National Savings Certificate: The best investment scheme for tax payers is National Savings Certificate. Low risk with high interest, returns along with tax exemptions.
National Savings Certificate : National Savings Certificate (NSC) is the safest form of investment. Best scheme for tax benefits, high returns. Income tax deductions up to Rs.1.5 lakh per year can be availed in this scheme. NSC investments are tax exempt under Section 80C of the Income Tax Act. National Savings Certificate is the best investment program for new investors. Safe returns, risk free scheme of investment. This scheme is popular among small and medium investors due to tax exemption benefits and high interest rates. The Union Finance Ministry revises the NSC Interest Rates from time to time. The interest rate has been fixed at 7.7% per annum for the June quarter (April-June) commencing April 1, 2024.
How to Invest in NSC?
There are two basic ways to invest NSC. There are offline (physical certificate) and online (e-mode). Those who prefer internet services can buy offline mode NSC to invest.
Offline Mode (NSC Offline)
- You can go to your nearest post office and buy National Savings Certificate (NSC). NSCs are available for purchase at all post office branches in the country.
- The NSC application form available at the post office should be filled. Your details, deposit amount, maturity period (currently 5 years), nominee information should be filled in the application.
- Self attested xerox copies of Aadhaar Card, PAN Card, Voter ID etc. should be submitted at the post office for proof of your identity.
- You must pay the NNC purchase amount in cash or by check. In this the minimum investment is Rs. 1000 while there is no upper limit.
- NSC certificate will be given after paying the investment money. You will be given a Physical Certificate (NSC) at the post office. It is a testimony of your investment.
Buy NSC Online
- Investment is available in online mode NSC. You should have Post Office Savings Account. One can access internet banking and invest in NSCs online.
- Click on Service Request under General Services in your Postal Internet Banking. Click on New Request and then select “NSC Account – Open NSC Account.
- Confirm your deposit amount and select Post Office Debit Account. Accept the terms and conditions… and confirm the password for your transactions. Receipt will come after you confirm the investment online. Save it for future use.
NSC Benefits
- Government of India provides guarantee and security for our investment. Your deposit amount is protected.
- NSC offer a fixed interest rate fixed by the government for the duration of the investment. Currently the interest rate of NSCs is 7.7 percent per annum.
- NSC investments are eligible for tax exemptions under Section 80C of the Income Tax Act. With this, tax exemptions of Rs.1.5 lakh per year can be obtained.
- NSCs are entries with minimum investment. You can invest from Rs.1000. There is no upper limit on investment. Any amount can be deposited.
- NSCs are currently available with a maturity of 5 years. The investment amount cannot be withdrawn before the completion of this term.
- Although there is an option to borrow money early… there is a lower interest rate and some cash penalty. These encourage long-term savings.
- Compound Interest – NSCs earn interest on a compound basis. Interest is paid on interest on investment.
- Nominee can be selected to receive the maturity amount without risking your investment. You will then pay the deposit amount to the family members.
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