National Savings Certificates (NSC) Interest Rate 2023: The current interest rate on NSC investment is 6.8%. If there is no change in this rate by December 31, then the same would be applicable to NSC investments made in the first quarter of New Year 2023.
As RBI’s repo rate and inflation have gone up in 2022, small savings investors expect an increase in the National Savings Certificates interest rate. Several banks are now offering higher interest on Fixed Deposit schemes than NSC. In the past, however, NSC has enjoyed a higher interest than bank FDs.
Read More: PNB hikes interest rates on FDs of less than Rs 2 crore; check details
NSC Interest Rate 2023
The Central Government revises National Savings Certificate (NSC) interest rate on a quarterly basis. The next revision of the NSC interest rate will take place by the end of December 2022. Therefore, the NSC interest rate to be applicable in the first quarter of 2023 (January-March) will be known by December 31, 2022.
NSC Benefits 2023
National Savings Certificates (NSC) provide several benefits to investors. Following are some of the top benefits of the scheme:
Returns are guaranteed: Returns from investment in NSC is guaranteed as the scheme enjoys a sovereign guarantee like Public Provident Fund. You can buy NSCs at the post office. But even if the post office fails, your deposits will be secure and returns guaranteed.
Tax benefit: Like PPF and SCSS, the amount deposited in NSCs can be claimed as a deduction under Section 80C of the Income Tax Act. The maximum deposit allowed under Section 80C is Rs 1.5 lakh/year.
Benefit of compounding: Like PPF, deposits made in NSCs earn compound interest, providing depositors with an opportunity to grow their wealth significantly over the 5-year period for which the certificates are issued.
Read More: How to take a quick loan without much effort?
High returns: The NSC interest rate has generally remained higher than bank deposits. The current interest rate of 6.8% can let you grow an investment of Rs 1000 to Rs 1389.49 after five years.
No maximum deposit limit, minimum is just Rs 1000: You can deposit any amount in NSC while the minimum deposit limit is Rs 1000. Interestingly, children above 10 years can buy NSC in his/her own name. You can also open any number of NSC accounts. This is one of the few savings schemes in which even PM Modi has invested.
