Great Small Savings Schemes - India

SIRU THULI PERU VELLAM...

Small savings very powerful, even though there are various financial options for a small investor...


1. Public Provident Fund (PPF)

The PPF ranks as one of the most attractive schemes within the gamut of small savings. It presently offers a return of 8% pa and runs over a 15-Yr period. The scheme promotes regular savings by ensuring that contributions are made every year to keep the account active; these contributions can vary from Rs 500 to Rs 70,000 pa.

2. National Savings Certificate (NSC)

NSC is another attractive instrument offering a return of 8% pa. Investors are required to make a single deposit and the interest component is returned along with the principal amount on maturity. NSC has an edge over its peers on account of a relatively lower tenure i.e. 6 years.


3. Kisan Vikas Patra (KVP)

KVP falls under the category of small saving schemes which don't offer any benefits under the Income Tax Act. The scheme runs over a tenure of 8 years and 7 months (which is a fairly longish horizon) and doubles the amount invested. This makes the return one of the most attractive one amongst its peers.


4. Post Office Monthly Income Scheme (POMIS)

As the name suggests, this scheme provides monthly income (at 8% pa) to investors. On competition of 6 years, a 10% bonus on the principal sum is provided.


5. Post Office Time Deposits (POTD)

Post Office Time Deposits are essentially fixed deposits of varying tenures offered under the domain of small saving schemes. These deposits are available for periods ranging from 1 year to 5 years with the interest rates varying correspondingly. Interest payments are made annually. POTD have emerged as one of the most favoured instruments in recent times.

6. Senior Citizens Savings Scheme (SCSS)

The scheme has been reserved for citizens above 60 years of age, albeit citizens above 55 years can invest in the same subject to certain conditions being fulfilled. SCSS offers a return of 9% pa, making it a must have proposition for the target audience. The SCSS in tandem with the POMIS can prove to be a very lucrative option for senior citizens who need regular income without taking on any risk.

Small Savings Scheme in India

SMALL SAVINGS SCHEME:

SIRU THULI PERU VELLAM

OBJECTIVES
(1) To play a predominant role in inculcating the habit of Savings & Thrift among the General Public, Students, Employees in all Government & Private establishments.

(2) To implement Small Savings Schemes through Post offices and Banks.

(3) To mobilise Household Savings in the State for investment in infrastructure projects in the state.

(4) To appoint Small Savings agents both in urban and rural areas & to monitor their performance.

(5) To disseminate information about Small Savings to the nook and corner of the State through various media and to create awareness among the people.

(6) To implement & monitor special schemes of the Government of Tamilnadu like Incentive & Award schemes for Investors, Agents, Local bodies, Students, Institutions etc.

DETAILS:

100% of the net collections under Small Savings is returned to the State by the Government of India as long term-soft loan. The long repayment schedule makes it an excellent resource of the State for investment in improvement /development of infrastructure like Power, Ports, Roads, Telecom facilities, Drinking water, Sewerage, Hospitals, Schools etc. In order to increase the resources, the State Government is taking all efforts to mobilise Savings.

In the present financial market,where a large number of private financial companies have disappeared, Small Savings offer the best and safest avenue of investment of household savings. Small Savings scrips not only yield high returns, but also are guaranteed by Government and thus completely secure.

The Directorate of Small Savings is mainly concerned with the promotion of various Small Savings Schemes formulated by Government of India. Small Savings Schemes are implemented through the Department of Posts, and 15 year Public Provident Fund Scheme is implemented through Head Post offices as well as Banks. Deposit Scheme for Retiring Government Employees /Deposit scheme for Retiring Public Sector Employees which also comes under Small Savings Schemes are implemented through State Bank of India in all District Head Quarters.

Small Savings constitute a major resource to execute welfare activities of the Government.

Read more in TN SMALL SAVINGS Dot Com

What does Piggy Bank mean?

A Piggy Bank is a storage container for coins, typically used by children to teach them lessons in saving. Some boxes have locks or need to be broken to allow the money to be removed, while others have keys or other locking mechanism meaning a parent has control on when it can be opened.

The typical sort of money box is a Piggy bank, a plastic, steel or porcelain pig shaped container.

You won't believe me - if you hear how the name piggy bank came into existence...

In Middle English, "pygg" referred to a type of clay used for making various household objects such as jars. People often saved money in kitchen pots and jars made of pygg, called "pygg jars". By the 18th Century, the spelling of "pygg" had changed and the term "pygg jar" had evolved to "pig bank."

This name may have caught on because the pig banks were mostly used by children, and the pig is a child-friendly shape that is easy to fashion out of clay. Once the meaning had transferred from the substance to the shape, piggy banks began to be made from other substances, including glass, plaster, and plastic.

Another reason for the name piggy bank that has been put forward is based upon the idea that the coins given to the piggy bank represent the food fed to a pig by the farmer. It costs the farmer money to feed the pig which he does not get back until the pig is slaughtered for the meat (represented by breaking the piggy bank) which the farmer can then sell.