Recurring saving scheme (Bank):
i) It is a good saving instrument for ordinary middle class, which has a fixed amount of revenue as its monthly income.
ii)It is also suitable for small time businessmen, Traders etc, as they do not have to block a large sum, which is a requirement for other types of saving instruments.
iii) Students can open recurring deposit accounts with their pocket money they get from the parents.
iv) Minimum amount of Deposit is Rs.10. No maximum limit.
v) Once started and once one gets habituated for a couple of months, then it is taken as a fixed monthly expenditure.
vi) It is a very liquid form of investment. That is, whenever an unexpected urgent need for additional cash arises, money could be used and again continued.
vii) Recurring Deposits can be created up to 120 Months i.e. for 10 Years, starting from 6 months onwards.
PPF Scheme
i) Ideal investment option for both salaried as well as self employed classes.
ii) Investment up to INR. 1, 00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
iii)The rate of interest is high (8.70% per annum).
iv) Loan facility available from 3rd financial year up to 5th financial year.
v) Withdrawal permitted from 6th financial year.
vi) Free from court attachment.
