National Savings Certificate: Investment, Interest Rate

National Savings Certificate, NSC, NSC Post Office Scheme, National Savings Certificate Interest Rate: Like everyone wants to save some amount for their future. National Savings Certificate [NSC] is termed as investment government scheme or yojana that is known as a tax-saving investment. Every one of you can buy this certificate by just visiting any nearest post office. It can be applying to only Indian residents. From this scheme, there will fixed returns and a small risk of investment India-backed. NSC used to be approved by investors of risk-averse or for those who are searching to expand their scheme from fixed return investment. National Savings Certificate is the best scheme for making a small investment and earns good returns. This article will discuss all vital information related to the National Saving Certificate, investment plan, eligibility conditions, features, required documents, duplicate NSC, and much other information. Interested applicants should read this article very carefully.

National Savings Certificate Interest Rate

Topic Name National Savings Certificate: Investment, Interest Rate
Article Category National Savings Certificate Interest Rate
Important Features of National Savings Certificate
National Savings Certificate Investments Advantages
Different ways to contribute money to NSC
Duplicate National Savings Certificate
Frequently Asked Questions
Scheme Category Investment Plan
Official Website Click Here

Let’s inform you all that the Government has begun the NSC Scheme and is a form of Bond used for tax saving and small investment. It was first started in the year 1950 to endorse the process of nation-framework. You can obtain this certificate from any of the nearest post office. It works like a Government-backed of low risk. This scheme is mainly used by investors ready to take a chance and want to increase their fixed return amount. Previously, the maturity time of this scheme was five years and ten years. But according to the new updates, ten years of maturity time of the National Saving Certificate scheme has been omitted. There will be no maximum investments; as per the Income Tax Act, section 80C, there will be around Rs.1.5 Lakh are liable. As we can see everywhere, millions of new schemes have various reasonable interest rates, tax benefits, and low-risks that we cannot find a good one easily. National Saving Certificate always provides you with the safe option of investment.

Also Read: LIC Kanyadan Policy

National Savings Certificate Interest Rate

Here we will discuss the information on the interest rate at a particular period. As we all know, that the Interest rate of NSC was depend upon the Finance Minister. They will decide all the interest rates. Let’s inform you all that the new interest rate for the time of Q1 FY 2020-21 [from April to June] is 6.8%. Previously, the NSC rate of interest for Jan to March 2020 was 7.9%. Here we will give you a table of Interest Rates. The table information is as follows:

Time Period Interest Rate
Q1 FY 2020-21 6.8%
Q1 FY 2019-20 8.0%
Q1 FY 2018-19 7.6%
Q3 FY 2018-19 8.0%
Q4 FY 2018-19 8.0%
Q2 FY 2018-19 7.6%
Q2 FY 2019-20 7.9%
Q4 FY 2019-20 7.9%
Q3 FY 2019-20 7.9%

Every citizen needs to know that the NSC Interest has been compounded annually but return to you at maturity.

NSC Interest

Important Features of National Savings Certificate

Here we will discuss the features of NSC. As we mentioned above, this NSC Scheme maturity period has been distributed into two tenure, i.e., five years (NSC 8) and ten years (NSC 9). According to the new rules & regulations, NSC 9 has been omitted, and only NSC 8 is currently working. So, the basic features are as follows:

  • National Saving Certificate can buy from any nearest Post Office at a permanent maturity time of five years. It would be an easy process.
  • According to the Ministry of Finance rules & regulations, the Interest rate will differ.
  • In this National Savings Certificate, the minimum amount for investment is Rs.100/-, and the maximum amount depends on you.
  • Below the Income Tax Act (Section 80C) 1961, the total principal tax savings amount is Rs. 1.5 lakh annually.
  • In this Scheme, there will be no deduction of TDS; Interest Rate will be compounding annually. But, it will be paid to you during the maturity time.
  • You can pay the total minimum amount as follows Rs.100, Rs.1000, Rs.500, Rs.5000, and Rs.10,000.
  • All types have approved this National Savings Certificate of banks & NBFCs as a security & secondary opposite to the secure loan.
  • Every investor can always nominate any family member (including minors) to take over their investments. It happens only if the investor has a sudden demise in the National Saving Certificate.

Also Read: Atal Pension Yojana

National Savings Certificate Modes

Here we will discuss the different types of modes that cover below the National Savings Certificate. The modes are:

  • Single Holder Mode Certificate: In this type of method, every single investor can buy this certificate for himself or herself or in favour of any minor.
  • Joint A Mode Certificate: In this scenario, people can buy this certificate as joint members or investors with the same maturity shares.
  • Joint B Mode Certificate: This Certificate is similar to a joint certificate, but the only difference is that the profit of maturity has paid only one member or Certificate holder.

Eligibility Conditions

Here we will discuss the eligibility conditions for NSC. The steps are as follows:

  • All applicants are a permanent citizen of India to invest below NSC.
  • Hindu Undivided Family (HUF) and Trusts are not eligible to make National Savings Certificate.
  • All those citizens who are not living in India cannot buy NSC. NSC resident subscribers and now become NRI before maturity; for example, NSC should hold until maturity.
  • Those HUF and Karta will now be able to invest in NSC in their name.

National Savings Certificate Investments Advantages

Here we will discuss the various advantages of the NSC Investments. The advantages are as follows:

  • The investment of NSC is very safe to use as the Indian Government backs it.
  • This type of investment provides different offers out of these are the highest return rate from the fixed income.
  • Let’s inform you all that you can buy this NSC Certificate as the minor name.
  • Every interested applicant can buy National Savings Certificates at any of the nearby Post Office. So, you can buy it very quickly.
  • It always provides the advantage of a tax deduction on the investment of about Rs.1.5 lakhs per year.
  • Let’s inform you all that the Investment of NSC can be removed to a different family member (nominee from the investor) when the investor dies.
  • National Savings Certificate Investments provides flexibility to different investors as there will be the requirement of low minimum investment of Rs.100/- & no maximum limit. 

National Savings Certificate (Tax Implication)

As we already told you, NSC is a type of tax-saving certificate as its principal amount permits the only deduction of tax below Section 80C till the limit of Rs.1.5 lakh. Still, you can earn interest on the different treatment of tax. Those interested in NSC for the first four years can now be reinvested from taxation, and the people are eligible for the next tax deduction below Section 80C. So, the earned tax in the fifth year, which is not reinvested, should taxable according to the investor’s given slab rate.

Different ways to contribute money to NSC

As we all know, NSC can be available at any Post Office, and you can make this certificate along with all vital KYC documents. Recently, you cannot make this certificate online. Here, we will discuss all steps to make the National Savings Certificate. The steps are as follows:

  • For this, fill an application form first. This form can be available online and at post offices.
  • The direct link of the Post Office Official website is as follows Click Here.
  • Now, download this application form, and take a print out of it. Fill this form correctly with proper information.
  • After filling, submit this form along with the self-attested photocopies of KYC documents. All of you guys need to bring all the original documents for the different verification processes.
  • Now, start to submit the payment that can be investing through cash or cheque.
  • After the buying process of a certificate has been done, the particular amount of NSC has been printing. Every one of you can assemble it from the post office. 

Important Documents

Here we will discuss the required documents that should maintain during the Registration process of National Savings Certificates. The papers are as follows:

  • Applicant Recent Photograph
  • Applicant Address Proof such as Voter ID card, Aadhaar Card, etc.
  • Duly filled NSC Application Form.
  • Applicant Identity Proof such as PAN Card, Aadhaar Card, etc.
  • Cheque or cash should be a deposit of the invested amount.

Let’s remind you that all the documents mentioned above should be submitted at any nearest Post offices to get NSC in appropriate denominations.

National Savings Certificate Transfer

Let’s remind you all that the National Savings Certificate can shift from one post office to different. Not only post office, but NSC can transfer from one single person to another, having no impact on the original certificate interest maturity. So, NSC permits various transfer preferences to an investor, such as:

  • National Savings Certificate Transfer from any post office to another should be done with the help of Form NC-32. The direct link of this form is Click Here. Fill this form correctly. After proper filling, submit this form at the nearest post office where your original certificate has been made.
  • National Savings Certificate Transfer from any one person to another should do with the help of Form NC-34. The direct link is as follows Click Here. Fill this form correctly. The procedure can be done only one time.

Loan Against NSC

If anyone wants to take a loan against NSC (National Savings Certificate), they must be eligible or ready to obey some of the rules & regulations below the NSC Scheme. The steps are as follows:

  • For this loan, only Indian citizens can register.
  • Few public or private-sector banks provided this facility.
  • The loan time equals the NSC residual maturity (means time left till maturity) used as collateral.
  • The total interest rate provided on the National Savings Certificate investment depends on single-person loans and the bank giving a loan.
  • The total margin that should be relevant to loan on the remaining time until maturity.  

As mentioned above, some of the basic features of loans against NSC are tenure, margin, interest rate, etc. It has to be different in all stages.

Duplicate National Savings Certificate

Here we will discuss the duplicate NSC. If any person lost, mangled, stolen, broken, or defaced his or her original National Saving Certificate, you should not worry about it. Because now, the government has provided to issue duplicate NSC. For this, every citizen must fill this form, Click Here. After successfully filling, now submit your filled application form at the nearest post office under NSC. The form includes:

  • Certificate Information: Denominations, serial numbers, NSC issues, etc.
  • Certificate Purchased Date
  • Mention proper reason to apply for Duplicate Certificate with the extra information.

duplicate NSC

Premature Withdrawal

Let’s inform you all that the fixed time of NSC is of five years along with the withdrawal of premature that will be allowed in a particular case, namely:

  • Death of NSC owner.
  • Court Order for withdrawal of premature NSC.
  • Pledge from Gazetted Government Officer.

I hope you will understand this article very well and are ready to take advantage of it. Suppose you face any problems related to the National Saving Certificate, investment plan, eligibility conditions, features, required documents, duplicate NSC. In that case, you may ask your queries in the given comment box.

Frequently Asked Questions

What is the minimum amount of NSC Certificate?

The National Savings Certificate can obtain by paying a minimum amount, such as Rs.100, Rs.1000, Rs.500, Rs.5000, and Rs.10,000/-. If an investor wants to spend more money while making NSC, they can invest more according to their wishes.

How much advantage in Income tax of National Savings Certificates?

In the National Savings Certificate, the total investment offers the advantage of around Rs.1.5 lakh below section 80C (Income Tax Act) in 1961. Moreover, the real yearly interest obtained by NSC’s acquisition is always treating as the new investment process with all tax advantages. This TDS will not be reduced or paid. But, the tax should be pay to earn interest. 

What should be the time taken to double the amount of NSC?

The total time taken to double the amount of NSC has always relied on the invested money and the Interest rate.

What will be the Interest Rate of NSC (Post Office) in the year 2020?

The Interest rate for the quarter first i.e., April to June is 6.8%.

Is it possible to make money before the maturity period?

Let’s remind you all that the NSC Maturity time is of five years. It is possible to take back money before maturity, only when an applicant has dead or demise or when a court grant order is related to the same.

Around how many numbers of NSC one can buy?

As there will be no maximum limit to buy NSC and, the minimum amount that one can invest in NSC is Rs.100/-.

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