National Savings Certificate: Are you trying to find a secure investment with tax benefits and assured returns? The popular plan that the post office offers is called National Savings Certificates (NSC). Let’s examine what attracts low-risk investors in particular to NSCs.
Assured Returns and Government Backing
NSCs provide a set interest rate, now 7.7% (as of April-June 2024), in contrast to market-linked investments. The Ministry of Finance reviews this rate on a quarterly basis to ensure stability and peace of mind. Furthermore, because the programme is supported by the government, you can count on timely payments and minimal risk.
Tax Benefits You Can’t Ignore
The tax-friendliness of NSCs is one of it’s main benefits. Section 80C of the Income Tax Act allows for tax deductions for NSC investments. You can reduce your taxable income by up to Rs. 1.5 lakhs a year by doing this.
Additional Benefits of NSCs
- Easy Ways to Invest: Visit your local post office or invest online using Post office internet banking. You can pay through a variety of payment methods, including demand drafts, cash, and checks.
- Invest jointly for a juvenile or even with up to two other adults.
- No Tax Deducted at Source (TDS): Unlike fixed deposits, the interest generated on NSCs is not subject to Tax Deducted at Source (TDS).
NSC Lock-in Period
The NSC has a five-year lock-in term. Premature closure is only permitted in very special cases, such the account holder’s passing, a pledgee’s forfeiture, or a court order.
How to Invest in NSC?
If you want to invest in NSC through offline mode, you can head to your nearest Post office and if you want to invest online then here are the steps:
- Under “General Services” > “Service Requests” > “New Requests,” choose “NSC Account.”
- Enter your desired investment amount (minimum Rs. 1000 in multiples of Rs. 100).
- Select the linked savings account for debiting the investment amount.
- Read and accept the terms and conditions.
- Submit the online application and confirm with your transaction password.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
%20from%20the%20Post%20Office%20scheme){kind=link}