The Economic Times
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| 11 August, 2020, 09:15 AM IST | E-Paper

    Govt relaxes norms for PPF, SSY and RD account holders

    The relaxations with respect to small savings schemes have been extended to July 31, 2020, due to on-going novel coronavirus pandemic situation in the country.

    PPF: 7 things you should know about Public Provident Fund

    A PPF account matures in 15 years. After the account matures, you can either withdraw the entire balance and close the account or extend it for five years with or without making further contributions.

    PPF, NSC and other post office schemes interest rates remain unchanged

    For the quarter 1 of FY 2020-21, the government had slashed rates of small savings schemes by 0.7-1.40%. If the government had cut rates for this quarter as well in the similar fashion, then PPF would have fetched returns below the 7 per cent mark - a 46-year low.

    How can I invest surplus of Rs 25,000 per month to meet my money goals?

    The investment decision must be re-evaluated based on current investments and liabilities, future plans and financial goals.

    Are direct mutual fund plans better than regular plans?

    You should go for the direct mutual fund plans if you can monitor your investments well or use the service of a fee-based adviser.

    MF portfolio doctor: 5% hike in mutual fund SIPs can help Nanvani meet all money goals

    The mutual fund portfolio doctor assesses the health of the portfolio, examines the schemes and their suitability to the goals and recommends corrective measures. ​​The advice given is based on the performance of the funds, the risk profile and financial goals of the investor.

    5 voluntary retirement products that you can consider

    Mutual funds also offer designated pension plans. One can choose to remain invested and receive a periodic payment in the form of dividend or redemption while the rest of the funds continue to remain invested and grow.

    What kind of mutual fund investments should I make to accumulate a comfortable retirement corpus?

    Assuming a monthly income of Rs 1 lakh and inflation at 3% per annum thereafter, you may need a corpus of around Rs 3 crore.

    Too many mutual funds in your portfolio may harm rather than help: Here's why

    With an over-diversified portfolio, you are not giving enough heft to any fund to meaningfully add value. A modest outlay will prevent even the best performers from moving the value needle much.

    Pros and cons of investing in NPS for retirement saving

    National Pension System is an investment product to save for retirement. However, among millennials, very few like to invest in such a product with a long lock-in period but this pension scheme has everything an investor looks for in a retirement plan.

    No penalty, revival fees for PPF, RD and other small savings schemes

    The decision has been taken by the Ministry of Finance as many investors have not been able to deposit money into their accounts on time due to the nationwide lockdown.

    Small savings scheme, PPF rates remain unchanged

    ​During the start of the first quarter of FY21, the government had lowered the rates on various schemes by as much as 1.4 percentage points. Interest rates on small savings schemes are reviewed and applied on a quarterly basis. At the end of the March, the government reduced the rates on time deposits from 6.9% in the last quarter of FY20 to 5.5% in Q1 of this fiscal.

    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.

    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.

    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.

    I want to build corpus of Rs 2 crore by 2035. How can I do that via mutual funds?

    To generate a corpus of Rs 2 crore by 2035, your monthly investment of Rs 40,000 would need to register an annualised return of 12 per cent.

    PPF rate may fall below 7% to a 46-year low

    Since 1 April, the 10-year bond yield has till now averaged 6.07% and currently stands at 5.85%, which clearly means a rate cut is in the offing for small savings schemes.

    PPF rate may fall below 7% to a 46-year low

    Short-term deposit rates are now very close to or even less than what savings bank accounts offer.

    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.

    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.

    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.

    FDs, PPF gave higher returns than SIPs in equity MFs over five years

    Gross inflows into MF schemes via SIPs in June fell to Rs 7,927 crore from Rs 8,123 crore in May.

    Should I redeem investments from underperforming mutual fund schemes once the market recovers?

    Funds with value strategy have seen prolonged underperformance. Since you have a couple of them, these are likely pulling down your returns. Hold and stop fresh SIPs in them. Wait for a turnaround in this strategy and then reduce exposure.

    How PPF account works

    The Public Provident Fund (PPF) is one of the most popular investment options in India. One of the reasons for this is the tax benefit it offers - it comes under the EEE (exempt-exempt-exempt) tax status. Due to the tax benefits offered, many open PPF accounts with their bank/post office to build a sizeable corpus.

    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.

    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.

    How to save enough to make tax-saving investments

    Low income reduces one’s ability to save. For a young earner, the tax-saving instruments under Section 80C are perhaps the only avenues to accumulate some wealth.

    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.

    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.

    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.

    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.

    REITs one of the most viable investment alternatives outperforming other financial products: Report

    The report also pointed out that REITs are relatively secure as 80% of the underlying assets in REITs are required to be operational and income-generating.

    Interest on PPF, savings bank deposit to be included for calculating GST registration threshold: AAR

    Under the Goods and Services Tax law, businesses and individuals are required to obtain GST registration if their aggregate turnover is Rs 20 lakh or more. AMRG & Associates Senior Partner Rajat Mohan said this ruling may lead to homemakers, retired persons and freelancers taking GST registration.

    I am 25 and earn Rs 4.8 lakh per annum. Where should I invest Rs 10,000 for the next seven years?

    You should consider the risks and only if you are comfortable, you can invest in large-cap funds like the Axis Blue Chip Fund and in low-cost index funds like HDFC Index Fund - Sensex Plan or Motilal Oswal Nifty 500 Fund.

    My grandfather left me Rs 1 lakh in his will. How should I invest this amount for 5 years?

    For a 5-year window, you can opt for schemes such as the NSC, Post Office Time Deposit or Post Office Monthly Income Scheme (POMIS). The NSC offers you 6.8% interest, while POTD and POMIS offer 6.7% and 6.6% returns respectively.

    Tax optimiser: IT professional Agarwal has limited scope to cut income tax

    Pune-based IT professional Girish Agarwal utilises most of the income tax deductions available to him and his salary structure is also quite tax-friendly Due to this, there is not much of a scope to further reduce his income tax liability.

    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.

    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.

    Can I add Invesco India Contra Fund to my mutual fund 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 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.

    Can I make a personal contribution to my EPF account as I have quit my job to start a business?

    The total Employees Provident Fund (EPF) balance at any point of time includes the employee's contribution and that of the employer, along with the interest accrued.

    Common application form issued for PPF, NSC and other small savings schemes

    It must be recalled that the finance ministry had revised rules and introduced separate forms for each small savings scheme via a notification in December 2019.

    Tax optimiser: Finance professional Aikat can save tax by Rs 25,000 via NPS, perks

    ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

    EPF may not give more than 7% interest for FY19-20 due to coronavirus impact: Here's why

    The coronavirus-led stock market crash or the sharp drop in equity market has dented its corpus.

    Want to know how much life insurance cover you should have? Here are two ways to calculate

    The first step of a financial plan is to make sure that your insurance needs are covered.

    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.

    Tax optimiser: IT professional Sharma should use NPS instead of PPF to save tax

    ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

    Andhra Pradesh government drops aerotropolis in Vizag, airport alone to be built

    ​​In January 2018, the then Chandrababu Naidu government had said it wanted to build an aerotropolis that would include aviation-linked manufacturing units, aircraft maintenance, repair and overhaul (MRO) facility, research and development centre and test laboratories, multi-modal logistics, exhibition and conference centers, leisure and entertainment facilities, aviation education and training facilities.

    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 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.

    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.

    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."

    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.

    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.

    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.

    Govt eases norms for PPF and Sukanya Samriddhi account holders due to COVID-19

    To keep these accounts active the subscribers are required to make some specified deposit in a year otherwise penalty is charged over that. Usually, subscribers make a payment towards the end of fiscal as these schemes are part of 80C of the Income Tax Act.

    EPF contribution at 10% likely to push up your take home by only 1-2%

    As per the analysis, a 4% gross increase of basic wages due to reduction in EPF contribution to 10% for both employers and employees for May, June and July 2020 may not make a material difference to an employee.

    How to access post office savings account online

    There are two ways to access and download the statement of your post office savings account - Internet banking and mobile banking.

    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.

    If there is demand for credit, banks are ready to lend: Ashutosh Khajuria

    'Monetary transmission happens when the dependence is more on market fund'

    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.

    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

    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.

    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

    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.

    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 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.

    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.

    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.

    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.

    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.

    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 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 to deposit money online in your PPF account

    Most banks and post offices allow online deposit of money into PPF (Public Provident Fund) accounts held with them. There are three different methods of depositing money in your PPF account through the online mode. PPF subscribers can make online transfers from their savings account or direct online fund transfer if they maintain their PPF and savings account(s) with the same bank. Else, they have to use NEFT or ECS mandate to make deposits from savings account maintained with a different bank. Here are the methods of making an online payment to your PPF account.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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).

    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.

    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.

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

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

    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.

    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.

    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.

    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.

    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.

    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.

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