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 Bank Fixed Deposit Rates

Here you can view the current deposit rates by Private & Public Sector Banks. This informaiton is posted only for general information purpose only.

Bank Deposit Rates

Latest Corporate FD Rates – Please Click Here

 


Public Provident Fund (PPF) 

Who can invest?

  • An adult individual in his own name.
  • An adult on behalf of a minor for whom he is the guardian.
  • HUF’s cannot open new accounts now; with effect from 13.5.2005. Existing PPF accounts opened in the name of HUF shall continue till maturity and deposits can be made in the account as per rules.
  • A PPF account is in addition to Employee Provident Fund and GPF for government employees. In other words who contribute to EPF and GPF can also open PPF account.

Where can one open a PPF account? 

One can open a PPF account in – 

  • Head Post-Office,
  • G.P.O.,
  • Any Selection Grade Post Office,
  • Any branch of the State Bank of India and
  • Selected branches of Nationalized Banks.

How much can one invest?

  • Minimum investment Rs. 500 in a financial year
  • Maximum of Rs. 100,000/- in a financial year
  • Can be invested in a lump sum or in convenient instalments.
  • Total number of credits per year is restricted to 12
  • The ceiling of Rs. 100,000/- per annum is for each account.
  • If an individual has his own account and accounts in the name of minors (where he is the guardian) the total investment in a financial year cannot exceed Rs 100,000/- in all the accounts taken together.

Term

  • PPF is a 15 year account. Interest Rate of 8.80% p.a w.e.f 01-04-2012.
  • The term of the account can be extended by 5 years at a time by making an application in a specified form to the deposit office; within one year.
  • An account can be extended any number of times.
  • The entire balance can be withdrawn in full after the expiry of 15 years from the close of the financial year in which the account was opened.

Withdrawals

  • A depositor is permitted to make one withdrawal every financial year.
  • Withdrawal is permitted from the 7th financial year
  • Amount of withdrawal cannot exceed 50% of the balance to his credit at the end of the fourth year
  • Immediately preceeding the year of withdrawal or at the end of the preceding year, whichever is less.

Tax benefits

  • The interest earned on PPF account (including interest during the extension period) is excluded from income tax under section 10(11).
  • The entire deposit in the account is exempt from Wealth Tax
  • The annual contribution to the account is eligible for deduction u/s 80C

Transferability

  • A PPF account with one deposit office can be transferred to another deposit office.
  • In other words an account can be transferred from Post Office to any bank branch or from any bank branch to any other branch of any other bank or to post office.

Nomination

  • PPF account is necessarily opened in a single name. Nomination facility is available.
  • A depositor can nominate more than one person and stipulate the percentage of sharing among the nominees.

PostOffice Monthly Income Scheme (POMIS)

 

Who can invest?

  • An adult individual in his own (single account)
  • An adult on behalf of a minor for whom he is the guardian
  • An adult individual jointly with other adult individuals (joint account) – the totalnumber of account holders restricted to 3

Where can one invest?

  • In all GPO’s
  • In all selection grade Post Offices
  • In select sub post offices

How much can one invest?

  • Minimum Rs. 1,000/-
  • Maximum Rs. 4,50,000/- in single account (including all the deposits made earlier)
  • Maximum Rs. 9,00,000/- in joint account (including all the deposits made earlier)
  • The maximum limit of Rs. 3,00,000/- is applicable per individual and deposits in joint accounts are considered as having been made equally by all the depositors for the purpose of determining the ceiling.

Interest

  • 8% per annum payable monthly
  • In select post offices ECS facility is available where the interest is credited every month directly to the saving bank account of the depositor automatically through the Electronic Clearing Service.
  • A depositor may open a SB account with the same Post Office where he has deposited his POMIS amount and give standing instructions for crediting the interest amount directly to this SB account on a monthly basis.

Term

  • 6 years
  • The interest rate as above remains unchanged for the entire term of 6 years

Withdrawals

  • No premature repayment is permitted within 1 year of deposit
  • After 1 year but before completion of 3 years premature withdrawal of entire balance is permitted
  • If withdrawn, prematurely, before 3 years a penalty of 2% of deposit amount is levied – no deduction from interest already paid; Example: If a depositor withdraws Rs. 1, 00,000/- prematurely after 2 years of deposit, he will be paid Rs. 98,000/-, over and above the interest at the rate of 8% p.a. which he has already received for the period for which the deposit was held by Post Office.
  • if withdrawn prematurely after 3 years the penalty is restricted to 1% of the deposit amount – no deduction from interest already paid.
  • Part withdrawals are not permitted – if required the depositor will have to withdraw the entire deposit amount.

Bonus on maturity

  • A bonus of 5% of deposit amount is payable on maturity (at the end of 6 years)
  • As per the latest circular 5% Bonus will be payable on new deposit accounts made on or after 8th December 2007.

Tax benefits

  • No tax benefit; the interest is taxable
  • Tax is not deducted at source from the interest, presently

Transferability

  • A deposit account can be transferred from one post office to any other post office at any time on the request of the depositor(s).

Nomination

  • Nomination facility is available

National Saving Certificates (NSC) VIII Issue

 

Download Application Form

Who can purchase?

  • An adult individual in his own name.
  • An adult individual jointly with another – on “Jointly or survivor” basis ( A type).
  • An adult individual jointly with another – on “Either or survivor” basis ( B type).
  • Parents and guardians on behalf of a minor.
  • HUF’s are not allowed to purchase NSC’s from 13th May 2005.
Where can one invest?
  • Can be purchased from all post offices which are allowed to open Savings account.
Amount
  • National saving certificates are available in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000
  • Can be purchased for any amount without any ceiling
  • Can be purchased for amounts in multiples of Rs 100
Maturity Value
  • Rs. 100 becomes Rs 160.10 after the full term of 6 years
Premature repayment
  • Not allowed during the full term of 6 years
  • In case of death of the investor premature payment is allowed to nominee at lower rates as per rules
Tax benefit
  • Amount invested qualifies for deduction from income u/s 80C within the over all ceiling of Rs. 1,00,000 along with other specified investments/expenditure
  • Accrued interest also qualifies for deduction u/s 80C -every year from the second year onwards till the year before the year of maturity

Kisan Vikas Patra (KVP)

Download Application Form

Who can purchase?
• An adult individual in his own name
• An adult individual jointly with another – on “Jointly or survivor” basis (A type)
• An adult individual jointly with another – on “Either or survivor” basis (B type)
• Parents and guardians on behalf of a minor
• HUF’s, Trusts are not allowed to purchase KVP’s from 13th May 2005


Where can one purchase Kisan Vikas Patra?


• It can be purchased from all post offices which are allowed to open Savings account.
Amount
• Kisan Vikas Patras are available in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000, Rs 10,000 and Rs. 50,000
• Can be purchased for any amount with out any ceiling
• Can be purchased for amounts in multiples of Rs 100


Maturity Value

• Rs. 100 becomes Rs. 200/- after the full term of 8 years & 7 months

Premature repayment

• Not allowed within 2 ½ years of purchase in normal circumstances
• In case of death of the investor premature payment is allowed to nominee at lower rates as per rules
• After 2 ½ years premature encashment is freely allowed and the amounts payable for a certificate of Rs 1,000/- denomination are as follows

Tax benefit

• Tax is not deducted at source on maturity or otherwise – No TDS as of now.
• Interest on KVP is taxable on accrual basis.


Government of India 8% Taxable Savings Bonds

Who can purchase?

• An adult individual in his own name
• An adult individual jointly with another – on “Jointly or survivor” basis
• An adult individual jointly with another – on “Either or survivor” basis type)
• Parents and guardians on behalf of a minor
• Hindu Undivided Family
• Charitable Institutions or a University {approved u/s 80G or 35(1)(ii)/(iii) of Income Tax Act
Amount
• The bonds can be purchased for any amount in multiples of Rs. 1,000/- without any upper limit
Term
• The full term of the bond is 6 years

Interest

• The bonds carry interest at the rate of 8% p.a. payable half yearly i.e. 31st January and 31st July every year
• ECS facility is available – banks credit interest directly to bond holder’s account every 6 months through ECS
• Cumulative option is also available – in which case Rs. 1,000/- becomes Rs. 1601/- at the end of the term of 6 years

Liquidity

• Premature encashment is not allowed
• These bonds are not transferable and hence loans cannot be availed against security of these bonds.

Tax Benefit

• Interest is taxable
• No Tax is deducted at source(TDS) presently



Senior Citizen Savings Scheme, 2004

 

Who can invest?

•An individual who has attained the age of 60 years or above
• An adult individual who is above 55 years or more and who has retired – voluntarily or otherwise (within one month from the date of receipt of retirement benefit and an amount not exceeding the retirement benefit within the overall ceiling of the account)
•No age limit for Retired personnel of Defense Services Provided they fulfil other specified conditions.
•The account can be opened singly or jointly with spouse (the spouse may be below 60 years of age)
• Joint account holder can not be anybody other than spouse
• HUF’s and Non Residents are not allowed to invest

Where can one open this account?

• The account can be opened in Select Post Offices and branches of banks which accept PPF deposits

Amount

• Any number of accounts can be opened with each deposit in multiples of Rs. 1,000/-
• Maximum permissible investment Rs. 15,00,000/-
• Only one deposit account permitted in one calendar month for each depositor
• If both husband and wife are eligible to invest then each of them can invest up to Rs. 15,00,000/- taking the total to Rs. 30 lacs.

Requirements

• Joint photographs (both husband and wife in one photo)
• PAN Card or declaration in Form 60
• Age proof for the first holder
• Retirement Proof along with proof of retirement benefits received for depositors above 55 years but not above 60 years
• Photograph of nominee(s)

Term

• The full term of the account is 5 years which can be extended by 3 years on maturity Interest:
• 9% p.a. payable quarterly on 31st March/30th June/30th September and 31st December
• Only non cumulative option is available
• ECS facility has been made available in many deposit branches and hence interest can be credited directly to the depositor’s bank account

Nomination

• Nomination facility is available
• Joint nomination with percentage allocation is permitted
• Photograph and signature of the nominee(s) are also obtained and kept on the record of the deposit office

Premature closure

• Permitted only after one year from the date of deposit – in case of extreme emergencies premature closure within one year may be permitted on application to Ministry of Finance, Government of India
• In case of closure before 2 years but after 1 year an amount equivalent to 1.5% of the deposit amount is deducted as penalty – no deduction from interest already paid
• In case of closure after 2 years but before 5 years an amount equivalent to 15% of the deposit amount is deducted – no deduction from interest already paid
• In case of death of depositor full amount is paid without any deduction

Transferability

• A deposit account may be transferred from one deposit office/bank to another in case of change of residence, by making an application in specified form along with the pass book

Tax benefit

• Interest is taxable – no tax benefit
• Tax is deducted at source from the interest payable– senior citizens who are not assessed to Income tax can submit 15 H (if depositor is above 65 years of age) and form 15G (if not above 65 years of age) to avoid tax deduction at source from the interest
• Principal Amount can be considered towards the deductions u/s 80C


Useful Links

 

Indian Post Office

Download Forms from Indian Post Office Website

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