The NSC (National Saving Certificate) Calculator allows you to calculate the return on your investment when saving using the National Savings Certificate Scheme. You can read more about NSC here and find further information below the NSC Calculator.
National Saving Certificate's (NSC) are the most popular government saving scheme. NSC's have been a popular choice for several years due to the key benefits they provide:
- NSC's are easy to access, just access your local Post Office
- NSC's are very simple savings scheme to set up
- NSC's are very reliable
- NSC's provide a very good rate of interest as they are linked to a 10 year government bond
- The interest rate of NSC you purchase does not change during the 5-year tenure of the NSC so you know exactly how much you will receive when your NSC matures.
- Interest is calculated using a compound interest calculation, this occurs twice per year (once every six months) though the interest is added annually
- NSC's are tax deductible which is great news. This means that NCS's not inly provide a good return on investment but also help to reduce the amount of tax you pay (under section 80C). You can calculate the amount of relief using the India Tax Calculator
The National Saving Certificate Scheme (NSC) is an excellent investment opportunity but there are some restrictions you should be aware of.
- The National Saving Certificate (NSC) scheme has a minimum investment threshold of ₹100.00
- National Saving Certificates are issued at a minimum of ₹100.00 certificates though you can also purchase ₹500.00, ₹1,000.00, ₹5,000.00, ₹10,000.00 denomination certificates.
- There is no limit on the number of National Saving Certificates that you can buy
Type of NSC Certificates
There are 3 different types of National Savings Certificate
- Single holder Type Certificate: Issued to an individual (the holder) or to an individual on behalf of a minor.
- Joint A type Certificate: Issued jointly to two adults. On maturity, the NSC is paid to both of the joint holders
- Joint B type Certificate: Issued jointly to two adults in the same way as Joint A type NSC (see above) withe the difference that on maturity, the NSC is paid to one (either one) of the joint holders
How Do I Buy an NSC?
NSC's are available from the Post Office. The following process outlines the steps you will need to follow to setup an NSC
- Gat a copy of the National Saving Certificate (NSC) scheme application form: The application form is controlled by the Post office. You can get a copy of the application form by visiting the post office or downloading a copy online
- Decide how much you want to invest in the National Saving Certificate (NSC) scheme: This really depends on what you can afford. Remember that NSC reduce the amount fo tax you pay so you may be able to invest more than you think, use the tax calculator to see how NSC's can reduce your tax.
- Complete the National Saving Certificate (NSC) scheme application form: The form is very straightforward to complete
- Get your proof of ID: The postmaster will first verify your address and proof of ID before issuing the NSC(s)
- Decide how you want to pay for your National Saving Certificate (NSC): There are a number of ways that you can pay for your National Saving Certificate (NSC), these include:
- Surrender a matured certificate: If you have an existing National Saving Certificate that has reached maturity you can reinvest this back into a new certificate (in part or the entire amount)..
- Pay order
- Demand Draft
- Transferring funds from your Post Offic Savings Account
- Go to the Post Office: The Postmaster will check your application, proof of id and address and payment method. Once the Postmaster is sure that all are correct they will issue you with your National Saving Certificate. If the Postmaster doesn't have any of the National Saving Certificates in the domination that you require, the National Saving Certificate will be sent to you in the post, normally arriving after a few business days.
How much tax can I claim back for an NSC?
National Saving Certificate attract tax relief which means you can reduce the amount of tax you pay when you calculate your tax return. There are two calculators that we provide which can help you calculate how much tax you can save when investing in NSC's/
- NSC Tax Calculator - Calculates the interest amount and shows how much you can claim each year when producing your tax return.
- India Tax Calculator - Allows you to calculate your annual tax return, including deductions for your investments in the National Saving Certificate Scheme.
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