National Savings Scheme NSS is a post office savings scheme which also saves income tax. Subsequently, all investments were Rs. 1.5 lakhs are applicable for tax deduction under section 80C of IT Act. The National Saving Certificate Interest Rate 2019 has been fixed at 7.9% (from 1 October 2019) compounded p.a and is to be checked using the National Certificate Certificate Calculator. Apart from this, people can first see the nsc interest rate chart and fill the nsc online application form to apply for this central government scheme.
The NSC interest rate chart shows that the NSC interest rate equals with other schemes like Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (Girls), Post Office Savings Account, Recurring Deposit – RD Account, Senior is. Citizen Saving Scheme (SCSS), Time Deposit (TD) Account, Monthly Income Scheme (MIS) – nsc vs ppf vs kvp vs ssy vs scss vs mis vs rd vs td vs post office savings account.
NSC account maturity period is only 5 years. The interest rate of the National Savings Scheme is low and taxable only at the time of maturity. People can use the National Savings Certificate as collater and take loans from banks. NRIs, HUFs and Trusts are not eligible to buy and buy National Saving Certificate (NSC). People can compare all post office schemes 2019 before investing.
National Savings Scheme NSS – Type of certificate
There are 3 types of National Savings Certificates which are as follows: –
- Single Holder Type Certificate – Any person can buy a National Saving Certificate for himself or on behalf of a minor.
- Joint A Type Certificate – This type of NSC is issued jointly to 2 adults payable to both nsc account holders.
- Joint B Type Certificate – This nss certificate is issued jointly to Type 2 adults payable to one of the nsc account holders.
People can redeem the National Saving Certificate (NSC) only after the nsc maturity period on submission of certificate in the post office. After the maturity amount is received, the account holder will have to sign on the back of the nss certificate and hand over the certificate to the post master.
National Savings Certificate Interest Rate
The NSC interest rate is 7.9% per annum. The interest amount of the National Savings Letter is taxable. The NSC account holder does not receive accrued interest, but it is invested annually and compounded annually. Also as per National Saving Certificate Calculator, Rs. 100 rupees. 144.23. Since NSC is a specific instrument under Section 80C of the IT Act, taxpayers can claim the interest amount for this deduction.
For this reason, taxpayers must first show this interest amount as income and then apply for tax deduction. However, customers can claim a maximum tax deduction of up to Rs. 1.5 lakhs.
National saving certificate calculator
Apart from this, customers can calculate their interest amount in National Savings Scheme NSS using the link given below: –
NSC Interest Calculator
National Savings Scheme NSS – Tax Benefits
Customers should invest in the National Savings Letter Scheme for the following reasons: –
- People can save income tax on income up to Rs. 1.5 lakhs.
- The NSC offers a guaranteed interest rate of 7.9% per year and can be verified using the National Savings Certificate Calculator.
- The National Savings Certificate maturity period is only 5 years.
- This savings scheme is easily available in all post offices.
- In addition, interest accrues annually and is reinvested in default.
With the income tax exemption, the accrued interest is also added to the original investment and is also eligible for tax breaks. for example. If an NSC certificate costs Rs. 1000, then the person will get a tax break on the initial investment in 1 year. Apart from this, people will also get tax exemption on additional NSC purchases and interest earned.
Who can invest – maximum and minimum investment
Anyone looking for a safe investment option, guaranteed interest and capital security can invest in NSC. This investment option is readily available compared to other tax saving methods. However, the NSC is not able to beat inflationary beating results such as other savings such as tax saving mutual funds and the National Pension System.
Any person who wants to open a National Savings Certificate account can do so only through a minimum investment of Rs. 100. Further, there is no maximum limit and one can purchase any number of denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000. Later, the candidates will receive the interest amount which can be verified using the National Savings Certificate Calculator.
National Savings Certificate Payment – NSC Purchase
Buyer must submit Form A to purchase NSC account. For this, buyers can deposit payment through cash, check, payment order, demand draft drawn in favor of the postmaster. Apart from this, candidates can pay by the withdrawal amount of the Post Office Savings Bank Account.
Accordingly, the postmaster will issue a new NSC certificate on the spot or provide a provisional slip for the purchase of the certificate. These National Savings Scheme nss certificates can also be transferred from 1 post office to another.
NSC vs PPF vs KVP vs ELSS vs NPS vs FD
Here we are comparing NSC to other tax saving instruments such as Equity Linked Saving Schemes (ELSS), National Pension System (NPS), Public Provident Fund (PPF) and Tax-Saving Fixed Deposits (FDs). This comparison is based on the National Savings Certificate Interest Rate, Lock in Period and Risk Profile: –
NSC Comparison with other Schemes
| Investment | Rate of Interest | Lock in Period | Risk |
|---|---|---|---|
| National Saving Certificate (NSC) | 7.9% compounded p.a (Guaranteed) | 5 years | Risk Free |
| ELSS Funds | 12% to 15% (expected) | 3 years | Market Related Risks |
| Public Provident Fund (PPF) | 7.9% compounded p.a (Guaranteed) | 15 years | Risk Free |
| National Pension System (NPS) | 8% to 10% | Till Retirement | Market Related Risks |
| Kisan Vikas Patra (KVP) | 7.6% compounded p.a | 9 Years 10 Months | Risk Free |
| Fixed Deposit | 6.9% to 7.7% (Guaranteed) | 5 years | Risk Free |
National Savings Letter Issuance Period and Maturity Period
There are 2 types of issues in NSC – NSC VIII issue and NSC IX issue. Central Government. Has discontinued the NSC IX issue in December 2015. Accordingly, only NSC VIII is open for membership and comes with a lock for a period of 5 years. There is no TDS on the interest earned so the customer has to pay the applicable tax on the total maturity value.
Loans on NSC issue – People can also take loans from banks against their investment in National Savings Scheme NSS. For this reason, the subscriber has to transfer his certificate in the name of the bank from where he intends to avail the loan. However, people cannot do premature nsc withdrawal.
NSC Enrollment Facility and Issue of Duplicate Certificate
People can choose their nominee at the time of filling Form 2 or at the time of purchase before NSC maturity in Form 2 and enroll. This nominee can claim maturity amount if the original account holder dies. This nominee can encash NSC at any time before or after
NSC maturity and can perform the following functions: –
- Encash the National Savings Scheme NSS certificate.
- Sub-division of NSC certificate in the appropriate denomination in favor of individual nominees.
For this, the nominee will have to inform the postmaster about the death of the original account holder by submitting the death certificate.
National Saving Certificate – Premature Ejaculation / Withdrawal
Premature withdrawal does not apply in case of NSC. However, NSC can be encashed prematurely under the following conditions: –
- If the NSC account holder or joint account holder dies.
- Pledge to seize the account as per the rules to the gazetted government official.
- On the order of the Court of Law.
If the National Savings Scheme NSS account is encoded within 1 year, no interest is paid. If withdrawal occurs after 1 year, the candidates will get interest, but with a discount.
National Saving Certificate – Highlights at a Glance
| Scheme | Interest Rate | Minimum and Maximum Balance | Important Features |
|---|---|---|---|
| National Savings Certificate – NSC VIII Issue |
|
Minimum Rs. 100 and No Maximum limit |
|
Official Website indiapost.gov.in
How much is tax exempt?
National Savings Certificate is a very good option for tax saving. On investing in this, there is a tax exemption under the Income Tax Act 80C, but this exemption is only up to Rs 1,50,000.
How much can I invest?
There is no fixed upper limit to invest in National Savings Paper, ie you can invest any amount. In this, you can invest in a denomination of Rs 500,5000,10,000 in a minimum coefficient of 100 to 100.
Let us understand this with an example. If you take an NSC of Rs 25,000, then the post office can issue 5 nsc of 5000 class or two of 10,000 and one of 5000 will issue three nsc. That is, these certificates are of 100,500,5000 and 10,000 denomination. The post office will issue the certificate to the value of every investment you make.
What is the rate of interest?
The rate of interest of National Savings Card has been cut. Right now its interest rate is 7.6%. In this, interest is calculated every 6 months. And the amount of interest is added to the principal amount. This means that the next time the interest is calculated, then the principal amount and the first interest amount will be added, that is, the interest is calculated from the compound interest. The total amount is given to the investor after 5 years.
Can I withdraw money before 5 years?
If you follow some conditions, you can withdraw funds from your account after one year.
Can I transfer to NSC?
NSC means National Savings Letter can be taken from any post office and it can also be transferred to any other post office in India. But at the time of maturity, it is necessary to have a transfer certificate while redeeming the amount, so keep it intact.
There are three ways to buy NSC?
1.Single holder Type NSC: The certificate is in the name of one person upon purchasing this type of NSC. It is also necessary to enter the name of the guardian in case of minor or child names.
2.Joint A type NSC: Certificate of any two adult persons is made on purchase of this type of NSC. Both can be husband-wife, father-son, mother-daughter, two friends or partners. Both will get equal amount of money on maturity.
3. Joint B type NSC: This type of NSC is also the name of any two adult persons. The only difference is that the amount received after maturity is found in the name of one person. Who should get it, it is necessary to mention it when purchasing NSC.
Can I get a loan on NSC?
Yes friends, you can take a loan by placing NSC in a bank if needed. But how much will the loan amount be and what will be the rate of interest will depend on the bank or institution from which you will take the loan. By the way, the loan amount also depends on the duration of the NSC, if you have 3 years for the NSC, then the loan will get more. And if it has been only one year then you will get less.
What is the redemption process when NSC matures?
After completion of the 5-year period of the savings letter, a form has to be filled by going to the post office. The post office which will get the NSC redemption form will have to be filled.
This form is also available on the Indian post’s website www.indiapost.gov.in, you can also download and submit it.
- Along with this, you also have to take the national savings card given by the post office.
- If you have transferred the NSC to another post office, then you will also have to take the transfer certificate.
- Take the original NSC certificate with you. Also keep the original documents of your identity with you.
- If the NSC redeemer is a minor at the time of purchase, in addition to his signature, the signature of the guardian is also required. In case of absence of guardian, the signature of such person should be known by the post master to prove his identity.
- In the event of the death of the NSC holder, his nominee has to fill and submit the form. Then he will get the amount of NSC.
Benefits of National Savings Certificate –
This is a saving scheme of the Government of India, so there is no risk in it. That is, whatever you have invested, you will definitely get all the amount including interest.
In this, you can invest as much amount as you want. There is no limit to any of this.
Banks can also take loans in lieu of this by keeping it as security.
For whatever amount you invest in this, you can get exemption under Section 80C of Income Tax Act Act, 1961.
If the Certificate is lost or destroyed, the Duplicate Certificate is issued.
Whatever interest you get is added to your principal amount and your NSC investment increases even without making additional certificate purchases.
The interest rate that you get on the investment made in this is higher than the interest rate of the fixed deposit.
For those people who want to invest their amount safely, this NSC is a very good option.
You can also take tax deduction under Section 80C of Income Tax Act Act, 1961 by investing up to Rs 1,50,000 in it.
With some conditions, you can take your money ahead of time.