National Savings Certificate

The National Savings Certificate (NSC), a fixed-income investment plan offered by the Government of India, is simple to open at any post office. The National Savings Certificate is a savings bond programme designed to encourage investors, mainly those with modest to moderate incomes, to make investments and take advantage of Section 80C income tax benefits.

National Savings Certificate Interest Rate

The government guarantees a consistent income for the investor by revising the yearly fixed interest rate on the certificates every quarter. There is no maximum amount that you may invest; you can start with as little as Rs. 100. The interest collected is reinvested by default and compounded yearly; payment is due only at maturity.

In essence, the National Savings Certificate is a savings plan that the government has pushed for Indian individuals.

Key Points:

• The principle invested in NSC is eligible for tax savings under Section 80C of the Income Tax Act, up to Rs. 1.5 lakhs yearly, as it is a government-backed tax-saving programme.
• Banks and NBFCs accept NSC certificates as security or collateral for secured loans. When distributing loans in this situation, a transfer stamp is applied to the certificate and sent to the bank.
• At maturity, the investor will get the whole corpus value. The subscriber should pay the relevant tax while submitting his income tax returns or paying his advance tax because there is no TDS on NSC payouts.
• Like Post Office FDs and the Public Provident Fund, among other fixed income products, the NSC offers total capital protection and guaranteed interest. However, unlike tax-saving mutual funds and national pension systems, they are unable to produce returns that outpace inflation.

The National Savings Certificate are issued by which bank

Once the necessary KYC documentation is submitted, purchasing it from any post office is simple. Furthermore, the certificate may be easily transferred across POs and between individuals without affecting the original certificate’s interest accrual or maturity.

Eligibility Criteria for National Savings Certificate

• The person has to be a citizen of India. It is not possible for non-resident Indians (NRIs) to invest in NSC.
• There is no minimum age requirement for anyone to acquire a certificate.
• Investment in NSC is not permitted for Hindu Undivided Families (HUFs), Trusts, or Private or Public Limited Companies.