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Wednesday, 7 March 2012

IDBI Federal Bondsurance Plan

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

IDBI Federal Bondsurance is a single premium insurance cum-investment plan that promises guaranteed returns on maturity to the policyholder. In the event of death of policyholder before maturity, the nominee is entitled to a death benefit equal to five times the amount of single premium paid by the policyholder. Investors can choose 5-10 years as policy term for this plan.

Key Feature

The tax-free guaranteed returns offered by Bondsurance can be broadly compared to the post tax returns earned in a bank term deposit at the highest tax-slab. Also, policyholders have the option to choose the amount of premium they would like to invest in this scheme, subject to a minimum of Rs 20,000, and get the maturity and death benefits accordingly.

Surrender Value

This being a single premium plan, it does not really make sense for policyholders to surrender the scheme before maturity. However, those in need of liquidity may surrender the policy after a year of commencement. While the surrender value payable will be at the company's discretion, according to the scheme document, the same will not be less than 80% of the amount paid as single premium.

Return Analysis


Assuming investment tenure of 10 years by a healthy male individual aged 30 years, the returns likely to accrue to the policyholder in Bondsurance vis-à-vis a 10-year term deposit in SBI along with Term Plan for 10 years is illustrated herewith:
   

Our View

At the current peak interest rate of about 9.25% offered by State Bank of India for tenures ranging from 1 to 10 years, the post tax returns of term deposits are more lucrative than those offered by IDBI Bondsurance. But if the interest rates were to gradually cool off from the current levels, say even to 8.5% per annum, Bondsurance stands a good chance to be considered as an alternative investment option to bank deposits from returns perspective. At an interest rate of 8.5%, the post tax yield from term deposits, at the highest tax slab, comes to around 6.69% while it ranges from 6.34% — 6.92% in case of Bondsurance. However, being a single premium plan, this policy may not be affordable by many retail investors, especially those looking for high insurance cover. As far as insurance needs are concerned, the plan suits those able and willing to pay higher sums as single premium.

 

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

 

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How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

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Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

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