About National Savings Certificates
- This is a Government initiative scheme, so your money will be at no risk
- National Savings Certificates are fixed income scheme like fixed deposit in bank, can open at any of your post office branches
- This scheme is to encourage small investors at better rate of interest, comparing with other schemes
- Also called as NSC Bonds, A very popular scheme in post office, offers higher interest rate 7.6%, compounding annually
- If you are looking good rate of interest under tax benefit, look no further than NSC bonds (National Savings Certificates)
- Works like a fixed income instrument with no risk
Features of National Savings Certificates (NSC Bonds)
- This is a popular scheme
- Can gain 7.6% compounded annually
- A better scheme comparing with fixed deposit, you earn more than fixed deposit
- Tenure is 5 years
- If you invest 100 rs now, it will be 144.23 after 5 years at compounding rate
- Can avail income tax benefit under Section 80C of IT Act
- Both investment & interest amount is tax free
- Interest accrued annually is reinvested and paid after 5 years
- There is no maximum purchase limit under this scheme
Additional Information:
- A general public, can anyone invest in this scheme
- Certificates can be purchased in behalf of minor or major
- Certificates can be issued at all major post offices
- The best scheme to avail income tax benefits
- The certificates can be transferred from one person to another
- Can avail bank loans using these certificates
- Interest rates may vary every year after the budget, it will fixed based on bank interest rates
Comments:
- This scheme is best for IT filers, to get tax benefit up to 150000
- In normal scenario if you opted for 5year fixed deposit, you will get income tax benefit, but 10% amount will be deducted as capital gains at the time of maturity, if interest exceeds more than 10,000 per annum
