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PPF to fetch 7.1%, NSC 6.8% as govt slashes small savings schemes interest rates

Rates of these schemes have been slashed by between 70 bps and 140 bps for the Apr-June quarter.

Small savings schemes' interest rates slashed. Should you continue with your investments?

Investors in PPF and Sukanya Samriddhi Yojana will see the impact immediately as lower rates will be applicable on accumulated balance. However, investments made in NSC, SCSS and others prior to the announcement would be shielded from the cut.

My PPF account will mature on March 31. Where can I invest this money for the short term?

There are few choices such as Post Office Time Deposits or debt mutual funds other than bank FDs. A one-year time deposit at the post office will earn 6.9%, calculated quarterly and paid annually. The minimum lock-in is 6 months.

ELSS Vs PPF Vs FD - What works for you?

ELSS tax saving mutual funds have been getting traction in the past few years as individuals are becoming more aware.

Why debt mutual funds don't earn fixed, pre-determined returns

Debt funds invest in fixed income securities such as bonds and deposits issued by the government, companies and institutions which typically pay a fixed amount of interest at a prespecified rate and frequency.

Should I continue with my PPF investment or invest maturity amount in mutual funds?

Whether you should continue with your PPF investment post maturity or invest the maturity proceeds in mutual funds depends on whether you need that money or not.

PPF scheme 2019: Loan against PPF account at 1% and other changes you need to know

The government via a notification dated December 12, 2019, has replaced the PPF scheme 1968 with the PPF scheme 2019. Though major features have been kept unchanged, a few small tweaks have been made in the scheme which you should know about.

My PPF account will mature soon. Can I keep it active without making fresh contributions?

If you choose to contribute for another 5 years, then you can still withdraw once every financial year but the sum of all withdrawals during the 5-year extension cannot exceed 60% of the balance at the start of the extension.

How should a 34-year-old govt employee invest Rs 20,000 a month for next 10 years?

Catering to a variety of needs such as kid’s education, asset building, wealth creation and retirement planning, start SIPs in mutual fund schemes. Also, buy a term plan of Rs 1 crore with an add-on rider of critical illness and accident disability.

PPF Scheme 2019: Account will not be liable to attachment

The new rules called the Public Provident Fund Scheme, 2019 have replaced all the previous PPF rules with immediate effect. New rules allow an individual to open an account by making an application in Form-1. However, no joint PPF account is allowed.

Why tax planning should not be the key driver of investment decisions

Personal financial situations are different at different stages of life. Hence, by locking your money in tax-saving products, which are typically long-term products, you might be making a mistake.

Personal finance basics: 5 things to know about PPF account

A public provident fund (PPF) account is an investment option that provides income tax deduction u/s 80C for the amount invested (subject to a limit of Rs 1.5 lakh a year). Due to the tax benefits offered, many assessees open PPF accounts.

PPF, NSC and other small savings schemes interest rates kept unchanged for March quarter

For the quarter ending March 2020, small savings schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC) will continue to fetch same interest rate. PPF will continue to earn 7.9 per cent during the quarter January to March 2020.

How PPF account works

What is the maximum age limit to open a PPF account?

The lock-in period for PPF account holder remains at 15 years irrespective of the age at which you open the account. On maturity, the account can be extended by blocks of 5 years any number of times. Banks cannot deny the extension based on your age.

I am moving to France for my new job. Can I keep my PF account active?

If the contributions are not made to the PF account, then the account becomes inoperative. However, the account will continue to earn interest.

I have saved Rs 20,000 from my pocket money. How can I grow this money in 10 years?

You can invest in mutual funds, preferably as SIPs over the next few months. You can keep topping up your investment every time you have funds to spare. You can start a SIP with you as the sole account holder represented by your parent or guardian.

I am a 38-year-old government teacher. How can I accumulate Rs 1 crore in 12 years?

​​Allocation to just one fund house exposes you to concentration risk. Ideally, a portfolio should be spread across three to four fund houses. Overall, one large-cap or index fund, one mid-cap and one multi-cap should suffice your purpose.

How much should I invest for next 25 years to create a retirement corpus of Rs 2 crore?

Do not set a target without assessing what your cost of living will be. You may need a higher corpus based on your living expenses later. Invest in EPF/PPF/NPS to the extent allowed for a tax deduction.

Tracking your investments is important to avoid over-diversification

No additional diversification is provided by investing in more funds beyond a point. Tracking is important.

Investing in these 7 equity mutual funds can give good risk-adjusted returns

The current economic environment is not conducive for equity markets and a broad-based equity recovery will only happen when the economy revives. Hence, it is advisable to look at risk-adjusted metrics to evaluate, identify good quality equity funds.

Govt may cut interest rate on PPF, NSC, other small savings schemes next quarter

During the current quarter, the government refrained from cutting interest rates on small savings schemes, such as Public Provident Fund (PPF) and National Savings Certificate (NSC), despite moderating bank deposit rates.

Should you worry about falling returns from equity and debt investments?

The concept of real return helps compare returns in different countries and currencies. For example, nominal return comparison between India and the US doesn’t make sense because the long term inflation in the US is quite lower than that in India.

3 steps to create wealth using asset allocation

​​Property, gold, PPF, bank deposits and PF are core components. You should start with these, and build them over time, and keep adding them to your portfolio without worrying too much about risk and return.

Can a senior citizen invest in PPF?

The only restriction is that an individual is permitted to open and operate only one PPF account at a time.

How a Public Provident Fund (PPF) account works

PPF accounts have a lock-in of 15 years. On maturity, the investor has the option of taking any one of the following steps- either withdraw the proceeds and close the account or continue the account for a block of five years.

How nominations work in insurance policies, bank accounts, shares, mutual funds, PPF

A nomination is a very effective tool to access assets such as PPF, mutual fund etc. in case of death. If there is no nomination, the legal heirs may have to go through a long drawn and cumbersome process of proving themselves as legal heirs

Should I include PPF in my portfolio?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

I am a single mother. How should I plan for my son’s education and my retirement?

You should consider increasing the SIP amount with a rise in income or top up with a lump sum whenever you have a surplus. Also, you should consider increasing your health insurance cover from time to time.

ICICI Bank slashes FD rates by up to 50 bps. Check the latest rates here

From now, the one-year FD will fetch 5.8 per cent per annum, down from 6.2 per cent (a 50 bps cut) and five-year FDs will now earn 6 per cent, down from 6.4 per cent (a reduction of 40 bps).

PPF, NSC, SSY and other small savings schemes' interest rates remain unchanged

All small savings schemes including PPF, NSC, SSY and others will continue to fetch the same interest rate between October and December quarter of FY 2019-20.

MF portfolio doctor: Why Chaudhari needs to defer retirement or hike SIPs

The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures.

How to invest Rs 2 crore to earn monthly income of Rs 2 lakh

To earn an income of Rs 2 lakh per month or Rs 24 lakh per annum from the corpus of Rs 2 crore, you must return of 12 per cent. However, there is no fixed income instrument that can currently offer you such rate of return.

I bought shares of stocks which have now depreciated by 40-60%. Should I book losses?

The decision to exit depends on your risk tolerance and ability to assess stock market fluctuations. If the companies you have invested in are fundamentally strong, you must hold these stocks and wait for the market to rebound.

How to invest in small savings schemes using the India Post Payments Bank app

The India Post Payments Bank (IPPB) offers a single view of all the post office investments and allows subscribers to manage thee efficiently. Subscribers are also able to deposit money online in their RD, SSY or PPF account using the IPPB application.

Tax-saving investments for FY 2019-20 allowed till June 30, 2020

According to chartered accountants, this means that individuals can complete their tax-saving exercise for the ongoing financial year 2019-20 by June 30, 2020.

Family finance: Aggressive investment will help Bhardwaj achieve all money goals with ease

Kuldeep Bhardwaj's goals include building an emergency corpus, buying a house, taking a vacation, saving for children’s education and weddings, and retirement.

Retirement planning: How to maximise returns from EPF, NPS investments

In the dynamic retirement landscape, EPF and NPS are critical pillars of your retirement planning.

I am told I cannot close my demat account till the balance is nil. How can I close this account?

The demat account can be closed by the individual once the balance of the account becomes zero.

MF portfolio doctor: Das can reach all money goals without increasing SIPs

The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of funds, goals, etc.

Should I extend my PPF account post maturity or shift to debt mutual funds?

"Whether to extend or redeem your PPF account will be best answered by your financial adviser who is familiar with your financial situation."

How to open a PPF account for a minor

Why you should not take loan against PPF account

As per new, revised rules, the interest rate on a PPF loan is charged at one percent per annum.

Do you need a demat account for investing in exchange traded funds?

The account can be opened through a broker only. The NSE has no role to play. It only serves as a platform for conducting and settling transactions.

9 smart money moves to improve your finances and make you richer in 2020

Many individuals may have lost track of investments done in the past and won’t even know if they still exist.

PPF, SCSS, post office savings schemes: Rules for death claims relaxed

The Department of Post has, via an order dated, May 20, 2019, amended the powers of various authorities to sanction claims of heirs of deceased people.

By investing Rs 3,000 a month can these mutual funds help me create Rs 1-2 crore in 19 years?

If you are open to looking at other products, allocate the amount needed for tax saving to the PPF and keep your mutual fund portfolio in open-ended schemes

A good mix of debt and equity mutual funds to build a portfolio

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

How to open a PPF account for your minor child

An individual with a PPF account of his own and as a guardian of his child can avail a maximum deduction of Rs 1.5 lakh taking both the accounts together.

3 easy steps to choose your tax-saving investments this year

You have exactly four weeks to finalize your tax-saving investments. In case you forgot, this is the first week of March, and you have to make your investments before 31 March to claim tax deductions on them in this financial year.

ELSS, PPF, NPS, ULIP: which is the best option to save taxes under Section 80C?

We have compiled the features of these investment options - both the qualitative and quantitative data - that would help you to compare and find the best tax-saving option for you.

How to open PPF account online in SBI, PNB, ICICI Bank, or HDFC Bank

To open a PPF account online in one of these Banks, you need to have access to the bank's Net banking portal.

What are the best investment avenues for a millennial to invest Rs 10,000 per month?

If you have a fixed timeline and wish to go with a low-risk product, then invest Rs 10000 per month in a low duration debt fund or open a recurring deposit a/c. A low duration debt fund has no exit load and the money can be withdrawn whenever needed.

Budget 2020 proposal for salaried professionals: PPF, NSC sops on cards to increase taxpayers' savings

Finance Ministry may allow tax exemptions of up to Rs 2.5L for savings and up to Rs 50,000 for NSC.

How pensioner can invest for his grandchildren

For long-term purposes, a grandparent can invest in large-cap mutual funds as they are less risky as compared to mid-and small-cap funds.

Can you open both Sukanya Samriddhi Account and PPF account for your minor child?

Your PF, existing mutual funds, fixed return schemes and stocks will help you increase your overall capital over time. Increased capital can also be utilised to raise monthly cash inflow.

Should I continue to invest in UTI Treasury Advantage Fund post DHFL bonds downgrade?

"The likelihood of an upgrade in the near term is remote unless there’s a strategic stake sale, which seems difficult in the current climate."

How should I invest my savings for my child's education?

To create a corpus for your higher education— around 15 years from now—invest your money in mutual funds schemes. You must also review and rebalance your portfolio regularly and do increase SIPs by 10 percent yearly to combat inflation.

Opting for new income tax regime? Don't stop investing in these financial products

Keep in mind that foregoing the deductions under Section 80 must not make you abandon certain instruments.

Can I continue to invest in PPF, Sukanya Samriddhi Yojna, mutual fund SIPs after I relocate abroad?

NRIs can't invest in PPF. So far as SIPs are concerned, whether you can continue with them will depend on the particular mutual fund.

Where should I invest Rs 30 lakh to generate monthly income of Rs 20,000?

You should split the Rs 30 lakh between a mix of government-backed schemes, mutual funds and corporate fixed deposits. Park Rs 4.5 lakh in a Post Office Monthly Income Scheme. This will earn you a 7.6 percent interest per annum, payable monthly.

Women are 'recklessly cautious' with savings, prefer to park money in FD, PPF: Survey

The survey said nearly 44 per cent of the women said easy access to their money is important to them when they save or invest their hard earned money.

Small savings rate may see moderation next quarter: DEA secy

During the current quarter, the government refrained from cutting interest rates on small savings schemes, including Public Provident Fund (PPF) and National Savings Certificate (NSC), despite moderating bank deposit rates.

Avail scheme to get out of demonetisation jam: Revenue secy Ajay Bhushan Pandey

The scheme will be with regard to unexplained bank deposits and not cash unearthed in raids. Finance minister Nirmala Sitharaman had announced a ‘Vivaad se Vishwas’ scheme in the budget with a view to cut down on litigation.

How should I invest my monthly surplus savings?

​​You can put some amount in Fixed Deposits and some amount in equity as well as in debt-oriented mutual funds. Buy an individual health cover with a sum assured of at least Rs 5 lakh.

Investing in PPF? Here's why you should do it before 5th of the month

According to PPF Rules, the interest on PPF deposits is calculated on the minimum balance between the fifth and at the end of the month.

Can you choose between existing income tax regime and new optional regime every year?

Budget 2020 has given taxpayers an option to continue with existing tax regime or opt for the new proposed tax regime by forgoing exemptions. The question arises whether a taxpayer can pick and choose between the two tax regimes every financial year.

ELSS’ appeal may fade under new tax regime

The new personal tax laws will allow individuals to opt for lower taxes, but they would not be able to claim various exemptions and deductions by investing in tax-saving products.

Now deposit more than Rs 25,000 in your PPF account at non-post office home branch

The revision was made after many complained about the difficulty in depositing cheques of more than Rs 25,000 for their small savings accounts. This move will allow account holders to deposit cheques of any amount in any non-home post office branch.

How to partially withdraw from your PPF

One is allowed to withdraw up to 50% of the PPF account balance after completion of five years from the end of the subscription year. Withdrawals are tax-free.

Which is the best tax saving option under Section 80C?

There is no universal best tax-saving option. The best tax-saving investment for you would depend on your investment objective, risk profile and time horizon. We have compiled the features of the most popular tax-saving investment options under Section 80C to help you to compare and choose the best tax-saving option for you.Which is the best tax saving option under Section 80C?

Where to invest now when interest rates are falling

A look at the options available to senior citizens/retirees who depend on it to meet their financial needs.

How much should I invest to build a retirement corpus of Rs 1 crore?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

How to calculate interest on PPF balance

According to PPF rules, the interest is calculated on a monthly basis but it is credited into the account at the end of financial year on March 31.

I want to save Rs 50 lakh to buy a house in next 20 years. How should I plan my investments?

Do not churn your portfolio or sell funds based on short-term performance. However, you should review the portfolio annually.

How to open an online PPF account with SBI

The tax benefit on amount invested, a tax-free return on maturity and the backing of the government on the account balance, makes PPF a rock-solid investment.

Best tax-saving options: Ranking of the top 10 instruments

ET assessed 10 tax-saving instruments on 8 parameters. Find out how the different options scored this year.

I already have a PPF account. Can I open another account in my wife's name and invest Rs 1.5 lakh?

You can open the PPF account in your wife's name and invest Rs 1.5 lakh per annum on her behalf. However, the money given to your wife will be clubbed to your income.

PPF, NSC rates may be lowered after RBI move

The finance ministry had agreed to move to a market-linked regime for small savings schemes.

5 women mutual fund investors share their journey (and one of them invests to buy an electric car)

"Earning is not enough, right to spend their money their way will make women financially independent”

What to do with your PPF account in India after becoming an NRI

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away.

Should you hike VPF contribution?

In addition to their normal contribution to EPF, employees can benefit from this higher interest rate by voluntarily contributing more – i.e. through VPF.

Adding more schemes will not offer higher returns

Many investors believe that if they are not doing something extra, something different, or something exotic, they will not make more money.

Family finance: Why this salaried couple will have to put off some of their financial goals

This Bengaluru-based couple has many financial goals. According to the financial planner, they will have to increase their equity exposure and secure their risks.

Family finance: Why Rawats should link their investments with money goals

The couple's goals include building an emergency corpus, buying a car and another house, child education and wedding, and their own retirement. By linking their investments with goals and securing their risks, Rawat's will ensure a smooth journey.

MF portfolio doctor: Singh must increase all SIPs by 10% every year to reach goals

Nalini Singh is investing in four equity funds to buy a house. Here’s why the doctor has advised her to increase investments or take a loan for this financial goal.

How can a doctor create corpus for child's education and retirement?

A doctor should invest the money in a mix of fixed income and market-linked products to save for a child's education and retirement.

Money & Relationships: 5 financial steps parents need to take when a child turns 18

When your child turns 18, it is important to guide and help him/her in financial responsibilities. Here’s how to apprise your child of his financial rights and the steps you need to take to ensure a smooth transition to adulthood.

How to build a corpus of Rs 5 crore in 25 years?

" Balance the risk-reward ratio by opting for a well-diversified bag of equity and debt funds to achieve your target corpus."

How to revive a discontinued PPF account

In case a PPF account holder fails to contribute the minimum amount in any financial year, the account is treated as discontinued.

Can you bank on debt mutual funds to create a retirement corpus

Most investment advisors advocate investing in equity mutual funds to create a retirement corpus.

Your PPF account may become irregular: Here's how

Regularising a PPF account is a long-drawn process, it is better to avoid seeing it go irregular.

How to build a corpus of Rs 5 crore in the next 20 years?

Broadly, a large-cap, mid-cap and multi-cap fund with around 80% allocation should be sufficient for one’s core portfolio.

Interest rates are falling: Retirees need to lock into higher rates now

Use the gap between the fall in 10-year yield and fall in yields of other products to lock into higher rates.

How to open PPF account online

To make the account opening process easier and more accessible, it is now possible to open PPF accounts online. This facility is available only with banks.

She accumulated Rs 32 lakh and thought she was investing, but she wasn’t…

A 30-year-old investor meets a financial planner. She wanted to make sure that she is investing right. What transpired between them make for a good reading.

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