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Comparison of Various Saving Scheme
Article explains comparison of Various Saving Scheme for the purpose of Tax Planning & Investment Plan
i.e. Very Simple analysis / summarized view of below mentioned schemes is as under:-
4) Senior Citizen Saving Scheme
5) National Saving Certificate Scheme
6) Post Office Saving Account Scheme
7) National Savings (Monthly Income Account) Scheme
8) National Saving Time Deposit Scheme
9) National Saving Recurring Deposit Scheme
| Sr. No. | Particulars | Sukanya Samriddhi Scheme | Public Provident Fund | Kisan Vikas Patra | Senior Citizen Saving Scheme | National Saving Certificate Scheme |
| 1 | Who Can Invest | Any Legal or natural guardian in the name of a girl child | Any Person | Any Person | Investment can be made by following individuals:- 1. Whose age is 60 years or more 2. Whose age is between 55 years to 59 year and who has retired on superan-nuation or 3. Whose age is 50 years or more and who has retired from defence services (excluding Civilian Defense Employees) |
Any Person |
| 2 | Who Can be Benefi-ciary | Any Girl Child | Beneficiary can be Individual himself or a minor or a person of unsound mind on whose behalf individual is acting as a guardian |
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| 3 | Rate of Interest* | 7.6% per annum | 7.1% per annum | 6.9% (will mature in 124 months) | 7.4% per annum | 6.8% per annum |
| 4 | Calcul-ation of Interest | Calculated monthly but credited at the end of the year | Interest is calculated monthly on lowest balance between close of 5th day and last day of the month. The interest is credited to the account at end of each financial year | Computed on monthly basis and paid on quarterly basis | Interest is computed on yearly compunding basis (interest is deemed to be reinvested) | |
| 5 | Maturity Period | 21 Years from the date of Opening of Account or at the time of marriage, Which ever is earlier |
15 Years | 5 Years | 5 Years | |
| 6 | Maturity Amount | Double after 9 years and 5 months | Rs. 1462.54 payable on a certificate of Rs. 1000 denom-ination | |||
| 7 | Premature Withd-rawal | Allowed up to 50% of amount standing to the credit of the account for specified purpose | Allowed up to 50% of amount standing to the credit of the account | |||
| 8 | Premature Closure | 1. In the event of death of beneficiary and 2. In the event of life threatening disease after completion of 5 years |
Allowed after 5 years on folowing grounds:- 1. Higher education of account holder or dependent children or 2. In the event of life threatening disease 3. Change in residency status of the account holder |
Allowed under the specified circums-tances | Withdrawal can be made any time | 1. In the event of death of holder 2. On forfeiture by a pledgee 3. When ordered by a court of law |
| 9 | Is Joint Account Allowable | No | No | Yes | ||
| 10 | Number of Account Permissible | One account in the name of each beneficiary Girl Child | One Account | No Limit | An Individual can operate more than one account, however total deposit in all accounts shall not exceed the maximum limit | No Limit |
| 11 | Minimum Investment | Initial Investment is Rs. 250 and in multiples Rs. 100 thereafter | Initial Investment is Rs. 500 and in multiples Rs. 50 thereafter | Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter | Initial Investment is Rs. 1000 and in multiples Rs. 1000 thereafter | Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter |
| 12 | Maximum Investment | Rs. 150000 in a financial year | Rs. 150000 in a financial year | No Limit | Rs. 1500000 or retirement benefits Whichever is lower |
No Limit |
| 13 | Maximum Number of Deposit during the year | Any No. of deposit can be made subject to maximum investment limit | ||||
| 14 | Deduction Under Section 80C | Allowable | Allowable | Not Allowed | Allowable | Allowable |
| 15 | Taxability of Interest | Exempt | Exempt | Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen |
Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen |
Interest earned on deposit during the tenure of NSC are deemed to be reinvested in NSC. Such Interest can be claimed as deduction under section 80C. A senior citizen can claim deduction either under section 80C or under section 80TTB in respect of such interest |
| 16 | Can an NRI open account under this scheme | Any Individual, whether resident or non resident can invest in this scheme | ||||
| 17 | Withdrawal from the account | |||||
| 18 | Categories of Account | |||||
| 19 | Pledging of account | Allowed |
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| Sr. No. | Particulars | Post Office Saving Account Scheme | National Savings (Monthly Income Account) Scheme | National Saving Time Deposit Scheme | National Saving Recurring Deposit Scheme |
| 1 | Who Can Invest | Any Person | Any Person | Any Person | Any Person |
| 2 | Who Can be Beneficiary | ||||
| 3 | Rate of Interest* | 4% per annum | 6.6% per annum | 1 Year Account : 5.5% per annum 2 Year Account : 5.5% per annum 3 Year Account : 5.5% per annum 5 Year Account : 6.7% per annum |
5.8% per annum |
| 4 | Calculation of Interest | Calculated on monthly basis on lowest balance available between close of 10th day and end of the month. Interest is credited at the end of each year | Calculated and paid monthly | Computed on monthly basis and compound on quarterly basis. Interest is however payable anually at the end of each year | |
| 5 | Maturity Period | No maturity period | 1 year/ 2 years / 3 years / 5years | ||
| 6 | Maturity Amount | Rs. 7231.38 payable after making 60 monthly deposits of Rs. 100 each | |||
| 7 | Premature Withdrawal | ||||
| 8 | Premature Closure | Alowed after 1 year from the date of opening of account | Alowed after 6 month from the date of opening of account | Allowed after 3 years from the date of opening of the account | |
| 9 | Is Joint Account Allowable | Yes | Yes | Allowed | Yes |
| 10 | Number of Account Permissible | Only one account can be opend as a single account. However multiple joint each accounts can be opned provided account holder has equal share. | Multiple but total deposit shall not exceed the maximum limit | No Limit | No Limit |
| 11 | Minimum Investment | Initial Investment is Rs. 500 and in multiples Rs. 10 thereafter | Initial Investment is Rs. 1000 and in multiples Rs. 1000 thereafter | Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter | Initial Investment is Rs. 100 and in multiples Rs. 10 thereafter |
| 12 | Maximum Investment | No Limit | Rs. 450000 in case of single account and Rs. 900000 in case of joint account | No Limit but there will be just one deposit | No Limit |
| 13 | Maximum Number of Deposit during the year | ||||
| 14 | Deduction Under Section 80C | Not Allowed | Not Allowed | Not Allowed | Not Allowed |
| 15 | Taxability of Interest | Exempt up to Rs. 3500 in case of single account and Rs. 7000 in case of joint account. Balance amount remaining after claiming deduction Section 80TTA/80TTB is taxable under the head Income from Other Sources | Taxable | Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen |
Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen |
| 16 | Can an NRI open account under this scheme | ||||
| 17 | Withdrawal from the account | Minimum withdrawal allowed is of 50 rupees | |||
| 18 | Categories of Account | (a) 1 Year Account (b) 2 Year Account © 3 Year Account (d) 5 Year Account |
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| 19 | Pledging of account | Allowed |
Happy Reading !!!
*Rate of Interest –Interest rates for Small Savings Schemes w.e.f. 01.01.2021
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Please check rate of interest which is not correct. Article is for all investors. Income Tax deduction under sec 80TTB is only for sr. citizens. What about others
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