A national savings certificate or NSC is an investment scheme that can be opened at any post office throughout India. The tenure of this certificate is about 5 years with the rate of interest being 6.8% per annum. Towards the scheme, the minimum deposit should be mandatorily made is of Rs.1000.
Introduction to NSC or National savings certificate
The national savings certificate is known as one of the most famous savings instruments in India. This is an initiative that the government has introduced. Through this scheme, all the small, as well as mid-income investors, will be enabled to save. Besides this, they will get a tax benefit as well. Here, the NSC certificates earn fixed interests. Other than this, NSC is just another secure and low-risk instrument. In terms of deposit, the minimum amount of money that is to be deposited is Rs.100 whereas there is no maximum limit of depositing the money.
How to Calculate NSC Interest?
If you are an NSC calculator holder then analyzing the NSC Interest is very important and the same can be done easily. So, to calculate the interest one must visit. It should be strictly was taken into consideration that the below-mentioned details must be entered to calculate the interest:
- The year NSC was purchased.
- The NSC type.
- The amount of investment.
After the information is entered correctly, the rate of interest will be displayed to the user. Here, the interest that is paid on a National Savings certificate is compounded annually and the same is paid by the end of maturity. Furthermore, the annual interest that is earned here on the NSC calculator post office can be respectfully reinvested thus qualifying for the tax exemption under section 80C of the Indian Income Tax Act, 1961.
How to buy NSC Online?
To buy NSC, one has to visit their nearest branch of the post office and must carry their original copies of identity proof along with the address proof. After that, the below jotted down steps should be followed:
- Enter all the required documents in the application form.
- Proof of the original documents such as address proof and ID proof for verification process.
- After successful verification, one must pay the asked amount in the form of cash and if not that then through demand draft or cheque in the favor of the postmaster.
- This is the last stage where one has to choose a nominee so that the witness signature can be obtained which will then complete the whole process.
NSC Interest Rate & Maturity Period
The respective NSC VIII can be easily purchased at any post office across India with the NSC interest calculator. Both the interest rate and the maturity period of the NSC are calculated below:
- The interest rate is 6.8%.
- Maturity period periods.
If one needs to know the mature interested then the maturity information should be entered in the NSC maturity calculator:
- NSC amount in total.
- NSC purchased year.
- Total years of completion after purchase.
- Rate of interest.
Documents to purchase NCS
The following are the documents that are required for purchasing NSC:
- Duly Filled NSC application form.
- Original Identity proof.
- Signatures of witnesses while purchasing the NSC.
- Cash, Cheque or Demand draft in the favor of postmaster from the very place where the NSC is purchased.
- Address proof.
- Photographs.
- Valid identity proof.
Features of NSC
Out of many features, below are some of the features that have been jotted down and discussed in detail:
- A great tax saver
Considering that the National Savings Certificate is a government backup, one who wants to invest can easily do so up to the limit of 1.5 lakh so that the benefits of section 80C of the Income Tax Act 1961 can be easily claimed without any problem.
- Fixed-rate of income
In terms of NSC calculator 2022, an individual will successfully be able to get a return of 8% of the annual interest from 01.01.2019. Thus, the individual will be able to enjoy the leisure of obtaining a regular along with a stable source of income
- Types of National savings certificate
There were around two certificates earlier which were issued by NSC VIII along with the NSC IX Issue. But since December 2015, the government has discontinued the NSC IX Issue which means as of now only NSC VIII is available.
- A small initiative
Under In this scheme, one can always invest a little money of around Rs.100 or in the respective multiples of Rs.100 in the initial stage of investment. After that, they can gradually increase the amount whenever they can afford to do so.
- Fixed interest rate
As of now the interest rate of the NSC or National Savings certificate is 8% from 01.01.2019. Previously, the rate of interest on the National savings certificate was said to be somewhere around 7.6%. Furthermore, the government constantly fluctuates its rate of interest every quarter.
- Easy access
Purchasing the NSC is easy as it can be bought from any post office in India as all it needs is the relevant documents and the completion of the KYC formalities. Moreover, transferring the National savings certificate from one post to another post office is quietly easy.
- Easy withdrawal
Though in most cases withdrawing from the National savings certificate, every year is not possible but it is acceptable in some exceptional cases and some of the cases include the death of the investor or with a court order.
Thus, NSC is considered as one of the best initiatives that the government has introduced till now to encourage all those investors who don’t have a high income. This scheme comes with tons of advantages that can be easily utilized by everybody. Additionally, this very scheme highly enables the individuals to be able to go on a task break and considering that this is a post office NSC calculator savings service, it is aptly labeled as one of the safest hosts of benefits that are attached to it.
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