National Savings Certificate: Know about this great small savings scheme with assured returns
NSC is considered as one of the best savings instrument options to secure a financially stable future. National Savings Certificate VIII Issue is an excellent scheme wherein not only initial deposit but also the accrued interest for the first 4 years enjoys the benefit of Section 80C of Income Tax
While the equity markets have been doing well and people have also been buying gold and silver to hedge their losses in tough times like these when there is market uncertainty and weak economic sentiments, small savings schemes are always a safe bet to fall back on. They may not give you high returns, but decent returns that are assured, is not a bad choice. One such important small savings scheme is the National Savings Certificate (NSC). Know why?
NSC is considered as one of the best savings instrument options to secure a financially stable future. National Savings Certificate VIII Issue is an excellent scheme wherein not only initial deposit but also the accrued interest for the first 4 years enjoys the benefit of Section 80C of Income Tax.
Know important features of National Savings Certificate here:
Interest rates: As per the latest notification, the National Savings Certificate will fetch 6.8 per cent in July to September quarter.
- Account can be opened at a minimum amount of Rs 100. There is no maximum limit.
- 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.
- 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.
- This scheme provides loan facility available by pledging with the banks.
- Deposits as well as interest accruing annually but deemed to have been reinvested qualify for deduction u/s 80-C of I.T. Act.
- Interest accrual on investment of Rs 100/- and in proportion for other denominations, on yearly basis for income tax purpose
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Non Resident Indians are not eligible to purchase of the NSC. If a resident who subsequently becomes a non-resident during the currency of maturity period, shall be allowed to avail the benefits of the certificates on maturity on a Non Repatriation Basis.
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