National Savings Certificate – NSC Interest Rate 2019 and Benefits Eligibility & Investment Plans 2019
NSC Accrued Interest and Monthly Income Scheme Calculator, PORD and POTD. Maturity Amount, Interest Payable etc. For all Post Office Small Saving Schemes. For Interest rates on Small Savings Schemes applicable w.e.f. 1st July 2019. Interest Rate of NSC, PPF, KYP, SSY, SCSS For 2019 (Revised on ), Interest rates on Government Savings Scheme from July 2019 to September 2019. Small savings rates hiked: PPF and NSC to give 8%, senior citizens to get 8.7% from 1st July 2019.
NSC are regarded as the best saving and tax benefit schemeswhich can be easily opened at any post office branch in the country. Indiangovernment gives chances to investors to save and open schemes through the NSC.India host many saving and investment schemes which offer better interest ratesand also one feels safe with their money.
National saving certificates are preferred by investors who will gain back their money with higher interest. It caters for small and the middle investors who pool together their resources for future benefits. The NSC works for individuals who are saving for tax purposes. One can purchase fixed income products like the PPF and the post office FDs. This are part of the best and secure scheme which are readily available.
The schemes are given in two fixed durations. One being the5-year tenure and the 10-year duration. Schemes have not limitation ofpurchasing though the investment goes to up to RS 1.5 lakhs. NSC have the fixedinterest rate of 7.6% which is the current rate. the rates are taken monthlyand then compounded to yearly calculations. The certificates also help inborrowing loans from the Indian banks.
Why invest in the NSC?
With the goodies given about safety and interest rates plusaccessibility. One should be concerned why they should invest in thecertificates. Note this schemes are considered as safest investment plans.especially for individuals earning god income NSC is the way to go.
You are sure of the interest gained and the money investedis safe. Nonetheless, the schemes are no way better than the tax-saving mutualfunds and the national pension schemes. The better part of the scheme is onecan access it through the post offices which is a rare case for the otherschemes in the country.
The schemes are limited to the Hindu undivided familiesHUFs, as they cannot invest in this plan. This doesn’t make the NSC a no gozone for other investors. They provide the best plan which is guaranteed. Thenon-residents also cannot invest in the plan as it only caters for the Indiancitizens.
Key features of the NSC 2019
- NSC hasfixed income: the recent income rate falls at 7.6% which will earn youbetter returns.
- Types: the scheme has been in two forms where thegovernment brought to a stop one scheme. The remaining plan is really doingwell and serving the citizens. We have the NSC VIII and NSC IX. Where the NSCIX was stopped by the government.
- Tax saverscheme: the government supports full all tax saving schemes. To save on taxone is required to reach RS 1.5 lakhs which is tax exempted in the section 80c.
- Takessmall amounts: the plan caters for all class of people as one can save fromRS 100 and continue until the amount grows to bigger amounts.
- Interestrates: the rates for 2018 have been at 8% from the said 7.6%. This ratesare look in to by the government each quarter of the year.
- Maturity period: The government has set two periods where one can get their investments. One being the 5-year plan and the 10 year plan.
- Accessibilitythe scheme is readily available as it can be purchased form any postoffices branches in the country. One needs to produce their details or the KYCinformation. The details and the scheme can be change and availed to new personeasily with no limitations.
- Collateral:the NSC are used by borrowers for loans at the bank. The individual willtake the details to the post office officer who will give a transfer stamp frompost to bank.
- Power ofcompounding one can return the interest gain and reinvest it back to thescheme.
- Benefitsafter the maturity when the maturity period is reached one receives thewhole amount. The amount will be taxed according to the amount but if exceedingRS 1.5 lakh the amount is not taxed.
- Prematurewithdraw: the schemes don’t allow one to leave premature unless there areserious cases of death or sickness which is long term sickness.
The above features indicate about the benefits that comewith the scheme. Court orders might also help get the premature withdraw butthis happens rarely.
Individuals who save RS 1.5 lakh don’t pay for tax on theamount gained in the NSC. One is eligible to return their interest to thescheme when the period matures
Comparison of NSC andother tax saving schemes.
Though holding theupper hand NSC caters for more Indian citizens than any other scheme. It easierto access and has no age limit. The scheme can be shifted form one owner to theanother on different conditions of either a minor of even when the NSC holderis sick or cannot continue with the saving scheme. Few details are required tocomplete the process compared to other schemes where you require to bring allproof documents.
The scheme is supported by the income tax act section 80 andis linked to other bigger and well-known schemes. This being the PPF, ESS FD etc. The schemehas the lowest interest rate compared to the mentioned schemes. Considering NSCfor your savings is rather and far much better than investing in other bigschemes which don’t give tax guarantees.
Types of holding inthe NSC
The certificate can be held in different version even thoughgiven in two examples here we have different types of NSC holdings:
- Singleholder certificate
This certificate is given to an individual and cannot beshare either. The holder can be minor or adult but any details needed is givenby the certificate holder.
- Joint Atype certificate
The certificate ishandled by the two holder who have to be adults. They receive the benefits atthe end of the tenure. Any can operate the scheme though the benefits aredivided to both.
- Joint Btype certificate
The type acts as type A though at maturity one of the holders will receive the benefits.
National saving certificate application form 2019
Download NSC Application 2019 form PDF File Here
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