Almost every employee in India tries to save money for their future purposes and saving money becomes a part of the Indian tradition. Most of the Employees tries to save their money through Employers Provident Fund (EPFINDIA Account) for Government and Private Employers, Public Provident Fund (PPF) for self-employers. Every employee save money from their monthly salary to feel comfortable after their retirement, Modern banking gives supports to employees to deposit their money at banks and also it encourages savings schemes. So, National Saving Certificate NSC and National Saving Scheme NSS are the two saving schemes mostly followed by people in India. Now we will discuss about some popular schemes in India they are listed below
- National Saving Certificates (NSC).
- National Saving Scheme (NSS).
- Public Provident Fund (PPF).
- Post Office Saving Scheme
National Saving Certificates:
National Saving Certificate in short form called as NSC mainly used to save some amount of money and income tax investments in India, This savings scheme is a part of postal savings system in India. In this scheme, employ can deposit or invest a huge amount of money with zero percent tax from government, and it maintains good interest rate, if you invest 100 Rupees you will yield approximately 235 rupees in 10 years.
Features of National Saving Certificates:
- Good interest rate of 8.50% VIII-NSC issue and 8.80% IX-NSC issue.
- Good returns of investment of Rs.100 will yield Rs.234.35 in 10 years.
- The Certificate can easily transfer from a person to another person after the lifetime of certificate.
- The tenure of an NSC portfolio is 5 and 10 years for the NSC VIII Issue and NSC IX Issue respectively.
- The interest is reinvested annually in provisions of section 80c of IT Act.
- This can be used as collateral when applying for a bank loan.
National Saving Scheme:
NSS is a saving plan that offers tax benefits. National Saving Scheme mostly used as tax-saving instrument in India which Decreases and cut’s tax. Many people use this scheme to reduce tax liability rather than earning regular money. In NSS scheme must have to deposit 100 Rupees at beginning, no prescribed upper limit on investment.
Features of National Saving Scheme:
Income tax benefits on amount and earned interest up to Rs.9,000, and Interest is again invested annually, when applying for any bank loanNSS can’t be pledged as security. This NSS have the impressive interest rate of 9% per annum. The tenure of an NSS portfolio is four years.
Public Provident Fund (PPF):
Public Provident Fund in short form called as PPF used as saving scheme as well as tax saving instrument. PPF scheme is introduced by Ministry of Finance of India in the year 1968. The main theme of this scheme is to mobilize small amount of money by giving good and excellent interests and to give good returns with income tax benefits. Only the individuals who are residents of India are eligible to open their PPF account. Minimum of 500 Rupees have to invest to open account in Public Provident Fund. PPF amount can be deposited in lump sum or in a maximum of 12 installments per year.
Features of Public Provident Fund:
- An individual have to invest 500 Rupees to open PPF account.
- Impressive interest rate approximately 7.6% per annum with tax free.
- PPF amount can be deposited in account in max of 12 instalments per year.
- Individual can deposit money up to 1,50,000 in a year.
- It is more secure than all accounts.
Post Office Saving Scheme or Postal Office Saving System:
This Post office saving scheme isoperated by Government of India under Indian Postal services.Postal savings system is mainly for the individuals who don’t have bank accounts and who do not have safe access with bank accounts. This is the one of most convenient method to save money, this helps to promote saving money among the poor. These schemes include Branchesof products or accounts associated with a government. A fair list of such products are given below.
- Senior Citizens Saving Scheme.
- Kisan Vikas Patra (KVP).
- 5 Years Post Office Recurring Deposit Account.
- Post Office Time Deposit Account.
- Sukanya Samriddhi Account.
- 15 Years Public Provident Fund Account
- Post Office Savings Account.
- Post Office Monthly Income Account Scheme.
These are the some important saving schemes for employees in India.
(Contributed by Divakara Ganesh)
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