| Post
Office Schemes |
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| NSC -
National Savings Certificate |
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| Features
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| Returns |
NSC provides an interest rate of 9.0% which is compounded
half yearly.
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| Investment Limitation |
Min Amount Rs.
100/- and additional investment in multiples of Rs.
100/-
Max Amount No
Limit
Denominations Rs. 100/-, 500/-, 1,000/-,
5,000/-, 10,000/-, 50,000/-
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| Scheme Availability |
All through the year.
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| Mode of Operation |
- Single
- Joint (Two or more)
- Minor with parent/guardian
- HUFs
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| Tenure of Investment |
The NSCs have a maturity period of 6 years.
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| Premature Encashment |
If encashed prematurely, within a year
of issue, then only the face value is given. If encashed
after a year but before 3 years, then simple interest
on the face value, at the rate applicable from time
to time, will be paid. The difference between the accrued
interest and the simple interest is the discount rate.
The Government from time to time specifies the discount
rate.
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| Maturity |
The certificate can be encashed from the
issuing post office on the due date by simply discharging
the certificates at the back.
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| Transferability |
The certificates are easily transferable
from one person to another through the post office.
There is a nominal fee for registering the transfer.
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| Loans / Withdrawal |
One can avail of a loan against the certificates
by pledging it to the bank. The bank will have the NSC
assigned in its favour and advance a percentage of upto
75% of face value plus the amount of accrued interest
till the date of taking the loan.
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| Tax Benefits |
Tax benefits are available on amounts
invested in NSC under section 88, and exemption can
be claimed under section 80L for interest accrued on
the NSC. Interest accrued for any year can be treated
as fresh investment in NSC for that year and tax benefits
can be claimed under section 88.
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| Tips for Investing |
- An useful instrument for people who invest to
save tax.
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