The National Savings Certificate is a government-backed fixed-income investment scheme
Looking for a safe and reliable way to grow your savings while taking advantage of tax benefits? A government-backed investment scheme could be the ideal choice for you. Designed to provide financial security and peace of mind, this option combines attractive returns with minimal risk, making it a preferred choice for conservative investors.
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Whether you’re saving for long-term goals like your child’s education, retirement, or simply looking to maximise the value of your hard-earned money, this scheme offers unmatched stability and guaranteed returns. With a fixed tenure and an assured rate of interest, your investment grows steadily, allowing you to plan your future with confidence.
In addition to being secure, this scheme comes with the added advantage of tax benefits under Section 80C of the Income Tax Act. This means you’re not just saving and earning but also reducing your taxable income, making it a smart financial decision.
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For those seeking a hassle-free, government-guaranteed path to financial growth, this is a compelling option that ensures both peace of mind and financial progress.
What is a National Savings Certificate (NSC)?
The National Savings Certificate (NSC) is a government-backed fixed-income investment scheme designed to promote savings among individuals, offering a safe and tax-efficient investment option.
Launched by the Department of Economic Affairs, Ministry of Finance, the NSC encourages long-term savings with attractive interest rates. Under the scheme, an individual can invest a minimum of Rs 1,000 and thereafter in multiples of Rs 100, with no maximum deposit limit, for a maturity period of 5 years.
Types of NSC Accounts:
Single Holder Type Account: Opened by an adult for themselves or on behalf of a minor or person of unsound mind, or by a minor aged 10 years or older.
Joint A-Type Account: Opened jointly by up to three adults, payable to all holders jointly or to the survivor(s).
Joint B-Type Account: Opened jointly by up to three adults, payable to any holder or the survivor(s).
Benefits of NSC:
Attractive Interest Rate: 7.7% compounded annually, paid at maturity.
No Maximum Deposit Limit: Contribute as much as you wish.
Fixed 5-Year Maturity: Guaranteed returns after 5 years.
Loan Facility: Pledge your NSC for loans at participating banks.
Eligibility:
-Any Indian resident can avail of this scheme.
-Guardians can open accounts on behalf of minors or persons of unsound mind.
-Minors must be at least 10 years old to open an account.
Deposits:
-Minimum deposit: Rs 1,000 (in multiples of Rs 100).
-No upper limit on deposits or number of accounts an individual can open.
Payment on Maturity:
-NSC matures in 5 years.
-The maturity value for a Rs 1,000 deposit is Rs 1,462.54 (and proportionate for other amounts).
-Interest is compounded annually and paid at maturity.
-Upon maturity, the account holder can submit a specified form for the payment.
Application Process:
Offline Application:
-Visit the nearest Post Office or designated bank branch.
-Obtain and fill out the application form, or download it from the official website.
-Attach the required documents and provide nomination details.
-Submit the form with the initial investment amount.
-Once processed, an acknowledgment will be provided, confirming the initiation of the NSC account.
Premature Closure:
Accounts can only be closed prematurely under specific circumstances, such as:
-Death of the account holder(s).
-Forfeiture by a gazetted officer (if pledged by the scheme).
-As ordered by a court.
Transferability and Nomination:
NSCs are transferable, allowing investors to assign or transfer certificates to another person. The scheme also allows for nomination, ensuring that in the event of the investor’s death, the nominated individual receives the proceeds.
Documents Required:
-Passport-sized photo
-Aadhaar card
-PAN card
-Proof of age (e.g., birth certificate)
-Valid ID and address proof (e.g., passport, driving license, voter’s ID card, NREGA job card, or National Population Register letter).
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.
