Government relaxes rules for PPF, SCSS and time deposit accounts; all you need to know

livemint.com:

Senior Citizen’s Savings Scheme (SCSS), and Time Deposit Scheme have changed. The regulations have now eased, thus, allowing more inclined investors to benefit from putting their money in them. The following list provides a summary of the nine categories of small savings schemes provided by the Indian government at present.

Objective: To create a systematic deposit over a predetermined period. Interest Rate: Up to 7.5% per annum. Term: 5, 10, or 15 years.

Investment Amount: Minimum of Rs. 100 per month. Tax Implications: Taxable interest income.

Objective: Accumulating long-term savings for retirement or other objectives. Interest Rate: Currently at 7.1% per annum. Term: 15 years.

Investment Amount: Minimum of ₹500 per annum. Tax Implications: Interest income deferred until maturity. Objective: Saving for a girl child’s higher education or marriage.

Interest Rate: Presently at 8% per annum. Term: Up to 21 years. Investment Amount: Minimum of ₹250 per month.

Tax Implications: Tax-exempt interest income. Objective: Encouraging savings among women. Interest Rate: Currently at 7.5% per annum.

Term: Up to 2 years. Investment Amount: Minimum of Rs. 1000 per annum.

Tax Implications: Tax-exempt interest income. Objective: Mobilizing savings from rural households. Interest Rate: Currently at 7.5% per annum.

Term: 113 months Investment Amount: Fixed amount (based on tenure). Tax Implications: Capital gains on maturity are tax-exempt. Objective: Providing fixed-income investment options.

Interest Rate: Currently at 7.7% per annum. Term: 5 years Investment Amount: Fixed amount (based on tenure). Tax Implications: Taxable interest income.