This scheme is launched by central government and it is available at all Indian post offices across the country. This scheme is launched to encourage small savings.
Eligibility to invest in this scheme
· Must be an Indian citizen.
· Investment can be made on behalf of any minor.
· There is no age limit for the investment.
· Investment can be made jointly with another adult too.
· NRI, HUF and trusts are not eligible for this scheme.
Documents Required:
1. An application form available at the post office. This form can also be downloaded from the website of the post office by clicking the link below
2. A valid identity proof issued by the govt of India.
3. A valid address proof.
4. One photograph.
Features of NSC scheme:
1. Interest rate: 6.8 % compounded annually, paid at maturity
2. Minimum and Maximum investment: There is a minimum limit of 1000 but there is no maximum limit of investment.
3. Maturity period: 5 years
4. Loan against NSC: loan facility is available but the loan amount must be returned back to the bank before the maturity. Postmaster needs to authorize the transfer of the certificate to bank.
5. Nomination: The owner of the NSC can nominate any member of the family. In case of any mishappening the amount will be given to him on submission of the relevant documents.
6. Premature withdrawal: the maturity period of the NSC is 5 year but in case of sudden demise of the NSC holder or by the court order it can be taken out before maturity also like other schemes.
7. Transfer of the certificate: It is possible to transfer the certificate from one post office to another as well as from one individual to another but this can be done only once between the date of issue and maturity. However, there will not be any change in the certificate, the new name will be written on it and the old name will be rounded off.
8. Tax benefits: investment up to 1.5 lakh is tax free under 80C, above this there are no other tax benefits.
Advantages of investing in NSC scheme:
1. Returns are guaranteed.
2. Minimum amount invested is very small so it is beneficial for the small wage workers as well.
3. If the certificate is lost then a duplicate can be issued by producing the relevant documents as asked by the post office.
4. After the maturity also the duration of investment can be increased.
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