National Savings Certificate: Get FD or RD from this post office scheme

What is National Saving Certificate (NSC)?

It is a small savings scheme, which is run by the post office. You can also invest in it with just a hundred rupees. There is no limit to investing in it. You can invest any amount according to your ability. NSCs can also be purchased in the name of their children. Its maturity period is 5 years. It adds interest every year. Tax exemption is available only on investments up to Rs 1.5 lakh.

Investment process

The National Savings Certificate gives the investor a better return at a fixed interest rate. You can buy the certificate from your nearest post office. For this, you have to fill a form in which you will have to tell the name and the amount of investment. Apart from this, photocopy of some other important documents including Aadhaar card will have to be installed. You can buy it through check or cash.

The account will open on payment. Its maturity is 5 years, while to withdraw funds from the account you have to complete at least one year. In the National Savings Certificate, the interest rate is changed every 3 months. People under 18 years of age can also get the benefit of the scheme. Parents can open their children’s account with themselves as Guardian.

These are the advantages

National saving certificate You can transfer from one post office to another post office. Also, it can be done easily from one person to another. It also provides tax exemption under the Income Tax Act 80C. Which does not deduct TDS at the amount. You can also easily take a loan from a bank or other financial institutions on a National Savings Certificate.