NSC: National Savings Certificate, Interest Rate 2019, Eligibility

By | March 8, 2019

National Savings Certificate – NSC Interest Rate 2019 and Benefits Eligibility & Investment Plans 2019

NSC are regarded as the best saving and tax benefit schemes which can be easily opened at any post office branch in the country. Indian government gives chances to investors to save and open schemes through the NSC. India host many saving and investment schemes which offer better interest rates and also one feels safe with their money.

National saving certificates are preferred by investors who will gain back their money with higher interest. It caters for small and the middle investors who pool together their resources for future benefits. The NSC works for individuals who are saving for tax purposes. One can purchase fixed income products like the PPF and the post office FDs. This are part of the best and secure scheme which are readily available.

The schemes are given in two fixed durations. One being the 5-year tenure and the 10-year duration. Schemes have not limitation of purchasing though the investment goes to up to RS 1.5 lakhs. NSC have the fixed interest rate of 7.6% which is the current rate. the rates are taken monthly and then compounded to yearly calculations. The certificates also help in borrowing loans from the Indian banks.

Why invest in the NSC?

With the goodies given about safety and interest rates plus accessibility. One should be concerned why they should invest in the certificates. Note this schemes are considered as safest investment plans. especially for individuals earning god income NSC is the way to go.

You are sure of the interest gained and the money invested is safe. Nonetheless, the schemes are no way better than the tax-saving mutual funds and the national pension schemes. The better part of the scheme is one can access it through the post offices which is a rare case for the other schemes in the country.

The schemes are limited to the Hindu undivided families HUFs, as they cannot invest in this plan. This doesn’t make the NSC a no go zone for other investors. They provide the best plan which is guaranteed. The non-residents also cannot invest in the plan as it only caters for the Indian citizens.

Key features of the NSC 2019

  • NSC has fixed income: the recent income rate falls at 7.6% which will earn you better returns.
  • Types:  the scheme has been in two forms where the government brought to a stop one scheme. The remaining plan is really doing well and serving the citizens. We have the NSC VIII and NSC IX. Where the NSC IX was stopped by the government.
  • Tax saver scheme: the government supports full all tax saving schemes. To save on tax one is required to reach RS 1.5 lakhs which is tax exempted in the section 80c.
  • Takes small amounts: the plan caters for all class of people as one can save from RS 100 and continue until the amount grows to bigger amounts.
  • Interest rates: the rates for 2018 have been at 8% from the said 7.6%. This rates are look in to by the government each quarter of the year.
  • Maturity period: The government has set two periods where one can get their investments. One being the 5-year plan and the 10 year plan.
  • Accessibility the scheme is readily available as it can be purchased form any post offices branches in the country. One needs to produce their details or the KYC information. The details and the scheme can be change and availed to new person easily with no limitations.
  • Collateral: the NSC are used by borrowers for loans at the bank. The individual will take the details to the post office officer who will give a transfer stamp from post to bank.
  • Power of compounding one can return the interest gain and reinvest it back to the scheme.
  • Benefits after the maturity when the maturity period is reached one receives the whole amount. The amount will be taxed according to the amount but if exceeding RS 1.5 lakh the amount is not taxed.
  • Premature withdraw: the schemes don’t allow one to leave premature unless there are serious cases of death or sickness which is long term sickness.

The above features indicate about the benefits that come with the scheme. Court orders might also help get the premature withdraw but this happens rarely.

Individuals who save RS 1.5 lakh don’t pay for tax on the amount gained in the NSC. One is eligible to return their interest to the scheme when the period matures

Comparison of NSC and other tax saving schemes.

 Though holding the upper hand NSC caters for more Indian citizens than any other scheme. It easier to access and has no age limit. The scheme can be shifted form one owner to the another on different conditions of either a minor of even when the NSC holder is sick or cannot continue with the saving scheme. Few details are required to complete the process compared to other schemes where you require to bring all proof documents.

The scheme is supported by the income tax act section 80 and is linked to other bigger and well-known schemes.  This being the PPF, ESS FD etc. The scheme has the lowest interest rate compared to the mentioned schemes. Considering NSC for your savings is rather and far much better than investing in other big schemes which don’t give tax guarantees.

Types of holding in the NSC

The certificate can be held in different version even though given in two examples here we have different types of NSC holdings:

  • Single holder certificate

This certificate is given to an individual and cannot be share either. The holder can be minor or adult but any details needed is given by the certificate holder.

  • Joint A type certificate

 The certificate is handled by the two holder who have to be adults. They receive the benefits at the end of the tenure. Any can operate the scheme though the benefits are divided to both.

  • Joint B type certificate

The type acts as type A though at maturity one of the holders will receive the benefits.

National saving certificate application form 2019

Download NSC Application 2019 form PDF File Here

For more information regarding National Savings Certificate – Interest Rates 2019-2020 & Tax Savings Comparing NSC with other tax-saving Investments

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