What is National Savings Certificate?
NSC scheme is launched by the government to promote savings among the citizens. To encourage the taxpayers to invest in this scheme, the government has allowed this investment in NSC to be claimed under Sec 80C of the income tax law as the tax deduction.Types of NSC Certificates:

Types of NSC Certificates:
There are two types of NSC certificates that are available at the post office.

NSC Issue VIII
These certificates come in denominations ranging from Rs. 100 to Rs. 10,000. Key features of these certificates are that they come with a maturity period of 5 years and there is no cap on the maximum amount that can be invested.

NSC Issue IX
These certificates also come in denominations ranging from Rs.100 to Rs.10, 000. These certificates come with a maturity period that can be as long as 10 years. As is the case with Issue VIII, these certificates also come with no limit on the amount that can be invested in them.

Benefits:

• One can purchase the NSC by submitting an application in any of the post offices across India.
• NSC comes with a guaranteed interest and is completely risk-free.
• Interest is compounded and reinvested by default.
• Investments of up to Rs 1.5 lakh in the National Savings Certificate can earn the subscriber a tax rebate under Section 80C. Furthermore, the interests earned on the certificates are also added back to the initial investment and qualify for a tax break as well.
• There is no TDS on NSC payouts.
• There is no limit on the maximum amount that a person can invest in an NSC.
• The interest that is earned is also being reinvested in the NSC itself.
• Subscribers can avail loans from banks against their certificates purchased.
• There is a possibility where an individual can take NSC on behalf of a minor.
• A subscriber can nominate a beneficiary or nominee.
• One can transfer NSC’s from one post office to another and from one person to another.
• A duplicate certificate will be issued, in case it is lost.

Limitations:

• The maturity date for these certificates is set to be 5 or 10 years from the date of purchase.
  Interest rates vary with the type of certificate chosen; currently, 5 years certificate interest from January to March 2018 is 7.6%.
• Though NRI’s are not eligible to purchase NSC’s, if a person was a resident Indian at the time of purchasing the NSC and becomes an NRI during the maturity period, he or she shall be allowed to claim the benefits of this scheme.
• In case a National Savings Certificate has matured, but it has not been redeemed, the interest shall be given on such certificates for a maximum of 2 years from the date of maturity but Interest Rate would be as of Post Office Savings Account.
• NSC cannot be withdrawn before the maturity, except under circumstances like; death of the holder or holders in case of joint holders, by order of the court, the holder of the certificate has to forfeit them through a pledge.
• The National Savings Certificate is promoted as a savings scheme for individuals, which is why HUF’s and trusts cannot invest in it.

Eligibility:

• These certificates can be taken by an individual Indian resident and held as individual investments or taken and held as a joint investment.

Types of NSC holdings:

Single Holder Type Certificate
This certificate can be provided in an adult or to an adult on behalf of a minor and can be held only by one person.

Joint ‘A’ Type Certificate
The Join ‘A’ Type certificate is one which is issued jointly to two adults and is payable to both jointly when the certificates mature.

Joint ‘B’ Type Certificate
This certificate is issued jointly to 2 adults and is payable to either of the holders when the certificate matures.

In short, when compared to other time-bound investments like LIC bonds and bank bonds, National savings certificate stands at its best with a more favorable lower lock-in period and high rate of interest.

What is Employee Provident Fund?
Employee’s Provident Fund (EPF) is a retirement benefits scheme that’s available to all salaried employees. It’s a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO). EPF is one of the main platforms of savings in India for nearly all people working in Private Sector Organizations.

Benefits:

• An employee has to pay a contribution of 12% of his salary and an equal contribution is paid by the employer. The entire 12% of your contribution goes into your EPF account along with 3.67% (out of 12%) from your employer, while the balance 8.33% of your employer’s side is diverted to your EPS (Employee’s Pension Scheme).
• The employee gets a lump sum amount including self and employer’s contribution with interest on both, on retirement.
• This generates an interest of 8% – 12%, which is decided by the government and the central board of trustees. The annual interest rate is available on the official EPF India website, and is currently at 8.75%.
• Provides financial stability and security after retirement.
• 50% of the contribution can be withdrawn, in the case to arrange funds for marriage, education need for self, child or any sibling.
• One can withdraw from their EPF account for house construction, repair, and maintenance or for housing loan repayment.
• EPF gives benefit for major surgical operations in a hospital for self or family (spouse, children, dependent parents) treatment.
• EPF provides a facility for nominating family members to receive funds after the contributor’s demise.
• One can transfer EPF account at the time of job change.
  If you withdraw after 5 years of total contribution to EPF (which includes multiple jobs) then your EPF withdrawal becomes tax-free.
• Universal account number or UAN, a 12-digit number by EPFO gives control of his account to the employee and minimizes the role of employer.

Limitations:

• For availing withdrawal for marriage and educational needs, you have to be in service for at least 7 years.
• If you availed a housing loan and wish to make any repayment, you have completed 10 years of service.
• Withdrawing EPF after job change is legal only when you are jobless for at least two months.
• Withdrawal of EPF before 5 years of completion of service attracts Tax Deducted at Source (TDS) at 10%.
• Exemption from TDS has been given to subscribers with no taxable income, provided they submit 15G/15H form.
• If you withdraw before completing a period of 5 years, then all your previous years’ income gets recomputed as if the fund was unrecognized from the very beginning.
• You can contribute the additional amount (over and above 12%) to Provident Fund by depositing VPF (Voluntary Provident Fund). However, the employer is not bound to make a matching contribution.

Eligibility:

Any Indian resident individual working in private sector organizations can contribute to EPF. To become a member of the Employee Provident Fund one has to fill Form 11 and Nomination Form.

Conclusion:

EPF certainly stands tall in investment avenues. The money is sovereign-backed and the interest earned is tax-free. In fact, it enjoys the Exempt, Exempt, Exempt (EEE) status as contributions are deductible from income. There is hardly any debt product that gives such high return with safety and assurance. Therefore, it is advisable to secure your financial future with the scheme like EPF.

What is Public Provident Fund?

Public Provident Fund (PPF) scheme is one of the most popular long-term investment options backed by the government of India which offers safety with attractive interest rate and returns that are fully exempted from tax. Investors can invest minimum Rs. 500 to maximum Rs. 1,50,000 in one financial year. PPF comes with a lock-in period of 15 years. The current interest rate on PPF effective from 1 January 2018 is 7.6% per annum. Interest will be paid on 31 March every year.

Benefits:

• PPF accounts can be opened in the post offices or any nationalized banks.
• PPF’s offer higher interest rates compared to fixed deposits.
• PPF comes under EEE tax status, which means that at the time of investment, the interest earned, and proceeds received at maturity are all tax-exempt or free.
• PPF accounts are also exempted from the ambit of wealth tax.
• PPF offers partial liquidity through loan between 3rd and 6th financial years of investment.
• PPF’s also provides partial withdrawal facilities which can be availed from 7th financial year on wards (conditions apply).
• Investors are even facilitated with nomination facility.

Limitations:

• Lock-in period of investment is 15 years.
• As per the Public Provident Fund scheme rules, the date of calculation of maturity is taken from the end of the financial year in which the deposit is made. It does not matter which month or the date the account was opened.
• Non-resident individuals (NRI), Hindu Undivided Families (HUF) cannot invest in PPF’s.
  Recently, the government notified that the day an individual becomes an NRI, the PPF account will be closed.
• If you don’t make at least minimum contribution, i.e. Rs. 500, in a particular financial year, your PPF account will become inactive.
• To revive an inactive account, you will have to pay a penalty of 50 per year for the number of years the account has been inactive along with a minimum contribution of Rs. 500 per year.
• Discontinued accounts will not be eligible for loans and withdrawals until the account is revived.
• If you opt for premature closure of the account, you must complete at least five financial years.

Eligibility:

• Only an Indian resident individual can open a PPF.
• Joint ownership of the account is not allowed.
• A minor is allowed to open a PPF account with a guardian and that guardian has to be only the father or the mother but not both or a court-appointed guardian.
• Grandparents cannot open a PPF account on behalf of their grandchildren except in cases where both the parents are dead.
• When compared to fixed deposits, investors who are looking for guaranteed high returns with high-interest rates, PPF is one of the best options to invest and enlarge their financial growth.

What is Atal Pension Yojana?

The Government of India, to address the longevity risks among the workers in the unorganized sector and to encourage the workers in the unorganized sector to voluntarily save for their retirement, especially the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). The government has launched Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period, the APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Benefits:

• Atal Pension Yojana is open for any citizen in India who is either working in the unorganized sector or not working at all.
• The APY scheme provides an option of getting a fixed pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 on attaining an age of 60.
• The benefit of fixed minimum pension would be guaranteed by the Government.
• The Government would also make a co-contribution of 50% of the total contribution, or Rs. 1000 per annum, whichever is lower, to all eligible subscribers who had joined between June 2015 and December 2015 for a period of 5 years i.e. for financial years 2015-16 to 2019-20.
• The scheme allows a subscriber to increase or decrease the pension amount during the course of the accumulation phase, once a year.
• In case of death of the subscriber, the spouse of his/her shall be entitled to the same amount of pension till his or her death.
• If both subscriber and spouse demises, the nominee will be entitled to receive the pension money that the subscriber had accumulated till 60 years of age.

Limitations:

• If you are a part of any other social security scheme and a taxpayer, then you are not entitled to government contribution. 
• If the subscriber dies before 60 years, the spouse will have the choice to either exit the scheme and claim the accumulated amount or continue maintaining the account under the subscriber’s name for the remaining vested years.
• For delayed contributions a penalty of Rs.1 to 10 per month for contributions up to Rs.100 to beyond 1001 per month. 
• In case the account does not receive payments for 6 months in continuation, the account would be frozen; deactivate if the account does not receive any premium for 12 months and the account would be closed altogether if the premium is not paid for 24 months in continuation.
• Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.
• As per circular dated May 2, 2016, on PFRDA website, voluntary exit in APY is generally not permitted. However, in case of exceptional circumstances such as terminal illness, or death of the subscriber, it can be allowed.

Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers:

The Table of contribution levels, fixed minimum monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below. For example, to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.

Table of contribution levels, the fixed monthly pension of Rs. 1,000.00 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Table of contribution levels, the fixed monthly pension of Rs. 2,000.00 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Table of contribution levels, the fixed monthly pension of Rs. 3,000.00 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Table of contribution levels, the fixed monthly pension of Rs. 4,000.00 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Table of contribution levels, the fixed monthly pension of Rs. 5,000.00 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

In a nutshell, Atal Pension Yojana is a noble scheme to uplift the financial status of the poor sections and a boon to the underprivileged groups in India.  This way, people who cannot afford the huge premium pension plans offered by private agencies and companies shall benefit from the low and secured plans of APY.

What are Pradhan Mantri Jeevan Jyoti Bima Yojana & Pradhan Mantri Suraksha Bima Yojana?
PMJJBY scheme offers life cover for the death of the insured. The scheme will be offered through LIC and other Life Insurance companies and banks that are willing to offer the scheme on similar terms. Whereas PMSBY is an Accident Insurance Scheme that offers accidental death and disability cover in case of death or disability due to an accident. The scheme is offered through public sector insurance companies and general insurance companies.

Though PMJJBY is Life Insurance and PMSBY is Accidental Insurance, there are several similarities and few differences among the features of both the schemes.

Benefits:

• Low premium with high benefit.
• Affordable even by people below poverty line.
• Financial security for the family.
• Easy premium payment via bank, auto debit from the account in May every year.
• Both of the PMSBY and PMJJBY schemes are available to all Indian residents regardless of the income that they earn.
• In case the subscriber has opted for both the schemes, the total insurance cover in the event of accidental death is Rs. 4,00,000.
• In case of death of the policyholder, the nominee need not pay the remaining premium, similar to other insurance policies.

Limitations:

• Subscriber must have a savings bank account.
• To claim the insurance, the nominee has to approach the bank wherein the member was covered under PMJJBY or PMSBY, along with the death certificate of the member and dully completed claim form.
• Risk cover under PMJJBY is applicable only after the first 45 days of enrollment. However, deaths due to accidents will be exempt from the lien clause and will still be paid.
• The schemes would be terminated if the premium is not paid on the time due.
• The assurance and benefits would be terminated in case of closure of the savings bank account through which auto-debit is guided.

In a nutshell, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Suraksha  Bima Yojana(PMSBY) are a boon to families with the family head as the main source of income. Under circumstances like death of the family head, families turn into a financial crisis. With a premium that is very much affordable by any class of the society to get benefited with 2,00,000 rupees after death and in providing financial security to the family, both schemes stand at their best.

What is Sukanya Samriddhi Yojana?
Save For Every Girl Child. Reinforcing this idea, the government of India as a part of the ‘Beti Bachao Beti Padhao’ campaign launched Sukanya Samriddhi Yojana (SSY) a girl child priority scheme. Which encourage parents to save for the education and future of their girl child. A number of minimum Rs. 1,000 to maximum 1,50,000 can be deposited into the SSY account in a financial year. Interest offered from January 1, 2018 – March 31, 2018 is 8.1%.

Benefits:

• SSY offers a high rate of interest amongst small saving schemes.
• Assured financial security to the girl child.
• SSY can only be opened in post offices and authorized banks.
• The account would be opened in the name of the girl child.
• Parents or legal guardians of the child can open and run the account till she turns ten. When she turns ten, the girl child an run the account herself, if she wishes so.
• A passbook will be given to check on the balance.
• SSY enjoys EEE tax exemption under section 80C of the income tax, which means, the investment that you made, interest accrued on the contributions and the final proceed amount are all tax-free.
• Investment with a lock-in period.
• Maturity amount is given directly to the girl child.
• 100% withdrawal is allowed when after the girl turns 18 years.
• Partial withdrawal of the balance can be allowed for girl’s higher education when she has cleared 10^th class or turned 18 years.
• You can transfer the account from one branch of the post office or bank to another.

Limitations:

• A maximum of two girl child would be covered under the scheme per any given parent.
• Account opening can take place for any girl child till she attains a maximum age of 10 years.
• Though the scheme offers a great rate of interest, the ROI is not fixed for the entire tenure. It may keep varying every year with market trends.
• Non-resident Indians can no longer open an SSY account. 
• Premature closing of the account can happen in the event of a death of the holder.
• In any other case, a request for the premature closure of an SSY account can be put forward after the completion of five years of the account opening (conditions apply).
• An irregular account where the minimum amount has not been deposited may be regularized on payment of a penalty of Rs 50 per year.
• If the penalty is not paid, the entire deposit, including those made before the date of default, will receive interest at post office savings bank account rate, which is currently 4%. 

Eligibility:

• A girl child is eligible for an SSY account only if she is a resident Indian citizen when the account is opened and remains so until the maturity or the closure of the account. 

In SSY, the deposits made possess financial security. No matter what the urgency could be, the money for the girl child would lie securely in the account. Thus, Sukanya Samriddhi Yojana scheme ensures that the education and marriage of girl child is not a financial burden on the parents and thus parents could promote their daughters accordingly.

What is Senior Citizen Saving Scheme?
Designated for individuals above the age of 60, the Saving Schemes for senior citizens in India are effective, long-term saving options and offer unmatched security and features that are usually associated with any government-sponsored savings program. The typical Senior Citizen Saving Scheme (SCSS) account extends up to 5 years and upon maturity can be subsequently extended for an additional 3 years. The depositor is allowed to make one deposit into this account, an amount that is a multiple of INR.1,000 and not extends beyond INR.15 lakhs. SCSS accounts are robust, safe, highly targeted and a long-term savings prospect.

Benefits:

• This is a Government of India sponsored investment product and comes with all the security and assurance associated
• A single applicant can open multiple SCSS accounts, either individually or with a joint investor (must be the spouse of the primary investor).
• At 8.3% per annum, the returns on your SCSS accounts are very impressive.
• Accumulated interest is deposited onto a designated savings account, maintained at the bank/post office, wherein the senior citizen saving scheme is maintained.
• The account has a tenure of 5 years but can be stretched to add another 3 years. Thus, your SCSS serves as either a medium range investment or a long-term plan.
• Investment in SCSS qualifies for deduction under Section 80C of the Income-tax (I-T) Act.
• Under extreme financial duress, your SCSS account can be closed and the money accessed.
• Nomination facility is also available for account holders. A depositor can also appoint a minor as his nominee.
• The account can be easily and quickly transferred from one bank/post office onto another.

Limitations:

• Only one deposit is permitted per SCSS account. The deposit must be in multiples of INR. 1,000 with a maximum permissible investment of INR. 15 lakhs.
• Interest on the money accumulated in the SCSS account is payable on 31st March/30th September/31st
• December in the first instance and thereafter interest is payable as of 31st March, 30th June, 30th September and 31st December of each year.
• It must be noted that cash is an acceptable medium of investment if the initial amount is less than INR.1 lakh. If this amount is larger than INR.1 lakh then a cheque must be used.
• If the depositor chooses to terminate the account prematurely then the following penalty applies- 1.5% of deposit amount after one year and 1% of the deposit amount after two years.
• Premature closure of the senior citizen saving scheme account is only possible after the account has been in operation for a minimum of one year.
• In case of joint accounts, the primary account holder is deemed the investor while the second stakeholder must be the primary account holder’s spouse.
• Tax is deducted at source if the accumulated interest on the invested amount exceeds Rs.10,000 per annum.

Eligibility for Senior Citizens Saving Schemes:

• Aged 60 years or above.
• Must be aged 55 years or above, but less than 60 years, provided he/she has retired from his/her employment as per VRS / Superannuation.
• In case of a joint account, the eligibility is decided per the aforementioned age requirements of the primary depositor. There is no age restrictions/requirements imposed on the second applicant.

A lucrative, savings-oriented investment option, the senior citizen saving schemes interest rate is set at 8.3% per annum. Instead of parking their savings in the low yield savings bank accounts or risky propositions like mutual funds, the senior citizen saving schemes offer the Indian senior population the option to invest in a safe, high yielding and popular savings portfolio.

What is Kisan Vikas Patra?
Kisan Vikas Patra is a small saving scheme which aims to double your money in 100 months or 8 Years 4 months. The scheme is mainly targeted at the group who does not have means or access to other financial investment options. KVP is sold by Government and can be purchased through any post office.

The Kisan Vikas Patra is of the following types:
Single Holder Type Certificate: Issued to an adult for himself or to a minor or on behalf of a minor.

Joint A Type Certificate: Issued to two adults jointly and is payable to both the owners or to the survivor.

Joint B Type Certificate: Issued jointly to two adults and is payable to either of KVP holders jointly or to the survivor.

Benefits:

• It is a scheme offered by the Government of India and hence the investor can be sure of returns on invested amount.
• There is no cap on the amount that one can invest in KVP.
• Kisan Vikas Patra certificate can be presented as collateral against loans. Investors can use the same to obtain a loan from banks.
• Applicants also have the option to withdraw the amount prematurely in KVP. The lock-in period is two years and six months.
• Kisan Vikas Patra is transferable from one person to the other.

Limitations:

• The amount invested in KVP’s are not eligible for tax rebate u/s 80C.
• The interest on KVP is not exempted from the levy of income tax and would be levied as per the slab rates.
• TDS @ 10% would also be deducted from the interest.
• If the instrument is not redeemed post maturity then the amount will earn simple interest at the rate applicable for Post Office Saving
• KVP scheme is open only for resident individuals. NRI’s, HUF’s, Co-Operative societies and Co-Operative Banks are not eligible to invest in Kisan Vikas Patra.

Eligibility:

• The applicant must be an adult and a resident of India.

Kisan Vikas Patra comes with an attractive interest rate of 7.3% per annum. KVP’s offer high liquidity to investors, who can sell them after 2.5 Years. National Saving Certificates (NSC) on the other hand have 5 year maturity period. PPF has 15 year maturity period.