National Savings Certificates plan: Indian post office offers National Savings Certificates plan which is considered as one of the safest investment alternatives. Indian investors often select NSCs as safest and secure investment. The recent increase in the interest rates has increased the demand of NSCs among the investors. The interest rate National Savings Certificates is increased by 70 basis points(BPS). Earlier, the government offered 7% interest on NSC. Now, it is raised to 7.7% interest.
Know National Savings Certificates in detail:
The government offers myriads of investment options, including National Savings Certificates (NSCs) to indian investors. Post offices accross the country sell these certificates on a fixed rate of interest and set the term for NSCs investment as well. The government encourages the investment in NSCs as it is the secure option of new investors. The government time to time changes the interest on the NSCs and the changed new rate apply to all new investments. It is noted that investors should pay tax on the interest received from NSCs as per the tax bracket.
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Benefits of NSCs
- Investors get fixed rate of interest for fixed period on their deposits. They know their exact return amount on maturity.
- Under section 80 C of the Income tax Act of 1961, NScs investments are eligible for tax breaks. Investors can deduct up to Rs 1.5 lakh from their taxable income by investing in NSCs.
- NScs are sucure investment options for novice investors
- NScs are flexible plan as it can be bought for maturities ranging from 5 to 10 years.
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New interest rate on NSCs
The revised rate of interest will be effective from April 1. investors can invest in the NSCs plan till june 30, 2023. A minimun investment of rs 1000 and multiple Rs 100 are allowed only. There is upper limit for NSCs and investment is secured for 5 years.
Recent rise in the interest rate on NSCs is believed to attract more investors. NSCs are preffered option for new and small investors because of its fixed return, tax advantages and no risks features.
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