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Among the plethora of investment instruments offered under the post office savings schemes, <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword> (Public Provident Fund) and <keyword id="65834" type="COMPANY" weightage="20" keywordseo="NSC">NSC</keyword> (National Savings Certificate) occupy the top positions in terms of assuring high returns. If you wish to choose between these two kinds of <keyword id="114757" type="PERSON" weightage="20" keywordseo="Savings-Account">savings account</keyword>, you must make a detailed comparison of the different aspects of these schemes to be able to take the right decision. Minimum and maximum contribution A minimum of Rs. 500 per year must be deposited in the PPF account per year with an upper maximum limit of Rs. 1,50,000. The NSC account permits a minimum deposit of Rs. 100 without a maximum limit whatsoever. The NSC certificate is issued in multiples of Rs. 100, Rs.500, Rs.1,000, Rs. 5,000 and Rs. 10,000. Hence if you want to invest Rs. 40,000 for instance, you will have to purchase 4 certificates of Rs. 10,000 value. Returns on investment The interest rates are very attractive for both PPF and NSC investments. The interest rates vary from year to year depending on the financial health of the Indian economy. However, at present, the interest rates are 8.1% and 8.0% per year for PPF and NSC respectively. Tax benefits Investments in both these savings schemes are eligible for tax exemptions under Section 80C. Investments done in these schemes are exempted from taxation for a maximum value of Rs. 1,50,000 per year. In case of PPF scheme, the principal amount deposited as well as the interest accumulated are tax exempted. In case of NSC, only the invested amount is tax exempted and not the interest amount. Tenure of deposit The maturity period of a PPF account is 15 years. It is possible to extend it for a period of 5 more years. For instance, if you open the PPF account when you are 20 years of age, it matures when you are at your 35 years. If you choose to extend it beyond without closing it down on maturity, you can do so for another block of 5 years and withdraw the sum accumulated at the end of 20 years in total. In case of a NSC account, the maturity period is only 5 years and it will have to be closed down at this point by withdrawing whatever amount has been accumulated. The number of accounts permitted When you open a NSC account, you can’t keep adding up money to it any more. You will have to buy another NSC separately every time you wish to make an investment. In case of PPF, it is possible to have one single account and keep adding money to it. When you choose to open two PPF accounts with your earnings one for yourself and the other for a minor child in the family, you can do so. However, only up to a total limit of Rs. 70,000 per annum ( in both the accounts you open) will qualify for tax exemption and the amount you deposit in the account(s) will invite tax. Which one to choose? Which type of account is better for you – PPF or NSC depends on your situation and you must work with your expectations and priorities to choose the right one for your investment needs. Since the interest rates are almost similar in both these accounts, you will have to compare the other aspects for your convenience to make the decision.

PPF (Public Provident Fund) Vs NSC (National Savings Certificate): Which is better?

When it comes to investments, you always need to do a careful planning and research before settling with an option. This is because, the decision you make can affect the several aspects of your investment like flexibility of operation, tenure and interest rate besides many others. Here we compare between the FDs offered by banks and the Post Office Savings Scheme to decide which among them is the better option for investors looking from different angles. Bank FDs and Post Office Savings Bank FDs are the conventional fixed deposit investment instruments offered by different banks. Any amount of money without any upper limit can be invested in FD for a period ranging from 12 months to 60 months. The rates of interest for FDs vary between banks and for different categories of investors like regular investors and senior citizens. Post Office Savings scheme is operated by Post Office which is also popularly called as small savings scheme. They are known to offer far better interest rates and returns than bank deposits. Here is a comparison of the different features of FD and Post Office Saving Scheme. Interest rate of Bank FD and Post Office To compare the interest rate between FD and Post Office, let us take the case of SBI for example. SBI is the largest lender in the country. While SBI offers only 5.75% interest on your investment in FDs, a five year term post office term deposit can give you 7.4%. The interest rate of PPF is 7.8%. NSC offers 7.6% interest on deposits and the interest rates for deposits in <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi and KVP are 8.1 percent and 7.3 percent respectively. Tax efficiency When compared to the banks FDs, some schemes offered by the post office are seen to be more tax efficient. For instance, what is earned from PPF is completely tax exempted. On the other hand, all that is earned from FD is taxable. Under Section 80C, it is possible to get tax savings for bank FDs. Some select post office savings schemes like PPF, National Savings Certificate, and Sukanya Samriddhi can give the investors similar tax benefits. Since post office savings schemes combine in them a higher interest rate as well as some attractive tax benefits, they weigh more than the bank FDs. Advantages for senior citizens in FD and Post Office Majority of the bank deposits do not give any encouraging benefits to senior citizens. Whereas, the Senior Citizens Saving Scheme offers 8.3% per annum. The senior citizens looking for monthly income will find the monthly income scheme much better at Post Offices s it would offer an interest rate of 7.3% per annum. The monthly interest rates on the bank deposits are considerably lower and hence are not that beneficial when compared with the post office savings schemes. Service quality in Bank FD and Post Office In this one aspect, the banks significantly outweigh the post offices. When it comes to customer service, banks work with the latest and advanced technology today. The experience at the post office can be time consuming and tedious involving a lot of paper work. However, considering the significant gains that you have while investing in the post office savings schemes, you can overlook this aspect and settle with these better investment instruments to gain more from your hard earned money.

Bank FD Vs Post Office Saving Scheme : Which Is Better

Among the plethora of investment instruments offered under the post office savings schemes, PPF (<keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword>) and NSC (National Savings Certificate) occupy the top positions in terms of assuring high returns. If you wish to choose between these two kinds of savings account, you must make a detailed comparison of the different aspects of these schemes to be able to take the right decision. Minimum and maximum contribution A minimum of Rs. 500 per year must be deposited in the PPF account per year with an upper maximum limit of Rs. 1,50,000. The NSC account permits a minimum deposit of Rs. 100 without a maximum limit whatsoever. The NSC certificate is issued in multiples of Rs. 100, Rs.500, Rs.1,000, Rs. 5,000 and Rs. 10,000. Hence if you want to invest Rs. 40,000 for instance, you will have to purchase 4 certificates of Rs. 10,000 value. Returns on investment The interest rates are very attractive for both <keyword id="7892007" type="UNKNOWN" weightage="20" keywordseo="PPF-and-NSC">PPF and NSC</keyword> investments. The interest rates vary from year to year depending on the financial health of the Indian economy. However, at present, the interest rates are 8.1% and 8.0% per year for PPF and NSC respectively. Tax benefits Investments in both these savings schemes are eligible for tax exemptions under Section 80C. Investments done in these schemes are exempted from taxation for a maximum value of Rs. 1,50,000 per year. In case of PPF scheme, the principal amount deposited as well as the interest accumulated are tax exempted. In case of NSC, only the invested amount is tax exempted and not the interest amount. Tenure of deposit The maturity period of a PPF account is 15 years. It is possible to extend it for a period of 5 more years. For instance, if you open the PPF account when you are 20 years of age, it matures when you are at your 35 years. If you choose to extend it beyond without closing it down on maturity, you can do so for another block of 5 years and withdraw the sum accumulated at the end of 20 years in total. In case of a NSC account, the maturity period is only 5 years and it will have to be closed down at this point by withdrawing whatever amount has been accumulated. The number of accounts permitted When you open a NSC account, you can’t keep adding up money to it any more. You will have to buy another NSC separately every time you wish to make an investment. In case of PPF, it is possible to have one single account and keep adding money to it. When you choose to open two PPF accounts with your earnings one for yourself and the other for a minor child in the family, you can do so. However, only up to a total limit of Rs. 70,000 per annum ( in both the accounts you open) will qualify for tax exemption and the amount you deposit in the account(s) will invite tax. Which one to choose? Which type of account is better for you – PPF or NSC depends on your situation and you must work with your expectations and priorities to choose the right one for your investment needs. Since the interest rates are almost similar in both these accounts, you will have to compare the other aspects for your convenience to make the decision.

PPF (Public Provident Fund) Vs NSC (National Savings Certificate): Which Is Better

<keyword id="6380711" type="UNKNOWN" weightage="20" keywordseo="post-office">Post Office</keyword> in India provides a host of savings schemes to the citizens and most of them assure a risk-free high returns on the investments. The reliability and operational convenience of the different post office savings schemes have made a lot of Indians turn towards these investment instruments as highly sought after options. Offered through 1.54 lakh post offices located across the country, some of the major benefits of these schemes include attractive tax benefits, reliability, security and high interest rates. Here is a list of some post office savings schemes and their unique advantages over other investment options. Some popular post office savings schemes <ul><li>Post Office Savings Account</li><li>Post Office Recurring Deposit Account (RD)</li><li>Post Office Time Deposit Account (TD)</li><li>Post Office Monthly Income Scheme Account (MIS)</li><li>Senior Citizen Savings Scheme (SCSS)</li><li>Public Provident Fund Account (PPF)</li><li>National Savings Certificates (NSC)</li><li>Kisan Vikas Patra (KVP)</li><li>Sukanya Samriddhi Accounts (SSA)</li></ul>Unique advantages of post office savings schemes Ease of operation The various post office savings schemes are very easy to operate. They are highly suitable both for rural as well as urban investors. The ease of accessing them and operating them make them attractive options for people from all walks of life. Simplicity and government support All the post office savings schemes are simple in their nature without any need for cumbersome documentation. Since these are backed by the government, there are much safer than the other kinds of investment instruments. Long term investment options Some post office savings schemes like PPF (Public Provident Fund) are long term oriented. They are also forward looking to meet the retirement needs of the investors. Hence such schemes give room for pension and retirement planning. Tax exemption The majority of the post office savings schemes carry tax deductions under Section 80C for the amount deposited in them. The interest earned from savings schemes like PPF, <keyword id="2713906" type="PERSON" weightage="20" keywordseo="Sukanya-Samriddhi-Account">Sukanya Samriddhi Account</keyword> and SCSS enable for claiming tax exemption for the amount earned as interest through these investments. High interest rates and risk-free nature The interest rates in the various post office savings schemes range from 4% to 9% which is very attractive in many cases when compared to the interest rates offered by the different kinds of bank deposits. Since post office is an undertaking by the Government of India, the investments in them are safer as against investing in the private sector and even in some other kinds of banks. Wide range of investment choices Post offices offer a wide portfolio of investment options for different categories of investors and across different purposes of investments. Hence depending on their situation and need, the investors can choose the instrument that meets their needs and expectations. Take away The ultimate objective behind the various savings schemes operated by the government through post offices is to provide the citizens with safer and easier investment avenues. All these schemes are very easy to manage and the money invested in them is safe without being subjected to any kinds of risks whatsoever while letting the people achieve their financial goals in a much better way.

Post Office Saving Schemes: which are best?

<div class="image-container float_right" style="width:800px"><div class="image">AP</div></div>Three months ago, Frank Newman sent me a book entitled <a href="http://www.amazon.com/Freedom-National-Debt-Frank-Newman/dp/1626520380/ref=sr_1_5?ie=UTF8&amp;qid=1373473859&amp;sr=8-5&amp;keywords=freedom+from+debt">Freedom From National Debt</a>. I finally got around to reading it — all 89 pages. It’s a little book, packed with evidence that America is being held back by incorrect assumptions and misguided fears about the national <keyword id="44647" type="ORGANIZATION" weightage="60" keywordseo="debt">debt</keyword> and government finance in general. Here’s the takeaway:
<blockquote>
America has convinced itself that it can no longer afford many of the productive things that it has done so well over its history. Infrastructure repair, jobs programs, military modernization, tax reduction…have all been stifled because of this fear.
</blockquote>
Like the proponents of <a href="http://www.nakedcapitalism.com/2013/03/what-is-modern-monetary-theory-or-mmt.html">MMT</a>, Mr. Newman is frustrated by the pervasiveness of these falsehoods and their devastating effects on our social and economic well-being. He sees what we see, the potential for a vastly more prosperous, more stable, and more secure America that is being kept out of reach through the adoption of economic policies that were designed for a country whose currency was still tied to gold.
He draws many of the same “unconventional conclusions” reached by <a href="http://neweconomicperspectives.org/mmt-scholarship">proponents of MMT</a>:
<blockquote>
<ul>
<li>Saving cannot generate productive business Investment; it’s the other way around: Investment generates Saving.</li>
<li>Deficits do not reduce national Saving or Investment</li>
<li>Issuance of Treasury securities (deficit financing) cannot “use up” equivalent amounts of funds intended for private-sector use.</li>
</ul>
</blockquote>
He recognizes that this runs counter to the conventional wisdom, but he insists that these truths simply follow from an accurate portrayal of “how the system actually works.” And he should know. He served as Deputy Secretary of the U.S. Treasury. Prior to that, he was Vice Chairman of the Board and CFO of BankAmerica Corporation, and Executive Vice President and CFO of Wells Fargo Bank.
So when Mr. Newman writes, “This author recommends <a href="http://www.amazon.com/Deadly-Innocent-Frauds-Economic-ebook/dp/B00BGWOXEK/ref=sr_1_cc_1?s=aps&amp;ie=UTF8&amp;qid=1373480814&amp;sr=1-1-catcorr&amp;keywords=seven+deadly+frauds+mosler">Mr. Mosler’s book</a>, as well as various writings by academic proponents of ‘Modern Monetary Theory’,” it really means something.

Former Treasury Official Says America Is Being Held Back By Misguided Fear

The countdown to meet our financial goals has begun. <keyword id="25456" type="ORGANIZATION" weightage="20" keywordseo="financial-planning">Financial planning</keyword> is usually not our most well-thought-out decision as often our primary focus is saving tax. And, though it should play a key role, just saving tax is not necessarily the best way to go about it. The constant need to save tax instead of planning finances methodically, often leads to lack of liquid funds in times of need. It is, therefore, critical that you strike a balance between your long-term and short-term goals. 
 
This new year, make your savings work double time: save tax and get best possible returns. Here, are a few financial instruments in which you can park your money for long-term investment and ensure quick access to funds, if required. 
 
1. <keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword> (PPF): PPFs top every investor’s list, and they should. The Budget 2014-15 made this scheme even more attractive by increasing the annual investment limit to Rs 1.5 lakhs. This scheme is a safe investment option for all, whether salaried or self-employed. The downside, however, is that it is a long-term saving with a lock-in period of 15 years. Further, you can withdraw money from the fund from the 7th year onward and that too only 50% of the balance. 
 
2. National Savings Certificate (NSC): Post offices issue NSCs as a small savings scheme. You can invest in either 5-year or 10-year NSCs. One great advantage offered by NSCs is that there is no upper limit to the amount you want to invest, though tax benefits will be available on an amount of Rs 1.5 lakh or lower only. 
 
3. Unit-linked <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">Insurance</keyword> Plan (ULIP): It is a long-term savings scheme that doesn’t offer much flexibility or decision-making to the investor. You invest for a period of 10-12 years, with a lock-in period of 5 years. Although <keyword id="6362086" type="CITY" weightage="20" keywordseo="Ulips">ULIPs</keyword> allow you to switch between equity and debt, your profits depend on the financial expertise of your fund planner. On the upside, ULIPs provide the investor with a life cover. 
 
4. Equity-linked Savings Scheme (ELSS): It is flexible with respect to investment duration, with a lock-in period of three years. There is no maximum limit to the amount you can invest in an ELSS, and investment of up to Rs 1.5 lakhs offers tax benefits. One of the many benefits of an ELSS is that no tax is levied on withdrawing your investment after the lock-in period. 
 
5. National <keyword id="6354432" type="UNKNOWN" weightage="20" keywordseo="pension">Pension</keyword> Scheme (NPS): NPS is the cheapest market-linked retirement option as the annual fund management charges are a maximum of 0.25% of the amount invested. Your minimum investment criterion will vary according to the tier you are grouped in. You can invest in any one of the three types of NPS funds and divide your corpus according to your risk-taking ability. 
 
6. Post Office Time Deposit (POTD) scheme: It is primarily a small saving scheme, with the duration ranging from 1 year to 5 years. You can earn an interest of about 8.50%, depending upon your investment period. Though the interest is paid annually, it is compounded quarterly. Further, you can now exit the scheme after 6 months, which makes it a handy investment option. 
 
7. Banks’ Fixed Deposits (FDs): Banks offer 5-year FDs that serve the dual purpose of saving tax and investing money safely. You can invest a minimum of Rs 100 and a maximum of Rs 1.5 lakhs. Banks offer interest rate of 8%-9.75%, depending on the bank you choose. However, the interest earned on the fixed deposits is fully taxable. 
Plan now and save for that rainy day. 
 
 
 
(About the author: The article has been written by By Naveen Kukreja, Director, Paisabazaar.com) 
 
Image: Thinkstock

Your DIY For Optimizing Tax Savings and Financial Liquidity

<div class="KonaFilter image-container float_right"><div class="image"><a href="http://www.hussmanfunds.com/wmc/wmc120402.htm">Hussman Funds</a></div></div>One of the hottest debates in the stock market right now is about <a href="http://www.businessinsider.com/category/profit-margins">where record-high profit margins </a>are heading next.
GMO's James Montier and John Hussman of Hussman Funds are among the market strategists who are convinced margins are unsustainable and doomed to fall to a long-term average.
To support their thesis, <a href="http://www.businessinsider.com/gmos-james-montier-why-company-profit-margins-are-so-huge-2012-3">they</a> <a href="http://www.businessinsider.com/hussman-on-the-coming-corporate-margin-collapse-2012-4">both</a> point to a somewhat obscure national income equation advanced by Polish economist Michal Kalecki. It looks like this:
Profits = Investment - Household Savings - Government Savings - Foreign Savings + Dividends
From there, Montier and Hussman conclude that record high profit margins are largely attributable to fat government deficits and depressed household savings. Indeed, that relationship appears to form a pretty tight correlation as seen in the chart from Hussman you see above.
Conversely, when deficits shrink and savings rise, profit margins will be toast.
<h2>The Rebuttal</h2>
However, not everyone agrees with that conclusion.
"S&amp;P profit margins are high from structural reasons, not because of the deficit," argued Deutsche Bank's David Bianco, a strategist who has <a href="http://www.businessinsider.com/david-bianco-high-profit-margins-sustainable-2012-5">long-argued that margins</a> are sustainable.
"This construct assumes that no savings are recycled as investment," he said. "This is not a small matter."
To be clear, Bianco doesn't explicitly identify Montier nor Hussman. Just their work.
He continued: "Simply said, the notion that savings reduces investment is a bold claim that runs contrary to basic macro economics. The continued extension of this misguided framework to the view that government deficits add to profits overlooks that someone's borrowing (for temporarily higher consumption or investment expenditure) is someone's savings (temporarily lower consumption or less direct investment expenditure, ie real assets, for indirect investment instead, ie financial assets)... In our view, profits are not a function of the degree to which households give back their wages as expenditures on consumption. This is a very flawed concept. This framework suggests zero sum economic terms and that savings are unproductive."
You can almost hear Bianco pounding the table.
For some context, Bianco is no raging bull on the stock market right now. As of his May 2 research note, his year-end target for the S&amp;P 500 was 1,850 and he expects the next 5%+ move to be down.
Here's Bianco's full comment on the profit margin matter from his April 13, 2014 note:
<h3 style="padding-left: 30px;">S&amp;P profit margins are high from structural reasons, not because of the deficit</h3>
S&amp;P profits and margins recovered back to pre-crisis level by 2011. This led many to believe a well circulated argument that deficit boosted S&amp;P profits. The crux of this specious argument that profit margins are boosted by a high government deficit and low household savings rate rests on the over simplification of "Profits = Investment + Consumption - Wages" to "Profits = Investment - Household Savings".
This construct assumes that no savings are recycled as investment. This is not a small matter. It represents a major conceptual flaw in this framework, which taints the entire analysis. The equation above would only be correct if all savings were stuck in a Keynesian liquidity trap. This is neither the point of the argument nor the general condition, thus the equation above fails to recognize that: Investment = Savings.
Income not spent on consumption expenditures usually goes into investment expenditures. Incorporating this normal condition negates the conceptual leap from the easily accepted "Profits = Investment + Consumption - Wages" to "Profits = Investment - Household Savings" as the latter expression of the former equation fails to acknowledge that profits are a source of household income. This ignores the real world relationship that exists in the economy of profits supporting consumption, but more importantly that profits also support a big portion of investment. Dividends might be added to the tail of the equation, but this doesn't suffice because even earnings retained by companies and proprietorships are invested on behalf of owners.
Simply said, the notion that savings reduces investment is a bold claim that runs contrary to basic macro economics. The continued extension of this misguided framework to the view that government deficits add to profits overlooks that someone's borrowing (for temporarily higher consumption or investment expenditure) is someone's savings (temporarily lower consumption or less direct investment expenditure, ie real assets, for indirect investment instead, ie financial assets). In short, the government and foreign variables can be set aside. What this really comes down to is: Are Profits = Investment - Household Savings?
In our view, profits are not a function of the degree to which households give back their wages as expenditures on consumption. This is a very flawed concept. This framework suggests zero sum economic terms and that savings are unproductive. In our preferred conceptual framework, investment drives growth. If households consume less then they invest more. Thus, profits are a function of cumulative past savings and the return on such capital stock as determined by risk and the competitive forces between labor and capital.

Deutsche Bank Blasts James Montier And John Hussman's Case For Falling Profit Margins

Tax saving is a tricky subject and needs a lot of planning. By learning the intricacies in the taxation laws and studying your own situation in relation to the taxation laws will enable you save on your taxes. Here are some easy ways for the salaried employees to save on income taxes. Understand your salary slip first You must understand your salary slip well to know the ways to save on the gross tax you are liable to pay. The salary slip consists of three segments namely earnings, allowances and deductions. These sections will give enough clues on how to save on your taxes. The basic pay reflects on your earnings. Towards contributions, you might receive conveyance allowance, leave travel allowance, dearness allowance, house rent allowance and others. This section will also include deductions including income tax, professional tax and provident fund. Here are a few useful tips to plan for your taxes efficiently. How to save on taxes Income tax is levied on basic pay. Your House Rent Allowance (HRA) is tax exempted if you live in a rented house and pay the monthly rent. A fixed amount received as conveyance allowance also qualifies for tax exemption. Some employers might deduct income tax at the source. In such cases, the taxes paid already can be claimed by producing the necessary supporting documents at the end of the financial year. Also explore some options for investing in tax saving instruments. Understand Section 80C If you can understand the 80C section of the Income Tax Act thoroughly, you can hope to save on taxes and take home more salary. You are allowed to invest till an upper limit in schemes like National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF) Bank Fixed Deposit (FD) and many other products. Do not plan for the taxes during the last minute If you will only study the tax during the last minute, it will give you very less room to save. If this happens, you will be overburdened with a need to make a sizeable investment in one time during the last minute. Small regular investments in Mutual Funds and SIPs over the entire year can help you make significant saving on taxes. Meet your financial goals through investments Investments planned in the right way not only enable you save on taxes, they also help you meet some of your cherished goals in life. It is possible to convert all your tax saving investments into ones that will bring you higher returns. For example, if you wish to buy a car, invest regularly in any ELSS. The lock in period will end in three years and after that you can withdraw this amount. Hence many tax saving instruments can help you meet your financial goals easily and effectively. Other ways to save on taxes It is possible to claim tax benefit on LTA once in every two years. To do this, you must submit the proof of travelling. Section 80D contains provisions for you to avail of tax benefits for the premiums paid towards health insurance policies. Section 80E contains provisions for tax exemptions on interest paid towards education loans.

How salaried employees can save on Income taxes

<ul><li>The Employees' Provident Fund Organisation (<keyword id="6372438" type="ORGANIZATION" weightage="20" keywordseo="epfo">EPFO</keyword>) may reportedly raise interest rates from the current level at 8.55%, but if not, the current interest rates will not be narrowed further. </li><li>According to A Mint report, the retirement body reportedly earned a surplus of nearly ₹6 billion at the existing interest rates in 2018. </li><li>On an average, the interest rate of Public Provident Fund and the National Savings Certificate in 2018 was recorded to be 7.7%, said the report.</li></ul>India’s Employees' Provident Fund Organisation (EPFO) may reportedly <a href="https://www.livemint.com/Money/Nvur6XFW8DxbSvo7FtrADJ/Bonanza-for-salaried-employees-EPF-interest-rate-hike-likel.html">raise interest rates</a> from the current level at 8.55%, move likely to benefit over 60 million employees across different industries. Though the rates are expected to go higher, but if not, the current interest rates will not be narrowed further, Mint reported citing a member of EPFO's central board of trustees. Even if the current interest rates follow, it will be a favourable decision for the salaried employees. The interest rates are floated by the EPFO in December every year. However, this year, it will be declared on 1 February because of the ongoing audit. On average, the interest rate of Public Provident Fund and the National Savings Certificate in 2018 was recorded to be 7.7%, said the report. The Indian government recently made amendments in its regulations covering its retirement schemes — including directives of making tax-free withdrawals available to employees under National Pension System (NPS) and boosting the incentives to around 50% for health workers. The new interest rates will likely be in check with such announcements. According to the report, EPFO, which manages savings of over ₹11 trillion, reportedly earned a surplus of nearly ₹6 billion at the existing interest rates in 2018. If required, EPFO may use its equity investments, which have an estimated return of around 12% annually. Presently, it has invested over ₹500 billion in stock market. See also: <a href="https://www.businessinsider.in/the-indian-government-has-reportedly-invested-just-19-of-its-fund-dedicated-to-boosting-startups/articleshow/67323307.cms">The Indian government has reportedly invested just 19% of its fund dedicated to boosting startups</a> <a href="https://www.businessinsider.in/the-indian-government-is-looking-at-policing-online-content-on-social-media-including-breaking-end-to-end-encryption-report/articleshow/67230131.cms">The Indian government is looking at policing online content on social media including breaking end-to-end encryption: Report</a> <a href="https://www.businessinsider.in/the-indian-government-may-roll-back-a-tax-on-angel-investments-that-is-said-to-be-hurting-the-countrys-startup-ecosystem/articleshow/67177981.cms">The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem</a>

The Indian government may mandate higher interest rates on its retirement fund scheme: Report

<ul class="summary-list"><li>Steven and Lauren Keys retired at 29 by saving over 60% of their income and investing early.</li><li>With a net worth of $1.1 million, they visited every state and national park.</li></ul>Steven and Lauren Keys, now 33 and 34, retired at 29 and have <a target="_blank" href="https://www.businessinsider.com/visited-all-50-states-ranked-best-and-worst-2024-3">visited every state</a> and <a target="_blank" href="https://www.tripofalifestyle.com/destinations/list-of-national-parks-in-the-us/">national park</a> — managing to grow their wealth while doing so.Though neither earned more than $90,000 a year while they were working full-time, they <a target="_blank" href="https://www.businessinsider.com/saving-investing-strategies-couple-millennials-quit-work-retire-early-2024-2">saved over 60%</a> of their income, began <a target="_blank" href="https://www.businessinsider.com/retire-early-invest-5-things-made-it-possible-2024-3">investing early</a>, and avoided unnecessary purchases, allowing them to travel for much of the year while returning with more money than they started with. On one three-month trip, they returned with $26,000 more despite working just part-time by keeping costs low, getting freebies, and achieving large investment gains."We never spend down our savings when on vacation, and we usually get richer in the process," Steven said.They've explored much of the country, deciding their favorite <a target="_blank" href="https://www.businessinsider.com/best-underrated-national-parks-according-frequent-traveler">national parks</a> are in California and Alaska — while their least favorite are in the Midwest.<h2 id="d8a1e9d7-037a-489b-9de8-a9bc5c00ec06">Achieving financial independence</h2>Steven and Lauren are part of the <a target="_blank" href="https://www.businessinsider.com/early-retirees-say-4-percent-rule-overrated-for-fire-retirement-2024-2">FIRE community</a> — <a target="_blank" href="https://www.businessinsider.com/millennials-retiring-early-fire-movement-financial-independence-millionaire-savings-work-2024-5">financial independence, retire early</a> — consisting of people who saved and invested enough to be secure financially and not rely on income from work.They went to high school together outside Tampa and then attended the University of Florida. Lauren put herself through college thanks to scholarships, grants, and various jobs. Steven had some assistance from his parents and received a tuition scholarship. Both graduated debt-free.The summer after graduating, they did a <a target="_blank" href="https://www.businessinsider.com/road-trip-packing-list-tips-for-smooth-ride-2023-6">road trip</a> across the US, driving from Florida to Alaska with a stop in New York. They slept in their car for much of the 45-day trip and didn't spend much on food.After a stint in California, they <a target="_blank" href="https://www.businessinsider.com/moving-from-florida-to-california-pros-cons-los-angeles-orlando-2023-11">moved back to Florida</a>, where Steven got a full-ride scholarship for a master's program in science education. Lauren found a job at a small financial company, and both were making about $40,000 a year. Due to tight budgeting, they saved more than 60% of their income. In two years with both of them working five-figure jobs, they saved over $100,000.After growing fatigued with full-time employment, they married and took a six-month sabbatical to <a target="_blank" href="https://www.businessinsider.com/things-to-know-before-going-to-hawaii-first-time-tips-2024-4">Hawaii</a>, where they lived frugally. They rented an apartment for six months instead of staying at hotels, bought a cheap car and sold it for more than they paid for it, and did some part-time work. Despite barely working, they returned with over $1,000 more in net worth than they started from part-time work, low-cost purchases, and investments.They bought their first home — a $71,000 condo in Gainesville — in cash, then job-hopped for a few years until both made about $90,000 a year. By 2019, they were worth about $600,000, and they felt it was time to embark on a seven-month road trip hitting every US national park. Due to their investments and part-time work on the road, the trip cost them nothing on net."The best way to save money on any trip is to attack your biggest costs, which are going to be lodging and transportation," Steven said. "Anywhere that you're willing to drive to instead of flying, particularly if there are multiple people, that's going to save you a massive amount of money in terms of airline costs. Another thing is getting away with camping, whether in your vehicle or in a tent or campground or anything like that."Lauren <a target="_blank" href="https://www.businessinsider.com/early-retirement-overrated-financial-independence-fire-return-to-office-balance-2024-6">retired</a> in 2020 while Steven worked full-time for six months before moving to a part-time arrangement. They moved to a condo by the ocean on Florida's east coast and continued to grow their investments in low-cost index funds, real-estate holdings, and retirement accounts. Steven has continued freelancing through tutoring while Lauren does part-time social media work.It's allowed them to take various one- to three-month vacations over the last four years. Last year, they went on a three-month trip to Australia, after which they came back $26,000 richer. They kept expenses to below $18,000 plus $3,000 in expenses in the US, and they made about $19,000 in freelance income and $28,000 in investment gains. They bought a cheap car on Facebook Marketplace in Australia, which they sold for slightly more than they paid for it, earned free loyalty nights at hotels, cooked many of their meals, and found free museums and concerts.Their net worth is $1.1 million, and they're gearing up for a road trip to eastern Canada. They calculated their sweet spot is spending at most $26,000 a year to feel fulfilled without breaking the bank, though they <a target="_blank" href="https://www.businessinsider.com/savings-investment-strategy-a-millionaire-couple-used-to-retire-early-2024-2">don't track their expenses</a> or budget.<h2 id="b5688600-ab32-4a30-baa4-8146031c6d68">Favorite — and least favorite — national parks</h2>Steven and Lauren ranked their <a target="_blank" href="https://www.businessinsider.com/best-worst-national-parks-usa-from-man-visited-each-one-2024-4">favorite and least favorite national parks</a> from their travels on factors such as how much the park took their breath away, how many fun things the park had, and how easy it was to find quiet in the park."Nothing's worse than showing up somewhere beautiful, and you can't get a picture of it without a crowd in the way," Lauren said. "We've been to Yosemite a couple of times, and there are areas where you're sitting in traffic literally in a <a target="_blank" href="https://www.businessinsider.com/best-unique-national-parks-in-us-according-to-frequent-traveler">national park</a> for an extra 45 minutes."Death Valley was their favorite, citing the vast sand dunes of Eureka Valley, the salt flats of Badwater Basin, and the colorful rocks of Artist's Palette. Despite the crowds, Yosemite ranked second overall, as they noted the waterfalls and granite cliffs are superb.Hawai'i Volcanoes was their third favorite, as they lived nearby for six months and explored the park's intricacies. They ranked Hawaii's Haleakalā, the highest point on Maui, in ninth.Other parks topping the list include Yellowstone, American Samoa, Carlsbad Caverns, and Canyonlands.About 41% of the total cost of attending all national parks came from traveling to Alaska, Hawaii, and other American territories. Still, four of their top 10 parks are outside the contiguous US.They said one of the easiest — and cheapest — places to camp is Alaska, which they've driven to three times."You don't really have to pay anything because you can pretty much pull off wherever you want," Steven said. "Nobody stares if you camp or sleep in your vehicle."Their least favorite national park was Hot Springs in Arkansas, which was the first national park they visited. They felt it didn't live up to the status of "national park," which they also felt about the Gateway Arch in St. Louis. They also weren't thrilled by Voyageurs in Minnesota, which didn't have many activities other than inexpensive boat tours; Guadalupe Mountains in Texas, which had fantastic views but difficult-to-access sites; and Lassen Volcanic in California, which they found peaceful but smelled like "an ugly pot of bubbling sulfur water."<h2 id="bbf21783-31ff-4d80-b69f-b5a9f0ca4868">Best and worst states</h2>The Keys' top four <a target="_blank" href="https://www.businessinsider.com/top-10-favorite-us-states-after-visiting-48-contiguous-2023-10">favorite states</a> are California, Alaska, Hawaii, and Utah."In terms of just natural beauty and uniqueness, California has so much diversity," Steven said. "Northern and Southern California are two completely different places with two completely different awesome experiences."Though everyone goes to Oahu, the Big Island in Hawai'i is "super underrated," Lauren said, due to the scenery and relative calm.Their home base of Florida didn't make the top of their top states list, as they viewed the state's three national parks as less interesting above-ground than many others, though they're great for scuba or snorkeling.Their least favorite states included Kansas, Missouri, South Carolina, and New Jersey. They found Kansas rather monotonous with plenty of cornfields, and they thought St. Louis and Kansas City were very congested but didn't have the same charm as other large cities.They felt North Dakota, South Dakota, Idaho, and Montana are underrated, as each has some of their favorite national parks, affordable accommodations, and cities with a calmer, suburban feel. Still, they found Mount Rushmore overrated, as they expected it to be larger.Have you visited every — or most — state or national park? Are you part of the FIRE movement or living by some of its principles? Reach out to this reporter at <a target="_blank" href="mailto:nsheidlower@businessinsider.com">nsheidlower@businessinsider.com</a>.

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