SMALL SAVING INSTRUMENTS

SMALL SAVING
INSTRUMENTS
The Government of |India has instituted many small
saving schemes to encourage investors to save regularly.
The Small Savings Scheme comprises of 12 instruments

in total.
Examples; National Saving Certificate(NSC), Public

Provident Fund(PPF), Kisan Vikas Patra(KVP), and Sukanya

Samriddhi Scheme.
The Government resets the interest rate in the

beginning of every quarter.

Rate of interest remains unchanged for the entire

duration of the investment till maturity except for PPF.

PUBLIC PROVIDENT
FUND(PPF)
Public Provident Fund(PPF) is a tax-free
scheme offered by the Government of India,
wherein interest on the account is set for every
quarter and is paid by the government.
HUF and NRI’s are not allowed to open a PPF

account.
PPF
1.Eligibility criteria:
Resident of India.
NRI’s and HUF are not eligible to open a PPF account.

Parents/Guardians can open a PPF account for their minor

children.

2.Maximum and Minimum Contribution:

The minimum annual contribution that can be made to a

PPF account is Rs.500.

The maximum annual contribution can be Rs. 1.5 lakh.

3.Tenure:

PPFaccount matures after the expiry of 1.5 years from the

end of the financial year.

4.Eligibleunder 80C.
Contribution to PPF is eligible under Sec 80C of Income tax

Act,1961.
Public Provident Fund(PPF)
 POST OFFICE SCHEMES
AND DEPOSITS
A post office offers various types of deposit schemes
for those who want to invest in their money.
The USP of these schemes is their sovereign

guarantee ,i.e., they are backed by the Central

Government.
The interest rates on these schemes are reviewed and

fixed quarterly by the government.

 VARIOUS POST OFFICE
SCHEMES AND DEPOSITS
 1.Post Office Monthly Income Scheme(POMIS)
 This scheme provides a regular monthly
income to the depositors.
 TERM – 5 years.
 Minimum amount of investment – Rs.1500.
 Maximum amount of investment – Rs.4.5
lakhs for a singly held account and Rs.9
lakhs for jointly held account.
 Interest rate – 8.4%.
 Premature withdrawal of the invested
amount is allowed after 1 year of the
opening of the account`
2.Post Office Time Deposits(POTD)
Similar to fixed deposits of commercial banks.

TERM – 1 year, 2 years, 3 years and 5 years.

Account can be held by an individual or jointly by a maximum of 2 holders.

Minimum Deposit Amount – Rs.200.

Maximum Deposit Amount – No maximum limit.

Interest rates – Reset annually.

Eligible under 80C.

3.Post Office Recurring Deposit(RD)

Can be opened by resident individuals and a maximum of 2 people can

hold the account.

Minimum Deposit Amount – Rs.10 per month and in multiples of Rs.5 for

every month.
Maximum Deposit Amount – No maximum limit.

Interest Rate – Payable on a quarterly compounded basis.

Maturity amount with interest is paid at the end of the term. Interest is

taxable.
Post office schemes and deposits
THANK YOU!