Features of bank deposite:

A bank deposit account is any savings account, checking account or current account at any
banking institution that specifically allows for money to be withdrawn and deposited by the
holder of that account. The withdrawal and deposit transactions are recorded on the books for the
bank, and the balance is recorded as being a bank liability, representing the amount that is owed
to the customer by the bank. Some banks will charge a fee for such a banking service, and others
may pay interest to the customer on the behalf of the deposited funds.
Checking Account
Checking accounts are deposit accounts that are held at financial institutions such as banks. Their
primary purpose is to securely provide for frequent access to a customer's funds on demand
through numerous different channels. Because the money in the account is designed to be
available on demand, these accounts are also commonly referred to as demand deposit accounts
or demand accounts.
Checking accounts tend to be the most free in terms of regulations, but they sometimes cost
money to operate. Some financial institutions and banks charge overdraft fees and other similar
fees even when they claim to offer free banking accounts.
Savings Account
Savings accounts are banking accounts that are maintained by financial institutions and retail
banks, paying interest in your money but without allowing you to use it directly as cash by
writing a check or swiping a debit card. Savings accounts are not as convenient as accounts that
provide money on demand such as checking accounts, but they allow customers to keep their
assets liquid while still earning a return on their invested money.
Savings accounts are generally stricter in terms of their regulations in comparison to checking
accounts. Because money is not withdrawn by check or debit card, however, there are no over
the limit fees in the way that there are with checking accounts. Savings accounts are preferable in
many circumstances because they offer interest returns, where checking accounts do not.

Money Market Deposit Account

A money market deposit account is a type of deposit account that offers a relatively high interest
rate and offers short notice if not no notice at all required for withdrawing money. In the United
States, money market deposit accounts are instant access deposit accounts that are subject to the
same regulations of federal saving accounts, such as transaction limits on a monthly basis for
example.
Time Deposit Account
Time deposit accounts offer money deposits at banking institutions that are not capable of being
withdrawn for a specific preset term or time period. When the period of the term is over, then the
money can either be withdrawn from the account or it can be rolled over into another term in the
same account. The longer the term period is for this type of account, generally speaking, the
better the yield is going to be for the money that is invested.
Different deposit accounts offer different features and regulations. Some consumers hold several
different types of deposit accounts in order to meet different financial needs.

Features of post office saving account:

Account can be opened by cash only.
Minimum balance to be maintained in a non-cheque facility account is INR 50/-.
Cheque facility available if an account is opened with INR 500/- and for this purpose minimum
balance of INR 500/-in an account is to be maintained.
Cheque facility can be taken in an existing account also.
Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13.
Nomination facility is available at the time of opening and also after opening of account.
Account can be transferred from one post office to another.
One account can be opened in one post office
Account can be opened in the name of minor and a minor of 10 years and above age can open
and operate the account.

Joint account can be opened by two or three adults.

At least one transaction of deposit or withdrawal in three financial years is necessary to keep

the account active.

Single account can be converted into Joint and Vice Versa.

Minor after attaining majority has to apply for conversion of the account in his name.

Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
*Inter Post office transactions can be done between CBS post offices
* ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum
balance on the day of issue of card) of CBS Post offices.

Features of national saving certificate:

NSC VIII Issue (5 years) Interest rate of 8.5% per annum w.e.f. 01-04-2013

NSC IX Issue (10 years) - Interest rate of 8.8% per annum w.e.f. 01-04-2013

Minimum investment Rs. 100/-.

No maximum limit for investment.

No tax deduction at source.

Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under NSC section 80C of IT Act.

Certificates can be kept as collateral security to get loan from banks.

Trust and HUF CAN NOT invest.

A single holder type certificate can be purchased by an adult for himself or on behalf of a
minor or to a minor.

The interest accruing annually but deemed to be reinvested will also qualify for deduction
under NSC - section 80C of IT Act.

r doubts for fr

Features of derivate:
1.

Derivative are of three kinds future or forward contract, options and swaps and
underlying assets can be foreign exchange, equity, commodities markets or financial bearing
assets.

2.

As all transactions in derivatives takes place in future specific dates it is easier to short
sell then doing the same in cash markets because an individual can take of markets and take
the position accordingly because one has more time in derivatives.

3.

Since derivatives have standardized terms due to which it has low counterparty risk, also
transactions costs are low in derivative market and hence they tend to be more liquid and one
can take large positions in derivative markets quite easily.

4.

When value of underlying assets change then value of derivatives also changes and hence
one can construct portfolio which is needed by one and that too without having the
underlying asset. So for example if one want to buy some stock and short the market then he
can buy the future of a stock and at the same time short sell the market without having to buy

Features of public provident fund:

1. Indian Citizen who is a Resident Indian can open PPF account. He might be salaried
employee or self-employed or any other person.
2. PPF account can be opened with the State Bank Of India, or its associates or any
other Certified Nationalized Bank.
3. PPF account is opened for a minimum period of 15 years. This tenure can be further
extended for a minimum term of 5 years.
4. In a financial year, an investor can deposit minimum of Rs. 500 and maximum of Rs.
1,50,000/- in their PPF account.
5. Government pays yearly interest on the balance in the PPF account. Interest earned in
the PPF account can only be redeemed after maturity.
6. Interest received from PPF investments is Tax Free.
7. Deduction U/s 80C of Income Tax is available for the amount invested in PPF.
8. Amount in PPF can be withdrawn from the 7th year onwards. This withdrawal amount
is restricted to 50% of the previous years balance.
9. Loan against the balance in PPF account can be availed after three years. Maximum
of 25% of the balance in the PPF account is made available as the loan amount.
10. Amount received at the time of maturity is completely tax-free.

Features of mutual fund scheme:

Professional Management: Mutual funds offer investors the opportunity to earn an income or
build their wealth through professional management of their investible funds. There are several
aspects to such professional management viz. investing in line with the investment objective,
investing based on adequate research, and ensuring that prudent investment processes are
followed.
Diversification: Mutual funds introduce diversification to your investment portfolio
automatically by holding a wide variety of securities. The idea behind diversification is to invest
in a large number of assets so that a loss in any particular investment is minimized by gains in
others.
Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to
reducing transaction costs, and help to bring down the average cost of the unit for their investors.
Variety: Within the broad categories of stock, bond, and money market funds, you can choose
among a variety of investment approaches. There are about several thousands of mutual funds
available in the market with goals and styles to fit most objectives and circumstances.
Low Costs: The fund industry consists of hundreds of competing firms and thousands of funds,
the actual level of fees can vary. But for most investors, mutual funds provide professional
management and diversification at a fraction of the cost of making such investments
independently.
Liquidity: Just like an individual stock, mutual fund also allows investors to liquidate their
holdings as and when they want. Mutual funds are required by law to buy, or redeem, shares each
business day. The price per share at which you can redeem shares is known as the funds net
asset value (NAV). NAV is the current market value of all the funds assets, minus liabilities,
divided by the total number of outstanding shares.
Convenience: You can purchase or sell fund shares directly from a fund or through a broker,
financial planner, bank or insurance agent, by mail, over the telephone, and increasingly by
personal computer. You can also arrange for automatic reinvestment or periodic distribution of
the dividends and capital gains paid by the fund.

Simplicity - Investments in mutual fund is considered to be easy, compare to other available

instruments in the market, and the minimum investment is small. Most AMC also have automatic
purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.
Tax Benefits: For equity funds, dividends received from equity schemes of Mutual Funds (i.e.
schemes with equity exposure of more than 65%) are completely tax-free. Neither does the
Mutual Fund have to pay dividend distribution fee nor does the investor have to pay income tax.
Well Regulated: Mutual Funds in India are well regulated with SEBI monitoring the activities of
the mutual funds.