Write two advantages each of recurring savings scheme of Bank and Public Provident Fund (PPF) scheme.

Solution

Recurring Savings Scheme	Public Provident Fund
It is a good saving scheme for the middle class. Which has a fixed amount of revenue as its monthly income.	It is an ideal option for both salaried as well as self -employed classes.
It is also suitable for small-time businessmen, traders etc. as they do not have to block a large sum, which is a requirement for other types of savings instruments.	Investment up to 100000 per annum qualifies for IT Rebate under section 80 C of IT Act.
Students can open recurring deposit accounts with their pocket money they get from the parents.	The rate of interest is high (8.70% per annum)
Minimum amount of deposit is Rs. 10 No maximum limit.	Loan facility available from 3rd financial year up to a 5th financial year.
Once started and once one gets habituated for a couple of months, then it is taken as a fixed monthly expenditure.	Withdrawal permitted from the 6th financial year.
It is a very liquid form of investment. That is whenever an unexpected urgent need for additional cash arises, money could be used and again continued.	Free from court attachment.

Some More Questions From Money Management and Consumer Education Chapter

For Daily Free Study Material Join wiredfaculty