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Fixed Term Deposits Schemes-2
Fixed Term Deposits Schemes-2
2. PPF (Public Provident Fund) - Securing the Future for Little Riya: Mr. Singh, a loving father,
wanted to secure his daughter Riya's future. He opened a PPF account in Riya's name in 2023,
when she was just 2 years old. He started with a minimum investment of ₹500 and committed
to contributing the maximum allowed ₹1.5 lakh each year. The consistent 7.1% interest rate,
tax-free returns under Section 80C, and the flexibility of a 15-year maturity period made PPF an
ideal investment choice. By the time Riya turned 18, in 2039, her PPF account had grown
significantly, providing her with a strong financial foundation for her higher education and other
life goals.
3. Sukanya Samridhi Yojana - Empowering the Next Generation: Mrs. Patel, a forward-thinking
mother, wanted to empower her daughter Meera with financial independence. In 2023, when
Meera was 6 years old, Mrs. Patel opened a Sukanya Samridhi Yojana account in her name. She
invested ₹1,50,000 each year to maximize the tax benefits and took advantage of the current 8%
interest rate. Mrs. Patel loved the idea that the account would mature when Meera turned 27,
giving her the financial freedom to pursue her dreams and aspirations. She felt proud of her
decision to invest in Meera's future.
4. Senior Citizen Saving Scheme (SCSS) - A Comfortable Retirement for Mr. Verma: Mr. Verma, a
retiree aged 65, wanted to make the most of his savings to live a comfortable retired life. He
decided to invest ₹2,50,000 in the Senior Citizen Saving Scheme in 2023, taking advantage of the
lucrative 8.2% interest rate. With the 5-year maturity period, Mr. Verma knew he could extend
the scheme for another 5 years if needed. The tax benefit of up to ₹1.5 lakh under Section 80C
helped him optimize his tax liabilities. The steady interest income from SCSS allowed him to lead
a financially stress-free and enjoyable retirement.
5. Post Office Term deposits - Short-term Savings for Mrs. Rao: Mrs. Rao, a cautious investor, had
some surplus funds that she wanted to invest for short-term gains. She decided to put ₹10,000
each in two different Post Office Term Deposits: one for 2 years at a 7.0% interest rate and
another for 3 years at a 7.0% interest rate. The flexibility of choosing different tenures appealed
to her, allowing her to have access to funds at different intervals. After the maturity period, Mrs.
Rao received her principal amount along with interest, which she reinvested to continue
growing her savings.
6. KVP (Kisan Vikas Patra) - A Long-term Plan for Mr. Kapoor: Mr. Kapoor, a middle-aged
professional, wanted to save for his daughter's wedding in about 10 years. He decided to invest
₹50,000 in KVP in 2023, attracted by the 7.5% interest rate. With the doubling maturity period
of 115 months (9 years 7 months), Mr. Kapoor knew he could have a sizeable amount by the
time his daughter's wedding approached. While there were no tax benefits, he appreciated the
simplicity and reliability of KVP as a long-term investment option.
NSC (National Savings Multiples of ₹100 or ₹1000 6.8% (2020) / Claim up to ₹1.5 lakh 5 years
Certificate) 7.7% (2023) under Section 80C
PPF (Public Provident Minimum ₹500, Maximum 7.1% (consistent) Tax-free returns under 15 years (extendable in
Fund) ₹1.5 lakh per year Section 80C blocks of 5 years)
Sukanya Samridhi Yojana Minimum ₹250, Maximum 7.6% (2015) / 8% Tax benefit under Section Matures after 21 years from
₹1.5 lakh per year, Account (current) 80C, tax-free returns opening or upon marriage
in the name of a girl child
aged 0-10 years
Senior Citizen Saving Age 60 years or above, or 8.2% Tax benefit up to ₹1.5 5 years (extendable once)
Scheme (SCSS) age 55-60 (retirees) lakh under Section 80C
Post Office Term deposits Multiples of ₹1,000 6.9% (1 year) / Interest taxable above 1 year / 2 years / 3 years / 5
7.0% (2 years) / ₹40,000 per year years
7.0% (3 years) /
7.5% (5 years)
KVP (Kisan Vikas Patra) Multiples of ₹1,000 7.5% No tax benefits Doubles in 115 months (9
years 7 months)
Interest Rates Competitive and subject to periodic Competitive and subject to market conditions
revisions
Tax Benefits Tax-saving FDs available under Section No specific tax-saving FDs, regular FD interest may
80C be taxable
Senior Citizen Available with special interest rates Available with special interest rates
FDs
Premature Possible with penalties or reduced interest Possible with penalties or reduced interest rates
Withdrawal rates
Additional - Wide network and accessibility - Strong customer service and product offerings
Benefits
- Trust of a prominent public sector bank - Leading private sector bank in India
7 days to 45 days: For General Public - 3.00 7 days to 14 days: For General Public - 3.00 per cent;
per cent; For Senior Citizens - 3.50 per cent For Senior Citizens - 3.50 per cent
Interest Rates
46 days to 179 days: For General Public - 15 days to 29 days: For General Public - 3.00 per cent;
4.50 per cent; For Senior Citizens - 5.00 per For Senior Citizens - 3.50 per cent
cent
30 days to 45 days: For General Public - 3.50 per cent;
180 days to 210 days: For General Public - For Senior Citizens - 4.00 per cent
5.25 per cent; For Senior Citizens - 5.75 per
cent 46 days to 60 days: For General Public - 4.50 per cent;
For Senior Citizens - 5.00 per cent
211 days to less than 1 years: For General
Public - 5.75 per cent; For Senior Citizens - 61 days to 89 days: For General Public - 4.50 per cent;
6.25 per cent For Senior Citizens - 5.00 per cent
1 year to less than 2 years: For General 90 days to less than equal to 6 months: For General
Public - 6.80 per cent; For Senior Citizens - Public - 4.50 per cent; For Senior Citizens - 5.00 per
7.30 per cent cent
2 years to less than 3 years: For General 6 months 1 day to less than 9 months: For General
Public - 7.00 per cent; For Senior Citizens - Public - 5.75 per cent; For Senior Citizens - 6.25 per
7.50 per cent cent
3 years to less than 5 year: For General 9 months 1 day to less than 1 year: For General Public
Public - 6.50 per cent; For Senior Citizens - - 6.00 per cent; For Senior Citizens - 6.50 per cent
7.00 per cent 1 Year to less than 15 months: For General Public -
5 years to up to 10 years: For General 6.60 per cent; For Senior Citizens - 7.10 per cent
Public - 6.50 per cent; For Senior Citizens - 15 months to less than 18 months: For General Public
7.50 per cent. - 7.10 per cent; For Senior Citizens - 7.60 per cent