National Savings Certificates

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Concepts & FAQ's National Savings Certificates

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Tax Benefits : Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88. Investment up to Rs. 1, 00,000 per annum qualifies for IT Rebate under section 80C of IT Act.

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What Is National Savings Certificates?

02 November 2016, Wednesday

“An investor without investment objectives is like a traveler without a destination.” ....

What Is NSC?

15 February 2016, Monday

You want your investment to be safe. You have decided to invest your money in fixed income security. The money you invest remains safe and you get interest on this amount. You have chosen to invest your hard earned money in the national saving certificate, popularly called NSC. What is NSC? The Government wants you to save your money and what better way than the NSC. Your money is safe. You also get interest, on the money you deposit under the NSC. The minimum amount you can invest in the NSC is ....

National Savings Certificates News

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All 650 branches of IPPB to be launched by April: Sinha

Wednesday, January 3, 2018, 4:26 PM

The government expects to roll out all 650 branches of India Post Payments Bank (IPPB) by April 2018, Parliament was informed today. Minister of State for Communication Manoj Sinha said IPPB has launched 2 pilot branches on January 30, 2017, at Raipur (Chhattisgarh) and Ranchi (Jharkhand) in 2016-17. However, no branch was rolled out in the current financial year, Sinha said.

3 pvt banks can sell more small savings schemes

Tuesday, October 17, 2017, 10:29 AM

To ensure that it meets its budgeted collections under the small savings schemes, the government has allowed three private sector banks — ICICI Bank, HDFC Bank and Axis Bank — along with all the public sector banks to accept deposits under schemes like the National Savings Certificate (NSC), Kisan Vikash Patra (KVP) and Monthly Income Scheme (MIS), among others.

National Savings Certificates Education

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Step 3: Take up the matter with a higher authority

Tuesday, June 12, 2018, 7:39 PM

If the issue is not resolved even after calling customer care and visiting the bank branch, you must take this to the next-level. Inform the branch manager of the bank where you have an account. Banks will also have a grievance cell to resolve customers issues. You can lodge the complaint on the bank's website and grievance cell will take care of the matter.

Smart Savers: #5 National Savings Certificates

Thursday, April 6, 2017, 3:14 PM

National Savings Certificates is an Indian Government Savings Bond, primarily used for small savings and income tax saving investments in India. The maturity date for these certificates is set to 5 or 10 years from the date of purchase, but the interest is calculated on yearly basis. This interest will not be paid to the certificate holder till such time as the investment matures.

Smart Savers: #2 Post Office Monthly Income Scheme Account

Monday, April 3, 2017, 1:06 PM

It is a six-year savings scheme offered by designated post offices. It offers guaranteed monthly returns on deposits. The account can be opened singly or jointly, with a minimum investment of Rs 1,500. The maximum is capped at Rs 4.5 lakh if the account is held singly and at Rs 9 lakh, if jointly. One can open multiple accounts, but overall limits stay.

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What is investing?

Setting aside your money now to get more money in the future.You earn an income each month. You set aside some amount for your basic needs as savings. You maintain 3-6 months of expenses in your savings bank account for any contingencies and invest the rest.

If you are a conservative investor you will invest in fixed income securities such as fixed deposits. The amount you invest (Principal) is safe and you get interest on this amount. If you are an aggressive investor you invest in equity. You get a higher return at a higher risk. The amount you invest could double in a short time or even be lost. You may get a higher return than fixed income investments but the risks are high.

How to invest?

You can invest fixed amounts of money every month for a fixed period of time in an equity mutual fund. This is a systematic investment plan (SIP). You can calculate returns you get through an SIP using an SIP calculator.

You may have an investment goal where you may need a few lakhs for your child's college education in 5 years time. How much money you need to set aside now to achieve your investment goal can be calculated using the investment goal calculator.

How an online investment calculator works?

You can easily calculate your investment returns with a high degree of accuracy using the online investment calculator.

This online investment calculator has 2 options:

• Calculate your investment returns yearly.
• Calculate your investment returns monthly

How to calculate investment returns yearly using online investment calculator?

Step 1: You have to fill the amount you want to invest each year by adjusting the slider on the scale of the monthly investment in the investment calculator. You can also fill the amount directly.

Step 2: You fill the rate of return you would like to get. If you are a conservative investor you fill 8-9%, and if you are an aggressive investor you fill 11-12% using the slider on the scale of the expected rate of return in the investment calculator. You can also fill the expected rate of return on your investment directly.

Step 3: You have to choose a period in years which you intend to stay invested. You fill this time period using the slider or directly in the total investment period of the online investment calculator.

Step 4: You have to enter any current investments you hold in the current investments slot. The investment calculator will calculate your returns on this amount as per the expected rate of return you have entered earlier.

What does this online investment calculator shows you?

Your investment calculator will give you the future value of your investment. You are also shown the total investment you have made and the total amount your investment has grown to.

Answer 1

You can apply for the National Savings Certificates at the nearest post office.

Answer 2

You have to fill the application and submit it at the relevant counter. You will be issued a certificate.

Answer 3

You need to keep the certificate safe and submit it at the time of withdrawal.

Answer 4

You need to have identity and address proof as part of the KYC (Know Your Customer), procedure.

Answer 5

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.

Answer 6

The 5 Year National Savings Certificates has a lock in period of 5 years.

Answer 7

You get interest of 8.5% per year.

Answer 8

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.

Answer 9

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.

Answer 10

The 10 Year National Savings Certificates has a lock in period of 10 years.

Answer 11

You get interest of 8.8% per year.

Answer 12

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.

Answer 13

National savings certificates are certificates issued by Department of post, Government of India and are available at all post office counters in the country. This scheme is specially designed for Government employees, self employed and other salaried classes.

It is a long term safe savings option for the investor. National Savings Certificates have a high interest rate at 8.6% compounded half yearly. Post maturity interest will be paid for a maximum period of 24 months at the rate applicable to individual savings account.

Concept of National Savings Certificates : NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There is no prescribed upper limit on investment. Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to the Post Office through a representative or an agent.

The certificates are easily transferable from one person to another through the post office. There is a nominal fee for registering the transfer. They can also be transferred from one post office to another. One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master.

Answer 14

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Answer 15

NSCs can be purchased from all head post offices and authorized post offices.

Answer 16

Any adult individual can buy NSCs. NSCs can also be bought jointly or by an adult on behalf of a minor.

Answer 17

You can apply for an NSC in a prescribed form at any post office, in person or through an authorized agent.

Answer 18

The certificate can be encashed at the post office registered or at any other post office if the concerned authority is satisfied with the identity proof of the individual presenting the certificate.

Answer 19

Deposits up to Rs.1 Lakh qualify under Section 80C of the Income Tax Act.

Answer 20

You can pay by cash, locally executed cheque, order, demand draft drawn in favor of postmaster etc

Answer 21

Yes, Nomination facility is available.

Answer 22

Yes, You can get a duplicate NSC from the post-office if it is lost, stolen or destroyed. The Procedure will be much more easy if you have a XEROX Copy of the Original Certificate.

Answer 23

National Saving Certificate is good for investment and is less risky as it is issued by government. The repayment is guaranteed by the Central Government. It gives interest at the rate of 8.6 per cent per annum. Tax benefits under section 80 C of Income Tax Act are applicable.

Answer 24

You can approach the post office which issued the certificate.

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Can I Get Duplicate Certificate if my National Savings Certificate lost, stolen or destroyed?

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What are the Advantages of National Savings Certificates?

National Savings Certificates Articles

What Is National Savings Certificates?

What Is NSC?

National Savings Certificates News

All 650 branches of IPPB to be launched by April: Sinha

3 pvt banks can sell more small savings schemes

National Savings Certificates Education

Step 3: Take up the matter with a higher authority

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Calculator

Investment Calculator

Future value of investments

Total investment made

Your investment has grown to

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How to invest?

How an online investment calculator works?

How to calculate investment returns yearly using online investment calculator?

What does this online investment calculator shows you?

What Is National Savings Certificates?

What Is NSC?

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