SAVINGS SCHEME

Voluntary Retirement Scheme (VRS) A voluntary retirement scheme (VRS) is a retirement savings plan that allows employees to contribute their own funds on a voluntary basis. Unlike mandatory retirement savings plans, such as Social Security in the United States, VRSs are not required by law. Key Features of VRS: Voluntary contributions: Employees choose whether or […]

Provident Fund (PF) The Provident Fund (PF) is a statutory retirement savings scheme in India administered by the Employees Provident Fund Organisation (EPFO). It is a mandatory savings scheme for employees in India, applicable to most establishments with 20 or more employees. Key Features: Retirement savings: PF is primarily a retirement savings scheme that helps […]

Definition: A savings account is a type of account at a bank or other financial institution where deposits are made and stored for future use. It is typically used for storing small amounts of money and for day-to-day transactions. Key Features: Deposits: Savings accounts allow you to deposit money at any time. ** withdrawals:** You […]

Micro-Savings Micro-savings refer to small, regular savings made by individuals with low-income or limited access to traditional banking services. These savings typically range from a few dollars to hundreds of dollars and are often used to cover emergency expenses, purchase assets, or build financial security. Characteristics of Micro-Savings: Small Amounts: Savings are usually small, ranging […]

Discretionary Income Discretionary income is the portion of income that is not necessary for essential expenses or savings and can be used for personal spending or investment. Definition: Discretionary income is the income that is available to an individual or household after meeting all necessary expenses and savings requirements. It is the income that is […]

Dissaving Dissaving refers to the process of increasing savings, usually by reducing consumption. It is a behavioral adjustment that involves allocating a larger portion of income towards savings. Dissaving typically occurs when there is an increase in income or a decrease in expenses. Causes of Dissaving: Increased income: When income increases, people may save a […]

Sure, here is the explanation for “public private patnership”: Public-Private Partnership (PPP) A public-private partnership (PPP) is a long-term contract between a government agency and a private company for the design, financing, construction, operation, and maintenance of public infrastructure assets. The government agency retains ownership of the assets but delegates responsibility for their operation and […]

Definition: A savings scheme is a financial arrangement that allows individuals to save money on a regular basis. It typically involves a predetermined schedule of payments or contributions, made over a specific period of time. Types of Savings Schemes: Fixed-term savings: Deposits are made for a fixed term, and interest is paid at a specified […]

Definition: The deposit interest rate is the rate of interest paid to depositors on their deposits. It is typically a variable rate that changes over time based on market conditions and the overall strength of the banking system. Factors Affecting Deposit Interest Rate: Interest Rate Environment: The federal funds rate and other market interest rates […]

Profit-Sharing Plan A profit-sharing plan is a type of employee profit-sharing arrangement in which employees share in the company’s profits, typically by distributing a portion of the company’s net income to them. Key Features: Profit-Sharing Pool: A pool of funds is established that includes the company’s net income, less expenses and any predetermined items. Eligibility: […]