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National Savings Certificates

What is a National Savings Certificates?

You can invest in the National Savings Certificate by walking into the nearest post office. It is a highly popular small savings scheme. The money you deposit is safe and you get interest on the money, you deposit in the National Savings Certificates.

How to apply

You can apply for the National Savings Certificates at the nearest post office.
You have to fill the application and submit it at the relevant counter. You will be issued a certificate.
You need to keep the certificate safe and submit it at the time of withdrawal.
You need to have identity and address proof as part of the KYC (Know Your Customer), procedure.

Why invest in National Savings Certificates
Invest with no Limit

Invest with no Limit

You can invest in the National Savings Certificates, with no upper limit. This is also a safe investment to make.

High Interest

High Interest

Gives a higher rate of interest than a fixed deposit. Also gives a high rate of interest, when compared to other fixed income securities.

Tax Benefits

Tax Benefits

You get a tax deduction on the amount you invest and the reinvested interest, subject to a particular limit. There is no TDS.

Ease of Purchase

Ease of Purchase

You can purchase the National Savings Certificate in the name of your minor child. You can also make a joint purchase with spouse.

Eligibility for National Savings Certificates

You have to be a citizen of India to open a National Savings Certificates. NRI's and HUF cannot invest in the National Savings Certificate. You can open a National Savings Certificates alone (single account), or even as a joint account. The account can be opened in the name of a minor by parents or legal guardian.

Types of National Savings Certificates

5 Year National Savings Certificates

You have to invest a minimum of INR 100 in the 5 Year National Savings Certificates. You can invest in denominations of INR 100, 500, 1000, 5000 and even 10000. There is no upper limit for investing in the 5 Year National Savings Certificates.
The 5 Year National Savings Certificates has a lock in period of 5 years.
You get interest of 8.5% per year.
You get a tax deduction up to INR 1.5 Lakhs per year under Section 80 C of the income tax act. Your taxable salary is calculated after accounting for this deduction.

10 Year National Savings Certificates

You have to invest a minimum of INR 100 in the 10 Year National Savings Certificates. You can invest in denominations of INR 100, 500, 1000, 5000 and even 10000. There is no upper limit for investing in the 10 Year National Savings Certificates.
The 10 Year National Savings Certificates has a lock in period of 10 years.
You get interest of 8.8% per year.
You get a tax deduction up to INR 1.5 Lakhs per year under Section 80 C of the income tax act. Your taxable salary is calculated after accounting for this deduction.

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