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Fixed Deposits

Fixed Deposits are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.

Types of Companies offering Fixed Deposits

  • Financial Institutions
  • Non-Banking Finance Companies (NBFCs).
  • Manufacturing Companies
  • Housing Finance Companies
  • Government Companies

Features and Benefits

    • Company Fixed Deposits offer comparatively higher returns than banks.
    • Choose the best tenure for you from a wide range as per your convenience. You can choose how frequently you want to receive your interest payments:
  • Maturity
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
  • Company Fixed Deposits are non transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.
  • Premature encashment of deposit is available any time subject to payment of prescribed penalty.
  • Diversify Risk- The deposits should be spread over a large number of companies engaged in different industries. This way, you’ll be able to diversify your risk among various industries/companies.
  • Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.
  • Attractive rates as applicable from time to time.

An investment avenue in which an investor loans money to an entity (government or corporate) that borrows funds for a defined period of time at a fixed interest rate. Bond market has not attracted retail investors to it. But in recent times, lackluster equity markets and low rate of interest have attracted retail investors towards bonds issued by corporate.
Advantage: the rate of interest is high.
Disadvantage: no security, interest earned is taxable. So before investing in bonds do check the credibility of the company offering the bond and past record of the company.

7.75% RBI bonds

Bonds as issued by the Reserve Bank Of India (RBI). The rate of interest offered is 7.75 per cent, payable half yearly with cumulative and non-cumulative option available. Tenure is six years.Advantages: safety, guaranteed return.

Disadvantage: interest is taxable.

Government Securities

Retail investors have not tapped this investment avenue as much as others. It is good for investors looking for reasonable returns with no risk of default as the securities the Government offers these securities. These securities can be held in a demat format. The market is limited so liquidity can be a problem. Investors need to have a thorough knowledge of this investment format to invest in them. Well, then if you are the one who prefer the comforts of safety to the greed of high returns all the above debt instruments are yours to invest in.

Monthly Income Scheme (MIS)

  • Safe & sure way to get a regular monthly income
  • Specially suited for retired employees/ Senior Citizens or any one with high sum for investment
  • Rate of interest 6.6% w.e.f 1st April 2020
  • Maturity Period – Five Years
  • Auto credit facility to SB Account.
Type of Account Minimum limit Maximum limit
Single INR 1500/- INR 4.5 lakhs
Joint INR 1500/- INR 9 lakhs

Recurring Deposit

  • Any individual (a single adult or two adults jointly) can open an account
  • Advance Deposits earn rebate
  • Four defaults are allowed
  • Rate of interest 5.8%
  • Defaults can be paid within two months
  • Part withdrawal facility available
  • Premature closure allowed after three years
  • Pay Roll Savings Scheme is also available for employees of various Establishments
Type of Account Minimum Deposit Maximum Deposit
Individual Account INR. 10/- and in multiples of INR. 5/- thereafter No limit.

Time Deposit

  • Any individual (a single adult or two adults jointly) can open an account
  • Group Accounts, Institutional Accounts and Misc. account not permissible
  • Trust, Regimental Fund or Welfare Fund not permissible to invest
  • 1 Year, 2 Year, 3 Year and 5 Year TD can be opened
  • In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable
  • In case of premature closure of 2 year, 3 year or 5 year account on or after 01.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate specified for a period of deposit of 1 year, 2 year or 3 years as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules
  • Rate of interest – 5.5%, 5.5%, 5.5%, 6.7% compounded quarterly for 1, 2, 3 & 5 years TD account respectively w.e.f 01.04.2020
  • The investment in the case of 5 years TD qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007
Type of Account Minimum Deposit Maximum Deposit
1, 2 ,3 & 5 Year TD INR.200/- and in multiples of INR. 200/- thereafter No limit.

Senior Citizens Savings Scheme (SCSS)

  • A new avenue of investment and return for Senior Citizen
  • The account may be opened by an individual,
  •   Who has attained age of 60 years or above on the date of opening of the account
  •   Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement
  •   No age limit for the retired personnel of Defence services provided they fulfill other specified conditions
  • The account may be opened in individual capacity or jointly with spouse
  • Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account
  • The individual may open one or more account in the multiple of INR.1000/-, subject to a maximum limit of INR.15 lakh
  • No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years
  • Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.
  • In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest
  • Interest @ 7.4% per annum from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office
  • Interest rounded off to the nearest multiple of rupee one
  • Post Maturity Interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity
  • Nomination facility is available in the Scheme
  • The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

15 Years Public Provident Fund

  • Ideal investment option for both salaried as well as self employed classes
  • Non-Resident Indians (NRIs) not eligible
  • Investment up to INR. 1,50,000 per annum qualifies for IT Rebate under section 80 C of IT Act
  • From 1.04.2020, interest rates is 7.1% per annum (compounded yearly).
  • Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011
  • Withdrawal permitted from 6th financial year
  • Free from court attachment
  • An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons
Type of Account Minimum limit Maximum limit
Public Provident Fund
(Individual account on his behalf or on behalf of minor of whom he is the guardian)
INR. 500/- in a financial year INR. 1,50,000/- in a financial year.

National Savings Certificate


  • Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses
  • No maximum limit for investment
  • No tax deduction at source
  • Deposits qualify for tax rebate under Sec. 80C of IT Act.
  • The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
  • Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act
  • Certificates can be kept as collateral security to get loan from banks
  • Trust and HUF cannot invest
  • A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.
  • Rate of interest 6.8%
  •   *In case of NSC VIII and IX issue, transfer of certificates from one person to another can be done only once from date of issue to date of maturity.

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