| Post
Office Schemes |
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| NSS -
National Savings Scheme |
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| Features
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| Returns |
NSS provides an interest rate of 8.5% which is compounded annually.
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| Investment Limitation |
Min Amount Rs.
100/- and additional investment in multiples of Rs. 100/-
Max Amount Rs. 60,000/-
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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
- Hindu undivided family
- Association of persons or Body of individuals
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If a person invests in NSS on behalf of a minor, other than
the parent/guardian, the maturity proceeds automatically is paid to the
parent/guardian of the minor and not to the person who invested.
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| Tenure of Investment |
NSS has an investment period of 4 years.
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| Nomination |
Facility is available at the time of opening the account or
during the tenure.
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| Premature Payment |
There is no provision of premature closure of account in the
scheme except on the death of the depositor. In that case the account may
be closed at any time after his death by the legal heir/nominee and the
normal interest would be credited upto the preceeding month from the date
of withdrawal of the amount.
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| Maturity |
The principal amount along with the interest earned shall
be paid to the depositor after completion of four years from the date of
deposit. The deposit or interest amount not withdrawn after it becomes due
will continue to earn normal interest upto the month preceeding the date
of withdrawal.
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| Loss of Passbook |
A pass book is issued at the time of opening the account.
If there is a loss, theft or the passbook is mutilated, a duplicate is issued
on a charge.
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| Tax Benefits |
Tax benefits can be availed under section 88. Exemption under
section 80L can be availed for interest income.
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| Tips for Investing |
- The scheme is a boon for those investors who want to deposit a lump
sum in a year in order to obtain adequate returns along with tax rebate
under Section 88 of the Income Tax Act.
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