Interest Rates Comparison table between postal and bank
Showing posts with label Savings Schem. Show all posts
Showing posts with label Savings Schem. Show all posts
Saturday, February 27, 2016
Tuesday, March 31, 2015
Should you buy Sukanya Samriddhi Yojana?
By Prashant Mahesh
The launch of Sukanya Samriddhi Yojana (SSY) by the government for
the girl child has sparked considerable interest given its tax benefit
and interest rate higher than Public Provident Fund. The SSY offers 75
basis points (bps) higher than the 10-year government bond as against 25
bps by the PPF. For 2014-15, the interest rate for PPF is 8.7% while
the SSY offers 9.1%.
But, wealth planners believe subscribers should put money in this
product along with an investment in equity products. This is because
interest rates could fall in the future. Given that the investors are
investing for a period of 10 years or more, a combination of
equity mutual funds and SSY will generate better returns.
"Depending on their risk profile, investors could use SSY along with a
combination of equity mutual funds/child funds to meet long-term asset
allocation goals for their girl child," says Vishal Dhawan, chief
financial planner at Plan Ahead Wealth Advisors.
Source : The Economic Times
Sunday, December 21, 2014
Government decides to pay 8.75% interest on PF for 2014-2015
Government decides to pay 8.75% interest on PF for 2014-2015
Over five crore provident fund
subscribers governed by the EPFO will get 8.75 per cent interest on
their deposits for the current fiscal.
The Finance Ministry has ratified the rate for 2014-15, after a decision
was taken to retain the interest payout at this level by the Central
Board of Trustees of the Employees'Provident Fund Organisation, sources
said.
As per the practice, EPFO trustees' decision gets implemented after the concurrence of the Finance Ministry.
Following the ratification by the Finance Ministry, the decision would
now be notified by the Labour Ministry as also by the Income Tax
Department.
Monday, February 17, 2014
Five things to know about National Savings Certificate
1) The National Savings Certificate (NSC) is eligible for tax deduction under Section 80C for an investment of up to Rs 1 lakh. One can invest in five- or 10-year NSCs.
2) The interest on the NSC is fixed in April every year. The current rate is 8.5% for five years, and 8.8% for 10 years.
3) The interest accumulated every year can be deducted from Rs 1 lakh investible in that year for saving tax, as it is considered to be invested for this purpose.
4) The interest is taxable, but since it can be reinvested as part of Section 80C investment, it makes NSC an attractive option.
5) Investors have to keep an account of the interest received each year and ensure that the overall investment, including the interest, is in the Rs 1 lakh limit.
(Content courtesy: Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.)
2) The interest on the NSC is fixed in April every year. The current rate is 8.5% for five years, and 8.8% for 10 years.
3) The interest accumulated every year can be deducted from Rs 1 lakh investible in that year for saving tax, as it is considered to be invested for this purpose.
4) The interest is taxable, but since it can be reinvested as part of Section 80C investment, it makes NSC an attractive option.
5) Investors have to keep an account of the interest received each year and ensure that the overall investment, including the interest, is in the Rs 1 lakh limit.
(Content courtesy: Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.)
Source :The Economic Times
Sunday, January 27, 2013
Saturday, December 15, 2012
Sunday, December 09, 2012
Post office Interest Calculator Ver 1.0 / SBCO Interest Check
Download
Developed by :
Rajeev Sharma PA(SBCO)
Chamba HPO
Chamba - 176310
Cell 09625259779
Sources:www.sa post.blogspot.in
Saturday, December 01, 2012
Income Tax Section 80-CCG : New Tax Saving Scheme 'Rajiv Gandhi Equity Saving Scheme' (RGESS)
Finance Minister approves the Operational Features of the Rajiv Gandhi Equity Savings Scheme (RGESS)
The Union Finance Minister Shri P. Chidambaram approved a new tax saving
scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively
for the first time retail investors in Securities Market. This Scheme
would give tax benefits to new investors who invest up to Rs. 50,000 and
whose annual income is below Rs. 10 lakh.
The Scheme not only encourages the flow of savings and improves the
depth of domestic capital markets, but also aims to promote an ‘equity
culture’ in India. This is also expected to widen the retail investor
base in the Indian securities markets.
Salient features of the Scheme are as under:
a. Scheme
is open to new retail investors, identified on the basis of their PAN
numbers. This includes those who have opened the Demat Account but have
not made any transaction in equity and /or in derivatives till the date
of notification of this Scheme and all those account holders other than
the first account holder who wish to open a fresh account.
b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme.
c. The
maximum Investment permissible under the Scheme is Rs. 50,000 and the
investor would get a 50% deduction of the amount invested from the
taxable income for that year.
d. Under
the Scheme, those stocks listed under the BSE 100 or CNX 100, or those
of public sector undertakings which are Navratnas, Maharatnas and
Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the
above companies would also be eligible under the Scheme. IPOs of PSUs,
which are getting listed in the relevant financial year and whose annual
turnover is not less than Rs. 4000 Crore for each of the immediate past
three years, would also be eligible.
e. In
addition, considering the requests from various stakeholders, Exchange
Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible
securities as their underlying and are listed and traded in the stock
exchanges and settled through a depository mechanism have also been
brought under RGESS.
f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.
g. The
total lock-in period for investments under the Scheme would be three
years including an initial blanket lock-in period of one year,
commencing from the date of last purchase of securities under RGESS.
h. After
the first year, investors would be allowed to trade in the securities in
furtherance of the goal of promoting an equity culture and as a
provision to protect them from adverse market movements or stock
specific risks as well as to give them avenues to realize profits.
i. Investors
would, however, be required to maintain their level of investment
during these two years at the amount for which they have claimed income
tax benefit or at the value of the portfolio before initiating a sale
transaction, whichever is less, for at least 270 days in a year. The
calculation of 270 days includes those days pursuant to the day on which
the market value of the residual shares /units has automatically
touched the stipulated value after the date of debit.
j. The
general principle under which trading is allowed is that whatever is the
value of stocks / units sold by the investor from the RGESS portfolio,
RGESS compliant securities of at least the same value are credited back
into the account subsequently. However, the investor is allowed to take
benefits of the appreciation of his RGESS portfolio, provided its value,
as on the previous day of trading, remains above the investment for
which they have claimed income tax benefit.
k. For the
purpose of valuation of shares, the closing price as on the previous
day of the date of trading will be considered so that new investors are
certain about their debits and credits into the account.
l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.
Like all financial products which have reached out substantially to the
retail investors (post office savings, life insurance policies etc)
through tax benefits, this tax break for direct investment in equity is
expected to substantially encourage the retail participation in
securities market as well as to enhance their participation in the
growth of Indian industry. Entry of more retail investors are expected
to further deepen the securities markets as they bring in long-term
stable funds, which can counteract the volatility created by the
liquidity providers of the market. The Scheme, thus, also furthers the
goal of financial stability and promotes financial inclusion. Since
Exchange Traded Funds and Mutual Funds have also been brought under the
Scheme, the Scheme should provide encouragement and re-assurance to the
first time investors.
The broad provisions of the Scheme and the income tax benefits under it
have already been incorporated as a new Section - 80CCG - of the Income
Tax Act, 1961, as amended by the Finance Act, 2012.
Department of Revenue will notify the Scheme and SEBI will issue the
relevant circulars to operationalize the Scheme in the next two weeks.
PIB
Tuesday, September 25, 2012
Five tips to select a savings account
If you don't research before opening a savings account, you may end up
earning a lower interest rate or paying more for certain services. To
maximise your earning potential and minimise your losses, ET lists the
things you should consider before choosing the account.
INTEREST RATES
Though a savings account offers meager interest rates
compared with other investing avenues, you do need to park some cash
here for ready availability and it doesn't hurt to choose the one that
offers the highest rate. After the RBI deregulated interest rates on
savings accounts in October 2011, banks have started offering variable
rates.
Currently, YES BankBSE 1.14 % is giving a return of 7% a year for a balance of more than 1 lakh and 6% a year for balance of up to 1 lakh. Kotak Mahindra BankBSE 0.63 %has
on offer 6% a year for deposits of more than 1 lakh and 5.5% a year on
balance of up to 1 lakh. Though 0.1% seems too minuscule a difference,
it can add up to a reasonable sum for higher savings. However, keep in
mind that higher promotional interest rates can fall later, so choose
your account according to your savings plan. Opt for stable rates if you
are in it for the long term.
MINIMUM BALANCE
Go for a savings account that requires you to park a low or nil minimum
monthly/quarterly average balance. This is because in case of
non-compliance , you will have to pay a penalty, which can be as high as
350 a month. While ICICI BankBSE 0.00 %
demands a minimum monthly average balance of 10,000, Standard
Chartered's 'Breeze Banking' savings account is a zero-balance account
for the first six months. After that, it demands a quarterly minimum
balance of 25,000. Banks like the Oriental Bank of Commerce, Punjab National BankBSE 2.08 %, and now, the State Bank of IndiaBSE 1.54 % don't have the minimum balance criterion.
NET BANKING
Opt for a savings account in a bank that offers you the Net and mobile
banking facilities since you can conduct transactions from the comfort
of your home and office. This is especially important since most banks
now charge you for specified physical transactions at the bank branch,
whereas these are free if you conduct them online or over the phone.
For instance, HDFC BankBSE 0.23 %
will charge you 50 for stop payment of a particular cheque, but this
service is free if you conduct it through Net or phone banking.
Similarly, it will cost you 100 if you ask for the issuance of a
duplicate statement by going to a branch, but only 50 if you do it
through Net banking. So go for the bank that offers you these facilities
to reduce your outgo.
TRANSACTION CHARGES
Before choosing a savings account, make sure you read the fine print
because most banks now charge extra for transactions or services that
you were not paying for earlier and may not even avail of. For instance,
did you know that the ICICI Bank charges 100 for the issuance of a
duplicate passbook and 25 for the regeneration of your debit card PIN?
Source : The Economic Times
Saturday, September 22, 2012
FM APPROVES RAJIV GANDHI EQUITY SAVINGS SCHEME FOR RETAIL INVESTORS
FM APPROVES RAJIV GANDHI EQUITY SAVINGS SCHEME FOR RETAIL INVESTORS
The Union Finance Minister, Shri. P. Chidambaram approved a new tax
saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),
exclusively for the first time retail investors in securities market.
This Scheme would give tax benefits to new investors who invest up to
Rs. 50,000 and whose annual income is below Rs. 10 lakh.
The Scheme not only encourages the flow of savings and improves the
depth of domestic capital markets, but also aims to promote an ‘equity
culture’ in India. This is also expected to widen the retail investor
base in the Indian securities markets.
a. Scheme is open to new retail investors, identified on the basis of
their PAN numbers. This includes those who have opened the Demat account
but have not made any transaction in equity and /or in derivatives till
the date of notification of this Scheme and all those account holders
other than the first account holder who wish to open a fresh account.
b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme.
c. The maximum Investment permissible under the Scheme is Rs. 50,000
and the investor would get a 50% deduction of the amount invested from
the taxable income for that year.
d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100,
or those of public sector undertakings which are Navratnas, Maharatnas
and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the
above companies would also be eligible under the Scheme. IPOs of PSUs,
which are getting listed in the relevant financial year and whose annual
turnover is not less than Rs. 4000 cr for each of the immediate past
three years, would also be eligible.
e. In addition, considering the requests from various stakeholders,
Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS
eligible securities as their underlying and are listed and traded in the
stock exchanges and settled through a depository mechanism have also
been brought under RGESS.
f. To benefit the small investors, the investments are allowed to be
made in instalments in the year in which tax claims are made.
g. The total lock-in period for investments under the Scheme would be
three years including an initial blanket lock-in period of one year,
commencing from the date of last purchase of securities under RGESS.
h. After the first year, investors would be allowed to trade in the
securities in furtherance of the goal of promoting an equity culture and
as a provision to protect them from adverse market movements or stock
specific risks as well as to give them avenues to realize profits.
i. Investors would, however, be required to maintain their level of
investment during these two years at the amount for which they have
claimed income tax benefit or at the value of the portfolio before
initiating a sale transaction, whichever is less, for at least 270 days
in a year. The calculation of 270 days includes those days pursuant to
the day on which the market value of the residual shares /units has
automatically touched the stipulated value after the date of debit.
j. The general principle under which trading is allowed is that whatever
is the value of stocks / units sold by the investor from the RGESS
portfolio, RGESS compliant securities of at least the same value are
credited back into the account subsequently. However, the investor is
allowed to take benefits of the appreciation of his RGESS portfolio,
provided its value, as on the previous day of trading, remains above the
investment for which they have claimed income tax benefit.
k. For the purpose of valuation of shares, the closing price as on the
previous day of the date of trading will be considered so that new
investors are certain about their debits and credits into the account.
l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.
Like all financial products which have reached out substantially to the
retail investors (post office savings, life insurance policies etc)
through tax benefits, this tax break for direct investment in equity is
expected to substantially encourage the retail participation in
securities market as well as to enhance their participation in the
growth of Indian industry. Entry of more retail investors are expected
to further deepen the securities markets as they bring in long-term
stable funds, which can counteract the volatility created by the
liquidity providers of the market. The Scheme, thus, also furthers the
goal of financial stability and promotes financial inclusion. Since
Exchange Traded Funds and Mutual Funds have also been brought under the
Scheme, the Scheme should provide encouragement and re-assurance to the
first time investors.
The broad provisions of the Scheme and the income tax benefits under it
have already been incorporated as a new Section -80CCG- of the Income
Tax Act, 1961, as amended by the Finance Act, 2012. Department of
Revenue will notify the Scheme and SEBI will issue the relevant
circulars to operationalize the Scheme in the next two weeks.
Source : PIB
Monday, September 10, 2012
SAVING SCHEME IN POST OFFICES
The Minister of State for Communications & Information Technology ShSachin Pilot informed the Lok Sabha yesterday that the gross deposit of Small Savings Scheme in Post Offices declined in the financial year 2011-12 as compared to the year 2010-11.
The
decline of gross deposit in small savings schemes is, among other
things, due to investor’s choice of alternative instruments for
effecting savings. The Government has taken following measures to make
the small saving schemes more attractive:-
1.
The rate of interest on Post Office Savings Account (POSA) has been
increased from 3.5% to 4%. The ceiling of maximum balance in POSA 1lakh in single account and 2 lakh in joint account) has been removed.
2.
The maturity period for Monthly Income Scheme (MIS) and National
Savings Certificate (NSC) has been reduced from 6 years to 5 years.
3. A new NSC instrument, with maturity period of 10 years, has been introduced.
4. The annual ceiling on investment under Public Provident Fund (PPF) Scheme has been increased from ` 70,000 to ` 1 lakh.
5.
Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years –
has been improved by allowing pre-mature withdrawal at a rate of
interest 1% less than the time deposits of comparable maturity. For
pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest has been allowed.
6. Central and State Governments take various measures from time to time to promote and popularise small
saving scheme through print and electronic media as well as by holding
seminars, meetings and providing training to the various agencies
involved in mobilising deposits under
various small savings schemes. The rate of interest on Small Savings
Schemes has been aligned with Government-Security rates of similar
maturity with a spread of 25 basis points (bps) in all schemes except 10
Years National Savings Certificates (IX-Issue) and Sr. Citizens Savings
Scheme where the spread of 50 bps and 100 bps has been given
respectively (100 bps are equal to 1%). Interest rate for every financial year will now be notified before 1st April of that year.
There were 26,01,69,920 number of operational small savings accounts in the Post Offices as on 31.03.2012 and the amount deposited therein uptothe end of March 2012 was Rs. 190732.73 crore .
2,84,10,593 accounts were closed by customers during financial year 2011-12.
Source : PIB, Sept 6, 2012
Saturday, August 18, 2012
Take care of money, as it will take care of you
Why
do we lose money? Why are we generally not happy with our financial
decisions? Why did it have to happen to me? Why did it happen when I
invested my money? The answer is really simple but it is going to be
very hard to digest.
Either we
are complacent or just that we do not want to take the effort. This is a
plain cold fact. If I had to put a number to this, reasonable estimate
would be 10 per cent Vs 90 per cent, ie 10 per cent people are just
complacent, while 90 per cent just do not want to take the effort. What
makes things worse is that these 90 per cent people want short-cuts.
Just quickly give me an investment tip, what's the best investment,
what's new these days, where can I get the maximum returns, what is safe
but can give very high returns,
I
have got so and so investment, what are the prospects, what is the
future? These are normally the questions most people want to ask.
Everyone wants a quick fix and no one is really interested in spending
time or effort. What makes matters worse is manufacturers exploiting
this and launching new products regularly.
Ironical
that the manufacture now says things like, this product is better than
ever before which in other words means what they were selling till now
was not so good.
Remember there
are no short-cuts and nothing worthwhile in life is ever free. The next
time you get something for free, just pause to think if there is really
much value, commitment and credibility if you were to act upon that
piece of information. Rarely this is true; remember free information in
financial matters can be grave. In my view if you want something, you
have to work hard for it. Then you have to spend time and money. There
is no other way.
Life will
continue to be more ever so busy and just like your children, your
parents, your money also needs due attention. Irrespective of whether
you are the do-it-yourself person or the lets-get-help person, the dire
need of the hour is a serious investment of time.
So
if you are the do-it-yourself person then is a lot to learn first.
Educate yourself thoroughly. Spend money for educational books, courses,
software, magazines, subscriptions etc. Learn the basics. Move over to
advanced knowledge then. Whichever stream you choose, be it day trading,
options, futures, currency, stocks, bullion, mutual funds, insurance,
fixed income, there is an ocean of information to digest. This is a lot
of hard work. On the other extreme you could simply bypass all this and
invest in a bank fixed deposit.
But
if you are keen to make wealth then get involved in the process and
don't depend on friendly neighbourhood advice or the advice of your
friend's friend who is a broker/ agent. Just think if you had to buy
vegetables for 50 rupees you would check prices with three vendors. But
you would not blink to invest Rs 50,000 on a hot tip.
So
do you see why we lose money or are not happy with our financial
decisions? For something that we want the most in our lives we spend the
least amount of effort and time. We want to enjoy spending money but do
not do enough to ensure that we have enough of it forever. We are not
prepared to work hard; we are not prepared to seek the right advice.
These days information is easily available and geography is irrelevant.
All one needs to do is take the first small step, ie, to decide to
invest time and effort for personal financial matters. If you don't take
care of money, money will never take care of you. It's that simple.
On
the other hand if you do not have the time and patience to do things
yourself, the least you can do is invest time in searching and hiring a
financial advisor.
Basically, if
you can hire lawyers, chartered accountants, doctors etc for their
service why do you want to risk your hard earned money? Invest time to
talk to 3 or 4 or 5 experts if you want but finally choose the one you
like and you feel most satisfied and
comfortable
to work with.Don't waste your time with agents and brokers who are
merely product distributors. But to do this is also a lot of hard work
and it will be worth all the time spent. Is that too much to do for a
lifetime of peace and financial control? Just invest this time once.
Finding a good advisor is one short-cut you can afford to take.
By Kartik Jhaveri, Director - Transcend Consulting
Courtesy: The Financial Express, August 13, 2012
Friday, July 06, 2012
How to extend the Public Provident Fund account
The Public Provident Fund (PPF) account is a 15-year investment product in which the investor makes
contributions each year according to the specified limits. The account
matures after 15 years from the end of the year in which the initial
subscription was made.
On
maturity, the investors have the option of extending the account for
blocks of five years each. The extended account will continue to earn
interest at the rate notified each year. The flexibility to withdraw
funds from the account after it is extended is much more than in the
initial subscription period.
Extension rules:
The investor can choose to extend the PPF with
additional contributions or without fresh contributions. The rules for
contribution to the extended account remain the same as during the
15-year period. Once the choice is made for a block of five years, it
cannot be changed.
Form:
The
investor has to submit Form H at the post office or bank where the
account is held if he intends to continue with the subscription. The
form is available athttp://www.indiapost.gov.in/pdfForms/PPFContinuation.pdf .
Extension times:
The
choice to extend the PPF account with subscription has to be made
within one year from the maturity of the account. If this is not done,
then by default the account is deemed to have been extended without
further contribution for a period of five years.
Points to note:
The
interest earned during the extended period of the PPF continues to be
tax-free. There is no limit prescribed for the number of extensions of
five years that are allowed for an account. The benefit of extension is
not available to the NRIs who open the account before a change in their
residency status.
Source :The Economic Times
Wednesday, June 27, 2012
Sunday, June 10, 2012
LATEST INTEREST RATES CHART... ... (w.e.f. 01.04.2012)
|
Scheme
|
Term
|
Rate of
Interest
|
Monthly Deposit
|
Total Interest
|
Maturity
Amount
|
|
RD
|
5 Yr
|
8.4 % QCI
|
1000
|
14651
|
74651
|
|
Scheme
|
Term
|
Rate of
Interest
|
Deposit
Amount
|
Total Interest
|
Maturity
Amount
|
|
TD
|
1 Yr
|
8.2 % QCI
|
10000
|
846
|
10846
|
|
2 Yr
|
8.3 % QCI
|
10000
|
1712
|
11712
| |
|
3 Yr
|
8.4 % QCI
|
10000
|
2601
|
12601
| |
|
5 Yr
|
8.5 % QCI
|
10000
|
4385
|
14385
| |
|
MIS
|
5 Yr
|
8.5 % SI
|
15000
|
6360
|
21360
|
|
SCS
|
5 Yr
|
9.3 % SI
|
10000
|
4660
|
14660
|
|
NSC
|
5 Yr
|
8.6 % HCI
|
10000
|
5235
|
15235
|
|
10 Yr
|
8.9 % HCI
|
10000
|
13887
|
23887
|
Courtesy : http://manooss.blogspot.in/ & http://rmssa.blogspot.com/
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