National Savings Certificate, which is well known for the NSC, is the government scheme. The Indian national invests in this scheme with the motive of saving and to save income tax. The Indian taxpayer will get the tax benefit under Section 80C. Anyone who fulfills the eligibility conditions for the scheme can invest in it. The scheme is available for 05 years and 10 years, and it must be noted that there is a locking period of 05 years under this scheme. The minimum investment must be Ts. 100/- whereas there is no limit for the maximum amount. One of the best features of this scheme is that you can use this National Savings Certificate as collateral. The complete details of NSC scheme like eligibility, features, interest rate & tax benefits have been well stated on this page. Scroll down and have a look.
National Savings Certificate
NSC Interest Rate & Tax Benefits
The National Savings Certificate Interest Rate is changed from time to time, and you can confirm the current rate while investing in the scheme. Whereas, we have provided the table of the interest rate. You are suggested to have a look.
|Q1 FY 2020-21||6.8%|
|Q4 FY 2019-20||7.9%|
|Q1 FY 2018-19||7.6%|
|Q2 FY 2018-19||7.6%|
|Q3 FY 2018-19||8.0%|
|Q4 FY 2018-19||8.0%|
|Q1 FY 2019-20||8.0%|
|Q2 FY 2019-20||7.9%|
|Q3 FY 2019-20||7.9%|
National Savings Certificate Scheme- Features
- Any Indian national who is eligible for the scheme can invest in the same by going through the nearest Post Office.
- The maturity period of the NSC scheme is of 5 years (fixed).
- The rate of the scheme will be set as per the rules and regulations, and the Ministry of Finance will decide it.
- Anyone can invest an amount as per their budget, but it must be noted you have to invest at least Rs. 100/- to start a scheme.
- The NSC can also be used as collateral for taking a loan.
Types Of Holding- NSC
Single Holder Type certificate- In this, any person can invest in this scheme either for himself or on behalf of a minor.
Joint “A” Type certificate- Here in these two, investors can invest in the NSC and get an equal share as at the time of maturity.
Joint “B” Type certificate- It same as “A” Type certificate, but at the time of maturity, only one person will be eligible to take the benefit of the scheme.
National Savings Certificate Scheme- Eligibility
- All Indian residents are eligible for the NSCs, but to apply for the scheme, they must have valid identity proof.
- It may be noted that Non-resident of Indians will not be permitted to take the benefit of this scheme. But if any individuals who have invested in the scheme already and he became Non-resident of Indians, the in such case he/she can hold such scheme but only till the maturity of scheme.
- Hindu Undivided Family (HUFs) and all the trust will not be eligible for the NSC scheme, whereas “Karta” of HUF is eligible to invest in the said scheme.
- Application form for National Savings Certificate
- 02 passport size photograph
- ID proof and Address proof
- Cheque or Cash has to be invested in the scheme.
Steps To Apply For National Savings Certificate Scheme
- First of all, get the application form from for the NSC scheme, you can obtain it via online mode (from official website) or via offline mode (from the post office).
- Now you have to fill the application form before filling the form must assure to read all the terms and conditions carefully.
- Now, go to the post office and submit the filled application form and all the required documents.
- Finally, you have to pay for the amount for the scheme as per your budget.
- That’s it, the officials will issue the certificate, and you have to keep it safe with you.
In Which Cases You Can Withdrawal Of National Savings Certificate Before Maturity?
You can withdraw the scheme amount only after the 05 years, but here we are providing you some cases in which you can withdraw before maturity.
- In case by the orders of the court
- On forfeiture by a pledge
- In the case of death of NSC holder