Small Saving Scheme: Overview

Are you looking at some simple tax saving instruments? If so, small saving schemes are an attractive option. Moreover considering the returns it is not a bad investment vehicle either, if you are not too particular about the lack of liquidity of such schemes. These small saving schemes have been time-honored tax saving vehicles, designed to provide safe and attractive investment options to the public, at the same time to mobilize resources for development.

National Savings Certificate (NSC)

Who is eligible for purchase of National Savings Certificates (NSC)?

Any adult individual can buy NSCs. NSCs can also be bought jointly or by an adult on behalf of a minor. ......

What is rate of interest offered on National Saving Certificates (NSCs)?

A rate of interest of 8.16 per cent compounded half-yearly on NSCs. ......

How can NSCs be encashed at maturity?

The certificate can be encashed at the post office registered or at any other post office if the concerned authority is satisfied with the identity proof of the individual presenting the certificate. ......

Kisan Vikas Patra (KVP)

Can Kisan Vikas Patra (KVP) be encashed only at the post office of issue?

It is easier to encash KVPs at the post office of issue. But, it is not necessary. ......

Can Kisan Vikas Patra be purchased by non-resident Indians?

No, non-resident Indians are not eligible to purchase Kisan Vikas Patra. ......

What are the tax implications on investment in Kisan Vikas Patra?

There are no tax benefits on the KVP or on the interest earned from this instrument. ......

Post Office Monthly Income Scheme (POMIS)

What is the rate of interest applicable on the POMIS?

The interest rate on investment in a POMIS is currently 8 per cent per annum, payable monthly. ......

What is a post office monthly income scheme?

The post office monthly income scheme (POMIS), as the name suggests, is a scheme that provides monthly income (currently at 8 per cent p.a) to investors. ......

What is the minimum and maximum amount required to open a post office monthly income scheme account?

While the minimum investment amount in a POMIS is Rs.1500 or in multiples thereof; the maximum amount is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account. ......

Post Office Recurring Deposit (PO-RD)

What happens in the event of loss of the passbook of the post office recurring deposit account (RDA)?

If there is a loss, theft or the passbook is mutilated, a duplicate is issued for a fee. ......

What are the advantages of opening up a post office recurring deposit account (RDA)?

The post office offers a fixed rate of interest unlike banks where the interest rates on fixed deposits keep fluctuating depending on conditions such as their demand supply position. ......

Can a post office recurring deposit account (RDA) be continued after its maturity?

After maturity of the account, it can be continued for a further period of 5 years with or without further deposits. During this extended period, the account can be closed at any time. ......

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