“An investor without investment objectives is like a traveler without a destination.”
Yes….before you invest your hard earned money, it is wise to study the investment. What does this mean? Simple….get to know the investment, before it is too late. A highly popular financial investment….NSC…popularly called National Saving Certificate. Your investment in NSC, fetches you tax benefits under Section 80C. There’s more…If you are a conservative investor, (you do not like risk in your investment), then NSC is an excellent investment.
Want to know more about NSC? Why don’t you contact the pioneer in the Financial Education Space. Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website.
NSC, popularly called National Saving Certificate, is a popular post office tax saving scheme. You invest your money in the NSC and receive an NSC certificate, containing the particulars (details) of your investment. The National Saving Certificate, is a risk free investment. The money you invest is safe and you get interest on your investment. Your NSC has a maturity tenure of 5 years.You can make an investment in the NSC, at the nearest post office. You can even transfer your investment, from one post office branch to another. You can nominate your investment in the NSC, to your heirs, after your death.
The interest you get on the NSC, is compounded half yearly. It gets deposited into your account, every year. You earn an interest of 8% per annum, compounded half yearly. This interest rate is from 1st October 2016 to December 31st 2016.
No, an NRI cannot invest in the NSC. However if an NRI has invested in the NSC, before becoming an NRI, he can encash the NSC, after the maturity.
You get a tax deduction under Section 80C, up to INR 1.5 Lakhs a year, for your investment in the NSC. The interest you earn from your NSC is taxable. However this interest is not paid to you, each year. It is reinvested at the same interest rate. You get Section 80C tax deductions, on the interest which has been reinvested.
“Some people dream of success, while others wake up and work hard at it.” Your investment in NSC, gives slow and steady returns. It also saves you tax. Sure….an investment in NSC, lacks the glamour of an investment in equity. But, it does get you to your financial goals. If you are the slow and steady kind….Think NSC.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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