What are the benefits of National Savings Certificate online?
There are many benefits of saving with National Savings Certificate online:
1. The principal amount and interest are exempt from income tax
2. Savings certificates are professionally marketed by banks to their customers and provides the possibility of investing in a fixed income bond from the market
3. The returns are based on a government-determined weighted average interest rate of inflation plus base rate plus 1.5 percent, which is set by the government of India
4. A subscriber who withdraws the funds by maturity remains the owner of the certificate and can sell it if desired
5. Interest payments are made at regular intervals and hence do not need to be regularly replenished
6. All payments are assured by the government of India How to apply for a National Savings Certificate?
How to open a National Savings Certificate online?
Before investing in the Government of India’s NSIC scheme, it is best to understand the concept and process of investing in an NSIC. An investment in the NSIC scheme is made over a period of 10 years. You can save up to Rs. 5 lakh or more in a financial year. However, you can invest any amount over Rs. 2.5 lakh.
The payment period of your investment starts from the date of registration of the NSIC and ends on the last day of the following financial year. The subscription amount should be deposited for every financial year only. Subscribers are also required to make two mandatory payments before the closure of the subscription period. One is the first redemption payment made towards the end of the third financial year.
What is the procedure to buy National Savings Certificate?
You need to visit a branch of the Reserve Bank of India, Mumbai to open a National Savings Certificate. You need to open a savings account on a monthly basis in order to avail the benefit of deduction under Section 80C on interest income.
The minimum amount you need to open a National Savings account is Rs 1000. If you do not want to register on the internet, you can also open a bank account in your name for the purpose. How do I get a new National Savings Certificate? There are no different options. You just need to visit the closest branch of the Reserve Bank of India, Mumbai to apply for a new certificate. After submitting all the documents and details, a certificate will be issued in your name.
How to track your investment in National Savings Certificate?
All that you need to do is to invest in a post office bearing the Stamp Department office address in your neighbourhood. Here is how you can track the real-time amount invested in the scheme: You can log into the official website of National Savings and Investments and click on your NSC account. Click on the link provided to verify the balance under your NSC account.
You will see your investment amount in the new register. Under section 20 of the Income Tax Act 1961, there are two categories of savings accounts – Post Office Savings Account and General Saving Account. These accounts are both taxed as per slab rates of income tax. In the case of National Savings Certificate, it comes under the different slab rates.
How much interest does the scheme offer?
All these three schemes offer rates varying from 8.5% to 9.1%. However, as in the case of the Senior Citizen Savings Scheme, you can avail an additional benefit of 8.5% interest for a period of five years on an investment of a minimum of Rs 1000. Interest rates on National Savings Certificate are paid quarterly on the bonds issued by the RBI.
The minimum sum that you need to invest every quarter is Rs 1000. If you invest Rs. 1000 in the monthly fund deposit scheme, you’ll get an interest of Rs 3 per month. You can decide to invest any sum that you want as long as it’s under Rs 1000. On average, for every Rs 1000 you invest in a National Savings Certificate, you’ll get an interest of Rs 5.55 per year. How do I redeem the certificates?
The complete guide to National Savings Certificate
1) Step 1: Visit your nearest Government Savings Certificate Offices Visit your nearest Government Savings Certificate Offices to open National Savings Certificate and get a Savings Certificate for investment in it. You can open it through any of the different branches of your post office. For example, In Delhi, you can deposit it in Delhi Central Office or Connaught Place Branch Office of your post office.
2) Step 2: Fill your National Savings Certificate Account Details Once you deposit your National Savings Certificate, the post office will apply it to your account for investment in saving interest in the same form.
FAQs and common doubts about National Savings Certificates
1. What is the maximum deposit amount that can be made under this scheme? The scheme permits a single investor to open a maximum of Rs.50,000 under the National Savings Certificate Scheme. However, for an additional investment of Rs.2,000, a consumer can open a junior balance account under the National Savings Certificate scheme.
2. Do you have to be an Indian citizen to open a National Savings Certificate account? No, National Savings Certificate is open to all investors who can invest over a Rs.50,000 threshold. However, to make investments under the junior balance account under this scheme, you must be a resident of India.
Both the Public Provident Fund and National Savings Certificate have the potential to do well in the long run. As with any investment, one should invest according to their age, risk tolerance and goals. There are no sales to put on hold. So, invest, put money in the public provident fund and NSDC and with a bit of patience, you can grow this corpus over time.