SMALL SAVING SCHEMES The rate of small saving schemes like PPF, Senior Citizens Saving Scheme and National Savings Certificates
are generally linked to government bond yields of the same tenure.
Under Section 80C, contributions to Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificates
(NSC), life insurance policies, tax-saving bank fixed deposits, Senior Citizen Savings Schemes (SCSS), tax-saving mutual funds and home loan principal are eligible for deduction while calculating the taxable income.
The rate of interest on Small Savings Schemes has been aligned with Government-Security rates of similar maturity with a spread of 25 basis points (bps) in all schemes except 10 Years National Savings Certificates
(IX-Issue) and Sr.
Watch out for the next issue of National Savings Certificates
done in March or April - but don't tell everyone
Perhaps we could stop the National Savings Certificates
FOR those investors used to the cheap and secure investments offered by National Savings & Investments (NS&I), sadly the announcement that NS&I have withdrawn access to the new issuing of National Savings certificates
, may leave investors feeling somewhat disappointed.
The recent axing of inflation-linked national savings certificates
is a blow to savers looking to protect their savings from the ravages of inflation, according to a Midlands-based expert.
While Rs 12,500 would be given in cash, the beneficiaries would be given the balance amount in the form of National Savings Certificates
, it said.
The best and probably only way to beat inflation is to buy index-linked National Savings Certificates
for three years or five, which give you 1% on top of RPI, tax free.
If National Savings certificates
are cancelled within the first year, only the original sum invested is returned.
It includes bank and building society accounts, Post Office accounts, national savings certificates
, ISAs, stocks, shares, bonds, property other than the home you live in and cash.
Depending on how much you have, you could consider index-linked national savings certificates
which have to be invested for five years to receive tax-free growth.