National Savings Certificate (NSC) VII |
|
| Eligibility | Individual 18- 60 years, |
| Interest rate | 7.6% (2019 Q4) |
| How to open | Online |
| Investment Limit Per Year | 100 to 1.5 lakh |
| Partial withdrawal | Not allowed |
| Premature closing | Death or Court Order |
| Maturity / Lockin Period | 5 years or 10 years (subscriber have to choose) |
| Extension | NA |
| Tax Benefits | 1.5 Deductable every year for investment.
withdrawal interest earned is taxable but no TDS, Unlike FD. |
Loan facility Available Against NSC Certificate.
How to Purchase NSC Certificate Online / offline?
NSCs are part of the postal saving system.
fill the NSC application at post office carry KYC & Investment Amount (LumpSum for 5 years.)
There is No Online facility Available right Now. There are only Available at Post Office Only. if You have Net banking Facility with Post Ofice You can open NSC Online.
Who can Open NSC Certificate Account with Post office?
Individual, Joint, Minor through the guardian.
HUF & Trust cannot Open NSC According to Govt Rules.
FD VS NSC VS PPF
PPF: 15 years Locking Period with Regular Deposits, Interest are almost the same as NSC, But FD & NSC are Lumpsum investments with 5 years Lock-in Period.
NSC: Intrest compounded annually. Interest rate 8*%, NO TDS (Interest earned taxable but you can deduct under 80c again every year*), Loan Facility
FD: Interest rate 6 to 7%, TDS at the bank, No loan facility against FD.
NSC Certificate calculation
Interest rates Varies Quater to Quarter Its govt backed Scheme.
So we pick 7.6 % Annual Interest, 8%
Investment Amount 1.5lakh.
(interest compounded yearly – added at the end of each year)
| Year | Year Interest | Total Interest | Balance |
| 1 | ₹12,000.00 | ₹12,000.00 | ₹162,000.00 |
| 2 | ₹12,960.00 | ₹24,960.00 | ₹174,960.00 |
| 3 | ₹13,996.80 | ₹38,956.80 | ₹188,956.80 |
| 4 | ₹15,116.54 | ₹54,073.34 | ₹204,073.34 |
| 5 | ₹16,325.87 | ₹70,399.21 | ₹220,399.21 |
Base amount: ₹150,000.00
Interest Rate: 8%
Effective Annual Rate: 8%
Calculation period: 5 years
FD 5 years Calculation With NSC Comparison
(interest compounded yearly – added at the end of each year)
| Year | Year Interest | Total Interest | Balance |
| 1 | ₹10,500.00 | ₹10,500.00 | ₹160,500.00 |
| 2 | ₹11,235.00 | ₹21,735.00 | ₹171,735.00 |
| 3 | ₹12,021.45 | ₹33,756.45 | ₹183,756.45 |
| 4 | ₹12,862.95 | ₹46,619.40 | ₹196,619.40 |
| 5 | ₹13,763.36 | ₹60,382.76 | ₹210,382.76 |
Base amount: ₹150,000.00
Interest Rate: 7%
Effective Annual Rate: 7%
Calculation period: 5 years
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