years.
Kisan Vikas Patra
The scheme runs over a tenure of 8 years and 7 months and
doubles the amount invested. This makes the return one of
the most attractive one amongst its peers.