NSC Bond: NSC Types, Features, Interest Rates and Calculator

By | January 15, 2022

Table of Contents

Details of NSC Bond: NSC Types, Features, Interest Rates and Calculator

What is meant by NSC or National Saving Certificate How can I buy it  Is it available online Does National Bank offers this or not  Is it taxfree and What are the pros and cons All your questions regarding NSC are addressed below

National Saving Certificate (NSC)

NSC stands for National Saving Certificate Scheme Introduced by the Government of India and is a government venture that can be opened in any post offices In this way citizens can make investments in Government Saving Bonds

A high rate of interest would be paid against the investment and it would be tax-free At the end of the financial year gain on the investment is calculated Depending upon the rate of interest announced by the government the return on investment in form of high-interest rates are given to the investors

You can make a suitable transaction period as the maturity period for the scheme is 5 to 10 years and as the National Saving Certificate Scheme focuses on minimum scale investors to make safe investments with minimum risks which are not possible under the schemes like PF, PPF, Bank FD’s, etc

The investment below 1,50,000 can take you under the tax benefits as the scheme has no limit of the amount deposited Income tax would be applicable if the investment would be under the given slab as per Act 80C Interest rates are introduced distinctively for the four quarters of the year to reduce the risk factors The current Interest Rate is 7.6%

NSC Scheme Application Process

For the people who are looking to make safe investments and gain a good return on investment The benefits include 100% Capital protection for the people having small scale developed income

A tension-free investment is a thing that makes NSC the best choice as it guarantees to return the investments and the interest rates are monitored by the government which makes it safe and secure

To invest n any new certificate The National Saving Certificate amount gained upon maturity can be deposited in form of Cash, Cheese, Pay order, and Demand draft to banks

Having easy features the NSC can be accessed by anyone who wants to avail it  The interest offered is added to the amount and it can be withdrawn in case of emergency or is given upon compilation of the Maturity period

NSC Scheme Eligibility

The person fulfilling the eligibility criteria can invest in NSC to gain benefits

  • Indian resident having Government of India ID
  • Hindu Family undivided group people are eligible to apply
  • When the term gets completed a new term can be grabbed

The NSC scheme amount remains on hold if a person invested and moved abroad as an Indian citizen

NSC Formula and Calculation

Scheme Restrictions NSC           

To get the maximum benefit of NSC the investor must meet the restriction which is very minimal and easy to be met NSC scheme is a free scheme introduced by the government of India

  • To invest a minimum of Rs.100 in the NSC scheme is must
  • Investment amount has no limit
  • Rs 100 to Rs.10,000 varying certificated are offered by the NSC scheme
  • For a new certificate upon maturity, a new certificate can be opened

NSC Certificate Types

As per the opted requirements and benefit the NSC offers a number of certificates for the investors

  • Single Holder Certificate: In this NSC scheme is for those who don’t have a partner and file a nominee
  • Joint A Type Certificate: For Two individuals this NSC scheme works as the maturity amount at the end of term is divided among two account holders
  • Joint B Type Certificate: This NSC scheme also serves two adults From the two one opts during registration and upon maturity amount is transferred into the account of the member opted previously

National Saving Certificate Scheme Features

Now in case you have calculated your savings and now are ready to invest in the NSC scheme You might visit Indian Post Office to get the details Here explained are the features that make the NSC scheme a great option to invest your savings

  • The scheme has no investment limit
  • The amount deposited will be considered eligible for Tax Rebate under the section 80C
  • No tax deductions on the deposited amount
  • For loan and collateral security, different types of NSC bonds are helpful
  • Minors can also be selected as your nominee
  • In case of emergency or upon completion of maturity period amount can be easily withdrawn
  • From the NSC bond full amount no TDS can be deduction upon maturity
  • It depends upon the investor how much tax he wants to pay on the amount
  • Without having any tax deductions full amount is handed over to the investors

Within the deposit period, there should not be any miss till completion of maturity upon maturity or in emergencies NSC certificates prove to be very helpful

  • PPF Account Investment Disadvantages
  • Interest Rate Of NSC On Investment-Check Year wise interest rates
  • Account Benefits, Interest Rates, Withdrawal, Loan PPF& Online Account
  • Price History of Gold 2021
  • Individuals /Businesses Net Income& Business/Calculation Formula
  • Fixed Deposit Calculation by FD Calculator According to Simple/Compound Interest Formula
  • Calculate NSC Maturity Using NSC Calculator
  • Account Benefits, Returns, Tax Exemptions NPS, NPS Types
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