National Savings Certificate (NSC)!

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 liquidity.

How do I invest in National Savings Schemes?

NSC application forms are available at all post-offices.

What is the minimum investment and range of investment in NSC?

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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Table Of Contents

  1. How to manage your money? - Intro
  2. Why should you invest your money?
  3.       >> For making "big buys"!
  4.       >> For tax saving!
  5.       >> Inflation
  6.       >> "The power of compounding!"
  7. How to invest?
  8. Investing in Mutual Funds!
  9. Assured return investments...
  10.       >> Fixed Deposits (FD's)
  11.       >> Public Provident Fund (PPF)
  12.       >> Employees Provident Fund (EPF)
  13.       >> National Savings Certificate (NSC)
  14.       >> Kisan Vikas Patra
  15.       >> Post-office - Monthly Income Scheme 
  16.       >> Post-office - Time Deposits
  17. Insurance