The Government have come up with savings scheme and every saving scheme has its own benefits and limitations. Some are serving a certain category of eligible candidates and some schemes are open to everyone. Details of those savings schemes which give highest interest rates are discussed here one by one. As well as detail of the nationalized banks with highest interest rates on savings account are also shared.
PPF (Public provident fund)
Public provident fund (PPF) scheme is a tax free long term savings option introduced by Ministry of Finance in 1968. The benefit of PPF is that they are fully exempted from tax. The investor could invest amount from INR 500 to INR 150,000 in one financial year. The PPF can be kept as collateral security to get loan from banks. Rate of interest on PPF are highest in general saving scheme.
Certain features of PPF
- Latest PPF interest rate is 7.6%(from december 2017) that is fully exempted from tax.
- Long term investment of 15 years.
- Yearly deposit amount starting from INR 500 to INR 150,000
- Loan can be availed between 3rd to 6th year of investment.
- Partial withdrawal can be availed after 7th
- After the maturity of PPF account, it could be extended in block periods of 5 years.
Under Beti Bachao Beti Padhao program of the honourable Prime Minister, sukanya samriddhi yojana is a girl prosperity scheme. This program facilitates proper education and health care for a girl child. The saving scheme is wholeheartedly accepted by the masses in wake of the financial security and independence it would provide to the girl child and their guardians.
- Account could be created by the guardian in the name of the girl child.
- Maximum of two accounts could be created by the guardian.
- Account can be opened upto the age of 10 years for a girl child.
- Account can be closed one the girl attains the age of 21 years.
- Normal premature closure of account can be done only if the girl is married above the age of 18 years.
- Current Sukanyasamridhi interest rate is 8.1%(from december 2017)
National Savings Certificates
NSC is an Indian Government’s saving scheme, for small scale savings and income tax savings. It can be purchased from any post office in India. These certificates are issued for 5 years or 10 years maturity period and can be utilized as collateral for availing loans from a bank. The holder of this certificate gets benefit under section 80C of income tax act 1961. These certificates were heavily promoted by Government of India in the early 1950’s post-independence. And to collect funds from the citizen to strengthen the economy and financial status of India.
Benefits of NSC
- No upper limit for investment
- No tax deduction at source
- Certificates can be utilized as collateral to avail loans
- On maturity of the term it will fetch a monthly pension to the nominee/insurer.
- Certificates can be purchased by an adult on behalf of a minor or to a minor.
- The deposit qualifies for tax deduction under section 80C of IT act.
- The certificates can be transferred only once from one individual to another, from the date of issue to the date of maturity.
- NSC interest rate is at 7.6% (from december 2017).
Kisan Vikas Patra
KVP is a saving certificate scheme which was first brought in by the Government in 1988 through India post. After a successful term of 23 years operation the scheme was withdrawn by the Government of India in 2011 that, it could be misused. However, the new Government launched the scheme in 2014. KVP can be purchased by an adult or on behalf of a minor, a trust or two adults jointly.
Features of KVP
- The certificates of KVP are available in the denominations of INR 1000/-, INR 5000/-, INR10000/- and INR 50000/-.
- There is no upper limit for investment.
- There are no tax benefits for this investment.
- Withdrawals are exempted from tax deduction at source (TDS) upon maturity.
- The investment gets doubled in 115 months.
- The rate of interest is at 7.3% which is higher than the FD interest rates of any nationalized bank in India (from december 2017)
- The amount can be withdrawn after 115 months.
- The maturity period of this scheme is 30 months.
- Premature withdrawal is not permissible and could only be encashed in the event of the death of the holder or forfeiture by a pledge or on order of courts.
Senior Citizen Saving Scheme
Senior citizen savings scheme is an investment scheme from Government of India. The interest rates from all the nationalized banks offered for this scheme ranges between 7.2% to 8.8% which is even higher than the PPF rates in SBI. And the rate changes after every quarter of the years. The rate of interest is decided by the Ministry of finance. This investment option is one of the safest and high interests yielding saving scheme available for the senior citizens of India. Premature closing of the account is possible after one year.
Features of the Senior Citizen Saving Scheme
- A depositor may open more than one account however, the sum of investment in all the account should not exceed the limit of 15 lacs for a financial year.
- Direct credit of interest can be facilitated to the savings account.
- The deposit can be made through cash if the amount is less the 1 lac.
- The depositor may nominate one or more than one person at the time of opening the saving scheme account.
- In case of death of the depositor before the maturity, then the account shall be closed and the deposit is refunded along with the interest to the nominee.
Nationalized Bank Interest Rates In India
|INSTITUTION||GROUP||INTEREST % P.A||PERIOD||INVESTMENT (INR)||INVESTOR TYPE||TAX STATUS|
|Allahabad Bank||Public Sector / Nationalized Banks||6.60||1 year to less than 2 years||Less than Rs. 1 crore||General||Taxable|
|Canara Bank||Public Sector / Nationalized Banks||6.75||1 year||Less than Rs. 1cr||General||Taxable|
|Central Bank of India||Public Sector / Nationalized Banks||6.60||1 year� to less than 2 years||Less than Rs. 1cr||General||Taxable|
|Dena Bank||Public Sector / Nationalized Banks||6.80||Above 1 year to less than 2 years||Less than Rs. 1cr||General||Taxable|
|Indian Bank||Public Sector / Nationalized Banks||6.25||Above 1 year to less than 2 years||less thenRs. 1cr||General||Taxable|
|Indian Overseas Bank||Public Sector / Nationalized Banks||6.50||Above1 year to less than 2 years||UptoRs. 1 cr||General||Taxable|
|Oriental Bank of Commerce||Public Sector / Nationalized Banks||6.85||1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Punjab National Bank||Public Sector / Nationalized Banks||6.90||1 year||Less than Rs. 1 cr||General||Taxable|
|Syndicate Bank||Public Sector / Nationalized Banks||6.50||1 year exact||Less than Rs. 1cr||General||Taxable|
|UCO Bank||Public Sector / Nationalized Banks||6.65||1 year||less than Rs. 1 cr||General||Taxable|
|Union Bank of India||Public Sector / Nationalized Banks||7.00||1 years||Less than Rs. 1 cr||General||Taxable|
|United Bank of India||Public Sector / Nationalized Banks||6.25||Above1 years to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Vijaya Bank||Public Sector / Nationalized Banks||6.50||1Year||Less than Rs. 1 cr||General||Taxable|
|State Bank of India (SBI)||Public Sector / Nationalized Banks||6.50||456 days to less than 2 years||Less than Rs. 1 cr||Taxable|
Private Sector Banks Interest Rates In India
|INSTITUTION||GROUP||INTEREST % P.A||PERIOD||INVESTMENT (INR)||INVESTOR TYPE||TAX STATUS|
|The Ratnakar Bank||Indian Private Sector Banks||7.40||12 month to less than 24 month||Less than lakh to Rs. 1 cr||General||Taxable|
|Bassein Catholic Co-operative Bank||Cooperative Banks||7.25||Above 12 Months to 18 Months||Less than Rs. 15 lakh||General||Taxable|
|ShamraoVithal Co-operative Bank||Cooperative Banks||7.25||AV Deposit Scheme – 366 Days (Simple Interest)||Less than Rs. 1 cr||General||Taxable|
|Bombay Mercantile Co-operative Bank||Cooperative Banks||7.25||Above 1 year to less than 2 years||Less than Rs. 1cr||General||Taxable|
|Yes Bank||Indian Private Sector Banks||7.15||18 Months 8 Days to 18 Months 18 Days||Less than Rs. 1cr||General||Taxable|
|Bandhan Bank||Cooperative Banks||7.15||Above 1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Indus Ind Bank||Indian Private Sector Banks||7.15||1 year to below 1 years 2 months||Less than Rs. 15 lakh||General||Taxable|
|DCB Bank||Indian Private Sector Banks||7.05||18 months to less than 24 months||Less than Rs. 1 cr||General||Taxable|
|Axis Bank||Indian Private Sector Banks||7.00||16 months to less than 17 months||Less than Rs. 1 cr||General||Taxable|
|Lakshmi Vilas Bank||Indian Private Sector Banks||7.00||1 year to 499 days||Less than Rs. 1 cr||General||Taxable|
|Zoroastrian Co-operative Bank||Cooperative Banks||7.00||1year upto 24 months||Less than Rs. 1 cr||General||Taxable|
|Tamilnad Mercantile Bank||Indian Private Sector Banks||6.90||Above 1 year to less than 20 months 20 days||Less than Rs. 15 lakh||General||Taxable|
|Deutsche Bank||Foreign Banks||6.90||Above 1 year to 1.5 years||Less than Rs. 1 cr||General||Taxable|
|Standard Chartered Bank||Foreign Banks||6.90||1 year to 375 days||Less than Rs. 1 cr||General||Taxable|
|HDFC Bank||Indian Private Sector Banks||6.80||1 year to less than 3 years||Less than Rs. 1 cr||General||Taxable|
|KarurVysya Bank||Indian Private Sector Banks||6.75||1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Kotak Bank||Indian Private Sector Banks||6.75||390 Days (12 months 25 days)||Less than Rs. 1 cr||General||Taxable|
|ICICI Bank||Indian Private Sector Banks||6.75||1 year to 389 days||Less than Rs. 1 cr||General||Taxable|
|Catholic Syrian Bank||Indian Private Sector Banks||6.50||1 Year||Less than Rs. 1 cr||General||Taxable|
|HSBC||Foreign Banks||6.25||400 days||Less than Rs. 1cr||General||Taxable|
|Citi Bank||Foreign Banks||5.25||401 days to 540 days||Less than Rs. 1 cr||General||Taxable|
|Royal Bank of Scotland||Foreign Banks||4.00||1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|