National Savings Certificate

By -

The National Savings Certificate is a fixed income investment scheme that you can open with any post office. A Government of India initiative, it is a savings bond that encourages subscribers (mainly small to mid-income investors) to invest while saving on income tax. In this article, we cover the following info about NSC.

Individuals mainly use NSC for small and medium investments as well as for tax-saving purposes. A fixed income instrument like Public Provident Fund and Post Office FDs, this scheme too is a secure and low-risk product. You can buy it from the nearest post office in your name, for a minor or with another adult as a joint account. They come with 2 fixed maturity periods – 5 years and 10 years.

There is no maximum limit on the purchase of NSCs, but investments of up to Rs 1.5 lakhs in the scheme can earn a tax break under Section 80C of the Income Tax Act. The certificates earn a fixed interest, which is currently at the rate of7.6% per annum. They add this interest back to the investment and compound it annually. Many pledges these certificates for taking loans from banks.

Who Should Invest in NSC?

Anyone who is looking for a safe investment avenue to save taxes while earning a steady income can opt for this scheme. The NSC offers guaranteed interest and complete capital protection. However, like most fixed income schemes, they cannot deliver inflation-beating returns like tax-saving mutual funds and National Pension System. The government has made it easily accessible for prospective investors by making it available in post offices.

Let us also clarify on who cannot invest in this scheme, while at it. Basically, the Government has promoted National Savings Certificate as a savings scheme for individuals. Hence, Hindu Undivided Families (HUFs) and trusts cannot invest in it. Furthermore, even non-resident Indians (NRI) cannot purchase NSC certificates. The scheme is open to only Indian individual citizens.




Comments

Post a Comment

Popular posts from this blog

Which term insurance plan is best for you?

By -
  Which term insurance plan is best for you? In today's world, where things can be uncertain, making sure your family has enough money for the future is really important. That's where term insurance plans come in handy. They're an easy and not-too-expensive way to make sure your loved ones have enough money if something happens to you. If you live in Nagpur, it's especially important to pick the right term insurance plan, and having a trustworthy insurance agent or advisor in Nagpur can really help. In this article, we'll talk about the different types of term insurance plans available and help you figure out which one might be the best for your situation. Level Term Insurance: One of the simplest and most widely chosen types is level term insurance. With this plan, you pay a fixed amount of money for a certain period, like 10, 15, 20, or 30 years. Many people in Nagpur like this type because it's easy to understand. If you happen to pa...
Read more

Six sip secrets you should know.

By -
  Six sip secrets you should know. Mutual fund investing has long been regarded as one of the best strategies for long-term wealth growth. Like many other Indian cities, Nagpur is seeing an increase in the number of people using mutual funds to reach their financial objectives. By using a systematic investment plan (SIP), you can invest in mutual funds in one of the most well-liked and convenient ways possible. However, there are a few SIP secrets that, when understood and used, can drastically affect the results of your mutual funds. We'll go into these six SIP secrets in this blog and examine how they can affect your financial journey, with a particular emphasis on Nagpur and the significance of a mutual fund advisor in Nagpur. Consistency is key - Systematic Investment Plans, or SIPs, encourage investors to make consistent, recurring investments. This methodical strategy makes sure that you invest a set amount of money at regular intervals, usually once a mo...
Read more

Sip or Buying a DIP? Which is better?

By -
  Sip or Buying a DIP? Which is better? Investors have access to a wide range of tactics and methods for investing in the financial markets. The SIP (Systematic Investment Plan) and the DIP (Buying the Dip) are two widely used techniques. The decision between the two tactics depends on a number of elements, each of which has advantages and disadvantages. With a focus on the setting of SIP investment in Nagpur, India, and the function of a financial advisor or investment planner in Nagpur, we will examine the contrasts and advantages of each technique in this article. Let's start by discussing SIP investments. A SIP is an investment strategy in which a person makes fixed investments in mutual funds or exchange-traded funds (ETFs) at predetermined periods, generally monthly or quarterly. The rupee cost averaging that SIP provides is its main benefit. The impact of market volatility is reduced because the investment is spread out over time. By using a systematic approach, investor...
Read more