Amount

Interest
Plan
Principal Interest (p.a.)
1 Year
3 Year 5 Year
10 Year 15 Year 1 Year 3 Year
5 Year NSC
100.00
8.50
108.68 128.37
151.62 229.89 348.56
8.68 28.37
10 Year NSC
100.00
8.80
108.99 129.48
153.82 236.60 363.93
8.99 29.48
a) Interest not taxable UNDER 80C only
(As interest is not paid to individual but r
b) Is compounded half yearly
(one time investment)
c) Interest Rate is fixed at time of purchase
(wef 1stApl,2012 8.5% for 5-year & 8.8%
d) http://www.charteredclub.com/national-savings-certificate/
15 Year PPF
100.00
8.70
109.06 129.70
154.25 237.94 367.04
9.06 29.70
(Interest
is
compounded
monthly)
a) Interest is Non Taxable
b) Interest Rate is subject to change but is generally about 8%
(multiple time investment)
c) PPF Interest Rate as announced by RBI for the financial year 2014-15 is 8.7%.
d) http://www.charteredclub.com/what-is-ppf-account-and-the-benefits-of-investing-in-ppf/
After Tax
Plan
Amount invested
Interest (p.a.)1 Year
3 Year 5 Year
10 Year 15 Year
I year FD
100.00
9.00
109.31 130.60
156.05 243.52
9.31 30.60
a) no tax benefit
b) PNB FD compounded quarterly. Annualised return 9.31% on 9%
3+ to 5 year FD
100.00
8.75
109.04 129.65
154.15 237.64 366.32
9.04 29.65
a) The principal is nontaxable under 80C
b) PNB FD compounded quarterly. Annualised return 9.88% on 8.75%

Interest
5 Year 10 Year 15 Year
51.62 129.89 248.56
53.82 136.60 263.93
not paid to individual but reinvested)

12 8.5% for 5-year & 8.8% for 10-year)

54.25 137.94 267.04

mpounded monthly)
investment)

56.05 143.52 -100.00

54.15 137.64 266.32

http://www.charteredclub.com/save-tax-planning/
S.No. Instrument
Remarks
Tax on Returns
Lock In (yr) Investment Limit
Recommendations
Long Term (15 to 20 years)
1 PPF
Best Option
EEE
15
150000 pa
2 Tax Free Bonds
2nd Option
Non Taxable15 to 25
NA
3 LIC Term Plan
For Insurance
10 to 21
Medium Term (5 to 10 Years)
1 NSC
Taxable
1 Bank FD
2 ELSS
For diversification
Taxable

5, 10
5 Years

The advantage you have with NSC over a Ba

Fixed deposits for tax saving are not eligible
ICICI Pru Tax Fund

Short Term (1 to 3 years)

2 ELSS
For diversification
EEE
min 3
http://timesofindia.indiatimes.com/busines
1 Bank FD
http://www.personalmoney.in/top-10-mutu
While the ELLS category has given 15.2% annualized returns, the diversified funds have given 14.3%.
This is partly because a large number of equity diversified funds pull down the average returns.
However, not all ELSS funds have performed so well. While the best performing ELSS fund has
given 21.7% annualized return in the past five years, the worst performer has given only 3.8%.
So, choosing the right fund is crucial.

ge you have with NSC over a Bank FD is that you can pledge with bank for loan in case of any emergency.
s for tax saving are not eligible for loan.

ofindia.indiatimes.com/business/india-business/Five-important-facts-about-ELSS-funds/articleshow/39588259.cms
personalmoney.in/top-10-mutual-fund-elss-schemes-to-save-taxes/1481
given 14.3%.

PPF Interest Rate for the current and the past few years is given in the table below
PPF
Financial Interest
Year
Rate
2011-12
8.60%
2012-13
8.80%
2013-14
8.70%
2014-15
8.70%
The ideal way to earn the maximum possible interest on ppf account would be
to deposit Rs. 1.5 Lakh before 5th April so that you can earn interest on the
whole 1.5 lakh for the complete financial year.
http://finotax.com/ppf/calculator

Particulars
Maturity Period*
NSC Interest Rate
(wef 1st April
2013)

NSC (VIII
Issue)
5 year

NSC (IX
Issue)
10 year

8.50%

8.80%