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:-

1) Sukanya Samriddhi Scheme

2) Pubilc Provident Fund

3) Kisan Vikas Patra

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
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

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
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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3 Comments

  1. RAJESH says:

    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

    Please correct the data before uploading

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