PERSONAL FINANCIAL

PLANNING
FINANCIAL SERVICES
FINANCIAL INSTITUTIONS

Post Office Monthly Income Scheme

Provides

monthly income @ 7.80

8.40% (w.e.f. 1st April 2016)
On completion of six years, you get
a 10 per cent bonus on the
principal.
Offers better liquidity as you have
an exit option after one year from
the investment date.

Post Office Recurring Deposit

Deposit

a fixed amount regularly on a monthly

basis and get a tidy sum on maturity after the

stipulated 5 years
The

minimum monthly deposit has to be Rs. 10

The

investor can close the account prematurely

after 3 years. At closure, the investor is entitled

to the interest rate applicable to post office
savings accounts.

Benefits
Account

can be opened by
cash/cheque.
Joint account can be opened by two
adults.
One withdrawal upto 50% of the
balance allowed after one year.
There is rebate on advance deposit
of at least 6 installments.

Rates / Interests
From

1.10.2016, interest rates are

as follows:
7.3% per annum (quarterly
compounded)
On maturity INR 10/- account
fetches INR 725.05. Can be
continued for another 5 years on
year to year basis.

National Savings Certificates

An assured return scheme.

Primarily

used

for

smallsavingsand

income

taxsavinginvestments in India.

Provides for tax rebates under section 80C.

Pays interest at 8 per cent for a duration of 6years, which

is relatively lower compared to other small saving
schemes

Low liquidity and premature withdrawals can be done only

under specific circumstances, such as the death of the
holder(s), forfeiture by the nominee, or under court's
order.

Benefits
Scheme

specially designed for

Government employees, Businessmen
and other salaried classes who are
Income Tax assesses.
No maximum limit for investment.
Certificates can be kept as collateral
security to get loan from banks.
Trust and HUF cannot invest.

Rates/Interests
Rate

of interest 8.0%.
Maturity value of a certificate of INR.100/purchased on or after 1.10.2016 shall be
INR. 146.93 after 5 years.
Maturity value of a certificate of INR.100/purchased on or after 1.4.2012 shall be INR.
147.61 after 5 years.
Investment up to INR 1,00,000/- per annum
qualifies for IT Rebate under section 80C of
Income Tax Act

KISAN VIKAS PATRA

Another

fixed income scheme

It doubles your money in eight years and
seven months.
No benefits under the Income Tax Act.
In terms of liquidity, the scheme is better
than the PPF and NSC. You can exit the
scheme any time after two and a half
years from the investment date, though
you will forfeit the interest earned for the
invested time period.

FINANCIAL SERVICES TYPES

Divided into 4 categories:
1.

SAVINGS

2.

PAYMENT SERVICES

3.

BORROWINGS

4.

DDs, Cheques, Online Transaction

Credit cards, Cash loans

OTHER FINANCIAL SERVICES

Insurance protection, investment for future, Mutual Funds,

Tax assistance, etc.

FINANCIAL SERVICES TYPES

INSURANCE
A contract where one party agrees to pay for another
party's financial loss resulting from a specified event (for
example, a collision, theft, or storm damage).

MUTUAL

FUND

Enables investors to pool their money & place it under

professional investment management. The portfolio
manager trades the funds underlying asset.

TYPES OF FINANCIAL INSTITUTIONS

Central

Bank

Formulation of rates

Commercial

Acceptance of deposits, lending

Credit

banks

Rating Agencies in India

CRISIL ,ICRA

SEBI

Protects
investors
interest,
facilitate
functioning of market intermediaries

Insurance

companies

Offer protection against losses

THANK YOU