National Savings Certificates

About National Savings Certificates
  •  This is a Government initiative scheme, so your money will be at no risk

  •  National Savings Certificates are fixed income scheme like fixed deposit in bank, can open at any of your post office branches

  • This scheme is to encourage small investors at better rate of interest, comparing with other schemes

  • Also called as NSC Bonds, A very popular scheme in post office, offers higher interest rate 7.6%, compounding annually

  • If you are looking good rate of interest under tax benefit, look no further than NSC bonds (National Savings Certificates)

  • Works like a fixed income instrument with no risk

Features of National Savings Certificates (NSC Bonds)
  • This is a popular scheme

  • Can gain 7.6​% compounded annually

  • A better scheme comparing with fixed deposit, you earn more than fixed deposit

  • Tenure is 5 years

  • If you invest 100 rs now, it will be 144.23 after 5 years at compounding rate

  • Can avail income tax benefit under Section 80C of IT Act

  • Both investment & interest amount is tax free

  • Interest accrued annually is reinvested and paid after 5 years

  • There is no maximum purchase limit under this scheme

Additional Information:
  • A general public, can anyone invest in this scheme

  • Certificates can be purchased in behalf of minor or major

  • Certificates can be issued at all major post offices

  • The best scheme to avail income tax benefits

  • The certificates can be transferred from one person to another

  • Can avail bank loans using these certificates

  • Interest rates may vary every year after the budget, it will fixed based on bank interest rates
  • This scheme is best for IT filers, to get tax benefit up to 150000

  • In normal scenario if you opted for 5year fixed deposit, you will get income tax benefit, but 10% amount will be deducted as capital gains at the time of maturity, if interest exceeds more than 10,000 per annum