SMALL SAVING SCHEMES OF BANKING SECTOR - EXAMDRAGON
  • Tue. Oct 27th, 2020
SMALL

Good evening aspirants, hope you are preparing hard for upcoming lateral entry banking exams of SBI, PNB and BOI. Today’s article is all about different government small saving schemes. Hope you find this article helpful and informative.

1.PPF (Public Provident Scheme)

Salient features :

  • Investment Limits A minimum of Rs.500.00 subject to a maximum of Rs.1,50,000 per annum may be deposited.
  • Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
  • The rate of interest is determined by Central Govt. on quarterly basis. At present it is 7.10% per annum with effect from 01.10.2019.
  • Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.
  • Income Tax benefits are available under Sec 80 of IT Act.
  • Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.
  • The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.

2.Senior Citizens Saving Scheme

Salient features :

The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.

The depositor may extend the account for a further period of three years after the maturity period of five years.

The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly.

If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.

The whole amount of deposit in a joint account shall be attributable to the first account holder only.

Both the spouses can open single account and joint accounts with each other.

The depositor may nominate a person or more than one person.

Nomination made by the depositor can be cancelled or varied.

The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.

Multiple withdrawals from an account shall not be permitted.

3.Sukanya Samriddhi Account Scheme,2019

Salient features :

Transfer through Cash, cheque and demand draft

Transfer/ online transfers through internet Banking

To promote the welfare of Girl Child

A natural/ legal guardian on behalf of a girl child

Up to two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children.

Min.250 of initial deposit with multiple of one Fifty rupees thereafter with annual ceiling of Rs.150000 in a financial year.

Tenure of the Deposit is 21 years from the date of opening of the account.

Maximum period up to which deposits can be made 15 years from the date of opening of the account.

As notified by the GOI, compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands.( Current rate 8.40% w.e.f 1st Oct, 2019)

As applicable under section 80C of the IT Act, 1961. In the latest Finance Bill, the scheme has been extended Triple exempt benefits i.e. there will be no tax on the amount invested, amount earned as interest and amount withdrawn.

Irregular Payment/ Revival of account by payment of penalty of Rs.50 per year along with the minimum specified amount per year

Withdrawal : 50% of the balance lying in the account as at the end of previous financial year for the purpose of education, marriage after attaining the age of 18 years.

4.National Pension Scheme (NPS)

Salient Features :

National Pension System (NPS) is a defined contribution pension system introduced by the Government of India as a part of Pension Sector reforms, with an objective to provide social security to all citizens of India. It is administered and regulated by PFRDA.

Tier I – Pension account (Mandatory A/C – Tax benefit available)

Tier II – Investment account (Optional A/C – No tax benefit but corpus is withdrawable anytime) Rs. 50,000/- in a Financial Year.

Minimum Contribution during A/C opening is Rs.500 for Tier I

Minimum Contribution during A/C opening is Rs.1,000 for Tier II

Minimum total contribution in a year Rs.1,000 (Min. amount per contribution Rs.500) for Tier I

Minimum total contribution in a year N.A. (Min. amount per contribution Rs.250) for Tier II

A very low-cost product with Fund Management Charges of 0.01%.

Attractive market linked returns

Flexibility of Investments– Subscriber may select a Pension Fund Manager (PFM) of their choice. Subscriber is allowed to change PFM once during a Financial Year. Subscribers may also define their asset allocation, which may be changed twice in a given Financial Year.

Portable across jobs and geographies.

24 X 7 X 365 through Web & Mobile App of Central Recordkeeping Agency (CRA)

One-time shift to NPS- Existing corpus under Superannuation can one-time be transferred to NPS without any Tax Incidence

Continuation in NPS scheme post retirement – Provision to contribute till 70 years or to defer withdrawal upto the age of 70 years.

Complete withdrawal for corpus less than Rs.2 lacs – In case total accumulated corpus is less than Rs.2 Lacs on attaining the age of 60 or later, subscriber may withdraw entire corpus.

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