While banks have been cutting fixed deposit (FD) rates, small savings rates have not been revised for some time, and that has created an abnormal differential between them
Interest rates for small savings schemes are notified on a quarterly basis
Though tax-saving is an essential element of the investments you make during the year, before investing you should consider all the other options available
You will earn interest or get tax benefits on further deposits only if you have filled Form H after the 15-year period ends
The interest payable would be up to the date of the account closure, it said.
Premature closure shall be allowed only after the account has completed five financial years
Terming it not so small-scheme, official Economic Survey recommends taxing it at withdrawal