We Design Your Financial Destiny


(Precious) Words of Wisdom : "Risk comes from not knowing what you’re doing." ~ Warren Buffett

Inflation Indexed National Saving Securities announced

Last week, RBI announced the details of the much-awaited Inflation Indexed National Saving Securities for the retail investors; to be launched in the 2nd half of this month. These would be cumulative in nature and hence are designated as Inflation Indexed National Saving Securities - Cumulative or IINSS-C. Non-cumulative securities would be introduced in due course of time.

While the issue dates would be announced shortly, here are the salient features of IINSS-C.

Face Value: Rs.5000
Min Investment: Rs.5000
Max Investment: Rs.5 lakhs per person per annum
Tenor: 10 years

PAN No.: Mandatory for investment of Rs.50,000 or more (excepting a few exceptions)
Availability: With the banks and Stock Holding Corporation of India Ltd (SHCIL)
Eligibility: Individuals, HUFs, Trusts and Charitable Institutions

Rate of interest: 1.5% + Inflation rate  [So if inflation is 10%, interest rate would be 11.5%]
Inflation rate: Final rural+urban combined CPI (applied with a lag of 3 months) [So interest for Jan 2014 would be based on inflation in Oct 2013]
Compounding: Half-yearly

Early redemption: Permitted after three years (one year for senior citizens above age 65)
Early redemption dates: Only on coupon dates
Early redemption penalty: 50% of the last coupon 

Nomination: Permitted (for individuals)
Transferability: No
Loans: Allowed to pledge as a collateral

In tomorrow's post we will evaluate whether we should invest in Inflation Indexed National Saving Securities - Cumulative or not.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Powered by Blogger.

... Three VALUABLE Tips ...

1. Fake News On Investment: Absolute Vs Annualized Return
Absolute Vs Annualized Returns
Whatever may be the source of news, always crosscheck and verify.

 


2. Tax-Free NPS Withdrawal Hiked To 60%. But Don't Say Wow.
Say No to NPS
It's a thumbs down for the NPS (National Pension System).

 


3. Many Credit Card Bills Equals Many Problems
Credit Card Problems
Warning! The joy and happiness from Credit Cards is momentary only.