An investment scheme that can be opened at any post office across India is the National Savings Certificate (NSC). The tenure of the scheme is 5 years and the rate of interest is 6.8% p.a. The minimum deposit that must be made towards the scheme is Rs.1,000.
How to buy NSC
You need to visit the nearest branch of your post office with original copies of identity proof and address proof. The below-mentioned steps must be followed to purchase an NSC Certificate:
- 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. You can visit https://www.incometaxindia.gov.in/Pages/tools/interest-on-national-savings-certificate.aspx to calculate the amount of interest that will be earned. The below-mentioned details must be entered to calculate the interest:
- TThe NSC Type.
- The year the NSC was purchased.
- The amount of investment.
Once the following details are entered, the calculator will reveal the total interest amount accrued so far. The interest paid on a National Savings Certificate is compounded annually and is paid at the time of maturity. 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 Rate & Maturity Period
The NSC VIII Issue can be purchased at any post office in India. The maturity period and interest rates are mentioned below:
- Interest Rate: 6.8% (From 1 April 2020)
- Maturity Period: 5 years
For example, if an you invest Rs.1,000 towards the scheme, at the end of the 5-year period you will receive Rs.1,389.49.
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.