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Small Savings Schemes

Retail borrowing by the Govt. of India to meet their plan expenditure administered through Post Offices across the country. The collection of Deposits is through Small Savings Agents who offer door to door services. As the borrower is the Govt. Of India, return on our investments is guaranteed. We can save income tax also from our investments in certain types of savings schemes. There is facility of pre-mature withdrawal available after completion of a minimum lock in period. Further, in case of emergencies,  we can avail loans against pledge of Kisan Vikas Patras and National Savings Certificates from Commercial Banks and certain private financial institutions.
 
A snapshot of the Schemes and the corresponding interest rates are given below:

SCHEME

INTEREST

Minimum Investment

Maximum Investment

Features

Tax Benefits

NSCs

           8%

Compounded   Half yrly

    Rs.100

NO LIMIT

6 YRS TENURE

Sec 80 C

P.P.F

8% Comp. Yrly     

   Rs.500

Rs.70000 p.a.

15 yr term, Tax free returns

Sec 80 C

Kisan Vikas Patra

8.41 % compounded    H yrly

   Rs.100

No Limit

Doubles in 8 yrs & 7 mths

None

Monthly Income Scheme

8.00 %  Payable   Monthly

   Rs.1500

Single 4.5Lakhs Joint-9.00Lakhs

6 yrs Tenure & 5% Bonus after 6 Yrs

None

Time Deposit

6.25 %-7.5 %

   Rs.200

No Limit

Available in 1,2,3 & 5 yrs

Sec.80 C

Recurring Dep

7.5% compounded quarterly

   Rs.10

No Limit

5 Yrs Tenure

None

Sr.Citizen Savings Scheme

9 % payable

quarterly

   Rs.1000

Rs.15 Lakh

5 Yr Tenure, Minimum Age  55 yrs

None

 
TYPES OF SMALL SAVINGS SCHEME:

The following Small Savings scrips are available for investment in the small savings schemes:

I. Kisan Vikas Patra -- Investment doubles in 8 years and 7 months

II. I.T. REBATE SCHEMES
    b) National Savings Certificate - VIII issue
    c) 15 years Public Provident Fund

III. Post Office Monthly Income Scheme -- 8% interest payable monthly– 6 years maturity. Presently 5% Bonus is offered on maturity.

IV. Post Office Recurring Deposit - This is household savings scheme. as desired by any employee, they  can also enrol themselves under the scheme by deduction at source (Pay Roll Savings Scheme) .This scheme helps one from making savings in as small as Rs.10/= p.m. with no limit  for maximum investment per month.

V. Term Deposits - Deposits can be made for one year, two year, three year and five years period.

VI.  Senior citizen savings scheme- 9% Interest payable quarterly. 5 Years maturiy.

VII. Post Office Savings Account  - only individuals can invest in Small Savings Scheme w.e.f. 13.05.05..

Web-site on small savings viz., http://www.tnsmallsavings.com/ has been created and displayed on the internet.

Public can contact the nearest post office or agents operating in their residential area or Personal Assistants to Collectors (Small Savings) in the districts to get guidance regarding investment of their deposits.