National Savings Scheme
NSC Certificates are issued by the Department of Post, which has the backing of the Government of India. Since the investment in NSC comes with sovereign guarantee, it is one of the safest instruments to invest in. The investor can be assured that his principal and interest will be repaid on maturity. So investment in NSC is virtually risk free.
- Rs. 1000/- grows to Rs. 1601/- in six years.
- Minimum investment Rs. 500/-
- Maximum no limit.
- Certificates can be pledged as security against a loan to banks/ financial Institutions.
- A Tax saving investment under Sec 80C.
- Individual or minor can apply.
- Rate of interest 8% compounded half yearly.
- Two adults, individuals, and minor through guardian can purchase.
- Companies, Trusts, Societies or any other Institutions are not eligible to purchase.
- Non-resident Indian/HUF cannot purchase.
- No premature encashment.
- Annual interest earned is deemed to be reinvested and qualifies for tax rebate for the first 5 years under section 80 C of the Income Tax Act.
- Maturity proceeds not drawn are eligible to Post Office Savings Account interest for a maximum period of two years.
- Facility of reinvestment on maturity.
- Facility of encashment of certificates through banks.
- Certificates are encashable at any Post Office in India before maturity by way of transfer to desired Post Office.
- Certificates are transferable to any Post office in India.
- Certificates are transferable from one person to another person before maturity.
- Duplicate certificate can be issued for in case the original one gets lost, stolen, destroyed, mutilated or defaced certificate.
- Nomination facility is available.
- Facility of purchase/payment to the holder of Power of Attorney.
- Tax Saving instrument - Rebate admissible under section 80 C of the Income Tax Act.
- Deposits are exempt from Wealth Tax.
|Period during which purchased
||Maturity Value for a Denomination of INR 100.00
|| INR 190.12
|| INR 169.59
NSC is one of the oldest and traditional investment product used by people for tax savings and at the same time earn good returns with lowest risk. This investment product can be used for making lump sum investments for specific goals like accumulating funds for children’s education and children’s marriage.