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Small Is Bountiful

What samll schemes offer

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Small Is Bountiful
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SchemeInterest (%)*Tax breaks under

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Post office schemesNational Saving Certificate**8.00Sec 88 and Sec 80LMaturity: 6 YearsMin.Investment: Rs 100Public Provident Fund***8.00Sec 88 and Sec 10Maturity: 15 YearsMin.Investment: Rs 100Monthly Income Scheme8.00Sec 80LTenure: 6 YearsMonthly returns: Bonus after 6 yrsTime Deposits6-25-7.50Sec 80LAvailable for 1, 2, 3, 5 yearsRecurring Deposits****7.25Sec 80LTenure: 5 YearsMin. Investment: Rs 10RBI fundsRBI Relief Bond7.00Tax-freeTenure: 5 YearsInvestment limit: Rs 2 lakhRBI Savings bond6.00Tax-freeTenure: 6 YearsNo investment limit

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* Assuming a 1 percentage point interest cut post Budget 2003. Sec 80L benefit:deductions up to Rs 12,000 for interest from specified securities plus additionaldeduction of Rs 3,000 for interest from G-Secs. Sec 88 benefit: Rebate for investments upto Rs 1 lakh in specified securities (maximum of Rs 70,000 in PPF); 

** Compounded half-yearly; *** Compounded yearly; **** Compounded quarterly

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