Gold Monetisation Scheme

Investments for Wealth Generation

What is Gold Monetisation Scheme?

Gold is the staple status commodity of India. The demand for gold has risen over the past few decades but the value have seen unanticipated fluctuations resulting in a deficit in the country’s current account.

In order to encourage the citizens to be more invested in gold the Government have introduced the Gold Monetisation Scheme to store gold in any form (bullion or jewellery). The gold will earn an interest on the gold weight as it is lent to banks for a higher rate of interest.

Individuals who look to invest their gold to earn a high interest tax free

Investors who want to buy physical gold

Highlights

  • RiskRisk is linked to the value of gold in the market
  • ReturnsNot fixed, pain in gold terms
  • TaxationFully exempted
  • Lock-in LimitationsMinimum one year. Varies for short, medium and long term.
  • WithdrawalsThe bonds can be redeemed or transferred after the lock-in period
  • Capital ProtectionThere is no protection for the capital as it is linked to the gold prices in the market
  • Inflation ProtectionThere is no cover for inflation

Investment Goal

The aim of this scheme is to encourage investors to invest their gold in storage and earn interest over a period of time.

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Overview

FeatureDescription
Eligibility

  • A resident of India, including

    • Individuals

    • HUF

    • Companies or associations




Entry AgeNo age limit prescribed
Investment

  • Minimum: 30 gram of gold

  • Maximum: 4 kilograms of gold p.a.


InterestPaid in terms of gold
Tenure8 years
Exit OptionPremature closure is not permitted

Capital & Inflation Protection

There is no capital protection as the bonds are linked to the price of gold in the market.

If gold prices along with the interest beat the inflation there will be positive returns, else there is no inflation protection for these bonds.

Guarantees

The gold for which the investor buys the bonds is secured. The amount of interest that is paid in terms of gold and is fully exempted from tax with no capital gains.

Liquidity

It can be redeemed in preference of either in gold or rupee value which has to be decided at the time of deposit.

Tax Implications

The capital gains that an investor earns from the bonds are exempted from capital-gain tax, wealth tax and income tax on its redemption.

Account Setup Information

How to invest?

The gold purity must be ascertained at a testing centre. If the test passes the criterion set a certificate is issued which can be used to make the deposit in the bank.

Key Takeaways

  • The gold deposited will be melted down and the form will be different at time of redemption
  • This scheme offers interest payable on gold and the interest of your deposit
  • This scheme also includes the initiative by Prime Minister Narendra Modi, Indian Gold Coin, which aims to monitise the idle gold lying with citizens.  The 24 karat gold is made as per BIS Standards by Metals and Minerals Trading Corporation of India (MMTC) that has high liquidity and cannot be duplicated as it comes with Tamper-proof packaging.

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Bank Fixed Deposit

Investments for Wealth Generation

What is Bank Fixed Deposits?

Fixed Deposits is a way to park your money for a long period of time after which you take away a substantial interest of 6.75%. Most conservative Indians would choose an Fixed Deposit because it doesn’t fail to protect the investment especially when it comes to inflation.

A Fixed Deposit can be opened with an minimum amount of Rs.1000 easily by anyone who has an account. You can also withdraw your funds after paying a penalty.

Receive tax benefits on your Fixed Deposits with a rate of just 10% taxable on your interest above Rs. 10,000. As you remain invested for 5- 10 years with a bank fixed deposit you tend to earn more returns than that of savings bank account.

Risk averse investors who can remain invested for more than 5 years looking for steady returns through lump sum deposits.

  • Investors looking to build a corpus over a long period regardless of earning inflation beating returns.
  • Investors who are able to make regular small deposits.
  • Debt Mutual Funds 
  • National Savings Certificate
  • Post-office time deposits
  • Company Deposits

Highlights

  • RiskThe risk is absolutely minimum.
  • ReturnsPre-determined interest rate for the tenure of the deposit.
  • TaxationThe initial deposit is eligible for tax deduction under 80(c) however the interest earned will be taxable as income from other sources.
  • Lock-in LimitationsThe duration is 60 days to 5 years.Withdrawals –  Access to funds will be subjected to penalties.
  • Capital ProtectionThe investment is completely secure up to Rs. 1 lakh.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

The main objective is to provide conservative investors a platform to earn guaranteed returns than that of saving accounts.

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Overview

FeatureDescription
EligibilityResidents of India and Non Residents (Clauses apply)
Entry Age

  • Individuals over 18 years of age

  • Guardians can open accounts for minors.

Fee Structure (Account Opening Fee & Maintenance Charges)

  • Minimum amount is Rs.1000.

  • Special interest rates for deposits over 15 lakhs.

  • No maximum limits

InterestThe current rate offered by bank is 6.75% p.a depending on the deposit duration.
TenureUp to 10 years.
Exit OptionPremature exit permitted with penalty.
Account Holding Categories

  • Individual (Minors through a guardian)

  • Joint Account

  • Companies/ associations/ trusts

  • Hindu Undivided Family (HUFs) uninvolved in trade or business.


Nomination facilityThis provision is available.

Capital & Inflation Protection

Your capital is completely safe as a sum of maximum 1 Lakh only is insured by the DICGC.

There is no protection when the rate of inflation is more than the rate offered by the savings bank account. Hence the account earns no real returns.

Guarantees

Pre-defined interest rates through out the investment tenurity decided at the time of account opening.

Liquidity

The account has limited liquidity as it comes with a predetermined lock-in period and  withdrawals can be made but are subjected to penalties.

Tax Implications

  • Under Section 80 (C), a  deposit with maturity of 5 years is eligible for tax deduction.
  • The interest amount is treated as income from other sources and taxed accordingly.
  • The tax is deducted at source (TDS) at the rate of 10% when interest is above 10,000 or 50,00 in the case of senior citizens.

Account Setup Information

How to open?

An account can be opened in any Nationalised, Private-Sector or foreign bank with a chosen nominee and completion of the KYC process with your current bank.

How to operate?

Start a deposit with a cheque issues through your current savings account for which you receive a certificate with details of the same.

Online Access

  • E-banking or internet banking enables the user to open the account conveniently with a few clicks from home or workplace.
  • It allows you to access your account, transfer funds from savings bank to fixed deposit and redeeming it at the end of the tenure.

Key Takeaways

  • A term deposit scheme issued by Central Government of India(CBI) in 2006 offers 5 year tax saving FDs without premature withdrawals and auto-renewal options.
  • A bank fixed deposit offered guaranteed returns with maximum leave of safety.
  • The senior citizens relish an exemption on interest upto Rs.50,000.

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Post-Office Monthly Income Scheme

Investments for Wealth Generation

What is a Post-Office Monthly Income Scheme?

Usually known as POMIS, the post-office monthly income scheme is a Government backed savings investment. This account assures regular monthly income with a current interest rate of 7.7% per annum.

There are no tax benefits and TDS on this scheme. While computing income tax, the interest is treated as income from other sources.

The account can be opened with a minimum investment sum of Rs. 1,500. You can also close this account prematurely after paying penalty for early withdrawal or closure.

Risk averse investors seeking guaranteed regular returns from savings.

Those not looking for regular income.

  • Pradhan Mantri Vaya Vandana Yojana
  • Senior Citizens Savings Scheme
  • Life Insurance annuity plans 
  • Systematic Withdrawal Plan from debt mutual funds  

Highlights

  • RiskIt is completely risk-free making it the best choice for risk averse investors.
  • ReturnsThe scheme currently offers an interest rate of 7.7% p.a. and is lined with G-sec rates.
  • TaxationThe interest earned is treated as “income from other sources” and taxed accordingly.
  • Lock-in Limitations5 years.
  • WithdrawalsPremature withdrawals are subjected to penalty.
  • Capital ProtectionIt is a Government scheme so the capital is completely secure.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

It is an Indian Government initiative with the objective to provide a risk free scheme to conservative investors, that yields guaranteed monthly returns and helps them earn a regular income.

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Overview

FeatureDescription
EligibilityAn Indian Resident holding a post-office savings bank account.
Entry Age

  • No age barriers.

  • Minors can hold an account, with a limit of 3 lakh, on their name, provided they are above 10 years.


Fee Structure (Account Opening Fee & Maintenance Charges)

  • Start POMIS with Rs. 1500 min.

  • The upper limit for a sole account is Rs.4.5 lakh and Rs. 9 lakh for a joint account.


InterestInterest rate of 7.7% p.a.is paid monthly.
Tenure5 years.
Exit OptionPremature closure is subjected to penalty.
Account Holding Categories

  • Individual (Minors through a guardian)

  • Joint Account


Nomination facilityThis provision is available.

Capital & Inflation Protection

Since this scheme is provided by the Indian Government, your investments are completely risk-free.

There is no protection when the rate of inflation is more than the rate offered by the post-office monthly income scheme. Hence the account earns no real returns.

Guarantees

The interest rate currently is 7.7% per annum. Once the investor has made his deposit, the interest (in line with G-secs of similar maturity and a spread of 0.25%) won’t change and will be notified every quarter.

Liquidity

  • Premature withdrawal is permissible post 1 year of account opening, however you are subjected to penalty that varies between 1-2%, based on account tenurity.
  • Closure on or before 3 years of account opening reduces 2% of the deposit and you receive the balance. Post 3 years, 1% of the deposit is deducted and treated the same.

Tax Implications

  • No tax benefits.
  • The interest amount on maturity is treated as income from other sources and taxed accordingly.
  • No tax is deducted at source (TDS).

How to open?

An account can be opened in any head or general post-office with the following requirements:

  • To link monthly payout, you must open a post-office savings account
  • Account opening form.
  • Passport size photographs – two
  • Aadhar card or acknowledgement of application in its absence.
  • Address and Identity Proof such as: PAN, Aadhar Card, declaration of Form 60 or 61, Driver’s License, Voter’s ID or Ration Card. (Carry originals of ID proof during account opening for verification purpose.)
  • Opt a nominee.

How to operate?

The account holder must use a pay-in-slip and credit the initial account opening amount to his/ her account.

Online Access

This scheme has no online options yet.

Key Takeaways

  • Investors earn guaranteed returns with POMIS.
  • No tax benefits and no TDS.
  • The scheme’s interest rates are aligned with G-secs of similar maturity and does not provide inflation cover.
  • You can transfer the account from one post-office to another.

Invest in Direct Mutual Funds to get better returns

Post-office Recurring Deposit

Investments for Wealth Generation

What is post-office Recurring Deposit?

Usually known as PORD, the post-office recurring deposit is a Government backed systematic savings plan with fixed interest rate.

This scheme provides guaranteed returns that help investors to save equal and sizeable sums of money over 5 years.

The account can be opened with a minimum investment sum of Rs. 10 and has no upper limits. You can also close this account prematurely but will be subjected to penalties

Risk averse investors who can remain invested for more than 5 years looking for steady returns through lump sum deposits.

Investors looking to build a corpus over a long period regardless of earning inflation beating returns.

  • SIP in Debt Mutual Funds 
  • Bank Recurring Deposit

Highlights

  • RiskIt is completely risk-free making it the best choice for risk averse investors.
  • ReturnsThe interest rate of 7.3% is compounded every quarter and is alined with G-sec rates.
  • TaxationThe interest is treated as “income from other sources” and taxed accordingly.
  • Lock-in LimitationsThe maturity period is for 5 years.
  • WithdrawalsPost one after of investment you can withdraw 50 % of the balance, above which penalties are applicable.
  • Capital ProtectionIt is a Government scheme so the capital is completely secure.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

It is an Indian Government initiative with the objective to provide a risk free scheme to conservative investors, that yields guaranteed returns on monthly deposit made over 60 months, compounded quarterly.

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Overview

FeatureDescription
EligibilityAn Indian Resident holding a post-office savings bank account.
Entry Age

  • No age barriers

  • Minors can hold an account on their name, provided they are above 10 years..

Fee Structure (Account Opening Fee & Maintenance Charges)

  • Start a PORD with just Rs. 10 (or in multiples of Rs. 5)

  • No upper limits.


Interest

  • Interest rate is 7.3% (Compounded quarterly)


Tenure5 years.
Exit OptionPremature closure is subjected to penalty.
Account Holding Categories

  • Individual (Minors through a guardian)

  • Joint Account


Nomination facilityThis provision is available.

Capital & Inflation Protection

Since this scheme is provided by the Indian Government, your capital is completely safe.

There is no protection when the rate of inflation is more than the rate offered by PORD. Hence the account earns no real returns.

Guarantees

The interest rate is currently 7.3%, compounded annually. Once the investor has made his deposit the interest (in line with G-secs of similar maturity and a spread of 0.25%) won’t change and will be notified quarterly.

Liquidity

After a year of investment, withdrawals up to 50% of account balance is permissible.

Tax Implications

  • Exemption upto Rs. 50,000 on interest earned is applicable for Senior Citizens.
  • The interest amount on maturity is treated as income from other sources and taxed accordingly.
  • No Tax Deducted at Source (TDS) is taken from this account.

Account Setup Information

  • How to open?
  • An account can be opened in any post-office with the following requirements:
    • Open a post-office savings account.
    • Account opening form.
    • Passport size photographs – two
    • Aadhar card or acknowledgement of application in its absence.
    • Address and Identity Proof such as: PAN, Aadhar card, declaration of Form 60 or 61, Driver’s License, Voter’s ID or Ration Card. (Carry originals of ID proof during account opening for verification purpose.)
    • Opt a nominee.
  • How to operate?

Make payments via cash, cheque or provide standing instructions to bank for money transfers to PORD. However, the account holder must use a pay-in-slip and credit the initial account opening amount to the account.

Online Access

This scheme has no online options yet.

Key Takeaways

  • Enjoy guaranteed principal and interest with PORD.
  • Save finite sums of money for a period of 5 years.
  • The scheme’s interest rates are aligned with G-secs of similar maturity and does not provide inflation cover.
  • You can easily transfer the account from one post-office to another with automatic renewal.

Invest in Direct Mutual Funds to get better returns

Post-Office Time Deposit

Investments for Wealth Generation

What is a Post-Office Time Deposit?

Usually known as POTD, the post-office time deposit is a Government backed savings scheme with interest rates between 6.9% – 7.3%, based on deposit tenurity.

This scheme provides guaranteed returns that help investors to save money for a defined period. Investors receive tax deductions up to 1.5 lakh under Section 80(C) of the Income Tax Act.

The account can be opened with a minimum investment sum of Rs. 200 and has no upper limits. You can also close this account prematurely post 6 months of initial investment.

Risk averse investors who can make a lump sum investment for 5 years or more with the expectation of guaranteed returns.

  • Those looking to build a corpus over a long period regardless of earning inflation beating returns.
  • Those who want to invest regularly with small sums of money.
  • Debt Mutual Funds 
  • National Savings Certificate
  • Bank Fixed deposits
  • Company Deposits

Highlights

  • RiskIt is completely risk-free making it the best choice for risk averse investors.
  • ReturnsThe interest rate varies from 6.9% to 7.3% and is alined to G-sec rates.
  • TaxationOnly a 5 year deposit receives tax deductions under 80(C).
  • Lock-in LimitationsHave a renurity ranging between 1 – 5 years.
  • WithdrawalsYou can withdraw your deposit prematurely or choose to borrow against the deposit.
  • Capital Protection:  It is a Government scheme so the capital is completely secure.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

It is an Indian Government initiative with the objective to provide a risk free scheme to conservative investors, that yields guaranteed returns on deposits depending on the tenurity of investment.

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Overview

FeatureDescription
EligibilityAn Indian Resident holding a post-office savings bank account.
Entry Age

  • No age barriers.

  • Minors can hold an account on their name, provided they are above 10 years..

Fee Structure (Account Opening Fee & Maintenance Charges)

  • Minimum investment is Rs. 200 (continued with multiples of Rs.200 henceforth)

  • No upper limits.

Interest

  • Interest rate is calculated quarterly .

  • Interest paid annually varies between 6.9% - 7.3% based on tenurity .

Tenure1 - 5 years.
Exit OptionPost 6 months of investment, premature closure is allowed.
Account Holding Categories

  • Individual (Minors through a guardian)

  • Joint Account

Nomination facilityThis provision is available.

Capital & Inflation Protection

Since this scheme is provided by the Indian Government, your investments are completely safe.

There is no protection when the rate of inflation is more than the rate offered by the post-office time deposit. Hence the account earns no real returns.

Guarantees

The interest rate currently varies between 6.9% – 7.3%, based on tenurity. Once the investor has made his deposit, the interest (in line with G-secs of similar maturity and a spread of 0.25%) won’t change and will be notified every quarter.

Liquidity

  • Premature withdrawal is permissible post 6 months of initial deposit, however if you wish to withdraw it before one year then the interest rate reduces to 4%.
  • Withdrawals post one year earns 1% less than what that specific tenure would earn from deposits.

Tax Implications

  • Exemption upto Rs. 50,000 on interest earned is applicable for Senior Citizens.
  • The scheme qualifies for tax deductions upto 1.5 lakh under 80(C).
  • The interest amount on maturity is treated as income from other sources and taxed accordingly.
  • Deposits below 5 years don’t gain any tax advantage.

Account Setup Information

How to open?

  • An account can be opened in any head or general post-office with the following requirements:
    • Account opening form.
    • Aadhar card or acknowledgement of application in its absence.
    • Address and Identity Proof such as: PAN, Aadhar Card, declaration of Form 60 or 61, Driver’s License, Voter’s ID or Ration Card. (Carry originals of ID proof during account opening for verification purpose.)
    • Opt a nominee.

How to Operate?

Make payments via cash or cheque.  However, the account holder must use a pay-in-slip and credit the initial account opening amount to the account.

Online Access

This scheme has no online options yet.

Key Takeaways

  • Investors earn guaranteed returns with POTD.
  • Tax deductions under 80(C) can be enjoyed by deposits made for 5 years.
  • The scheme’s interest rates are aligned with G-secs of similar maturity and does not provide inflation cover.
  • You can easily transfer the account from one post-office to another.
  • On maturity, extension of deposits is permissible.

Invest in Direct Mutual Funds to get better returns

Sovereign Gold Bond Schemes

Investments for Wealth Generation

What is Sovereign Gold Bond Schemes?

Gold is the staple status commodity of India. The demand for gold has risen over the past few decades but the value have seen unanticipated fluctuations resulting in a deficit in the country’s current account.

In order to encourage the citizens to be more invested in gold through bonds rather than the physical gold itself. This will provide a level of security and avoids additional costs of purchasing the gold directly.

Individuals who look to invest a large sum for 5-8 years in gold

Investors who want to buy physical gold

Highlights

  • RiskRisk is linked to the value of gold in the market.
  • ReturnsA fixed rate of 2.5% is payable twice every year.
  • TaxationThe capital gains are exempted from tax on redemption
  • Lock-in Limitations5 year lock-in limit
  • Withdrawals:The bonds can be redeemed or transferred after the lock-in period
  • Capital ProtectionThere is no protection for the capital as it is linked to the gold prices in the market
  • Inflation ProtectionThere is no cover for inflation

Investment Goal

The aim of this scheme is to encourage investors to buy gold in paper form and lower the demand for physical gold

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Overview

FeatureDescription
Eligibility

  • A resident of India, including

    • Individuals

    • HUF

    • Companies or associations



Entry AgeNo age limit prescribed
Investment

  • Minimum: I gram of gold

  • Maximum: 4 kilograms of gold p.a.

InterestFixed: 2.5% paid twice a year
Tenure8 years
Exit OptionPremature closure (before 5 years) is not permitted

Capital & Inflation Protection

There is no capital protection as the bonds are linked to the price of gold in the market.

If gold prices along with the interest beat the inflation there will be positive returns, else there is no inflation protection for these bonds.

Guarantees

The gold for which the investor buys the bonds is secured. The amount of interest that is paid twice a year is assured and fixed for the whole tenure of the scheme.

Liquidity

There is a lock-in of 5 years, after which the bonds can either be transferred or redeemed.

Tax Implications

The capital gains that an investor earns from the bonds are exempted from tax on its redemption. On transfer, the indexation benefit of capital gains is provided to the person.

Account Setup Information

How to buy?

The bonds can be bought in paper or demat form through banks, post offices or Stock Holding Corporation of India with the same KYC of buying physical gold.

Key Takeaways

  • The SGBs allow the investment in gold without the purchase of gold in physical form.
  • On redemption of bonds the investor receives the value equal to the quantity of gold invested .

Invest in Direct Mutual Funds to get better returns

Public Provident Fund

Investments for Wealth Generation

What is a Public Provident Fund?

Commonly known as PPF, the public provident fund is an Indian Government initiative with the objective to provide old-age financial security for employees.

This scheme is voluntary and the current interest rate is 8.0% per annum. It is fondly opted as it gets tax exemptions on deposits, maturity amount and the interest earned. This motivates and encourages investments.

Loans against PPF is permissible from the third year of investment. Premature closure is allowed after 5 years for the purpose of medical treatment or higher education and in case of account holder’s death.

Risk averse investors who can remain invested for 15 years or more to achieve long term goals and seek guaranteed returns through regular investments.

Investors willing to invest for 15 years and earn high returns by having equity exposure in their investments.

  • Equity Mutual Funds 
  • Direct Stock Investing
  • National Pension System for retirement

Highlights

  • RiskIt is completely risk-free making it the best choice for risk averse investors.
  • ReturnsThe current interest rate is 8.0% p.a. (announced every quarter by Ministry of Finance, India) and is lined with G-sec rates.
  • TaxationPopularly known for its “Exempt-Exempt-Exempt (EEE)” status. The deposits, interest and the maturity amount is tax free.
  • Lock-in Limitations15 years plus an extension of 5 years. However the contributions has to be made for 16 years.
  • WithdrawalsPremature withdrawals happen only in the event of the account holder’s death or post 5 years under specific conditions.
  • Capital ProtectionIt is a Government scheme so the capital is completely secure.
  • Inflation ProtectionWhen inflation is above interest, the account earns no real returns.

Investment Goal

It is an Indian Government initiative with the objective to provide guaranteed returns and also tax deductions on the interest, returns and maturity amount.

Download Finity app to get more returns

Invest in Direct Mutual Funds with zero commissions and no fees

Overview

FeatureDescription
EligibilityThe account holder has to be an Indian Resident
Entry AgeNo age barriers.
Fee Structure (Account Opening Fee & Maintenance Charges)

  • Minimum amount is Rs. 500 p.a.

  • The upper limit is Rs.1.5 lakh p.a.

  • The maximum number of deposits in a financial year is 12.


InterestInterest rate is 8.0% p.a. (Compounded annually).
Tenure15 years plus an extension of 5 years.
Exit OptionPremature closure is not allowed unless the death of the account holder or after completing 5 years under certain conditions.
Account Holding CategoriesIndividuals and Minors through a guardian.
Nomination facilityThis provision is available.

Capital & Inflation Protection

Since this scheme is backed by the Indian Government, your investment capital is completely risk-free.

There is no protection when the rate of inflation is more than the rate offered by the public provident fund. Hence the account earns no real returns.

Guarantees

The interest rate currently is 8.0% per annum and is in line with the G-sec rates of similar maturity (spread of 0.25%). The Ministry of Finance, Indian Government provides the PPF interest rates every quarter.

Liquidity

  • PPF comes with a lock-in period of 15 years (and an extension of 5 years).  However from the 3rd year, loans against PPF is permissible and from the 7th year withdrawals are allowed but are subjected to conditions.
  • Closure before 5 years is allowed only if the money is required for medical treatment or higher education. Generally, PPF closure takes place in the case of account holders death.

Tax Implications

  • Best known for its tax status “Exempt-Exempt-Exempt”, i.e. the deposits, interest earned and the maturity amount is free form tax.
  • Under Section 80(C) of the Income Tax Act, the investment amount receives deductions up to Rs. 1.5 lakh yearly.
  • The deposit in PPF account are also exempt from wealth tax.

Account Setup Information

How to open?

An account can be opened in any head or general post-office, State Bank of India, Branches of nationalised banks and even at Private-sector banks like ICICI Bank.

The following documents are required for the account opening process:

  • Account opening form.
  • Passport size photographs – two
  • Aadhar card or acknowledgement of application in its absence.
  • Address and Identity Proof such as: PAN, Aadhar Card, declaration of Form 60 or 61, Driver’s License, Voter’s ID or Ration Card. (Carry originals of ID proof during account opening for verification purpose.)
  • Opt a nominee.

How to operate?

The account holder must use a pay-in-slip and credit the initial account opening amount to his/ her account. You receive a passbook that has your photo affixed, also stating the name of the nominee.

Online Access

Only few banks offer the facility of opening a PPF account online.  

Key Takeaways

  • The scheme is backed by the Government of India and investors earn guaranteed returns.
  • The best scheme to enjoy tax exemptions on the deposits, interest earned and maturity amount. Also receive tax deductions under Section 80(C).
  • The scheme’s interest rates are aligned with G-secs of similar maturity and does not provide inflation cover.
  • The scheme comes with a lock-in period of 15 years and can be extended to another 5 years. Premature closure is allowed under certain conditions post 5 years or in the event of the account holder’s death.

Invest in Direct Mutual Funds to get better returns

Other Schemes – SEBI Classification

Other schemes- SEBI Classification

Other schemes- SEBI Classification

Other schemes as per SEBI Classification include:

  • Index Funds/ ETFs

These funds invest 95% of the investment corpus in securities belonging to a particular index which defines a market segment, like in bond or equity-oriented instruments like stocks. The famous stock indices in India are BSE Sensex and NSE Nifty. If you are looking for low or moderate risk instruments with predictable returns then, Index Fund/ ETFs is your ideal option. The top-performing Index Funds include: (more…)

Solution-Oriented Mutual Fund Schemes based on SEBI Classification

Solution Oriented Schemes

Solution Oriented Schemes

The various investors in the market invest for different reasons. Some invest to make high returns and some invest to perform speculation in the market. However, there are some investors who invest for particular goals such as: setting aside funds for retirement, education or marriage for their children. At times, such investors are unaware of investment management or the selection of funds. In situations like these, it’s recommended to opt for Solution-Oriented schemes that provide attractive returns by investing in them for a lock-in period of 5 years. As per SEBI, there are two categories of Solution-Oriented Schemes, namely:

  1. Retirement Fund: These schemes have a lock-in period of 5 years or till the retirement age (whichever is earlier).
  2. Children’s Fund: These schemes have a lock-in period of 5 years or Till the child turns 18 years(whichever is earlier).

(more…)

Finity Weekly Update (Issue #12): Life Hacks to a healthy & wealthy 2019 & more!

One of those lessons is that you aren’t in charge of everything. Do what you can, and then relax.

— Carl Richards, The Behavior Gap

As 2018 has come to a close, most of us will yet again commit to the most clichéd yet dreamy resolution – to get our health and wealth in the right shape. Years have changed, resolutions have been made, resolutions have been shattered and once again we believe that we will get it right this time.

However, this time is different. We are going to share a definitive guide to setting your health & wealth in order for sure. While at the end of the day it is only your personal effort that can make you stay the course, this is an attempt to minimising your efforts and yet achieving the desired results.

(more…)