National Saving Certificate, NSC Interest Calculator, Chart India Post Office

What is NSC, National Savings Certificate:

National Savings Certificate, popularly known as NSC, is a time-tested tax saving instrument that combines adequate returns with high safety. NSCs are an instrument for facilitating long-term savings. A large chunk of middle class families use NSCs for saving on their tax, getting double benefits. They not only save tax on their hard-earned income but also make an investment which are sure to give good and safe returns.

NSC Features:

  • Minimum investment Rs. 500/- No maximum limit.
  • Rate of interest 8% compounded half yearly.
  • Rs. 1000/- grow to Rs. 1601/- in six years.
  • Two adults, Individuals, and minor through guardian can purchase.
  • Companies, Trusts, Societies and any other Institutions not eligible to purchase.
  • Non-resident Indian/HUF can not purchase.
  • No pre-mature encashment.
  • Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.
  • Maturity proceeds not drawn are eligible to Post Office Savings account interest for a maximum period of two years.
  • Facility of reinvestment on maturity.
  • Certificate can be pledged as security against a loan to banks/ Govt. Institutions.
  • Facility of encashment of certificates through banks.
  • Certificates are encashable any Post office in India before maturity by way of transfer to desired post office.
  • Certificates are transferable from one Post office to any Post office.
  • Certificates are transferable from one person to another person before maturity.
  • Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
  • Nomination facility available.
  • Facility of purchase/payment to the holder of Power of attorney.
  • Tax Saving instrument – Rebate admissible under section 80 C of Income Tax Act.
  • Interest income is taxable but no TDS
  • Deposits are exempt from Wealth tax.

NSC Interest Rate Chart

See below.

NSC interest rate char

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