FIXED INCOME  PRODUCTS           It Is a Safe Way To InvestÂ
PUBLIC PROVIDENT FUNDÂ Â Â NSC/KVPÂ Â Â BANK DEPOSITSÂ Â CORPORATE DEPOSITS Â CORPORATE BONDSÂ
FOR NEWS ON INTEREST RATE CHANGES Â , CLICK HEREÂ Â Â
FOR LATESTÂ Â BANK DEPOSITÂ INTEREST RATES , CLICK HEREÂ
FOR LATESTÂ Â BANK DEPOSITÂ INTEREST RATES , CLICK HEREÂ
 FOR INTEREST RATES ON ALL SMALL SAVINGS ACCOUNTS    , CLICK HERE   Â
​FOR INCOME TAX NEWS , CLICK HERE        FOR BANKING NEWS  CLICK HERE   FOR NEWS ON IPO , NCD ETC  , CLICK HEREÂ
​
​FOR INCOME TAX NEWS , CLICK HERE        FOR BANKING NEWS  CLICK HERE   FOR NEWS ON IPO , NCD ETC  , CLICK HEREÂ
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FIXED INCOME PRODUCTS - INVESTING WITHOUT WORRIES
What is Fixed Income ?
It is an investment which yields pre-determined return for the entire tenor of investment and which does not change on market movements
Â
 Fixed Income accounts which assure a pre-fixed income for a pre-fixed time period are popular investments made by ordinary citizens . many such schemes are  either managed by government of India or Commercial banks which are considered safe for investment  .Â
1. BANK DEPOSITS  :  They are considered safe  and have sufficient liquidity as they also offer loans against such deposits
in case of need .Â
2. SMALL SAVINGS ACCOUNTS : promoted by government of India managed by post offices or banks Â
3. PRADHANA MANTRI VAYA VANDANA YOJANAÂ : Pension plan floated by Government of India and managed by LIC of IndiaÂ
4. GOVERNMENT OF INDIA BONDS :Â Â Floated by RBI on behalf of Government of IndiaÂ
5. CORPORATE BONDS : Issued by  Corporations Â
 Fixed Income accounts which assure a pre-fixed income for a pre-fixed time period are popular investments made by ordinary citizens . many such schemes are  either managed by government of India or Commercial banks which are considered safe for investment  .Â
1. BANK DEPOSITS  :  They are considered safe  and have sufficient liquidity as they also offer loans against such deposits
in case of need .Â
2. SMALL SAVINGS ACCOUNTS : promoted by government of India managed by post offices or banks Â
3. PRADHANA MANTRI VAYA VANDANA YOJANAÂ : Pension plan floated by Government of India and managed by LIC of IndiaÂ
4. GOVERNMENT OF INDIA BONDS :Â Â Floated by RBI on behalf of Government of IndiaÂ
5. CORPORATE BONDS : Issued by  Corporations Â
SMALL SAVINGS SCHEMES
​ VARIOUS SMALL SAVINGS SCHEMES AVAILABLE IN INDIA
 Following are the Small Savings Accounts promoted by Government of India and managed by department of POSTS : Â
​1. PUBLIC PROVIDENT FUNDS
2. NATIONAL SAVINGS CERTIFICATES
3.  KISAN VIKAS PATRA  ( KVP )Â
​4.  SUKANYA SAMRIDDHI ACCOUNTÂ
5. SENIOR CITIZEN SAVINGS SCHEME
6. TIME DEPOSITSÂ Â FROM 1 YEAR TOÂ 5 YEARSÂ
7. MONTHLY INCOME SCHEMEÂ
8. 5 YEAR RECURRING DEPOSITS SCHEMEÂ
​1. PUBLIC PROVIDENT FUNDS
2. NATIONAL SAVINGS CERTIFICATES
3.  KISAN VIKAS PATRA  ( KVP )Â
​4.  SUKANYA SAMRIDDHI ACCOUNTÂ
5. SENIOR CITIZEN SAVINGS SCHEME
6. TIME DEPOSITSÂ Â FROM 1 YEAR TOÂ 5 YEARSÂ
7. MONTHLY INCOME SCHEMEÂ
8. 5 YEAR RECURRING DEPOSITS SCHEMEÂ
​PUBLIC PROVIDENT FUNDS
SALIENT FATURES :
- Ideal investment option for both salaried as well as self employed classes.
- Non-Resident Indians (NRIs) are not eligible.
- Investment up to INR. 1,50,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
- The rate of interest on the subscriptions made to the fund  varies quarter to quarter  as per the announcement  done by the Government .Â
- Loan facility available from 3rd financial year up to 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.  The rate of interest is reduced to 8.1% pa from  01.04.2016 and are subject to change every quarter.Â
- Withdrawal permitted from 6th financial year.
- Free from court attachment.
- An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
- Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)INR. 500/- in a financial yearINR. 1,50,000/- in a financial year
- The public provident fund is established by the central government.
- Â One can voluntarily open an account with any nationalized bank,selected authorized private bank or post office.Â
- SAFE , SECURE , TAX EFFICIENT Â AND Â LIMITED LIQUIDITY AVAILABLE Â FROM 3RD YEAR Â BY WAY OF LOAN FACILITY
NATIONAL SAVINGS CERTIFICATES
                       SOURCE OF INFORMATION  INDIA POSTÂ
NSC VIII Issue
• Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
• KVP can be purchased from any Departmental Post office.
• Facility of nomination is available.
• Certificate can be transferred from one person to another and from one post office to another.
• Certificate can be encashed after 2 & 1/2 years from the date of issue.
• Rate of interest  varies quarter to quarterÂ
                       SOURCE OF INFORMATION  INDIA POSTÂ
NSC VIII Issue
- Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.
- No maximum limit for investment.
- No Tax deduction at source.
- Certificates can be kept as collateral security to get loan from banks.
- Investment  qualifies for IT Rebate under section 80C of Income Tax Act.
- Trust and HUF cannot invest.
- Rate of interest   changes every quarter.
-  NSC can be transferred only once  from the date of issue to maturity
- KISAN VIKAS PATRA Â ( KVP )
- The Government of India has on 19.11.2014 has  re-launched  KVP .Â
• Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
• KVP can be purchased from any Departmental Post office.
• Facility of nomination is available.
• Certificate can be transferred from one person to another and from one post office to another.
• Certificate can be encashed after 2 & 1/2 years from the date of issue.
• Rate of interest  varies quarter to quarterÂ
SUKANYA SAMRIDDHI ACCOUNT
​
• Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial yearÂ
• A legal Guardian/Natural Guardian can open account in the name of Girl Child.
• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.Â
• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.
• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.Â
• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Account can be closed after completion of 21 years.
• If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.
• Normal Premature closer will be allowed after completion of 18 years /provided that girl is married.
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Account can be opened  in Post office or specified commercial  Banks  ( For list of commercial banks and to visit their websites  CLICK HERE  )
• Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial yearÂ
• A legal Guardian/Natural Guardian can open account in the name of Girl Child.
• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.Â
• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.
• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.Â
• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Account can be closed after completion of 21 years.
• If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.
• Normal Premature closer will be allowed after completion of 18 years /provided that girl is married.
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Account can be opened  in Post office or specified commercial  Banks  ( For list of commercial banks and to visit their websites  CLICK HERE  )
LATEST INTEREST RATES ON SMALL SAVINGS SCHEMES
​SMALL SAVINGS TERM INTEREST RATES HIKED FOR 3 YEAR TIME DEPOSIT  Â
Sukanya Samruddhi Account Rate upÂ
POST OFFICE INTEREST RATESÂ
 DATED 29.12.2023  : The interest rates  on some  small savings schemes  for the ensuing  quarter from January  2024 to  March  2024 is announced today  . Except for 3 year time deposit and Sukanya Samruddhi Account scheme , all other rates are kept unchanged . The 3 year time deposit is enhanced to 7.10 % from existing 7.00 % pa . Sukanya samruddhi account will now fetch 8.2 % paÂ
  The new rates  areÂ
Â
1.  The Public Provident Fund  : 7.1 % pa ( No change )
2.  Kisan Vikas Patra ( KVP )    : 7.5 % pa ( No change )
          3 . The 5 Year National savings Certificates ( NSC ) :  7.70 % pa ( No change  )
          4. Sukanya Samruddhi Account  :  8.20 % pa  ( Earlier 8.00 % pa )
                     5.  Senior Citizen Scheme       : 8.20 % . pa  ( No change  )
                      6. Monthly Income scheme      : 7.4 % pa   ( No change )
                     7. Term Deposits    : For the period 1 year   :6.9 %  pa ( No change )
                                         For the period 2 years   : 7.0 % ( No change )
                                         For the period 3 years  :  7.10 %  ( Earlier 7.0 % pa )
                                          5 year term deposit      : 7.50 % pa ( No change )Â
                                         5 year Recurring Deposit  : 6.7%  pa ( No change )
For Ministry of Finance  Office Memorandum  dated  29.12.2023    CLICK HERE ​  Â
To know about various post office small savings schemes   , CLICK HEREÂ
​To check interest rates offered by Banks in India , CLICK HERE ​​
Sukanya Samruddhi Account Rate upÂ
POST OFFICE INTEREST RATESÂ
 DATED 29.12.2023  : The interest rates  on some  small savings schemes  for the ensuing  quarter from January  2024 to  March  2024 is announced today  . Except for 3 year time deposit and Sukanya Samruddhi Account scheme , all other rates are kept unchanged . The 3 year time deposit is enhanced to 7.10 % from existing 7.00 % pa . Sukanya samruddhi account will now fetch 8.2 % paÂ
  The new rates  areÂ
Â
1.  The Public Provident Fund  : 7.1 % pa ( No change )
2.  Kisan Vikas Patra ( KVP )    : 7.5 % pa ( No change )
          3 . The 5 Year National savings Certificates ( NSC ) :  7.70 % pa ( No change  )
          4. Sukanya Samruddhi Account  :  8.20 % pa  ( Earlier 8.00 % pa )
                     5.  Senior Citizen Scheme       : 8.20 % . pa  ( No change  )
                      6. Monthly Income scheme      : 7.4 % pa   ( No change )
                     7. Term Deposits    : For the period 1 year   :6.9 %  pa ( No change )
                                         For the period 2 years   : 7.0 % ( No change )
                                         For the period 3 years  :  7.10 %  ( Earlier 7.0 % pa )
                                          5 year term deposit      : 7.50 % pa ( No change )Â
                                         5 year Recurring Deposit  : 6.7%  pa ( No change )
For Ministry of Finance  Office Memorandum  dated  29.12.2023    CLICK HERE ​  Â
To know about various post office small savings schemes   , CLICK HEREÂ
​To check interest rates offered by Banks in India , CLICK HERE ​​
PRADHANAMANTRIÂ VAYA VANDANA YOJANA
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  . Â
You may go through the salient features of the plan  by visiting our page  "PRADHANAMANTRI VAYA VANDANA YOJANA ( MODIFIED -2020 ) "  Â
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  . Â
You may go through the salient features of the plan  by visiting our page  "PRADHANAMANTRI VAYA VANDANA YOJANA ( MODIFIED -2020 ) "  Â
NEW ARTICLE PUBLISHEDÂ
         TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )Â
Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
CLICK HERE TO READÂ
​
         TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )Â
Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
CLICK HERE TO READÂ
​
- BANK DEPOSITS
- Most popular  fixed income  scheme administered by  all scheduled banks Â
- Deposits can be made by resident as well as  Non resident Indians .  Interest Rates vary .Â
- Fixed Deposit, also called Term Deposit is an investment where the interest rate is guaranteed not to change for the nominated term, so you know exactly what your investment is worth.
- The deposits are accepted from 7 days  up to 10 years of maturity
- Usually Banks lend up to 90 %  deposit amount as Loan  against the collateral of deposit receipt at an interest rate  1% to 2 %  above the deposit interest rate .Â
- The deposits can be prematurely closed . In such cases , interest will be paid for the period run at the interest rate  prevailing on the date of deposit for  the period of deposit run .Â
- Interest can be received  on monthly, quarterly, half yearly , yearly or on maturity .Â
- Interest  is taxable and have to be added to the personal income of the depositorÂ
- Deposits come under category of  Low  Risk  class of assets  of  an investor.Â
- Â LOW RISK Â & Â LIQUID Â INVESTMENT Â AND HENCE Â MOST POPULAR WITH RISK Â AVERSE INVESTORS . Â Â
- Bank deposits are guaranteed up to rs 5.00 lakhs by DICGC
      FOR LATEST BANK DEPOSIT INTEREST RATES CLICK HEREÂ
COMPANY FIXED Â DEPOSITSÂ
- Company Fixed Deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest.
- Normally companies pay 2 % to tion is the  % pa  higher interest rate than BanksÂ
- Like Banks, companies also offer Interest payment  monthly, quarterly, half yearly , yearly or on maturity
-  Safety of deposit depends up on the  repayment capacity of the borrowing companyÂ
- Investors have to be cautious  about  the company  before they place deposits . Investors are to be beware of  Unrated companies / little known companies receiving depositsÂ
-  For NBFC's, RBI has made it mandatory to have an 'A' rating to be eligible to accept public deposits, . Higher Rating of AA or  AAA is betterÂ
- Caution is the key word while placing deposits with companies . Â
NBFC DEPSOITS : FOR DETAILS OF NON BANKING FINANCE COMPANIES ( NBFC ) DEPOSITS ,  CLICK HERE

 BANK DEPOSITS ARE MOST PREFERRED  INVESTMENT INSTRUMENT IN INDIAÂ
NEWS ALERT DATED 06.04.2017Â : Â
As per survey report published by Securities and Exchange Board of  India ( SEBI ) , more than 95 % of Indians prefer to  park their money in Bank deposits . The survey , conducted across India  including urban and rural areas ,  listed Life Insurance as the second most popular  investment avenue.  Other  top investment vehicles included Gold & Silver , Real estate and post office savings  . Mutual Funds and Stocks investments were preferred by less than 10 % of the respondents .Â
Among the rural households , not even one percent invested in financial instruments and more than 98 %  had any awareness about availability of Mutual Funds and Equities as an option for investment . However redeeming feature among rural households was that  95 % of respondents had bank accounts and 47 % life insurance . More than 25 % of rural respondents had their post office deposits .Â
​
The survey , conducted by M/S Nielsen , was commissioned in 2015 by SEBI , completed last year and results  released now .Â
​You may read the complete survey report by clicking on the link  HEREÂ
FOR READING ARTICLE  TAX ON RETIREMENT BENEFITS , CLICK HEREÂ
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HEREÂ
FINANCIAL PLANNING FOR YOUNG  , CLICK HERE ​   HOW TO LINK AADHAR WITH PAN ?  CLICK HERE ​   Â
Compare Fixed Deposit Interest rates offered by various banks before investing Â
                      VISIT :   LATEST BANK DEPOSIT INTEREST RATES - A  COMPARISONÂ
PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HEREÂ
FINANCIAL PLANNING FOR YOUNG  , CLICK HERE ​   HOW TO LINK AADHAR WITH PAN ?  CLICK HERE ​   Â
Compare Fixed Deposit Interest rates offered by various banks before investing Â
                      VISIT :   LATEST BANK DEPOSIT INTEREST RATES - A  COMPARISONÂ
CORPORATE BONDSÂ
A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing  is called Bond .  The governments, states, corporations, and many other types of institutions sell bonds. Generally, a bond is a promise to repay the principal along with interest  on maturity. Issuer may  pay interest periodically or on maturity as per the terms of the bond  . When an investor buys a bond, he/she becomes a creditor of the issuer. However, the buyer has no right of ownership of  the issuer, while share holders get the right .  .  Though investor gets interest  at the fixed rate  periodically and principal on maturity as  per Bond conditions , One can sell in between to third parties  in stock markets at the market prices for such bonds .  If one  can hold till maturity , repayment is assured  while selling in between may end up with loss and profits .  Again like corporate deposits ,  safety of  investment depends up on the capability of the issuer to repay till maturity .  The market price of bonds are effected by the interest rate  volatility in alternate instruments , liquidity in the market as well as  credit rating of the issuer .Â
AMONG THE FIXED INCOME INVESTMENT , PPF AND NSC/ KVP  ARE SAFEST , PPF AND NSC ARE TAX EFFICIENT UP TO CERTAIN AMOUNT , WHILE  BANK DEPOSITS OFFER  LOW RISK AND LIQUID  OPTIONS. COMPANY FIXED DEPOSITS AND CORPORATE BONDS  OFFER HIGHER RETURN  ASSOCIATED WITH HIGHER RISK .  CORPORATE BONDS  OFFER  LIQUIDITY  AND OPTIONS OF HOLDING TILL MATURITY AND GET  INTEREST OR TRADE IN THE MARKET FOR PROFIT / LOSS . INVESTORS CAN WEIGH RISK , RETURN AND BENEFITS BEFORE  PLACING  SUCH DEPOSITS .  IN ALL THE CASES  RETURN IS PREDETERMINED AT THE TIME OF PLACEMENT OF DEPOSIT
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www.plannprogress.com has crossed
                            500,000   PAGE VIEWS Â
THANK ALL READERS , WELL WISHERS Â WHO HAVE HELPED US TO REACH Â THE MILESTONEÂ
TO ESTIMATE YOUR CURRENT YEAR TAX LIABILITY Â AND REBATES YOU CAN UTILISEÂ Â Â Â
​VISIT   TAX PLANNINGÂ
TO KNOW  ABOUT  TAX ON RETIREMENT BENEFITS  , CLICK HEREÂ
​HOW TO LINK AADHAR TO PAN ?   CLICK HEREÂ
PLAN YOUR FINANCE PRUDENTLY  . For Financial Planning , CLICK HERE ​
 TAX ON  INTEREST INCOME  ON VARIOUS FIXED INCOME PRODUCTSÂ
​  1. Savings Bank  Accounts                 :  Tax free up to Rs 10,000 per year Â
  2. Tax on Fixed Deposits                  :    Fully taxable but Rs 50,000 exemption for senior citizensÂ
  3 . Recurring Deposits                    :     Fully taxableÂ
   4. Tax Saving FDs                        :     Fully taxableÂ
   5.  National savings Certificates            :     Fully taxableÂ
   6. Kisan Vikas Patra                       :    Fully taxableÂ
   7. Senior Citizens savings Scheme          :    Fully taxableÂ
  8. Public Provident Fund                  :    Tax Free  Â
   9.  Tax Free Bonds                        :    Tax Free           Â
  10 .  Sukanya Samriddhi Yojana             :    Tax Free Â
   11. LIC Varishta Bima Yojana               :     Fully taxable Â
  2. Tax on Fixed Deposits                  :    Fully taxable but Rs 50,000 exemption for senior citizensÂ
  3 . Recurring Deposits                    :     Fully taxableÂ
   4. Tax Saving FDs                        :     Fully taxableÂ
   5.  National savings Certificates            :     Fully taxableÂ
   6. Kisan Vikas Patra                       :    Fully taxableÂ
   7. Senior Citizens savings Scheme          :    Fully taxableÂ
  8. Public Provident Fund                  :    Tax Free  Â
   9.  Tax Free Bonds                        :    Tax Free           Â
  10 .  Sukanya Samriddhi Yojana             :    Tax Free Â
   11. LIC Varishta Bima Yojana               :     Fully taxable Â
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 per the article . ​