SHIVPRASAD SUBUDHI

Post Office Monthly Income Scheme (MIS)

Post Office Monthly Income Scheme (MIS)

Salient Features:-

1.      Interest rate of 8.4% per annum payable monthly w.e.f. 01-04-2013.

2.      Maturity period is 5 years.

3.      No Bonus on Maturity w.e.f. 01.12.2011.

4.      No tax deduction at source (TDS).

5.      No tax rebate is applicable.

6.      Minimum investment amount is Rs.1500/- or in multiple thereafter.

7.      Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.

8.      Auto credit facility of monthly interest to saving account if accounts are at the same post office.

9.      Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.

10.  Non-Resident Indian / HUF cannot open an Account.

11.  Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.

12.  Facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.

13.  Deduction of 1% if account is closed prematurely at any time after three years.

14.  Suitable scheme for retired employees/ senior citizens and for those who need regular monthly income.

Public Provident Fund (PPF)

Public Provident Fund (PPF)

Salient Features:-

1.      Interest rate of 8.7% per annum w.e.f. 01-04-2013.

2.      Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,50,000/- per annum.

3.      The scheme is for 15 years.

4.      Investment up to Rs 1,50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.

5.      Interest is completely tax-free.

6.      Deposits can be made in lump sum or in 12 installments.

7.      One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.

8.      Withdrawal is permissible from 6th financial year.

9.      Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.

10.  Free from court attachment.

11.  Non-Resident Indians (NRIs) not eligible.

12.  An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.

13.  Ideal investment option for both salaried as well as self employed classes.