National Savings Certificate

National Savings Certificates, popularly known as NSC, is an Indian Government savings bond, primarily used for small savings and income tax saving investments in India.

Popular Tax Saving Scheme

PRODUCT NOTE

Tenure: 5 Years

Rate of Interest: @6.80% p.a.

type OF INTEREST : Fixed For the Tenure

MODE OF CALCULATION: compounded annually but payable at maturity.

MINIMUM AMOUNT REQUIRED

1000/- and in multiple of 100

Maximum Amount Limit

No maximum limit.

Who can Invest

(i) a single adult
(ii) Joint A Account (Maximum 3 adults)
(iii) Joint B Account (Maximum 3 adults)
(iv) Minor above 10 years of age
(iv) An adult on behalf of a minor

National Savings Certificate

NSC is a cumulative scheme where one invests for a tenure for 5years and the fixed maturity amount is payable at the end of the period. The scheme qualifies for 80c rebate and is interest invested on cumulative basis to give a decent amount on maturity. The return with the tax rebate is attractive and is higher than the bank FD. The certificates can be transferred but can’t be encashed prematurely.

Features

A Tax saving instrument under SEC 80C
Can be purchased individually or jointly or by minor through guardian Cannot be purchased by companies, societies, trusts, NRIs, HUFs
Minimum investment is of Rs 500/- and no limit from maximum amount
Annual interest has to be reinvested and qualifies for tax rebate for first 5 years under section 80C
Facility of reinvestment on maturity Interest is floating and is accrued as per prevailing rate of a particular financial year
Certificates can be transferred before maturity but cannot be encashed
Interest income is taxable but no TDS Deposits are exempted from wealth tax
Nomination facility available
Facility of getting a duplicate certificate available in case of loss of original one