NSC stands for National Savings certificates – a small savings tool particularly designed for government employees, businessmen and other salaried employees by the Government of India. National Savings Certificate is one of the most popular small savings schemes that offer you tax benefits followed by guaranteed returns. You can invest as low as Rs. 100 in a National Savings Certificate and get assured returns on your investments. There is no maximum limit for investment in NSC and no tax is deducted is at source. A person has to be an Indian resident in order to buy these savings certificates.
How to buy National Savings Certificates
You need to visit the nearest branch of your post office with original copies of identity proof and address proof. Then, follow the following steps:
- First, fill the application form and enter all required information.
- Produce your original documents such as ID proof and address proof for verification.
- Once verification is done, you need to pay the amount either via cash, cheque or demand draft drawn in favor of the postmaster.
- Then choose a nominee and get a witness signature done to complete the whole process.
NSC interest calculator
A National Savings Certificate holder can calculate how much interest he/she would receive by investing in NSC by using an NSC Calculator. In the calculator, a person needs to enter the following key details:
- The total amount of investment.
- Applicable rate of interest.
- Tenure of investment.
Once the following details are entered, the calculator will reveal the total interest amount accrued so far. Thus, the National Savings Certificate Calculator helps you know your total accrued interest on your investments in NSC. The interest paid on a National Savings Certificate is compounded half-yearly and it gets added to the total accumulated value. The annual interest earned on NSC can be reinvested and qualifies tax exemption under section 80C of the Indian Income Tax Act, 1961.
NSC Interest Rates and Maturity Period
There are two issue available under the National Savings Scheme - NSC VIII Issue and NSC IX Issue. The following interest rates and maturity periods are applicable for NSC VIII Issue and NSC IX Issue:
NSC- VIII Issue
NSC - IX Issue
For example, if you have invested an amount Rs. 1000 in an NSC- VIII Issue for 5 years at 8.50%, you would receive an amount of Rs. 1516.2 as maturity value at the end of its term. Besides, the interest that you would earn during the first 4 years will be reinvested in National Savings Certificates.
NSC maturity calculator
In order to know the maturity value of your maturity, you need to put the following information in the NSC Maturity Calculator:
- Date of purchase of your NSC.
- Total NSC amount.
- Total years of completion after purchase.
- Applicable rate of interest.
Once you put all these details in the Online NSC Calculator, the National saving certificate calculator will show the total accrued interest, interest accrued in the previous year and the total amount payable at maturity.
Thus, calculating interest on National Savings Certificates has been made easy by the online NSC calculator.