What is NSC or National Savings Certificate, How to get an NSC bond, Whether it is the best investment or not and can I purchase this online or not, Is national banks like SBI offer this or not, Whether it is tax-free, and Is there any disadvantages in NSC bonds.
Table of Contents
What is National Savings Certificate (NSC)
NSC bond or scheme is entirely known as the National Savings Certificate Scheme, and a government ventured scheme can be opened in any Post office. The Government of India has introduced NSC to let individuals invest their calculated sum of amount in Government Savings bonds.
The amount invested in the NSC scheme will be tax exempted, and thus individuals will be provided a rate varying rate of interest. The interest gained on the invested amount will be deposited at the end of the financial year. Thus the amount invested under the NSC scheme will be increased as per the rate of interest announced by the government on the sum of the amount deposited.
National Savings Certificate scheme has been introduced for minimum scale earner, to invest a sum of amount which isn’t possible in scheme likes BANK FDs, PF, Public Provident Fund and other schemes, and the maturity period of NSC scheme is selectable from 5 years to 10 years, makes a suitable transaction period of lock-in.
The amount to be deposited is not limited to the National Savings Certificate Scheme. Still, an investment below 1,50,000 will take you under Tax benefits, and the Income Tax Act 80C will be applicable if the investment is below the slab of said amount. Interesting, the interest rate on total investment will be appropriate for every quarter, which is currently 7.6%.
Who can apply for NSC Scheme?
This scheme is best suitable for people looking for safe and easy return investment, and this income being a small scale developed, develops regular benefits with 100% capital protection.
The guaranteed return is the main saying of the NSC scheme, which makes investors tension-free, and as the NSC scheme and its rate of interest is monitored by the government, this makes it’s comprehensively secure.
The amount gained from the maturity of the National Savings Certificate can be deposited as Cash, Cheese, Pay Order, or Demand Draft to the bank asking the same to invest in the new certificate.
The investor will have an easy way to process through the features of the scheme and avail them as in need. Interest received on the amount will be added and calculated at the time of withdrawal upon meeting maturity term or any in case of emergency.
What is the eligibility for the NSC scheme?
Below is some eligibility that needs to be attained to invest in the NSC scheme and gain its benefits.
- Any Resident of India having Government ID generated can apply for the NSC scheme
- Hindu Undivided Family group people an individual can apply
- New Certificate upon existing Certificate is possible once said term is completed
Anyone who has applied for the scheme and then moved abroad for some reason will not need to worry as being an Indian Citizen, and the NSC bond amount will behold on until the time of maturity has been attained.
NSC Calculator and Formula
NSC Scheme Restrictions
This Excellent investment saving certificate has some minimum restrictions that need to be met by an individual. This must be completed to get benefits from the NSC scheme, which is full freely provided by the Government of India.
- Individuals must invest Rs.100 in the NSC scheme.
- No limit has been applied to the amount of investment.
- NSC scheme provides a minimum of Rs 100 to RS 10 000 varying certificates
- Re-investment under the NSC scheme for the new certificates will be open once the maturity period is reached.
Types of NSC Certificates Issued
There are different National Savings Certificates available for individuals, which can be opted as per requirement and benefits provided under the individual scheme.
- Single Holder Certificate: This NSC scheme is for only individuals without partners except filling nominee in case.
- Joint A Type Certificate: This scheme allows to open an NSC certificate on two individuals; the Maturity amount will be equally divided by both the account holders.
- Joint B Type Certificate: this scheme allows to open NSC certificate on two adult names; the amount after meeting the maturity will be deposited into the account of one individual name, opted while during registration.
Features of National Saving Certificate
I hope you have calculated the amount from your savings and are ready to invest in the National Saving Certificate Scheme. This might be very easy if you regularly visit Indian Post Office for any reason. Here we have some features of the NSC bond which might interest individuals for the investment.
- NSC scheme has no limit for investment
- Deposited made under the NSC scheme will be eligible for Tax Rebate under Sec80C.
- A tax deduction is strictly No on an amount deposited.
- NSC bonds of any kind will be helpful for any loan as a collateral security
- Family members, including minors, will be eligible to name as a nominee.
- Withdrawal of amount under NSC scheme will be upon meeting maturity period or in case of emergency.
- No TDS will be deducted from the NSC bond total amount after maturity.
- The Tax payable on the amount will be upon the investor.
- The total corpus amount will be handed over to the investor without any tax deduction.
National Savings Certificate scheme can be applied with minimum documentation. Thus, investors need not worry about the plan, and It is better to revise the income sources from your end, as once enrolled, the said amount from Rs 100 to Rs 10,000 must be deposited as an EMI on the fixed date every month.
There should not be any miss in the deposit made until the maturity period is reached, Hope that the NSC scheme or National Savings Certificate amount will be undoubtedly helpful in your emergency work and for sure after getting the maturity period.
