National Savings Certificate: From Income Tax benefits to other details, things to know before investing money in NSC

Who doesn’t want to secure a financially stable future, and to achieve the goal of actually living a wealthy life? Everyone, of course. However, to actually make it happen is very tough and one of the things that anyone must do is invest his/her money in good savings instruments. One such investment option is National Savings Certificates (NSC). The investment in National Savings Products like NSC takes place under the aegis of the Ministry of Finance, Government of India, and therefore, it is fully secured and safe. Here are top things to know about National Savings Certificates:

– National Savings Certificates VIII Issue is an excellent scheme wherein not only initial deposit but also the accrued interest for first 4 years enjoys the benefit of section 80-C of Income Tax Act.

– Certificate shall be issued on Passbook or exclusive e-mode.

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

–  Joint ‘A’ Type certificate may be issued to two adults payable to both the holders jointly or to the survivor.

 Joint ‘B’ Type certificate may be issued to two adults payable to either of the survivor.

– The depositor can nominate one or more persons as the nominee and also mention the share of nominee in case of more than one nominee.

– Rate of interest is notified by the government from time to time on quarterly basis and is calculated on half yearly compounded basis.

– Current Rate of Interest Payable and maturity value.

-Loan facility available by pledging with the banks.

– Interest rate on the National Savings Certificate (NSC) – 6.8%

– The amount is compounded annually and paid on maturity.

– Interest accrual on investment of Rs 100/- and in proportion for other denominations, on yearly basis for income tax purpose.

– All products are available at Post offices.

-Ministry of Finance has designed the product in consultation with experts committees /National Savings Institute

– On Premature Closure or maturity, the deposits accepting authorities make payment in cash upto Rs. 20,000/- and by cheque in excess thereof.

Noteworthy,  NRI(s) are not authorised to make investment in National Savings Products.

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