5 years National Savings Certificate 8th Issue
Salient Features- Rs. 1000/- grows to Rs. 1509/- in Five years.
- Minimum investment Rs. 500/-
- Maximum no limit.
- Certificates can be pledged as security against a loan to banks/ financial Institutions.
- A Tax saving investment under Sec 80C
- Individual or minor can apply
- Rate of interest 8% compounded half yearly
- Two adults, individuals, and minor through guardian can purchase.
- Companies, Trusts, Societies or any other Institutions are not eligible to purchase.
- Non-resident Indian/HUF cannot purchase.
- No premature encashment.
- Annual interest earned is deemed to be reinvested and qualifies for tax rebate for the first 5 years under section 80 C of the Income Tax Act.
- Maturity proceeds not drawn are eligible to Post Office Savings Account interest for a maximum period of two years.
- Facility of reinvestment on maturity.
- Facility of encashment of certificates through banks.
- Certificates are encashable at any Post Office in India before maturity by way of transfer to desired Post Office.
- Certificates are transferable to any Post office in India.
- Certificates are transferable from one person to another person before maturity.
- Duplicate certificate can be issued for in case the original one gets lost, stolen, destroyed, mutilated or defaced certificate.
- Nomination facility is available.
- Facility of purchase/payment to the holder of Power of Attorney.
- Tax Saving instrument - Rebate admissible under section 80 C of the Income Tax Act.
- Deposits are exempt from Wealth Tax.
10-Years National Savings Certificate (IX Issue)
- Term = 10 yrs.
- Rate of interest = 8.70%
- Rs. 100 becomes Rs. 234.35 in 10 years
- Max contribution = No limit
- Eligibility = NRI and HUF can't open.
- A/c can't be closed before 10 yrs. In case of death, a/c can be prematurely closed without deduction & can be even be contd. at the option of the nominee.
- Deposits upto Rs.1Lakh are deductible u/s 80C.
- It can be pledged as a collateral for raising loans.
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