FIXED INCOME PRODUCTS It Is a Safe Way To Invest
PUBLIC PROVIDENT FUND NSC/KVP BANK DEPOSITS CORPORATE DEPOSITS CORPORATE BONDS
FOR INTEREST RATES ON ALL SMALL SAVINGS ACCOUNTS , CLICK HERE
FOR INCOME TAX NEWS , CLICK HERE FOR BANKING NEWS CLICK HERE FOR NEWS ON IPO , NCD ETC , CLICK HERE
FOR INCOME TAX NEWS , CLICK HERE FOR BANKING NEWS CLICK HERE FOR NEWS ON IPO , NCD ETC , CLICK HERE
GOVERNMENT OF INDIA BONDS - A SAFE LONG TERM INVESTMENT
What is Floating Rate ?
It is an investment whose yields change based on a bench mark rate like Repo rate or any other rate fixed by the authorities and which does not change on market movements
FLOATING RATE SAVINGS BOND 2020 ( TAXABLE )
Dated 27.06.2020 : Reserve bank of India ( RBI ) launched a new scheme called " Floating Rate Savings Bond 2020 ( Taxable ) 2020 yesterday with effect from July 01, 2020 in terms of GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020. The scheme with the backing of Government of India has following features . The bonds can be purchased by Indian Residents and Hindu Undivided Family ( HUF ) . The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens. There will be no maximum limit for investment in the Bonds.
SALIENT FEATURES :
1. The Bonds may be held by -
(i) a person resident in India, in her or his individual capacity, or in individual capacity on joint basis, or in individual capacity on any one or survivor basis, or on behalf of a minor as father/mother/legal guardian
(ii) a Hindu Undivided Family
2. Subscription - Subscription to the bonds will be in the form of cash (up to ₹20,000/- only)/drafts/cheques or any electronic mode acceptable to the Receiving Office.
3. Form of the Bonds - The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.
4. Receiving Offices - State Bank of India & 11 Nationalized Banks ,Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., IDBI Bank Ltd.
5. Transferability - The Bonds held to the credit of Bond Ledger Account (BLA) of an investor shall not be transferable, except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.
7. Interest (Floating) – The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. There is no option to pay interest on cumulative basis. The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.
SALIENT FEATURES :
1. The Bonds may be held by -
(i) a person resident in India, in her or his individual capacity, or in individual capacity on joint basis, or in individual capacity on any one or survivor basis, or on behalf of a minor as father/mother/legal guardian
(ii) a Hindu Undivided Family
2. Subscription - Subscription to the bonds will be in the form of cash (up to ₹20,000/- only)/drafts/cheques or any electronic mode acceptable to the Receiving Office.
3. Form of the Bonds - The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.
4. Receiving Offices - State Bank of India & 11 Nationalized Banks ,Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., IDBI Bank Ltd.
5. Transferability - The Bonds held to the credit of Bond Ledger Account (BLA) of an investor shall not be transferable, except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.
7. Interest (Floating) – The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. There is no option to pay interest on cumulative basis. The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.
COMPARISON WITH EARLIER SCHEME
Earlier scheme was paying a Fixed Rate of 7.75 % while the present bond is linked to the interest rate of National savings Scheme and pays 0.35 % above NSC Rate .
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the Nationalized banks are paying interest rates of 5.75 % to 6.35 % for tenure above 5 years and future of interest rate looking bleak , , the floating rate Bonds with present coupon of 7.15 % % interest will still be interesting to the investing public . Once invested , banks pay a fixed agreed rate while F.R bonds change interest rate every half year . Both Fixed deposits of banks and Floating rate Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with Floating rate Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 6.8 % now , Kisan vikas Patra ( KVP ) is offering a rate of 6.9 % pa . . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing , NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 7 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 7.15 % now and linked to NSC rate in future .
For Reserve Bank Notification on the subject , CLICK HERE and for details of GOI scheme , CLICK HERE
Earlier scheme was paying a Fixed Rate of 7.75 % while the present bond is linked to the interest rate of National savings Scheme and pays 0.35 % above NSC Rate .
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the Nationalized banks are paying interest rates of 5.75 % to 6.35 % for tenure above 5 years and future of interest rate looking bleak , , the floating rate Bonds with present coupon of 7.15 % % interest will still be interesting to the investing public . Once invested , banks pay a fixed agreed rate while F.R bonds change interest rate every half year . Both Fixed deposits of banks and Floating rate Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with Floating rate Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 6.8 % now , Kisan vikas Patra ( KVP ) is offering a rate of 6.9 % pa . . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing , NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 7 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 7.15 % now and linked to NSC rate in future .
For Reserve Bank Notification on the subject , CLICK HERE and for details of GOI scheme , CLICK HERE
27.05.2020 : The Union Cabinet had earlier in the month approved extension of Pradhan MantriVayaVandanaYojana (PMVVY) up to 31st March, 2023 . Now Life Insurance Corporation of India has announced the relaunch of Pradhan Mantri VayaVandana Yojana ( Modified 2020 ) scheme and is available for public to invest .
You may go through the salient features of the plan by visiting our page "PRADHANAMANTRI VAYA VANDANA YOJANA ( MODIFIED -2020 ) "
You may go through the salient features of the plan by visiting our page "PRADHANAMANTRI VAYA VANDANA YOJANA ( MODIFIED -2020 ) "
CURTAIN DRAWN TODAY ON "GOI 7.75% SAVINGS ( TAXABLE ) BONDS 2018 " SCHEME
28.05.2020 : Government of India announced the closing of " GOI 7.75% SAVINGS ( TAXABLE ) BONDS 2018 " effective from close of business as of 28.05.2020 and hence will not be available for investment tomorrow onward . Only applications for investment where funds have been realised by the banks by May 28, 2020 will be processed
The scheme introduced in 2018 , a watered down version of 2003 scheme , was available for investment for Indian residents and Hindu Undivided Families ( HUF ) .
With the closure of the scheme , now the general public can get maximum interest of 7.1 % from PPF scheme , 6.9 % from kisan Vikasa Patra scheme and 6.8 % pa from National savings certificate from the government schemes . Senior citizens can get a maximum of 7.4 % pa from PRADHANAMANTRI VAYA VANDANA YOJANA .
For RBI Press release dated 27.05.2020 , CLICK HERE
28.05.2020 : Government of India announced the closing of " GOI 7.75% SAVINGS ( TAXABLE ) BONDS 2018 " effective from close of business as of 28.05.2020 and hence will not be available for investment tomorrow onward . Only applications for investment where funds have been realised by the banks by May 28, 2020 will be processed
The scheme introduced in 2018 , a watered down version of 2003 scheme , was available for investment for Indian residents and Hindu Undivided Families ( HUF ) .
With the closure of the scheme , now the general public can get maximum interest of 7.1 % from PPF scheme , 6.9 % from kisan Vikasa Patra scheme and 6.8 % pa from National savings certificate from the government schemes . Senior citizens can get a maximum of 7.4 % pa from PRADHANAMANTRI VAYA VANDANA YOJANA .
For RBI Press release dated 27.05.2020 , CLICK HERE
NEW ARTICLE PUBLISHED
TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
FOR READING ARTICLE TAX ON RETIREMENT BENEFITS , CLICK HERE
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE
FINANCIAL PLANNING FOR YOUNG , CLICK HERE HOW TO LINK AADHAR WITH PAN ? CLICK HERE
Compare Fixed Deposit Interest rates offered by various banks before investing
VISIT : LATEST BANK DEPOSIT INTEREST RATES - A COMPARISON
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE
FINANCIAL PLANNING FOR YOUNG , CLICK HERE HOW TO LINK AADHAR WITH PAN ? CLICK HERE
Compare Fixed Deposit Interest rates offered by various banks before investing
VISIT : LATEST BANK DEPOSIT INTEREST RATES - A COMPARISON
GOI 7.75% SAVINGS ( TAXABLE ) BONDS 2018
THE SCHEME CLOSES ON 28.05.2020
The 7.75 % Government of India Savings ( Taxable ) Bonds , 2018 is a Bond issued by Reserve Bank of India . The scheme with the backing of Government of India is launched now in replacement of earlier 8% Government of India Savings ( Taxable ) Bonds , 2003 . The bonds can be purchased by Indian Residents and Hindu Undivided Family ( HUF )
SALIENT FEATURES :
1. Interest rate of 7.75 % pa with option of non -cumulative and cumalative payments .
2. The bonds are issued for a period of 7 years .
3. Interest is taxable and to be taken to the income of the holder .
4. Payment of principal can be taken only on maturity and no exit option , except for senior citizens with following conditions :
A. Lock in period of 6 years for those aged between 60 and 70 years
B. Lock in period of 5 years for those aged between 70 and 80 years
A. Lock in period of 4 years for those aged above 80 years
5. Bond is neither transferable nor traded in exchanges .
6. Non- residents are not eligible to buy .
7 . Bonds with a face value of Rs 1,000 can be purchased unlimited .
8. Half yearly Interest will be paid on 1st August / 1st February every year for non - cumulative option .
9 . Cumulative amount of Rs 1,703 will be paid at the end of 7 years for cumulative option .
10 . The bonds will be issued and held in the form of " Bond Ledger Account " by RBI .
11. The bonds are available for sale at Branches of State Bank of India , Nationalised Banks , 3 private sector banks and SCHIL .
COMPARISON WITH EARLIER SCHEME
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 8 % interest had rekindled interest by the investing public . However the new scheme is dampener as interest rate is reduced from 8 % to 7.75 & with increase of repayment period from 6 years to 7 years
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 7.75 % interest will still be interesting to the investing public . Both Fixed deposits of banks and GOI Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with GOI Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 7.6% now , Kisan vikas Patra ( KVP ) is offering a rate of 7.3% pa . NSC mature in 5 years while KVP matures in 115 MONTHS . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing , NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 7 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 7.75 % in the present times compared with other safe channels available .
For Reserve Bank Notification on the subject , CLICK HERE
SALIENT FEATURES :
1. Interest rate of 7.75 % pa with option of non -cumulative and cumalative payments .
2. The bonds are issued for a period of 7 years .
3. Interest is taxable and to be taken to the income of the holder .
4. Payment of principal can be taken only on maturity and no exit option , except for senior citizens with following conditions :
A. Lock in period of 6 years for those aged between 60 and 70 years
B. Lock in period of 5 years for those aged between 70 and 80 years
A. Lock in period of 4 years for those aged above 80 years
5. Bond is neither transferable nor traded in exchanges .
6. Non- residents are not eligible to buy .
7 . Bonds with a face value of Rs 1,000 can be purchased unlimited .
8. Half yearly Interest will be paid on 1st August / 1st February every year for non - cumulative option .
9 . Cumulative amount of Rs 1,703 will be paid at the end of 7 years for cumulative option .
10 . The bonds will be issued and held in the form of " Bond Ledger Account " by RBI .
11. The bonds are available for sale at Branches of State Bank of India , Nationalised Banks , 3 private sector banks and SCHIL .
COMPARISON WITH EARLIER SCHEME
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 8 % interest had rekindled interest by the investing public . However the new scheme is dampener as interest rate is reduced from 8 % to 7.75 & with increase of repayment period from 6 years to 7 years
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 7.75 % interest will still be interesting to the investing public . Both Fixed deposits of banks and GOI Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with GOI Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 7.6% now , Kisan vikas Patra ( KVP ) is offering a rate of 7.3% pa . NSC mature in 5 years while KVP matures in 115 MONTHS . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing , NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 7 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 7.75 % in the present times compared with other safe channels available .
For Reserve Bank Notification on the subject , CLICK HERE
Government of India has closed its subscription effective from close of January 2 , 2018 (For RBI notification on this regard , CLICK HERE ) . The scheme is no more available .for investment .
The 8% Government of India Savings ( Taxable ) Bonds , 2003
The 8% Government of India Savings ( Taxable ) Bonds , 2003 is a Bond issued by Reserve Bank of India . The scheme with the backing of Government of India was launched in 2003 . The bonds can be purchased by Indian Residents , HUF , charitable institutions and Universities
SALIENT FEATURES :
1. Interest rate of 8 % pa with option of non -cumulative and cumalative payments .
2. The bonds are issued for a period of 6 years .
3. Interest is taxable and to be taken to the income of the holder .
4. Payment of principal can be taken only on maturity and no exit option .
5. Bond is neither transferable nor traded in exchanges .
6. Non- residents are not eligible to buy .
7 . Bonds with a face value of Rs 1,000 can be purchased unlimited .
8. Half yearly Interest will be paid on 1st August / 1st February every year for non - cumulative option .
9 . Cumulative amount of Rs 1,601 will be paid at the end of 6 years for cumulative option .
10 . The bonds will be issued and held in the form of " Bond Ledger Account " by RBI .
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 8 % interest have rekindled interest by the investing public . Both Fixed deposits of banks and GOI Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with GOI Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 7.8% now , Kisan vikas Patra ( KVP ) is offering a rate of 7.5% pa . NSC mature in 5 years while KVP matures in 115 MONTHS . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing ,NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 6 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 8 % in the present times compared with other safe channels available .
For Reserve Bank Notification on the subject , CLICK HERE
SALIENT FEATURES :
1. Interest rate of 8 % pa with option of non -cumulative and cumalative payments .
2. The bonds are issued for a period of 6 years .
3. Interest is taxable and to be taken to the income of the holder .
4. Payment of principal can be taken only on maturity and no exit option .
5. Bond is neither transferable nor traded in exchanges .
6. Non- residents are not eligible to buy .
7 . Bonds with a face value of Rs 1,000 can be purchased unlimited .
8. Half yearly Interest will be paid on 1st August / 1st February every year for non - cumulative option .
9 . Cumulative amount of Rs 1,601 will be paid at the end of 6 years for cumulative option .
10 . The bonds will be issued and held in the form of " Bond Ledger Account " by RBI .
COMPARISON WITH FIXED DEPOSITS OF BANKS
In the times when most of the banks are paying interest rates of 6.25 % to 7.25 % and future of interest rate looking bleak , , the GOI Bonds with 8 % interest have rekindled interest by the investing public . Both Fixed deposits of banks and GOI Bonds are taxable and hence make no difference with regard to tax ability . Fixed Deposits of banks offer such facilities as premature closure , loan against deposits at a nominal additional rate and interest option of monthly , quarterly , half -yearly , annually which are not available with GOI Bonds .
COMPARISON WITH NSC AND KVP
While National Savings Certificates ( NSC ) offer an interest rate of 7.8% now , Kisan vikas Patra ( KVP ) is offering a rate of 7.5% pa . NSC mature in 5 years while KVP matures in 115 MONTHS . While investment in NSC qualifies for income tax rebate under 80C of Income tax , KVP is freely transferable . While Government bonds pays semi annual interest , one has to wait for maturity for obtaining interest and principal payment in NSC and KVP .
In the absence of various facilities available in Banks Fixed Deposits like premature closing ,NSC ( incentive under 80c ) and KVP ( Transfer-ability ) , only those who can afford to lock in their savings for 6 years and do not look forward for such facilities may look in to purchase of the bonds which are safest and which yield a good return of 8 % in the present times compared with other safe channels available .
For Reserve Bank Notification on the subject , CLICK HERE
Comparison with earlier plans :
Th new plan when compared with earlier ones looks like watered down version . Similar plans were announced by the Governments in 2003 and 2014 & 2017 .While earlier plans carried 9% interest & 8 % annually , present scheme carries only 7.4 % . Earlier plans allowed life time subscription while present plan restricts for 10 years . Earlier plans had lock in period of 15 years while one has to lock in for 10 years only in new plan .
Comparison with other Fixed deposits products available now :
Presently all government sponsored savings schemes are offering less than 8 % of interest . Sukanya Samriddhi Account is offering 7.6 % which is not suitable for senior citizens . Senior Citizen Scheme ( SCS ) of Government of India is fetching 7.4 % which is of same yield as Vayo Vandana Scheme . Most of the reputed banks are also offering their interest rates around 6.25 % to 6.7 % for senior citizens and 0.5 % less to general public . Only exception is small finance banks which are paying up to 9 % pa . The 7.75 % Government of India Savings ( Taxable ) Bonds , 2018 Bond issued by Reserve Bank of India is fetching 7.75 % pa , but the scheme ends on 28.05.2020 . Hence compared small savings and bank deposits , the plan fares fairly well in the matter of interest rate . If one is income tax assessee , the real interest earned will come down .
Some Non- Convertible debentures ( NCD ) offer higher interest rates , but fraught with higher risks which may not be suitable for senior citizens . Some debt mutual funds have been returning the investors with higher returns , but one has to lock in 3 years to get tax advantage .
In the scenario of falling interest rates ,Fixing the interest income for next 10 years looks attractive especially for small investors who do not come under tax bracket , even though the plan has no tax concession or insurance coverage .However in the present economic conditions , a maximum Rs 5,000 pension may make little in managing a household and one has to look for other income revenues to sustain .
Further information and policy documents are available in LIC website which can be accessed by CLICKING HERE and for buying the same on- line , visit LIC'S WEBSITE
Th new plan when compared with earlier ones looks like watered down version . Similar plans were announced by the Governments in 2003 and 2014 & 2017 .While earlier plans carried 9% interest & 8 % annually , present scheme carries only 7.4 % . Earlier plans allowed life time subscription while present plan restricts for 10 years . Earlier plans had lock in period of 15 years while one has to lock in for 10 years only in new plan .
Comparison with other Fixed deposits products available now :
Presently all government sponsored savings schemes are offering less than 8 % of interest . Sukanya Samriddhi Account is offering 7.6 % which is not suitable for senior citizens . Senior Citizen Scheme ( SCS ) of Government of India is fetching 7.4 % which is of same yield as Vayo Vandana Scheme . Most of the reputed banks are also offering their interest rates around 6.25 % to 6.7 % for senior citizens and 0.5 % less to general public . Only exception is small finance banks which are paying up to 9 % pa . The 7.75 % Government of India Savings ( Taxable ) Bonds , 2018 Bond issued by Reserve Bank of India is fetching 7.75 % pa , but the scheme ends on 28.05.2020 . Hence compared small savings and bank deposits , the plan fares fairly well in the matter of interest rate . If one is income tax assessee , the real interest earned will come down .
Some Non- Convertible debentures ( NCD ) offer higher interest rates , but fraught with higher risks which may not be suitable for senior citizens . Some debt mutual funds have been returning the investors with higher returns , but one has to lock in 3 years to get tax advantage .
In the scenario of falling interest rates ,Fixing the interest income for next 10 years looks attractive especially for small investors who do not come under tax bracket , even though the plan has no tax concession or insurance coverage .However in the present economic conditions , a maximum Rs 5,000 pension may make little in managing a household and one has to look for other income revenues to sustain .
Further information and policy documents are available in LIC website which can be accessed by CLICKING HERE and for buying the same on- line , visit LIC'S WEBSITE
HAPPY TO RECORD
www.plannprogress.com has crossed
500,000 PAGE VIEWS
THANK ALL READERS , WELL WISHERS WHO HAVE HELPED US TO REACH THE MILESTONE
TO ESTIMATE YOUR CURRENT YEAR TAX LIABILITY AND REBATES YOU CAN UTILISE
VISIT TAX PLANNING
TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE
TO KNOW ALL ABOUT IT RETURNS , CLICK HERE
HOW TO LINK AADHAR TO PAN ? CLICK HERE
PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE
www.plannprogress.com has crossed
500,000 PAGE VIEWS
THANK ALL READERS , WELL WISHERS WHO HAVE HELPED US TO REACH THE MILESTONE
TO ESTIMATE YOUR CURRENT YEAR TAX LIABILITY AND REBATES YOU CAN UTILISE
VISIT TAX PLANNING
TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE
TO KNOW ALL ABOUT IT RETURNS , CLICK HERE
HOW TO LINK AADHAR TO PAN ? CLICK HERE
PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE
DISCLAIMER
We are not SEBI registered advisor and the the articles contained in the website , including this page , is not an investment advice . In case if you are interested in Investing , you may contact your Financial Advisor for the same . We cannot be held for any loss arising out of your investment made as peropinions expressed in the article / website .
