Compare PPF, FD and NSC
Public Provident Fund, Fixed Deposit and National Saving Certificates
As an individual, I search for investment options for tax saving for financial year.
I have questions.
Where do I invest so that I can save my tax maximum PPF, FD , NSC, ELSS etc..?
Which are the best options?
Which options are safe?
Which option give more returns? Which option give different facilities like loan or withdrawal?
PPF
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FD
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NSC
| |
PPF (Public Provident Fund) is a saving-cum-tax saving scheme
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Fixed Deposit is Term Deposit. The interest rate is fixed for the whole maturity period
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National Saving Certificate
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Interest rate
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7.9% per annum
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6 to 7 % per annum (varies by bank)
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NSC IX 8.1%
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Lock in period
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15 Years
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5 years (tax benefit)
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5 year
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Min & Max
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Min 500 and Max 1.5 Lakhs
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any amount
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Min 100 and Max no limit
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Taxable benefit
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fully tax exempt under sec 80C
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tax exempt under sec 80C
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tax exempt under sec 80C
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Interest earned
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Tax-free
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Taxable
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Taxable
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Withdrawal
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from 7th financial year
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No
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No
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Loan
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Yes, Between 3rd to 5th Year. 25% of total balance of preceding year
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Yes
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Yes, from any bank
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Loan interest rate
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2% higher than deposits
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1% or 2%
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