Latest news with #NationalSavingsCertificate
Time of India
11-07-2025
- Business
- Time of India
Best tax saving mutual funds or ELSS to invest in July 2025
Tax saving mutual funds or ELSSs invest in stocks. Therefore, they have a very high risk. You should be aware of this aspect, especially if you are a first-time investor in equity mutual funds. Compared to your usual investments like Public Provident Fund or National Savings Certificate, etc, ELSSs do not offer guaranteed returns. You may even suffer losses in a bad market. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Best ELSS or tax saving mutual funds to invest in July 2025: Canara Robeco ELSS Tax Saver Fund Mirae Asset ELSS Tax Saver Fund Invesco India ELSS Tax Saver Fund DSP ELSS Tax Saver Fund Quant ELSS Tax Saver Fund (new addition) Bank of India ELSS Tax Saver (new addition) Tired of too many ads? Remove Ads Most taxpayers make their investments in the last three months of the financial year (January-March). Most of them look for the investment options available under Section 80C of the Income Tax Act (IT Act). The Section 80C of the Income Tax Act allows tax deduction of up to Rs 1.5 lakh in a financial year on investments in a few specified instruments. If you are trying to save taxes in this financial year, you can consider investing in tax-saving mutual funds or -saving mutual funds or Equity Linked Savings Schemes (ELSSs) helps you to save income tax under Section 80C of the IT Act. You can invest a maximum of Rs 1.5 lakh in ELSSs and claim tax deductions on your investments every financial year. Are you interested?Before proceeding further, you should familiarise yourself with ELSSs. Tax saving mutual funds or ELSSs invest in stocks. Therefore, they have a very high risk. You should be aware of this aspect, especially if you are a first-time investor in equity mutual funds. Compared to your usual investments like Public Provident Fund or National Savings Certificate, etc, ELSSs do not offer guaranteed returns. You may even suffer losses in a bad why should you invest in ELSSs? One, these schemes have the potential to offer higher returns over a long period. As you know, tax saving schemes invest in stocks. And stocks typically offer higher returns over a long period of time. For example, the ELSS category offered an average return of around 13.61% over 10 ELSS funds have the shortest lock-in period of three years among tax saving investments. Most other investment options under the 80C basket are government-backed investments. They typically come with longer lock-in periods. For example, PPF is a 15-year product that allows partial withdrawals after six years. The NSC is a five-year product. So, if you want access to your money in three years, you should invest in ELSSs. But don't count on it to offer you great returns in three years. You should always keep in mind that equity investing is for the long term. You should invest in equity mutual funds only if you have an investment horizon of five to seven the third and the most important point to remember is that ELSSs is an entry point for many investors into investing in stocks. Many investors often start with ELSSs and the mandatory lock-in period of three years in these schemes helps them to weather the volatility in the stock market. Once these investors see the rewards coming in, say, five or seven years, they start investing more money in equity you are interested in investing in these schemes, here are our recommended ELSSs you may consider investing in these schemes. Invesco India Tax Plan Fund has been in the third quartile for the last 12 months. The scheme had been in the fourth quartile earlier. Canara Robeco Equity Tax Saver Fund has been in the third quartile for the last 11 months. The scheme had been in the fourth quartile earlier. Mirae Asset Tax Saver Fund was in the third quartile for 17 months. ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}For Equity funds, the threshold asset size is Rs 50 crore
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Business Standard
10-07-2025
- Business
- Business Standard
No slips, no forms: Aadhaar e-KYC now live for Post Office RD, PPF
Depositors can open and manage recurring deposit and public provident fund accounts using Aadhaar biometrics Amit Kumar New Delhi Post offices nationwide will allow customers to open and manage recurring deposit (RD) and public provident fund (PPF) accounts using Aadhaar-based biometric e-KYC, making processes quicker and paperless. What's new? The facility was available for Monthly Income Scheme, Time Deposit, Kisan Vikas Patra, and National Savings Certificate. It has been extended to RD and PPF, two of the most popular small savings accounts among Indians. Open new RD and PPF accounts using Aadhaar biometric authentication. Deposit money into RD and PPF accounts without using pay-in slips. Open RD and PPF loan accounts and repay loans using biometric verification. Make partial or full withdrawals from PPF accounts, irrespective of limits, via Aadhaar biometrics. This Aadhaar-linked process eliminates the need for physical forms such as withdrawal vouchers and pay-in slips, reducing paperwork and transaction time. How does it work? When opening an RD or PPF account, the depositor's biometric is captured twice: The first capture obtains consent for using Aadhaar details. The second scan authenticates the transaction. For deposits and withdrawals, the biometric alone is sufficient for verification. Customers can even transfer funds from their Post Office savings accounts without submitting withdrawal forms. Added security For privacy, Aadhaar numbers on forms will appear in a masked format (e.g., xxxx-xxxx-1234). If an unmasked Aadhaar appears on any document, post office chiefs have been instructed to manually mask the first eight digits. This initiative aligns with the government's push for a digital-first approach to small savings and promises greater convenience for depositors, especially in rural and semi-urban areas.
Hans India
09-07-2025
- Business
- Hans India
RBI Floating Rate Savings Bonds 2025: Safe Investment Option With 8.05% Interest
As many banks have been lowering fixed deposit (FD) interest rates, people are now looking for other alternate options to earn money safely. One good option is the Floating Rate Savings Bonds (2020) launched by the Reserve Bank of India (RBI). These bonds give you higher interest than FDs and come with the full safety of the RBI. That means your money is secure. How Do These Bonds Work? The interest rate changes every 6 months. It is linked to the National Savings Certificate (NSC) rate. As of July–December 2025, the bond offers 8.05% interest, which is 0.35% more than NSC. You will get interest twice a year – on January 1 and July 1. Main Features Time period: 7 years Minimum amount: ₹1,000 No upper limit Interest is taxable You can't take out money early, except for senior citizens: Age 60–70: after 6 years Age 70–80: after 5 years Age 80+: after 4 years Who Can Invest? Only Indian citizens and Hindu Undivided Families (HUFs) NRIs cannot invest Great for: Senior citizens Low-risk investors People who don't need the money for 7 years Where to Buy? At any bank branch authorised by RBI On bank websites On the RBI Retail Direct portal KYC documents (ID, address proof) are required Example: If you invest ₹1 lakh at 8.05% interest, you will get around ₹4,000 every 6 months. This interest is taxable, but if you're eligible, you can submit Form 15G or 15H to avoid TDS.
Time of India
08-07-2025
- Business
- Time of India
Public Provident Fund update: Has interest rate been revised for Q2 2025? Key benefits and rules investors should know
NEW DELHI: Good news for investors relying on small savings schemes. The government has kept the interest rates unchanged for the July-September 2025 quarter. The Public Provident Fund (PPF), along with other popular schemes such as the National Savings Certificate (NSC) and Senior Citizen Savings Scheme (SCSS), will continue to offer the same returns as in the previous quarter, as reported by the Economic Times. The PPF remains a popular long-term savings vehicle due to its tax advantages, fixed returns, and government backing. The interest rate for the scheme is reviewed every quarter, but the latest announcement made on June 30, 2025, confirmed that there will be no revision this time. PPF: Triple tax-exempt investment One of the standout features of PPF is its EEE (Exempt-Exempt-Exempt) tax status. Here's what that means for investors: Exempt 1: Contributions up to Rs 1.5 lakh per year qualify for a tax deduction under Section 80C of the Income Tax Act. Exempt 2: The interest earned on the PPF account is completely tax-free. Exempt 3: The maturity amount is also exempt from tax. This makes PPF a highly attractive option for conservative investors looking to grow their wealth safely while reducing their tax liability. How much can you invest in PPF? Minimum Deposit: Rs 500 per financial year. Maximum Deposit: Rs 1.5 lakh per financial year. You must deposit at least the minimum amount each year to keep your PPF account active. If the account is inactive due to non-payment, it can be revived by paying Rs 500 for each missed year along with a penalty of Rs 50 per year. Note: An individual can open only one PPF account, either at a bank or post office. Opening multiple accounts is not allowed and may require corrective action. PPF maturity: What happens after 15 years? The PPF account matures 15 years from the end of the financial year in which it was opened. But maturity doesn't mean closure. Investors can choose to: Withdraw the full amount, or Extend the account in blocks of five years - with or without further contributions. If you opt to continue making deposits, interest will accrue on both the new and existing balances. Need funds? You can make partial withdrawals Though often seen as a long-term locked-in scheme, the PPF does allow for partial withdrawals starting from the seventh financial year. Here's how it works: You can withdraw the lesser of 50% of the balance at the end of the fourth year or the balance at the end of the preceding year. These withdrawals can be used for emergencies, education, or medical expenses - and the withdrawn amount is not taxed. Bottom line for savers The unchanged interest rates for PPF and other small savings schemes may come as a relief amid ongoing economic uncertainties. For investors looking for safe, long-term, and tax-efficient options, the PPF continues to be a reliable choice. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
07-07-2025
- Business
- Time of India
RBI floating rate bond offers 8.05% return: FRSB outperforms most bank FDs and PPF; what conservative investors need to know
AI image The Reserve Bank of India has maintained the interest rate on its Floating Rate Savings Bonds (FRSBs) at 8.05% for the July–December 2025 period, offering one of the highest government-backed returns currently available in the fixed-income market. While this rate remains unchanged from the January–June 2025 period, it places FRSBs well ahead of most bank fixed deposits (FDs) and small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), in terms of returns, making it an attractive option for long-term conservative investors, according to an ET analysis. RBI floating rate bond outperforms most bank FDs According to data from Paisabazaar quoted by ET, the RBI bond's 8.05% yield is higher than the long-term FD interest rates offered by major banks. Axis Bank, HDFC Bank, and ICICI Bank are offering 6.4–6.6% interest on 5–10 year FDs, while the State Bank of India (SBI) is paying just 6.05% for the same tenure. Even banks like Punjab National Bank and Kotak Mahindra cap their long-term FD rates at 6.5% and 6.25% respectively. A handful of small finance banks (SFBs) are offering slightly better returns. Jana Small Finance Bank tops the list at 8.2%, followed by slice SFB at 7.75% and Suryoday SFB at 8%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo However, even the best of these still fall short of matching the sovereign guarantee that backs the RBI's floating rate bonds, which enjoy complete government protection with no investment cap. Safety plus rate advantage 'Given that the bonds are issued by the RBI, they provide the highest safety to investors, more than any fixed deposit available in the market,' said Suresh Darak, Founder, Bondbazaar. 'Moreover, at 8.05%, the returns are higher than bank FDs, which are currently at around 7%. Since the rates are recalibrated every six months, investors could benefit further if the interest rate cycle turns upward,' he added. However, investors need to be comfortable with the longer lock-in period of 7 years for individuals below 60. Compared to the 5-year lock-in for the SCSS or the 15-year tenure of PPF, the RBI bond's lock-in appears moderate. The bond does offer early exit options for senior citizens but with tiered holding conditions: those aged 60–70 can exit after 6 years, 70–80 after 5 years, and those above 80 after 4 years. Rate linked to NSC, recalibrated every 6 months The 8.05% return on the RBI bond is pegged 35 basis points above the prevailing NSC rate, which currently stands at 7.7% for the July–September quarter. The next reset for the RBI bond will occur on January 1, 2026. The interest is paid out twice a year — on January 1 and July 1 — providing a steady income stream. This linkage also offers some protection in case small savings rates are reduced. For instance, if the NSC rate were to drop to 7.2% in the next quarter, the bond would still yield 7.55%, keeping it ahead of most long-term FD and PPF rates. Outperformance even during low-rate cycle Data from India Post shows that from April 2020 to December 2022, the NSC interest rate stood at a historic low of 6.8%. Despite this, RBI's FRSBs yielded 7.15% during that time — still significantly higher than bank FD rates, which were mostly between 5–5.5%. 'With a low entry requirement of just Rs 1,000 and no maximum limit, these bonds are accessible to a broad range of savers,' said Vineet Agrawal, Co-founder of bond investment platform Jiraaf. 'Backed by a sovereign guarantee, these 7-year bonds pay interest every January 1 and July 1, making them ideal for conservative investors seeking steady income. These bonds clearly outperform typical bank FDs and offer more stability amid uncertain rate cycles,' he added. Better than PPF and SCSS for high-value savers The RBI bond's edge becomes clearer when compared with other small savings schemes. The PPF offers 7.1% interest but comes with a 15-year lock-in and a maximum annual contribution of Rs 1.5 lakh. The SCSS offers 8.2% interest with a 5-year lock-in but restricts investment to Rs 30 lakh per person. Senior citizens who have exhausted their SCSS limit can use RBI bonds to extend high-yielding exposure. Since there's no cap on investment in FRSBs, they serve as an effective second-tier retirement investment instrument. Interest payouts every six months make them even more suitable for retirees who want periodic income without market volatility. Rate risk remains low for now While there is some concern that the RBI's 100 basis point repo rate cut this year may eventually push small savings rates lower, market watchers believe any reduction in NSC rates is likely to be gradual. Small savings schemes are politically sensitive and widely subscribed. As such, the government is unlikely to mirror repo rate cuts fully in small savings adjustments. Even if it does, the semi-annual recalibration of RBI bonds provides a cushion — any change would only be reflected after six months. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
