National Savings Certificates (NSC) are certificates issued

by Department of post, Government of India and are available at all post office counters in the country This scheme is specially designed for Government employees, Businessmen and other salaried classes who are IT assesses It is a long term safe savings option for the investor. NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 5 years. There is no prescribed upper limit on investment.

 It is the amount charged. Expressed as a percentage of principal, by a lender to a

borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the Annual Percentage Rate (APR)

 A basis point is a unit equal to one hundredth of

a percentage point, or one part per ten thousand, 1/10000. A basis point is defined as: 1 basis point = 1 permyriad = one-hundredth percent The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point.

 Inflation
Monetary policy Demand and supply of funds Risk of investments Taxes

 Chair person Smt. Shyamala Gopinath

Members Shri Shaktikanta Das

Shri R Sridharan
Dr Rajiv Kumar Shri Anil Bisen

Shri Sudhir Shrivastava

Shri C M Bachhawat

 Post office and bank Depositors

Public provident fund members (PPF) Senior citizens Small investors

 The revision in interest rates follows a decision taken

by government last year to link the small savings returns with the market rate. The new rates are required to be announced at the beginning of a financial year. The decision is in line with the recommendations of Shyamala Gopinath Committee, which had suggested that returns should be in sync with market rates determined by the returns offered by other securities

 The PPF corpus is tax-free at all three stages. The

investment is eligible for tax deduction under Section 80C. The interest earned is also tax-free, and so are withdrawals. The original draft Direct Taxes Code, introduced in 2010, had proposed withdrawal of tax benefit. Though it would have been with prospective effect an existing investments would have been exempt, there was strong opposition to the move. The revised draft DTC nixed the proposal. However, with PChidambaram back as finance minister, the original DTC proposals may come back in some form. PPF interest rate reduced to 8.7% from April 1.

Advices..