NSC is an assured return scheme and provides for tax saving too!
Returns are at 8% for a duration of only 6 years, which is relatively
smaller compared to other small saving schemes. Here, investors are
required to make a single deposit and the interest is returned
along with the principal amount on maturity.
However, NSC is not at all liquid, as premature withdrawals can be done under specific circumstances only, such as death of the holder, forfeit by the pledgee or under court's order.
NSC investors enjoy tax saving benefits. The interest earner is eligible for tax saving up to a maximum limit of Rs 12,000.
Thus, NSC is an ideal investment for those investors who are looking
at tax benefits on a longer-term basis and are not too bothered about
NSC application forms are available at all post-offices.
NSCs are issued in denominations of Rs.100, Rs.500, Rs.1,000, Rs.5,000 and Rs.10,000. There is no upper limit on investment in NSCs.
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