The maturity period of National Savings Certificate (NPS) is 5 years. At present, 6.80 percent interest is being available on NSC, which is more than FD.
New Delhi. Small Savings Schemes are a very popular investment option in the country. There is no risk of any kind by investing here. One such scheme of the post office is the National Savings Certificate (NSC) scheme. These schemes not only give better return on investment but also have the provision of tax exemption.
It has fixed profits and low risk
National Savings Certificate is a tax saving investment that can be purchased from any post office. It is backed by the Government of India, so it has assured returns and low risk. This is the reason why investors who do not want risk in investing like it very much. Most of the people choose bank FD in small savings. However, a small scheme can double your money more quickly than a bank FD. This scheme can be taken in any post office branch of the country.
Maturity period is of 5 years
You can invest a minimum of Rs 1,000 in this scheme. You can buy NSC for any amount as per your capacity. The maturity period of NSC is 5 years. It is currently getting 6.8 percent annual interest, which is more than FD. That is, there is no limit on the maximum investment in this. Investing in this also gets tax exemption under section 80C of the Income Tax Act. However, this exemption is available only on investments up to Rs 1.5 lakh. A single holder type certificate can be purchased by any adult in his own name or in the name of his child. Certificates of 100, 500, 1000, 5000, 10,000 or more are available in NSC.
There are 3 types of certificates
Let us tell you that there are mainly three ways to keep NSC. first. Single holder type certificate. Under this, a person can buy National Savings Certificate for himself or as a guardian on behalf of a minor. Second, there is a Joint ‘A’ type certificate. In this, two investors together buy National Savings Certificates and the maturity amount is given to both in equal parts. The third is Joint ‘B’ type certificate. It is also bought by two people together, but the maturity amount is given to only one.
Eligibility Criteria for Investing in NSC
Any Indian resident can invest in NSC. Adults, individually or jointly (up to 3 adults), minor above the age of 10 years or a guardian on behalf of the minor can invest in NSC. No NRI can buy a new NSC. However, if they have an NSC before becoming an NRI, they can retain it till maturity.
