NSC scheme National Saving Certificate

Types, Features, and Benefits of NSC

NSC is also known as National Saving Certificate. The NSC scheme offers the wide range of features such as income tax advantages, acceptable interest rate, option to gain the invested amount and security for the invested money and another substantial amount. These products are mainly designed to satisfy the investor needs that the combination of certain aspects mentioned above. The combination of exclusive interest rate, tax benefits, and secure investment avenue are the NSC or the National Savings Certificates. These are chief investment equipment that can aid the investors get the profits on the invested money and also get the taxable income benefits. The origin of the NSC can be followed back to the late 1950s while the Indian government distributed the savings certificates to enhance the money to aid the fund development of fresh and an Independent India. They are distributed through the post office along with simply taken from any of the Indian Postal service branches.

Types of NSC:-

The NSC contains two types of certificates accessible at the post office. The two types are NSC issue eight and NSC issue nine.

  • NSC Issue eight: In the NSC issue eight, the main objective was to distribute an investment opportunity for those individuals who were searching for a way to safe investment and make use of a tax benefit. The certificates were distributed below this version is accessible to all except a trust and an HUF. These certificates approach in denomination vary from Rs. 100 to 10,000, but enclose the interest rate is lesser than the offer of issue nine. Another main aspect of these certificates is maturity duration of five years.
  • NSC Issue nine: In the NSC Issue nine approaches in the denominations range from Rs. 100 to 10,000 and slightly come with higher interest rates offered for an NSC Issue eight. These certificates approach through a long maturity duration of 10 years.

Features of NSC:-

  • There a particular denomination in these certificates that can be obtained such as Rs. 100, 1,000; 5,000 and 10,000 below on the NSC Issue nine.
  • These certificates can be obtained by the individual and maintained the investments and kept as a joint investment.
  • The investments can’t withdraw prematurely except the case engages the death of the initial holders.

Benefits of NSC:-

The investment can be utilized to safe the loan amounts. The certificates are also being taken on behalf of a minor. There’s no any upper limit on the invested amount in these certificates.