Buy National Saving Certificate
National Saving Certificate is a tax saving scheme for the small investors, issued by the Post Office.
You can buy these certificates from a post office near you. You can buy national saving certificate from various post office agent.
How to buy National Saving Certificate?
The process of buying national saving certificate is simple. You will need to fill in an application form, which is available at the post offices or through agents.
Pay cash for small investments. If the amount is big, you will have to make cheque payment.
The features of NSC are as follows:
• Great opportunity to save for small investors. You can buy National Saving Certificate for as little as Rs.100. These are available in denominations of 10000, 5000, 1000, 500 and 100.
• Guaranteed returns of 8%
• Tenure of the scheme is 6 years.
• When you invest money in NSC, you can avail of tax rebate of 20%.
• Though there is no maximum limit on investment, you can get tax rebate only up to Rs.12000.
• This scheme is for Indian residents. Non Resident Indians (NRIs) cannot invest in this scheme.
Advantages of National Savings Certificate:
• Safe investment and modest rate of return are the main advantages of NSC.
• You get tax rebate of 20%.
• You can invest as much as you want. There is no maximum amount on investment.
Disadvantages of National Saving Certificate:
• There is no liquidity. The investment remains fixed for a period of 6 years.
• The rate of return is quite less. You can get more returns if the same amount is invested in other avenues.
• Although you get a tax rebate in the year of investment, the interest earned is taxable.
NSC is ideal for people who are looking at safe haven for investment and for people who are able to invest only small amounts.