INSUBCONTINENT EXCLUSIVE:
Interest on National Savings Certificate is compounded on an annual basis but paid on maturityThe money invested in NSC or National Savings
Certificate will earn a higher return from next month
The government has announced up to 0.4 per cent increase in interest rates applicable to small savings schemes such as the National Savings
The revised interest rates will be effective for the fiscal's third quarter, from October 1 to December 31, 2018, according to the
NSC is among the 12 national savings schemes provided by the government at present
Interest on National Savings Certificate is compounded on an annual basis but paid on maturity.1
Interest rate: Investment in National Savings Certificate (NSC) will fetch an interest rate of 8 per cent for the fiscal's third quarter,
ending on December 31, 2018.2
At present, an interest rate of 7.6 per cent is applicable, at which investment of Rs 100 grows to Rs 144.23 in five years, according to
At the new interest rate of 8 per cent, an investment of Rs 100 is estimated to grow to Rs 147 in the same period.3
Minimum investment required: Investment in the five-year National Savings Certificate can be made with a minimum of Rs 100 and and in
100, according to India Post, which has a network of more than 1.5 lakh post offices across the country
There is no upper limit on NSC investments.4
How to invest: The National Savings Certificate is operated by the Department of Economic Affairs through the post office
"A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor," according to India
Income tax benefit: Deposits in the National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act
Section 80C of the Income Tax Act provides for income tax deductions up to Rs
1.5 lakh in a financial year.
