National Savings Certificate (NSC), which is also called a savings bond scheme is a fixed-income investment scheme, encourages small to mid-income investors to invest while saving on income tax under Section 80C. You can activate or avail this scheme at any Post Office in India. The NSC plan is backed by the Government of India, hence, it guarantees good returns. The lock-in period is five years. Investing in NSC qualifies for section 80C tax deduction up to Rs. 1.5 lakhs and the interest earned can be calculated using Fintra's NSC interest rate calculator. NSC, like other fixed-income instruments like PPF and Post Office FDs, is a low-risk investment vehicle. The minimum required deposit is Rs. 100, and there is no maximum investment limit. For NSC investments there is also no TDS.
The interest for National Saving Certificate (NSC) is compounded once a year, and it gets payable to the investor after five years. The interest earned every year is reinvested. In Fintra's NSC Interest Calculator 2023, one can enter the amount of their investment, the term is already fixed at 5 years along with the interest rates. After this, the calculator calculates the total earnings on the investment at maturity. Fintra's NSC Interest Calculator is a fast-track source enabling you to know how much you will receive on maturity, and instantly glimpse whether the plan fits your financial goals.
Fintra's National Savings Certificate (NSC) Interest Calculator enables you to calculate the returns on your investment. To obtain accurate results you need to provide the following data:
When all data has been filled in into the National Savings Certificate (NSC) Calculator, click on “Submit”, and instantly results will be displayed.
To purchase an NSC scheme you need to visit the nearest Post Office. As an investor, you'll have to present your original ID and Address proofs. Following are the steps that will assist in investing in NSC:
In general, only individual Indian residents are allowed to invest in NSC. Non-Resident Indians (NRI), Hindu United Families (HUF), and trusts cannot invest in this savings scheme.
There are two types of NSC certificates: NSC VIII Issue and NSC IX Issue:
It's believed that the National Savings Certificates VIII Issue is an excellent scheme. The initial investment and the interest accrued for the first four years get to enjoy the benefits of Section 80C of the Income Tax Act.
Manually calculating the interest and maturity amount of NSC could be tedious and time taking. The interest is compounded once a year and then it's added back to the investment. At the end of 5 years, the interest plus the principal gets payable to the investor. An investor would desire to know how much an investment in NSC has grown. Fintra's NSC calculator will assist in calculating the maturity amount within seconds.
Following are a few advantages of using Fintra's NSC Interest calculator:
Investment in NSC is eligible for tax exemption under Section 80C of the Income Tax Act. Interest gained during the tenure is added to the initial investment. It is also qualified for tax exemption. For example, for an investment of Rs. 5,000 in NSC, you can claim a tax benefit in the first year. From the second year onwards, the tax claim can include the interest earned on NSC in the previous year and the NSC investment made in the current assessment year. Do note there is no Tax Deduction at Source (TDS) for NSC investment payouts. However, on the maturity amount, an investor is required to pay the tax as per their income tax slab rates.
Is NSC a good investment?
National Savings Certificate is a secured and low-risk instrument such as other fixed-income products like PPF and Post Office FDs. It is one of the popular savings instruments and fixed-income investment options available in India. NSC requires a minimum deposit of Rs 100, and there is no cap on the maximum limit. No TDS for NSC investments.
How can you obtain funds after NSC maturity?
Upon maturity, you can encash the investment in hard cash. Alternatively, you can also choose to transfer it to your bank account. Moreover, if you fail to withdraw, then the investment will earn interest, and it'll be similar to a post office savings account for two years. However, post which the investment will not be earning interest.
Can withdrawals of NSC be done before maturity?
Premature withdrawals aren't acceptable, but in exceptional cases, premature withdrawals can be acceptable.
Can NSC be broken?
NSC has a lock-in period of 5 years, and you have to keep the amount locked in until maturity. However, the scheme does allow premature withdrawals upon the account holder’s unfortunate demise or upon court order.
Is the NSC interest rate fixed?
The interest rate for NSC gets announced by the Ministry of Finance every quarter. Returns from NSC are guaranteed and are compounded annually and paid at the time of maturity.
What are the features of the National Savings Certificate (NSC)?
What are the various types of National Savings Certificate (NSC) Certificates?
The three different types of National Savings Certificates are:
What documents are required for the National Savings Certificate (NSC)?
The documents required for obtaining the National Savings Certificate (NSC) are:
These documents need to be submitted at any India Post Office to get the NSC in applicable denominations.
Other than National Savings Certificate NSC, what are other tax-saving investments?
The other tax-saving investments, which qualify for Section 80C of the Income Tax Act are Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, Equity Linked Savings Scheme, National Pension Scheme, and Public Provident Fund.