National Savings Certificate is one of the kind of Government organised investment scheme. It is generally meant for small savings. It is a part of the postal savings system. That means it can be purchased from any Post office in India. Also it is helpful in saving tax.
Earlier there were two types of certificates, VIII issue and IX issue. Government had discontinued IX issue in December 2015. So now only VIII issue is available.
Read all the basic points about NSC below and make up your mind for future investments!
- A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or by a minor.
- Minimum Amount for opening of account is ₹100 and in multiples of ₹100. There is no maximum limit.
- From 01.01.2018, interest rate is 7.6% compounded annually but payable at maturity.
- The deposits qualify for tax rebate under section 80C of IT Act. This section also includes interest accruing as it is also meant to be reinvested.
- The transfer of certificates from one person to another can be done only once from date of maturity to date of issue. Also the old certificate will not be discharged but gets altered by rounding off name of old holder and name of new holder shall be written on the new certificate and on the purchase application.
- It comes with two fixed maturity period – 5 years and 10 years.
So if you are planning for a long term and secure plan, then NSC can be your choice.