What are NSC bonds?

National Savings Certificates, popularly known as NSC, is an Indian Government savings bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of India Post. The holder gets the tax benefit under Section 80C of Income Tax Act, 1961.

How do I get an NSC bond?

Following are the key steps for making NSC investments:

1. Fill out the NSC application Form, available online as well as at all Indian post offices.
2. Submit self-attested copies of required KYC documents.
3. Make the payment of the amount to be invested by cash or through cheque.

Is NSC better than PPF?

As far as the interest is concerned, PPF interest is tax-free, whereas, NSC interest is taxable and will be added to your taxable income. However, the interest in NSC is also eligible for deduction under Section 80C of the Income Tax Act. It is better to pay tax on the accrued interest annually rather than on maturity.

Is NSC safe?

With assured returns and tax benefits on investments, the National Savings Certificate offers you the best of both worlds. The National Savings Certificate (NSC) is a popular and safe small-savings instrument that combines tax savings with guaranteed returns.

Can I buy NSC in cash?

The NSC can be bought from any head post office or general post office. You need to fill the NSC application form available at the post office. You can buy the certificate with cash, cheque or demand draft drawn in favour of the postmaster of the post office from where you are buying the NSC.

How is NSC interest calculated?

The interest on NSC is 6.8\% for the current quarter. The interest rate for NSC is announced by the Ministry of Finance every quarter. Returns from NSC are guaranteed, and it is compounded annually and paid at the time of maturity.

Is NSC is tax free?

The National Savings Certificate (NSC) is a fixed income investment scheme that you can open with any post office branch. There is no maximum limit on the purchase of NSCs, but only investments of up to Rs. 1.5 lakh can earn you a tax break under Section 80C of the Income Tax Act.

Is NSC a safe investment?

Is NSC for 10 years?

There are two term period options available in the National Savings Certificates (NSC). One is 5 years and the other is 10 years. Certificates under VIII issue mature in 5 years while the certificates under IX issue mature in 10 years.