National Savings Certificate

What is NSC Investment Scheme ? | What is National Savings Certificate ? | 1 Best Guaranteed Returns

Table of Contents

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on National Savings Certificate investment scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on National Savings Certificate investment scheme. This will be a complete guide on National Savings Certificate investment scheme. Please read till end of the blog post to know the complete information about this National Savings Certificate investment scheme. Lets get started.

What Is NSC?

NSC stands for National Savings Certificate. NSC is a savings scheme certificate that you can purchase from a Post Office.

How Does NSC Work?

  • You Need to deposit a lump sum amount and purchase NSC certificate.
  • At the end of 5 years, submit the certificate and get the maturity amount (deposit amount + interest earned)

Features of National Savings Certificate

  • This savings scheme is backed by the Government of India.
  • This is one of the best and safe investment option.
  • This provides the guaranteed returns.
  • This saving schemes helps you to invest as little as Rs. 1,000 thereby encourages the habit of investment.
  • This scheme specially designed for Income Tax assesses.
  • NSC Certificates can be kept as collateral security to get loan from banks.
  • Buy NSC every month for Five years. Re-invest on maturity and relax. Upon retirement, it will fetch you monthly pension as the NSC matures

Who Can Open The NSC Account?

  • Only Indian residents can purchase NSC certificates.
  • NSC certificate can be purchased by.
  • an adult for himself.
  • an adult on behalf of a minor or a person of unsound mind of whom he is the guardian.
  • a minor who has reached the age of 10 years.
  • joint account by up to 3 adults.
  • You can purchase any number of NSC certificates.

How Do You Open The NSC Account?

  • NSC certificate can be purchased by cash or cheque.
  • In case of cheque, the date of realisation of cheque in the account will be the date of account opening.

NSC Deposit Limits

  • Minimum deposit amount is Rs. 1,000.
  • No maximum limit on the deposit amount.
  • Deposit amount should be in multiples of Rs. 100. For example, Rs. 1,100, Rs. 1,200, Rs. 1,300, Rs. 1,400, etc.

NSC Maturity Period

NSC Maturity period is 5 years. Earlier, there used to be 10 years NSC as well. But, it has been dis-continued since 20-Dec-2015.

What is the current Interest Rate (%) of NSC?

  • Current annual interest rate is 6.80%.
  • Interest rate (on the day of account opening) will remain the same throughout the tenure of NSC. It will not change even if there are changes to the interest rate thereafter.
  • From 01-Apr-2016, the interest rate of this scheme has been announced on a quarterly basis. Note that this used to be on a yearly basis earlier.

Compounding Frequency of NSC Account

From 01-Apr-2016 onwards, yearly compounding frequency has been followed in this scheme. It used to be on half-yearly compounding frequency earlier.

NSC In Passbook Mode

  • Before 01-July-2016, when you invest in NSC, you used to get physical Certificate.
  • From 01-July-2016 onwards, Government has decided to discontinue the physical certificates.
  • Instead, you will be given the option to keep NSC in Passbook format.
  • This is similar to the passbook of the Savings Bank (SB) account.
  • After purchasing NSC, the entries will be made (either printed or manually) in the passbook.

Loss Of your National Savings Certificate

  • If you lose or lost the certificates that you purchased before 01-July-2016, you can apply for duplicate certificate.
  • But, instead of a certificate, you will get Passbook and it will have the certificate number of the old lost certificate.
  • If you lose the NSC Passbook that you purchased after 01-July-2016, you can apply for and get duplicate Passbook by paying required fees.

Pre-Mature Closure of your National Savings Certificate account

  • You can close NSC pre-maturely before the maturity period.
  • But, it is allowed only in the following special circumstances.
  • death of the account holder or holders in case of joint holding.
  • when ordered by Court of Law.
  • Earlier, you had to surrender the physical certificate to close your NSC pre-maturely.
  • For the NSC purchased after 01-July-2016, you have to surrender the NSC Passbook to close your NSC pre-maturely.
  • Post Office will collect the Passbook and make an entry for delivering the final amount to you.

Loan Facility from National Savings Certificate account

  • You can use NSC certificate as a collateral security to get Loan from the Banks.
  • Earlier, you had to submit or pledge the certificate in the Bank to get the Loan.
  • But, for the NSC purchased after 01-July-2016, you have to submit the Passbook.

Account Transfer of National Savings Certificate account

  • NSC certificates can be transferred from one Post Office to another Post Office.
  • NSC certificates can be transferred from one person to another person. But, it can be done only once from date of issue to the date of maturity.
  • Earlier, the physical certificate of the old owner used to be given to the new owner during the transfer process.
  • But, to transfer the NSC purchased after 01-July-2016, the old owner should submit the Passbook.
  • Post Office will strike out the entries belonged to the old owner and issue the same Passbook to the new owner in his name.

Returns Projection Table From NSC Account

Lump Sum Deposited AmountInterest Rate %TermsTotal Interest EarnedMaturity Amount
5,00,0006.80%5 Years1,94,7466,94,746
8,00,0006.80%5 Years3,11,59411,11,594
10,00,0006.80%5 Years3,89,49213,89,492
15,00,0006.80%5 Years5,84,23920,84,239
20,00,0006.80%5 Years7,78,98527,78,985
25,00,0006.80%5 Years9,73,73234,73,732
30,00,0006.80%5 Years11,68,47841,68,478
Projection Table

How to show National Savings Certificate interest in income tax?

You can show the NSC interest earned in one of the following ways while filing ITR:

  • You can show the interest earned from NSC under Income from Other Sources.
  • You can claim deduction for interest earned from NSC, but you don’t show it as income. In this case, you can consider the entire interest income you have earned over the years as income in the last year.
  • Don’t claim the interest earned as deduction or income. In this case, all the interest earned will be counted as ‘Income from Other Sources’ in the last year. Only the first four years’ interest will be counted as deduction.
  • It is important that you stick to one of the methods mentioned above throughout the NSC tenure. Experts prefer that you choose Method 1 as the interest and income will be distributed throughout the tenure and does not accumulate to the last year.

How to encash/redeem NSC certificates after maturity?

Upon maturity, the NSC can be encashed at any Post Office branch and not necessarily at the branch where the account is held. If you want to withdraw the money from a branch that is not your account’s home branch, you will have to submit an application with details, such as serial number, issue date, full name, registered and current address.

When you want to encash the maturity amount, you have to carry the following documents with you:

  • Original NSC certificate .
  • Identity proof.
  • NSC encashment form.
  • The person entitled to receive the encashment must sign behind the certificate after receiving the payment.

FAQ About National Savings Certificate account

Nomination facility available for NSC accounts

Nomination facility is available. You can nominate either at the time of buying the certificate or after buying the certificate (but before maturity).

I am a NRI can I open NSC account

NRI (Non Resident Indians), Trust and HUF (Hindu Undivided Family) can not open the account.

What is Income Tax Benefits of National Savings Certificate account

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 interest earned on the certificates is also added back to the initial investment and qualify for a tax break as well.
For instance, if you purchase certificates worth Rs 1,000, you are eligible for a tax rebate on that initial investment amount in the first year. But in the second year, you can claim a tax deduction on the NSC investment(s) that year as well as the interest earned in the first year. This is because the interest is added to the original investment and compounded annually.

How to buy NSC online?

As of today, you cannot subscribe to NSC online. You will be required to visit the nearest Post Office to fill out the NSC application form and submit it to the executive in order to open an NSC account.

Where can I Open NSC Accounts?

You can open NSC accounts only in Post Office.

How to buy NSC?

Step 1: Visit the nearest Post Office branch and submit the duly filled NSC application form.
Step 2: Attach self-attested copies of the documents and proofs as required by the Post Office. Carry the original documents as well for verification.
Step 3: Make the payment of your investment in the form of cash, cheque, or demand draft.
Step 4: Upon processing your application, an acknowledgement of the same will be provided marking the initiation of your NSC account.

How to open NSC in the Post Office?

Step 1: Visit the nearest Post Office branch.
Step 2: Fill up the application form and submit it with the necessary documents.
Step 3: Make the payment towards the NSC account in cash, cheque, or DD.
Step 4: Once the processing is done, an acknowledgement for the same will be given.

How to get an NSC certificate?

When you submit the application form to open the NSC account along with the KYC documents, you will have to make the payment towards the same. Once this is processed, the Post Office branch will provide you with the NSC certificate.

My Recent Post in this blog.

  1. SCSS complete end to end information
  2. KVP complete end to end information

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Post Office Time Deposit

What Is POTD Investment Scheme ? | POTD | Post Office Time Deposit | 1 Best Guaranteed Returns

Table of Contents

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Post Office Time Deposit investment scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Post Office Time Deposit investment scheme. This will be a complete guide on Post Office Time Deposit investment scheme. Please read till end of the blog post to know the complete information about this Post Office Time Deposit investment scheme. Lets get started.

What is Post Office Time Deposit ?

POTD or Post office Time deposit is type of fixed deposit or term deposit account. In this scheme the interest is paid annually.

How Does Post Office Time Deposit Work?

  • You need to deposit a lump sum amount for specific tenure.
  • You will receive interest every year till the end of the tenure.
  • At the end of the tenure, you will get your deposit amount back.

Features of Post Office Time Deposit

  • This scheme is backed by the Government of India.
  • This is very safe investment option.
  • This scheme gives you a guaranteed returns.

Who Can Open The Account?

  • Only Indian residents can open the TD account.
  • TD account can be opened by.
  • An adult for himself.
  • An adult on behalf of a minor or a person of unsound mind of whom he is the guardian.
  • A minor who has reached the age of 10 years.
  • Joint account by up to 3 adults.
  • You can open more than one account in your name or jointly with another person.

How Do You Open The Account?

  • You can open the account by cash or cheque.
  • In case of cheque, the date of realisation of cheque in the account will be the date of account opening.
  • Any number of accounts can be opened in any Post Office.

Deposit Limits of Post Office Time Deposit

  • Minimum deposit amount is Rs. 1,000.
  • No maximum limit for deposit.
  • Deposit amount should be in multiples of Rs. 100.

Term of Post Office Time Deposit

You can choose one of the following 4 options.

  • 1 year.
  • 2 years.
  • 3 years.
  • 5 years

Interest rate % of Post Office Time Deposit.

The current annual interest rate for various tenure are given below.

  • 1 year 5.50%
  • 2 years 5.50%
  • 3 years 5.50%
  • 5 years 6.70%

Interest is paid on an yearly basis. Interest rate (on the day of account opening) will remain the same throughout the tenure of Time Deposit. It will not change even if there are changes to the interest rate thereafter. From 01-Apr-2016, the interest rates of this scheme have been announced on a quarterly basis.

Compounding Frequency of POTD

Quarterly compounding frequency is followed in this scheme. But, interest amount will be paid to you on a yearly basis.

Auto-Renewal Facility of POTD

  • In CBS (Core Banking Solution) Post Offices, when the TD account is matured, it will be automatically renewed for the period for which it was initially opened.
  • For example, 2 Years TD account will be automatically renewed for 2 Years. 1 year TD account will be automatically renewed for 1 year.
  • Interest rate for the auto renewed TD account will be the interest rate on the day of maturity.

Pre-Mature Closure of POTD

If the TD account is closed before 1 year, then the Savings Bank (SB) account interest rate will be paid for the duration for which TD account was kept.

Account Conversions of POTD

  • Single account can be converted into joint account and vice versa.
  • Minor, after attaining majority, has to apply for conversion of the account in his name.

Income Tax Benefits of POTD

The investment on 5 year Time Deposit qualifies for the benefit of section 80C of Income Tax Act, 1961.

Post Office Time Deposit vs Bank Fixed Deposits

ParticularsPost Office Time DepositBank Fixed Deposit
Rate Of Interest5.5% to 6.7%5.5% to 6.5% (Average)
Additional Interest for Senior citizensNo0.25% to 0.50%
Interest Payment FrequencyYearlyMonthly, Quarterly, Yearly
Lock-in Period1 to 5 Years7 days to 10 Years
Auto renewal Only after prior application or in case post offices with core banking solutionsYes
Loan Against The DepositNAAvailable from some banks
Premature WithdrawalAfter 6 MonthsAvailable anytime with certain financial institutions.
Applicability of Tax Deducted at source (TDS)No Yes
POTD VS Bank’s FD

POTD Returns Projection Table

Amount In INRMaturity after 1 yearMaturity after 2 YearsMaturity after 3 YearsMaturity after 5 Years
1000001,05,6141,11,2281,16,8431,34,351
3000003,16,8433,33,6863,50,5304,03,053
5000005,28,0725,56,144584,2176,71,755
8000008,44,9158,89,8319,34,74710,74,808
100000010,56,14411,12,28911,68,43413,43,511
120000012,67,37313,34,74714,02,12116,12,213
150000015,84,21716,68,43417,52,65120,15,266
20000001,12,28922,24,57923,36,86826,87,022
250000026,40.36127,80,72329,21,08533,58,777
300000031,68,43433,36,86835,05,30240,30,533
POTD Returns

FAQ About Post Office Time Deposit

What happens to my Post Office Time Deposit account if I have to move from one city to another due to work?

POTD Account can be transferred from one Post Office to another Post Office.

Is there any Nomination Facility Available for Post Office Time Deposit?

Nomination facility is available. You can nominate either at the time of account opening or after opening the account (but before maturity).

Can NRI and HUF Open This Post Office Time Deposit Account?

NRI (Non Resident Indians) and HUF (Hindu Undivided Family) can not open the account.

My Recent Post in this blog.

  1. SCSS complete end to end information
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Monthly Income Scheme

What is Monthly Income Scheme ? | MIS | Post Office Monthly Income Scheme | POMIS | 1 Best Guaranteed Monthly Returns

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Monthly Income Scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Monthly Income Scheme. This will be a complete guide on Monthly Income Scheme. Please read till end of the blog post to know the complete information about this Monthly Income Scheme. Lets get started.

Table of Contents

What is Monthly Income Scheme ?

Monthly income scheme (MIS) is a scheme which provides a regular monthly income. This is suitable for those who expect to receive regular and guaranteed income on a monthly basis. We also call this scheme as POMIS ( Post Office Monthly Income Scheme ).

Features Of Monthly Income Scheme (MIS) ?

  • This scheme is backed by the Government of India.
  • This scheme is a safe investment option.
  • This scheme gives you the guaranteed returns.
  • Through this scheme you can earn a regular monthly income.

How Does Monthly Income Scheme (MIS) Work?

You need to deposit a lump sum amount. Every month you will receive interest till the end of the tenure. At the end of the tenure, you will get your deposit amount back.

Eligibility : Who Can Open The MIS Account?

  • Only Indian residents can open the account.
  • Account can be opened by an individual adult.
  • Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account.
  • A Guardian or Parent can open an account in the name of minor.
  • You can open an account on the behalf of a minor who is aged 10 years and above. They can avail the fund when they become 18 years old.
  • A minor, after attaining majority, has to apply for conversion of the account in his/her name.

Deposit Limits in MIS.

  • Minimum deposit amount is Rs. 1,000.
  • For a single account, maximum deposit limit is Rs. 4.5 lakhs.
  • For a joint account, maximum deposit limit is Rs. 9 lakhs.
  • Deposit amount should be in multiples of Rs. 1,000.
  • An individual can invest a maximum of Rs. 4.5 lakhs in MIS (including his/her share in joint accounts).

MIS Term/Maturity Period

MIS Maturity period is 5 years .

MIS Interest Rate (%).

  • Current annual interest rate is 6.60%.
  • Interest amount is paid on a monthly basis.
  • Interest rate (on the day of account opening) will remain the same throughout the tenure of MIS. It will not change even if there are changes to the interest rate thereafter.
  • From 01-Apr-2016, the interest rate of this scheme has been announced on a quarterly basis. previously that it used to be on a yearly basis earlier.

MIS Compounding Frequency

Compound interest is not applicable for this scheme. Simple interest calculation is followed in this scheme.

MIS Interest Credit Method

  • You can receive monthly interest through auto-credit facility into savings account present at the same post office.
  • In case of MIS accounts present at CBS (Core Banking Solution) Post offices, monthly interest can be credited into savings account present at any CBS Post offices.

Pre-Mature Closure of MIS account

  1. Account can be closed pre-maturely after one year of opening the account.
  2. If you close the account before 3 years, 2% of deposit amount will be deducted and you will get the remaining amount.
  3. If you close the account after 3 years, 1% of deposit amount will be deducted and you will get the remaining amount.

For an Example.

  • If you close the account having a deposit of Rs. 1 lakh before 3 years, then Rs. 2,000 (2% of Rs. 1 lakh) will be deducted and you will receive the remaining amount Rs. 98,000 (Rs. 1 Lakh minus Rs. 2,000).
  • If you close the account having a deposit of Rs. 1 lakh after 3 years, then Rs. 1,000 (1% of Rs. 1 lakh) will be deducted and you will receive the remaining amount Rs. 99,000 (Rs. 1 Lakh minus Rs. 1,000).

Income Tax Benefits of Monthly Income Scheme

  • No income tax benefits.
  • No tax deduction for the deposit amount under Section 80C of Income Tax Act.
  • No TDS (Tax Deducted at Source) under this scheme by the Post Office.
  • Interest received under this scheme is taxable. You need to declare the interest income under “Income from Other Sources” during tax returns and pay the income tax as per your income tax slab.

MIS Account Conversions

  • Single account can be converted into Joint account and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his name.

MIS Account Transfer

MIS Account can be transferred from one Post Office to another.

MIS Nomination Facility

Nomination facility is available. You can nominate either at the time of account opening or after opening the account (but before maturity).

MIS Monthly Earning Projection Table

Deposited Amount In INR Interest Rate (%) TenureMonthly Income in INR
1000006.60%5500
2000006.60%51100
3000006.60%51650
4500006.60%52475
Single Account
Deposited Amount In INR Interest Rate (%) TenureMonthly Income in INR
5000006.60%52750
6000006.60%53300
7000006.60%53850
8000006.60%54400
9000006.60%54950
Joint Account

FAQ About Monthly Income Scheme (MIS)

Can NRI and HUF Open This MIS Account?

No. NRI (Non Resident Indians) and HUF (Hindu Undivided Family) can NOT open the account.

Is this Monthly Income Scheme suitable for senior citizens?

Yes. This is a favourable scheme for senior citizens as they can deposit their life savings in the account and earn interest for their monthly expenses which is risk free and guaranteed income.

What happens to my MIS account if I have to move from one city to another due to work?

In the event of shifting from one city to another, you can easily transfer your MIS account to the Post Office in the current city at free of cost.

My Recent Post in this blog.

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Kisan Vikas Patra

What Is Kisan Vikas Patra Investment Scheme? | Double Return Investment Plan | KVP | 1 Best Guaranteed Returns

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Kisan Vikas Patra.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Kisan Vikas Patra. This will be a complete guide on Kisan Vikas Patra. Please read till end of the blog post to know the complete information about this Kisan Vikas Patra. Lets get started.

Table of Contents

What is Kisan Vikas Patra (KVP) ?

Kisan vikas patra is a savings scheme certificate that you can purchase from a Bank or Post Office. In this scheme, the deposit amount gets doubled in 10 years and 4 months. So if you want to double your money without any risk then this is the best investment scheme for you. Please read till the end to know more about the Kisan vikas Patra saving scheme.

What are the features of the Kisan Vikas Patra?

  • KVP savings scheme is backed by Government of India.
  • KVP savings scheme is Safe investment option.
  • KVP savings scheme gives you the Guaranteed returns
  • KVP certificate can be pledged as a security to get loan from Banks

How Does Kisan Vikas Patra Work?

  • You need to deposit a lump sum amount and purchase KVP certificate from bank or post office.
  • Your deposited amount will get doubled in 10 years and 4 months.
  • At the end of 10 years and 4 months, submit the certificate to the bank or post office from where you purchased the certificate and get the maturity amount (doubled amount).

Who Can Open The KVP Account?

  • Only Indian residents can purchase KVP certificates.
  • KVP certificate can be purchased by an adult for himself.
  • An adult on behalf of a minor or a person of unsound mind of whom he is the guardian.
  • Joint account by up to 3 adults.
  • You can purchase any number of KVP certificates.

Where Do You Open The Kisan Vikas Patra Account?

You can buy KVP certificate from the following.

  • Post Office.
  • Nationalised Banks.
  • Few commercialised Banks.

How Do You Open The Kisan Vikas Patra Account?

  • KVP certificate can be purchased by cash or cheque.
  • In case of cheque, the date of realisation of cheque in the account will be the date of account opening.
  • You need not have a Savings Bank (SB) account to buy this certificate.
  • But, you need to have a Savings Bank (SB) Account to receive the maturity amount.

What is the deposit limit for Kisan Vikas Patra savings scheme?

  • Minimum Deposit amount is Rs. 1,000.
  • No maximum limit on the deposit amount. That means you can invest as much as you can.
  • Deposit amount should be in multiples of Rs. 100. For example, Rs. 1,100, Rs. 1,200, Rs. 1,300, Rs. 1,400 and so on.

Income Tax Benefits of Kisan Vikas Patra savings scheme

  • No income tax benefits.
  • Deposit amount is not eligible for tax deduction under Section 80C of Income Tax Act.
  • Interest received upon maturity is taxable. You need to declare the interest income under “Income from Other Sources” during tax returns and pay the income tax as per your income tax slab.
  • No TDS (Tax Deducted from Source) during maturity from Post Office or Bank in this Scheme.

Maturity Period of Kisan Vikas Patra Savings scheme

Currently, the maturity period is 10 years and 4 months. The maturity period is not fixed and it changes from time to time based on the announcement from the Government.

KVP Interest Rate %

Current annual interest rate is 6.90%. Interest rate (on the day of account opening) will remain the same throughout the tenure of KVP. It will not change even if there are changes to the interest rate thereafter. From 01-Apr-2016 onwards, the interest rate of this scheme has been announced on a quarterly basis. Note that this used to be on a yearly basis earlier.

Compounding Frequency of KVP savings scheme

This scheme follows yearly compounding frequency from 01-Apr-2016 onwards. Note that it used to be on half-yearly compounding frequency earlier.

Process of KVP In Online Or Passbook Mode

  • Before 01-July-2016, when you invest in KVP, you used to get physical certificate.
  • From 01-July-2016 onwards, the Government has decided to discontinue the physical certificates. Instead, you will be given the option to keep KVP in the following formats.
  1. e-mode (Online Mode).
  2. Passbook mode.

The details are given below.

  1. e-mode (Online): After purchasing KVP, you can view the details of your purchase through Online. For this facility, you have to have a Savings Bank (SB) Account and Internet Banking facility. Note that you can only view the certificates that you purchased. It means that you can’t purchase certificates through online Banking. You still need to go to Bank or Post Office for the purchase or investment.
  2. Passbook Mode: This is similar to the passbook of the Savings Bank (SB) account. After purchasing KVP, the entries will be made (either printed or manually) in the passbook.

Your Options: You can choose either Online or Passbook mode or both. The choice is yours. If you opt for Passbook initially and later on you want to switch to Online mode, it is possible. In that case, you have to surrender your Passbook.

Pre-Mature Closure process of KVP Savings scheme

  • KVP certificate can be closed pre-maturely after two and a half years (2.5 years or 30 months) from the date of issue.
  • Earlier, you had to surrender the physical certificate to close your KVP pre-maturely.
  • For the KVP purchased after 01-July-2016, you have to surrender the KVP Passbook to close your KVP pre-maturely.
  • The concerned Bank or Post Office will collect the Passbook and make an entry for delivering the final amount to you.
  • If you had opted for Online mode for viewing KVP purchases, your online access will be removed.

Account Transfer of KVP Savings Scheme

  • KVP certificate can be transferred from one person to another person. It can be done as many times as possible.
  • KVP certificate can be transferred from Post Office to Bank and vice versa.
  • Earlier, the physical certificate of the old owner used to be given to the new owner during the transfer process.
  • But, to transfer the KVP purchased after 01-July-2016, the new owner will receive the mode that the old owner had opted for.
  • For example, if the old owner had online access, then his access will be removed and new owner will get online access to the KVP.
  • If the old owner had Passbook mode, then old owner should submit the Passbook. The concerned Bank or Post Office will strike out the entries belonged to the old owner and issue the same Passbook to the new owner in his name.

FAQ about Kisan Vikas Patra

What will happen in case Loss Of Kisan Vikas Patra Certificate?

If you lose or lost the certificates that you purchased before 01-July-2016, then you can apply for the duplicate certificate. But, instead of a certificate, you will get Passbook and it will have the certificate number of the old lost certificate. If you lose the KVP Passbook that you purchased after 01-July-2016, then you can apply for and get duplicate Passbook by paying required fees.

Is there any Loan Facility available from Kisan Vikas Patra Saving Scheme?

You can use KVP certificate as a collateral security to get Loan from the Banks. Earlier, you had to submit or pledge the certificate in the Bank to get the Loan. But, for the KVP purchased after 01-July-2016, you can submit in Passbook mode only. The online mode will not help in this case.

Is there any Nomination Facility available in Kisan Vikas Patra Saving Scheme?

Yes Nomination facility is available. You can nominate either at the time of buying the certificate or after buying the certificate (but before maturity).

Can NRIs invest in the KVP scheme?

No, KVP scheme is open only for resident individuals.

Where can one encash a Kisan Vikas Patra (KVP)?

A kisan Vikas Patra can be encashed by the certificate holder at the bank or post office where the certificate was issued.

How will the maturity amount be paid?

On maturity of the scheme, the payable amount shall be credit directly to the bank/post office savings account of the certificate holder. Therefore, it is important that the certificate holder have a savings account when they are looking to encash their certificate.

My Recent Post in this blog.

  1. SCSS complete end to end information
  2. RD complete end to end information

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RD

What is RD investment Scheme | Recurring Deposit | Complete Step By Step guide | 1 Best Guaranteed returns

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on end to end information on RD Investment Scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on RD Investment scheme. This will be a complete guide on RD investment scheme. Please read till end of the blog post to know the complete information about this RD investment scheme. Lets get started.

Table of Contents

What is RD?

RD stands for Recurring Deposit. RD is savings scheme where you can deposit a fixed amount every month for the chosen tenure. In this saving scheme, the interest earned will be compounded on quarterly basis.

This scheme is suitable for those people who wants to save a small amount every month and then receive a big amount at the end of the tenure.

I called this saving scheme as piggie box saving scheme with guaranteed returns. Generally at home everyone will have some piggie box where they keep their small small amount and at the end of the year they can see a lump sum amount in the piggie box . This saving scheme is also same but here you will be saving in bank and your money will earn money for you in the form of interest. Hence what could be better then this.

This saving scheme will also help you to be financially disciplined that every month you will start saving some money.

How Does RD work?

  • Step 1: Choose the monthly Deposit amount you want invest.
  • Step 2 : Choose the tenure.
  • Step 3 : Deposit the fixed amount every month for the chosen tenure.
  • Step 4 : At the end of the tenure you will get the maturity amount ( Deposit Amount + Interest earned ).

Features

  • Safe Investment Option
  • Guaranteed returns
  • Quarterly compounded interest
  • Helps you to save small amount every month and creates the habit of regular savings.
  • Senior Citizens get extra interest rate compared to other customers
  • RD can be used as a security to get loan

Income Tax Benefits

Income Tax benefits will be same on both old and new tax systems. No Income tax benefits on the monthly deposit amount.

There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 is from 01-April-2019 onwards. Earlier the limit was Rs. 10000 .

For Senior citizens, TDS limit is Rs. 50000 from 1st April 2018 onwards. Earlier the limit was Rs. 10000 .

Bank will provide TDS certificate for the tax deducted.

Interest received is taxable. you need to declare the interest income under ” income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

Depending upon the term of Recurring Deposit, you can choose to pay the tax either on maturity or every financial year.

Who can open the account ?

  • Any resident individuals can open the individual account.
  • Joint account can be created by 2 or more individuals.

Deposit Amount

  • Minimum Monthly deposit is Rs. 100
  • No Limit on the maximum monthly deposit amount
  • Monthly deposit amount should be in multiples of Rs. 10
  • once you decide the monthly deposit amount , it can not be changed later on.

Penalty for Non-deposit

You need to pay the penalty charges if you do not deposit the specified amount for a any particular month. Penalty charge varies from bank to bank.

Term

  • Minimum terms – 6 months
  • Maximum terms – 10 years
  • Term should be in multiples of three months. for an example 6 months, 9 months, 12 months, 15 months and so on.
  • few banks offer terms up to 20 years.

Compounding frequency

Quarterly compounding frequency is followed in this scheme

RD Interest rate

Interest rate is same as the TDR and STDR (Fixed Deposit) for the tenure of Recurring Deposit. Interest rate on the day of your RD account opening will remain same throughout the tenure of Recurring Deposit. It will not change even if there are changes to the interest rate thereafter. the Interest rate varies from bank to bank. For more information about the FD interest rate read here

Interest Credit Method

You will receive interest amount upon maturity of the scheme along with the deposit amount.

Pre-Mature closure

Pre-mature closure rules will be the same as TDR and STDR (Fixed Deposit) accounts.

Premature Closure of RD is possible . But there will be a penalty for the pre-mature closure. The penalty amount is generally 1% of the interest earned. Interest will be payable for the duration for which the TDR was kept minus the penalty amount. The penalty amount may change from time to time.

Loan facility

Loan facility is available up to 90% of the account balance (deposit amount plus accrued interest) in RD account.

Nomination facility

Nomination facility is available for Recurring Deposit Investment scheme. You can either nominate at the time of account opening or after opening the account (but before maturity).

Recurring Deposit Saving Projection Table

Let us take an example and see how much we can save and earn by saving small small amount monthly for a specific period.

Period in yearsMonthly Deposited Amount in INRGeneral public Maturity Amount in INR (interest rate 5.40%)Senior citizen Maturity Amount in INR (interest rate 6.20%)
5 5000344850352163
510000689699704327
51500010345491056490
52000013793981408654
Recurring Deposit saving Projection Table

Conclusion

To conclude this saving scheme, this is very good saving scheme for those people who does not want to take risk for their money and wants to save money for their children education and other committed responsibilities like marriage and all.

As per my case study, when I asked many of the Govt officials like teacher , doctors, civil services official they have opted this saving scheme in this way.

  • Every month they deposit some amount into their recurring deposit account and after 2 to 3 years they withdraw a lump sum amount from the recurring deposit account and put it for fixed deposit. they continue to repeat this process and accumulate a good saving amount after 10 to 15 years.
  • This Accumulated amount they can spend for their children’s higher studies and marriage etc.
  • Also many people opt this savings scheme for short term goals like purchasing car, household furniture etc.

FAQ about RD saving scheme

Is it possible to transfer my RD account from one branch to another branch?

Yes RD accounts can be transferred from one branch to another branch without any extra cost.

I am a NRI can I open RD account ?

NRI (Non resident Indians ) can not open residential recurring deposits account. But they can open NRI recurring deposits accounts and it is a different scheme completely.

What will be the penalty if I close the RD account before maturity period?

The penalty amount is generally 1% of the interest earned.

STDR

What is STDR Investment Scheme | Fixed Deposit | Special Term Deposit Receipt | 1 Best Guaranteed cumulative returns

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on STDR.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on STDR Investment scheme. This will be a complete guide on STDR investment scheme. Please read till end of the blog post to know the complete information about this STDR investment scheme. Lets get started.

Table of Contents

What Is STDR Investment Scheme?

STDR Stands for Special Term Deposit receipt. STDR is a type of Fixed deposit where the interest will be compounded on a quarterly basis.

This scheme is also know as interest reinvestment or cumulative option. This scheme is suitable for the people who wants to receive a compounded amount at the ned of the tenure. that means if you have a lump sum amount with you and you wants to invest that amount in a safe and guaranteed scheme for long term then this investment scheme will be the best investment scheme for you.

Please read till end to know the complete information about STDR investment scheme.

How does STDR Investment scheme work?

Let us understand how does this STDR (Special Term Deposit Receipt) work easy step by step.

  • Step1 : You Need to deposit a lump sum amount for specific period.
  • Step2 : At the end of the tenure you will get the maturity amount that is deposit amount + interest earned.

Features of STDR Investment scheme

  1. Safe Investment Option.
  2. Guaranteed returns.
  3. Quarterly compounded interest.
  4. Senior citizens get extra interest rate compared to other customers.

Who can open the STDR account ?

  • Any resident individuals can open the individual account.
  • Joint account can be created by 2 or more individuals.

How do you open the STDR account ?

  • First you need to go your preferable bank and fill the required form requesting to open your STDR account.
  • Account can be opened by cash or cheque.
  • Date of realisation of cheque will be the date of account opening. That means if you are submitting the cheque to open the Special Term Deposit receipt account once the cheque is cleared and money is deposited to your bank account from that day the account opening date is counted and you will start earning the interest from the day.
  • If you have your saving accounts then you can create Special Term Deposit receipt from the saving account funds.

STDR Deposit limits

  • Minimum Deposit amount is Rs. 1000
  • No Maximum limit of deposit amount that means there is no maximum limit defined, hence you can deposit any amount above 1000 rupees and earn your monthly or quarterly income best on that.

STDR terms

  • Minimum Term – 6 Months
  • Maximum Term – 10 Years
  • Few banks offers more than 10 years terms .

STDR Interest Rate

Interest rate on the day of your Special Term Deposit receipt account opening will remain same throughout the tenure of STDR. It will not change even if there are changes to the interest rate thereafter.

The interest rate % varies from one bank to another bank. Please find the below current interest rates of few bank’s STDR FD .

Bank NameInterest Rate for general citizen per yearInterest rate for Senior Citizen per year
State Bank Of India2.90% to 5.50%3.40% to 6.20%
HDFC Bank2.50% to 5.60%3.00% to 6.35%
Axis Bank2.50% to 5.75%2.50% to 6.50%
Canara Bank2.90% to 5.50%2.90% to 6.00%
Punjab National Bank 2.90% to 5.25%3.50% to 5.75%
Bank Wise STDR Interest Rate %

The interest % varies depending upon the period of deposit. Please find the below table of SBI STDR FD interest rate as per the period of deposit. Longer the period. For more information about the FD interest rate read here

PeriodInterest rate for general publicInterest rate for Senior citizen
180 days to 210 days4.40%4.90%
211 days to less than 1 year4.40%4.90%
1 year to less than 2 years5.00%5.50%
2 years to less than 3 years5.10%5.60%
3 years to less than 5 years5.30%5.80%
5 years and up to 10 years5.40%6.20%
SBI STDR FD Interest rate As per the Period

STDR Compounding Frequency

Quarterly compounding frequency is followed in the investment scheme.

STDR Interest Credit Method

You will receive interest amount upon maturity of the scheme along with the deposit amount.

STDR Auto-Renewal Facility

  • If you do not provide any specific instructions to your bank while opening the Special Term Deposit receipt account or before maturity. The Special Term Deposit receipt account is automatically renewed upon maturity.
  • It will be renewed for the same period for which it was opened initially.
  • The interest rate for the renewed period will be the interest rate on the day of maturity.

Income Tax Benefits

Effective 01-April-2020, the income tax benefits will depend upon whether you choose old tax system or new tax system.

Old Tax System

  • Deposit amount (upto Rs. 1.5 lakhs) under 5 years tax saving FD will qualify for tax deduction under section 80C of income tax Act.
  • No Tax Deduction benefits for deposit other than 5 years tax saving FD.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 is from 01-April-2019 onwards. Earlier the limit was Rs. 10000 .
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under ” income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

New Tax System

  • No income tax benefits. The deposit amount won’t get any deduction benefits under section 80C of any income tax Act.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 is from 01-April-2019 onwards. Earlier the limit was Rs. 10000.
  • For Senior Citizens, TDS limit is Rs. 50000 from 1st-April-2018 onwards. Earlier the limit was Rs.10000.
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under “ income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.
  • Depending upon the term of Special Term Deposit receipt, you can choose to pay tax on interest either on maturity or every financial year.

Pre-Mature Closure of STDR

  • Premature Closure of special term deposit receipt is possible . But there will be a penalty for the pre-mature closure.
  • The penalty amount is generally 1% of the interest earned.
  • Interest will be payable for the duration for which the Special Term Deposit receipt was kept minus the penalty amount.
  • The penalty amount may change from time to time.

Loan Facility from STDR account

Loan facility is available upto 90% of the deposit amount plus accrued interest.

Account Conversions

Yes account conversions is possible from Special Term Deposit receipt (cumulative interest pay-out) account to TDR (regular interest pay-out) account and vice versa.

Nomination Facility

Nomination facility is available for STDR Investment scheme. You can either nominate at the time of account opening or after opening the account (but before maturity).

STDR Earning Projection Table

let us take an example and see how much we can earn by investing 10 lakhs rupees with STDR investment scheme with current interest of above SBI interest table.

Period in yearsDeposited Amount in INRGeneral public Maturity Amount in INRSenior citizen Maturity Amount in INR
4 years100000012344281259020
5 years100000013076001360186
6 years100000013796531446499
7 years100000014556771538289
8 years100000015358891635903
10 years100000017098181850108
STDR Earning Projection Table

FAQ about STDR Investment Scheme

Is it possible to transfer my STDR account from one branch to another branch?

Yes STDR accounts can be transferred from one branch to another branch without any extra cost.

I am a NRI can I open STDR account ?

NRI (Non resident Indians ) can not open residential fixed deposits. But they can open NRI fixed deposits accounts and it is a different scheme completely.

What will be the penalty if I close the STDR account before maturity period?

The penalty amount is generally 1% of the interest earned.

What is the difference between TDR and STDR?

The main difference between TDR and STDR is .
TDR is a type of fixed deposit where we can opt to receive monthly or quarterly interest.
STDR is a type of Fixed deposit where the interest will be compounded on a quarterly basis and the interest pay-out happens after the maturity period.

TDR

What is TDR Investment Scheme | Fixed Deposit | Term Deposit Receipt | 1 Best Guaranteed monthly returns

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on TDR.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on TDR Investment scheme. This will be a complete guide on TDR investment scheme. Please read till end of the blog post to know the complete information about this TDR investment scheme. Lets get started.

Table of Contents

What is TDR?

TDR stands for Term Deposit Receipt. TDR is a type of fixed deposit where we can opt to receive monthly or quarterly interest.

This scheme is also known as Interest Pay-out Scheme and this scheme is best suitable for the people who wants to receive a regular income.

How Does TDR work?

Let us understand how does this TDR (Term deposit receipt) work easy step by step.

  • Step1 : You Need to deposit a lump sum amount for specific period.
  • Step2 : You need to specify whether you want to receive the interest Monthly or Quarterly .
  • Step3 : You will receive interest as per your chosen interest frequency till the end of your tenure.
  • Step4 : At the end of your tenure you will get your deposit amount back.

Features of TDR

  1. Safe Investment Option
  2. Guaranteed returns
  3. Regular monthly or quarterly income
  4. Senior citizens get extra interest rate compared to other customers.

Who can open the TDR Account?

  • Any resident individuals can open the individual account.
  • Joint account can be created by 2 or more individuals.

How Do you Open the TDR Account ?

  • First you need to go your preferable bank and fill the required form requesting to open your TDR account.
  • Account can be opened by cash or cheque.
  • Date of realisation of cheque will be the date of account opening. That means if you are submitting the cheque to open the TDR account, once the cheque is cleared and money is deposited to your bank account from that day the account opening date is counted and you will start earning the interest from the day.
  • If you have your saving accounts then you can create TDR from the saving account funds.

TDR Deposit Limits

  1. Minimum Deposit amount is Rs. 1000.
  2. No Maximum limit of deposit amount that means there is no maximum limit defined hence you can deposit any amount above 1000 rupees and earn your monthly or quarterly income best on that.

TDR Terms

  1. Minimum Term – 7 days
  2. Maximum Term – 10 Years
  3. few banks offers more than 10 years terms .

TDR Interest Rate

Interest rate on the day of your Term deposit receipt account opening will remain same throughout the tenure of TDR. It will not change even if there are changes to the interest rate thereafter.

The interest rate % varies from one bank to another bank. Please find the below current interest rates of few bank’s Term deposit receipt FD .

Bank NameInterest Rate for general citizen per yearInterest rate for Senior Citizen per year
State Bank Of India2.90% to 5.50%3.40% to 6.20%
HDFC Bank2.50% to 5.60%3.00% to 6.35%
Axis Bank2.50% to 5.75%2.50% to 6.50%
Canara Bank2.90% to 5.50%2.90% to 6.00%
Punjab National Bank 2.90% to 5.25%3.50% to 5.75%
Bank Wise TDR Interest Rate %

The interest % varies depending upon the period of deposit. Please find the below table of SBI Term deposit receipt FD interest rate as per the period of deposit. Longer the period higher the interest rate. For more information about the FD interest rate read here

PeriodInterest rate for general publicInterest rate for Senior citizen
7 days to 45 days2.90%3.40%
46 days to 179 days3.90%4.40%
180 days to 210 days4.40%4.90%
211 days to less than 1 year4.40%4.90%
1 year to less than 2 years5.00%5.50%
2 years to less than 3 years5.10%5.60%
3 years to less than 5 years5.30%5.80%
5 years and up to 10 years5.40%6.20%
SBI TDR FD Interest rate As per the Period

TDR Compounding Frequency

Compound interest is not applicable for this scheme. Simple interest calculation is followed in this scheme.

TDR Interest Credit Method

  • You can receive interest either Monthly or Quarterly as per your requirement .

TDR Auto-Renewal Facility

  • If you do not provide any specific instructions to your bank while opening the Term deposit receipt account or before maturity. The Term deposit receipt account is automatically renewed upon maturity.
  • It will be renewed for the same period for which it was opened initially.
  • The interest rate for the renewed period will be the interest rate on the day of maturity.

Income Tax Benefits

Effective 01-April-2020, the income tax benefits will depend upon whether you choose old tax system or new tax system.

Old Tax System

  • Deposit amount (upto Rs. 1.5 lakhs) under 5 years tax saving FD will qualify for tax deduction under section 80C of income tax Act.
  • No Tax Deduction benefits for deposit other than 5 years tax saving FD.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 id from 01-April-2019 onwards. Earlier the limit was Rs. 10000 .
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under ” income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

New Tax System

  • No income tax benefits. The deposit amount won’t get any deduction benefits under section 80C of any income tax Act.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 id from 01-April-2019 onwards. Earlier the limit was Rs. 10000.
  • For Senior Citizens, TDS limit is Rs. 50000 from 1st-April-2018 onwords. Earlier the limit was Rs.10000.
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under “ income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

Pre-Mature Closure of TDR

  • Premature Closure of term deposit receipt is possible . But there will be a penalty for the pre-mature closure.
  • The penalty amount is generally 1% of the interest earned.
  • Interest will be payable for the duration for which the TDR was kept minus the penalty amount.
  • The penalty amount may change from time to time.

Loan Facility from TDR account

Loan facility is available upto 90% of the deposit amount.

Account Conversions

Yes account conversions is possible from TDR (regular interest pay-out) account STDR (cumulative interest pay-out) and vice versa.

Nomination Facility

Nomination facility is available for TDR Investment scheme. You can either nominate at the time of account opening or after opening the account (but before maturity).

TDR Earning Projection Table

let us take an example and see how much we can earn monthly interest by investing 10 lakhs rupees with TDR investment scheme with current interest of above SBI interest rate table.

Period in yearsDeposited Amount in INRGeneral public Monthly interest Amount in INRSenior citizen Monthly interest Amount in INR
4 years100000043984810
6 years100000044805140
Period in yearsDeposited Amount in INRGeneral public Quarterly interest Amount in INRSenior citizen Quarterly interest Amount in INR
4 years10000001325014500
6 years10000001350015500
TDR Earning Projection Table

Once the period is over you will get back your deposited amount. Now you can plan as per your needs.

FAQ about TDR Investment Scheme

Is it possible to transfer my TDR account from one branch to another branch?

Yes TDR accounts can be transferred from one branch to another branch without any extra cost.

I am a NRI can I open TDR account ?

NRI (Non resident Indians ) can not open residential fixed deposits. But they can open NRI fixed deposits accounts and it is a different scheme completely.

What will be the penalty if I close the TDR account before maturity period?

The penalty amount is generally 1% of the interest earned.

Thanks for reading this blog post. If you really liked this blogpost please share with your friends and relatives.