NSC Bond : National Savings Certificate Types, Interest Rate, Calculator & New Features

What is NSC or National Savings Certificate, How to get an NSC bond, Whether is a 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…

What is National Savings Certificate (NSC)

NSC bond or scheme fully known as National Savings Certificate Scheme, which is a government ventured scheme that can be opened in any Post office, and NSC has been introduced by the Government of India to let individual to invest their calculated sum of amount in Government Savings bond.

The amount invested in NSC scheme will be tax exempted and thus individual will be provided a rate varying rate of interest, and the interest gained on the invested amount will be deposited at end of financial year, and thus the amount invested under NSC scheme will be increased as per the rate of interest announced by government on sum of 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 in the National Savings Certificate Scheme, but 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 applicable for every quarter, which is currently now 7.6%.

Who can apply for NSC Scheme?

This scheme is best suitable for people who are 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 NSC scheme, which makes investor tension free, and as the NSC scheme and its rate of interest is monitored by government, this makes its fully secure.

The amount gained from the maturity of National Savings Certificate, can be deposited as Cash, Cheese, Pay Order or Demand Draft to bank asking same to invest in new certificate.

Investor will be having an easy way to process through the schemes features and avail them as in need, and Interest received on amount will be added and calculated at the time of withdrawal which is upon meeting maturity term or any in case of emergency.

What is the eligibility for NSC scheme

Below are some eligibility that need to be attained to invest in NSC scheme and gain its benefits.

  • Any Resident of India having Government ID generated can apply for NSC scheme
  • Hindu Undivided Family group people individual can apply
  • New Certificate upon existing Certificate is possible once said term is completed

Anyone who has applied for scheme and then moved abroad for some reason, will not need to worry as being an Indian Citizen the NSC bond amount will be hold on until the time of maturity has 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, and this are must to be met, as one to get benefits from NSC scheme which is full freely provided by Government of India.

  • Individual must invest Rs.100 in NSC scheme
  • No limit has been applied to the amount of investment
  • NSC scheme provides minimum Rs 100 to RS 10, 000 varying certificates
  • Re-investment under NSC scheme for new certificate will be open once maturity period is reached.

Types of NSC Certificates Issued

There are different of National Savings Certificate that are available for individuals, and this can be opted as per requirement and benefits provided under individual scheme.

  • Single Holder Certificate: This NSC scheme is for an only individual without partner except filling nominee in case.
  • Joint A Type Certificate: This scheme allows to open NSC certificate on two individuals, the Maturity amount will be equally divided 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

Hope that you have calculated amount from your savings and are ready to invest in National Saving Certificate Scheme, and this might be very easy if you regularly visit Indian Post Office for any kind of reasons, and here we have some features of NSC bond which might interest individual for the investment.

  1. NSC scheme has no limit for investment
  2. Deposited made under NSC scheme will be eligible for Tax Rebate under Sec80C
  3. Tax deduction is strictly No on an amount deposited
  4. NSC bonds of any kind, will be helpful for any loan as a collateral security
  5. Family members including minor will be eligible to name as nominee
  6. Withdrawal of amount under NSC scheme will be upon meeting maturity period or in case of emergency
  7. No TDS will be deducted from NSC bond full amount after maturity
  8. The Tax payable on amount will be upon investor
  9. Full corpus amount will be handed over to investor without any tax deduction

National Savings Certificate scheme can be applied with minimum documentation and thus investor need not worry about the plan, and It is better to revise the income sources form your end, as once enrolled the said amount from Rs 100 to Rs 10,000 must be deposited as an EMI on fixed date of every month.

There should not be any miss in the deposit made until the maturity period is reached, Hope that NSC scheme or National Savings Certificate amount will be surely helpful in your emergency work and for sure after reaching the maturity period.

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