Have you ever thought about the many ways you can start investing? Among the many ways – the NSC scheme too stands as a strong source. Saving money is not a smart choice all of the time – the smarter choice is always an investment.
If you’ve been told savings is the best financial step, do not fall for it. But there are some safe yet rewarding schemes to get started with, and here we will talk about the National Saving Certificate.
What is the National Saving Certificate?
All NSC post offices offer the NSC system, and the Indian government actively promotes it. The program has grown extremely well-liked in India due to the abundance of post offices there and the ease of access to them. The scheme’s primary goal is to encourage people to save modest to medium amounts of money, and it offers tax advantages for doing so. The dangers of investing in the scheme are low because it is promoted by the Indian government.
Non-resident Indians (NRIs) and Hindu Undivided Families (HUF) are not eligible to participate in this plan because it was designed primarily for individuals. The NSC scheme would only be open to Indian citizens.
Can You Invest in this Scheme?
There is a certain eligibility criterion that has to fit in when you start investing in the National Savings Certificate, and that is:
- The person involved must be an Indian national.
- There is no minimum or maximum age requirement to buy a certificate.
- Indians who don’t live there can’t invest in NSC.
- A person can purchase an NSC on behalf of a minor or invest with another adult.
- HUFs and Trusts are ineligible to invest in the scheme under the NSC VIII Issue.
What are the Current Returns Rates of the National Saving Certificate?
Everyone wants to know the National savings certificate interest rates, and so here it is:
The government determines and updates the NSC interest rates every three months (i.e., quarterly). The annual compounded NSC interest rate for the quarter ending December 31, 2022, is 6.8%.
Everything that You Would Just Have to Know About the National Saving Certificate
Minimum investments: A certificate may be purchased for a minimum of Rs. 100. The certificate is available in values of Rs. 10,000, Rs. 5,000, Rs. 1,000, Rs. 500, and Rs. 100. People can start out with making tiny investments and then raise them as soon as it is practical.
Interest rate: At the moment, interest is compounded annually and has been lowered from 7.9% to 6.8%. The interest, however, is only due at maturity. For instance, a subscriber who invests Rs. 100 will receive Rs. 146.93 after five years.
Purchase of NSC: The plan may be purchased at post offices after providing the necessary paperwork.
Transfer of certificate: The NSC may be transferred between post offices. It is also feasible to transfer a certificate from one person to another. The certificate, on the other hand, will remain the same; the name of the old owner will be rounded off, and the name of the new owner will be inscribed on the certificate.
Maturity duration: The two maturity periods of the scheme that people can select from are 5 and 10 years.
Family members, including minors, may be added by the investor as nominees. The nominee would be entitled to inherit the scheme in the event that the investor dies while the scheme is still in effect.
Various NSC kinds include: The two types of certificates that were initially offered were the NSC IX Issue and the NSC VIII Issue. However, the NSC IX Issue was abandoned by the Indian government as of December 2015. Consequently, there is only the NSC VIII Issue available.
Loans secured by NSC: When applying for a loan from a bank, the NSC can be used as security or collateral. The transfer of the certificate to the bank, however, requires permission from the relevant postmaster.
How to Get Started with the National Savings Certificate?
The primary of getting started with the National Savings Certificate is to get these documents straight –
The required documentation for purchasing an NSC is listed below:
- It is required that the NSC application be submitted.
- For verification, investors are required to provide an original form of identity, such as a passport, permanent account number (PAN) card, voter ID, driver’s license, senior citizen ID, or government ID.
- The investor is required to supply a picture.
- Investors are required to produce address proof, such as a passport, phone bill, power bill, bank statement, check, and a certificate or ID card that has been issued by the post office, in addition to their investment.
Want to Get Your National Savings Certificate Transfer – Just Read On
NSCs can be moved from one post office to another as well as from one person to another without having an effect on the original certificate’s interest accrual or maturity. An investor with a National Savings Certificate has access to the following transfer options:
- By completing and submitting the Application for Transfer of Savings Certificates form at the post office that first issued the original certificate, you can transfer your savings certificates from one post office to another.
- The Application for the transfer of the Savings Certificate from Person to Person Under Specified Conditions form is available at the NSC issuing post office and can be used to transfer National Savings Certificates from one holder to another. Up until the point of scheme maturity, this can only be done once.
Here, we wrap up.
There are just a few steps into getting started with the National Saving Certificate – but make sure you are suitable for this scheme before you can get started. The National Saving Certificate, although, is one of the most famous and trusted schemes that you can get started with. Also, you would have to know that the interest rates can change every year, and that is exactly why you would have to keep yourself updated with it at all times.