National Savings Certificate/NSC

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NSC IX Issue
No maximum limit for investment.
INR. 100/- grows to INR 238.87 after 10 years.
Minimum INR. 100/-
Denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.

A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.

Buy National Savings Certificates (NSCs) every month for Five years – Re-invest on maturity and relax – On retirement it will fetch you monthly pension as the NSC matures.

 Who can purchase NSC:

  • An adult in his own name or on behalf of a minor,
  • A minor,
  • A trust,
  • Two adults jointly,
  • Hindu Undivided Family.

Where is National Savings Certificates available

Available for purchase/issue at all Post Offices in India.

Minimum Purchase Value

The minimum amount of investment under NSC is Rs 100/-

Maturity of National Savings Certificate

Period of maturity of a certificate is 10 years under scheme IX and 5yrs in Scheme IIIV.

Nomination / Transferability:

  • Nomination facility is available.
  • Certificates can be transferred from one post office to any other post office.
  • Transfer from one person to another person permissible in certain

Denomination / Deposit limits :

  • Certificates are available in denominations (face value) of Rs. 100, Rs.
    500, Rs. 1000, Rs. 5000 & Rs. 10,000.
  • There is no maximum limit for purchase of the certificates.

Interest/maturity value :

  • Interest is available on this scheme @ 8.90%, compounded half-yearly
  • With effect from 1st March, 2003, Maturity value a certificate of Rs. 100
    denomination is Rs. 160.10.
  • Maturity value of a certificate of any other denomination shall be at
    proportionate rate.
  • Interest accrued on the certificates every year is liable to income tax but
    deemed to have been reinvested.

Premature encashment of NSC:

Premature encashment of the certificate is not permissible except at a
discount in the case of death of the holder(s), forfeiture by a pledgee and
when ordered by a court of law.

Place of Encashment/discharge on maturity :

Can be encashed/discharged at the post office where it is registered or any other post

Income Tax relief :

  • Income Tax rebate is available on the amount invested and interest accruing every
    year under Section 88 of Income tax Act, as amended from time to time. [under Sec 80C]
  • Income tax relief is also available on the interest earned as per limits fixed vied section
    80L of Income Tax, as amended from time to time.
  • A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.

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