National Savings Certificate is a government backed fixed income investment scheme.
Launched by the Department of Economic Affairs of the Ministry of Finance, NSC encourages long-term savings with attractive interest rates.
Looking for a safe and reliable way to grow your savings while taking advantage of tax benefits? A government backed investment scheme may be the best option for you. Designed to provide financial security and peace of mind, this option combines attractive returns with minimal risk, making it a preferred choice for conservative investors.
Whether you are saving for it. Long term goals Whether for your child’s education, retirement, or simply to maximize the value of your hard-earned money, this scheme offers unmatched stability and security. return. With a fixed tenure and guaranteed interest rate, your investment grows steadily, allowing you to plan your future with confidence.
Apart from being safe, this scheme comes with the added benefit of tax benefits under Section 80C. Income Tax Act. This means you are not only saving and earning, but also reducing your taxable income, making it a smart financial decision.
For those who want a hassle-free, government-guaranteed path to financial growth, this is a great option that ensures both peace of mind and financial growth.
What is National Savings Certificate (NSC)?
The National Savings Certificate (NSC) is a government-backed fixed income investment scheme designed to promote saving Between individuals, it offers a safe and tax-efficient investment option.
Launched by the Department of Economic Affairs of the Ministry of Finance, NSC encourages long-term savings with attractive interest rates. Under the scheme, an individual can invest a minimum of Rs 1,000 and thereafter in multiples of Rs 100, with no maximum deposit limit, for a maturity period of 5 years.
Types of NSC Accounts:
Single Holder Type Account: Opened by an adult for himself or by a minor or person of minor mind, or by a minor 10 years of age or older.
Joint A-Type Account: Opened jointly by up to three adults, payable to all holders jointly or to dependents.
Joint B Type Account: Opened jointly by three adults, payable to any holder or dependent.
Advantages of NSC:
Attractive Interest Rate: 7.7% compounded annually, payable on maturity.
No maximum deposit limit: Contribute as much as you want.
Fixed 5 Year Maturity: Money back guarantee after 5 years.
Loan facility: Pledge your NSC for loans at participating banks.
Eligibility:
-Any Indian resident can avail this scheme.
– Guardians can open accounts on behalf of minors or persons of minor mind.
-Minors must be at least 10 years old to open an account.
collection:
-Minimum Deposit: Rs 1,000 (in multiples of Rs 100).
– No upper limit on the number of deposits or accounts an individual can open.
Payment on Maturity:
-NSC matures in 5 years.
-Maturity value for Rs 1,000 deposit is Rs 1,462.54 (and proportionally for other amounts).
-Interest is compounded annually and paid on maturity.
-On maturity, the account holder can submit a specific form for payment.
Application Process:
Offline Application:
– Visit the nearest post office or designated bank branch.
– Obtain and fill the application form, or download it from the official website.
– Attach required documents and provide nomination details.
Submit the form with initial investment amount.
– Once processed, an acknowledgment will be provided, confirming the opening of the NSC account.
Premature Closure:
Accounts can only be closed prematurely under certain circumstances, such as:
-Death of account holder.
– Foreclosure by a Gazetted Officer (if mortgaged by the scheme).
– As ordered by the court.
Transfer and Nomination:
NSCs are transferable, allowing investors to assign or transfer certificates to another person. The scheme also allows for nomination, ensuring that in the event of the death of the investor, the nominee gets the money.
Required Documents:
– Passport size photograph
– Aadhaar card
– PAN card
Proof of age (eg, birth certificate)
– Valid identity card and address proof (e.g. passport, driving license, voter ID card, NREGA job card, or National Population Register letter).
Disclaimer: The views and investment tips of the experts in this News18.com report are their own and not those of the website or its management. Readers are advised to consult qualified experts before making any investment decision.