INVESTMENT IN PUBLIC PROVIDENT FUND

PUBLIC PROVIDENT FUND SCHEME – 1968

The Scheme introduced by the National Savings Organization in 1968 to mobilize small savings. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. Salient features of the Scheme are as follows:

1.        ELIGIBILTY – Individuals in their own name as well as on behalf of a minor can open the account at any Branch. As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted.

2.        INVESTMENT LIMITS - With effect from 01.12.2011, a minimum of Rs.500.00 (thereafter in multiples of Rs.5.00)subject to a maximum of Rs.1 lac per annum may be deposited. The subscriber should not deposit more than Rs.1 lac per annum as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments per year.

        

       In case the subscriber is not in a position to invest during a particular year(s), the account may be revived on payment of penalty @ Rs.50.00 per year along with arrears of subscription.

3.        DURATION OF SCHEME - Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.

4.        RATE OF INTEREST- 8.70% per annum with effect from 01.04.2013. Interest will be paid on 31^st March every year. Interest is calculated on the minimum balance between 5^th day and end of the month.

5.        LOANS AND WITHDRAWALS - Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.

6.        TAX BENEFITS- Income Tax benefits are available under Sec 88 of IT Act. Interest income is totally exempt from Income Tax. Amount outstanding to the credit is fully exempted from Wealth Tax also.

7.        NOMINATION- Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.

8.        TRANSFER OF ACCOUNT- The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.

Source:www.sbi.co.in

DOMESTIC TERM DEPOSITS RATES OF ICICI BANK

Fixed Deposit Rates: For Domestic Deposits below Rs. One Crore

Click here to open a FD

Maturity Period Rates of Interest (% p.a.) w.e.f August 16, 2013 For deposit less than Rs. 1 crore General Senior Citizen 7 days to 14 days 4.50 5.00 15 days to 29 days 4.75 5.25 30 days to 45 days 5.50 6.00 46 days to 60 days 7.00 7.50 61 days to 289 days 7.75 8.25 290 days to less than 1 year 7.75 8.25 1 year to 389 days 8.00 8.50 390 days to 2 years 9.00 9.50 2 years 1 day upto 5 years 8.75 9.50 5 years 1 day upto 10 years 8.50 9.25 Tax Saver FD 80C (5 year) – Upto Rs. 1 lac 8.75 9.50

*Subject to revision without further notice.

Premature withdrawal of Deposit:

On pre-mature withdrawal of the deposit:

interest will be calculated at the rate applicable for the period the deposit has actually remained with ICICI Bank.

penalty will be levied on the rate applicable as per the table below

Original Tenure of Deposit Penal Rates* Less than Rs. 5.0 Crore Rs. 5.0 Crore & above Less than 1 year 0.50% 0.50% 1 year & above but less than 5 years 1.00% 1.00% 5 years and above 1.00% 1.50%

*Subject to revision without further notice.

Note:

That Interest earned on the Fixed Deposit will be subject to Tax Deducted at Source as per Income Tax laws.

That the minimum tenure for term deposits is 7 days and no interest is payable for deposits prematurely withdrawn within the period of 7 days from the date of       deposit.

For interest rates on Fixed Deposits for Rs. 1 Cr and above, please contact your relationship manager or nearest ICICI Bank branch.

Recurring Deposit rates:

Maturity Period Rates of Interest (% p.a.) w.e.f August 16, 2013 General Senior Citizen 6 months 7.75 8.25 9 months 7.75 8.25 12 months 8.00 8.50 15 months 9.00 9.50 18 months 9.00 9.50 21 months 9.00 9.50 24 months 9.00 9.50 27 months 8.75 9.50 30 months 8.75 9.50 33 months 8.75 9.50 3 years to 5 years 8.75 9.50 Above 5 years upto 10 years 8.50 9.25

Note:

Recurring Deposits will be available for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.

Penalty on Delayed Installment:

Penalty is charged at monthly interest at the rate of Rs.12 per Rs.1000 for all delayed installments.

Fraction of a month will be treated as full month for the purpose of calculating such interest.

The total interest so chargeable shall be recovered from the total amount of interest payable at the time of maturity.

Premature withdrawal of Recurring Deposit (Click Here) Source:http://www.icicibank.com/

DOMESTIC TERM DEPOSITS RATES OF SBI

DOMESTIC TERM DEPOSITS OF SBI

The revised interest rates for Domestic Term Deposits  ‘Below Rupees One Crore’ effective from the 18.02.2014 would be as under:

                                           (All figures in % per annum)

Tenors	Existing for Public	Revised For Public w.e.f. 18.02.2014	Existing for Senior Citizens	Revised for Senior Citizens w.e.f. 18.02.2014
7 days to 90 days	7.50	7.50	7.50	7.50
91 days to 179 days	7.50	7.50	7.50	7.50
180 days to 210 days	7.00	7.00	7.00	7.00
211 days to less than 1 year	7.50	7.50	7.50	7.50
1 year to less than 2 years	9.00	9.00	9.25	9.25
2 years to less than 3 years	9.00	9.00	9.25	9.25
3 years to less than 5 years	9.00	8.75	9.25	9.00
5 years and up to 10 years	9.00	8.50	9.25	8.75

The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rates. The rate applicable to SBI Pensioners of age 60 years and above will be 0.25% above the rate payable for the tenors one year and above to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.25%).

The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on "SBI Tax Savings Scheme 2006(SBITSS)" schemes and NRO deposits shall be aligned as per the proposed rates for domestic term deposits.  However, NRO deposits of Staff are not eligible for additional 1% interest otherwise applicable to staff domestic retail deposits, These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.

Premature Withdrawal:

• The penalty for premature withdrawal of deposits below Rs 15 lacs for all tenors will be 0.50% p.a.
• However, for single deposit of Rs 15 lacs and above, there shall be no penalty for premature withdrawal for tenors below 1 year provided these have remained with the bank for at least 7 days.
• In all other cases above one year, in case of premature withdrawal, the interest shall be 0.50% below the rate applicable for the period the deposit has remained with the Bank or 0.50% below the contracted rate, whichever is lower. However, no interest will be paid if the deposit remains with the bank for less than 7 days period.
• There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposits.
• No premature penalty will be levied from staff and SBI pensioners. Interest rate to be paid on premature withdrawal of term deposits by staff and SBI pensioners will be same as applicable for the period the deposit has remained with the Bank.

The revised interest rates on ‘Domestic Term Deposits’ of ‘Rs One Crore & above’ with effect from 18.02.2014 would be as under:

Tenors	Existingfor Public	Revised w.e.f.18.02.2014 for Public	Existing forSenior Citizens	Revised w.e.f.18.02.2014for Senior Citizens
7 days to 60 days	6.50%	6.50%	6.75%	6.75%
61 days to less than 1 year	7.75%	7.00%	8.00%	7.25%
1 year to less than 2 years	8.25%	8.25%	8.50%	8.50%
2 years to less than 5 years	8.50%	8.50%	8.75%	8.75%
5 years to 10 years	8.50%	8.50%	8.75%	8.75%

Premature payment of Bulk term deposits:

The instructions regarding interest rate to be charged on premature payment of domestic Bulk term deposits are as under:-

a.    There shall be no penalty for premature withdrawal of bulk deposits of tenors below one year provided these have remained with the bank for at least 7 days.

b.    In other cases of premature withdrawal, the Interest shall be 0.50% below the rate applicable for the period the deposit has remained with the Bank or 0.50% below the contracted rate, whichever is lower. However, no interest will be paid if the deposit remains for less than 7 days period.

c.    There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposits.

The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.

Source:https://www.sbi.co.in/user.htm

Expected Dearness Allowance from July 2014 for Central Govt. Employees & Pensioners

Expected Dearness Allowance from July 2014 for Central Govt. Employees & Pensioners:

Last Updated: 28/02/2014

           

The CDA increased w.e.f. 01-January-2014 may be between 4.0% & 7.0% i.e between 104.0% to 107.0% depends upon the Average AICPIN of the months Jul'13 to Jun'14.
The AICPINs upto January 2014 have been declared. The final CDA is subject to the approval of Govt. of India.
           The Central Dearness Allowance is used to calculate with the help of last 12 months' All India consumer Price Index for Industrial Workers (AICPIN-IW). AICPIN-IW is declared by Labour Bureau  Deptt., Government of India. The month-wise AICPINs and top 20 CDA projections are listed below:-

S.N. Month AICPIN 1 July-13 235 2 August-13 237 3 September-13 238 4 October-13 241 5 November-13 243 6 December-13 239 7 January-14 237 8 February-14 Yet to be declared 9 March-14 Yet to be declared 10 April-14 Yet to be declared 11 May-14 Yet to be declared 12 June-14 Yet to be declared Average CPI upto Jan'14 238.6

Top 20 Projections:

S.N.	Avg. AICPIN Projected	Projected CDA(%)	Projected CDA Increase(%)
1	237.1	104.8	4.8
2	237.3	104.9	4.9
3	237.4	105.1	5.1
4	237.6	105.2	5.2
5	237.8	105.4	5.4
6	237.9	105.5	5.5
7	238.1	105.7	5.7
8	238.3	105.8	5.8
9	238.4	106.0	6.0
10	238.6	106.1	6.1
11	238.8	106.2	6.2
12	238.9	106.4	6.4
13	239.1	106.5	6.5
14	239.3	106.7	6.7
15	239.4	106.8	6.8
16	239.6	107.0	7.0
17	239.8	107.1	7.1
18	239.9	107.3	7.3
19	240.1	107.4	7.4
20	240.3	107.5	7.5

See Also:

The DA of Central Govt. Employee w.e.f 01-JAN-2014

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