National Savings Certificate

Overview of National Savings Certificate (NSC)
The National Savings Certificate or NSC is a variation of small saving scheme of India. It is issued by the Government of India. The unique aspect of the National Savings Certificate (NSC) is that it can be bought by people under the age limit of eighteen years.
Terms and Conditions of Buying National Savings Certificate (NSC)
As per the rules that have been laid down by the Government of India only the following categories of customers are allowed to buy a National Savings Certificate (NSC):

  • Members of a Hindu Undivided Family
  • Anyone above the age of 18 can buy a National Savings Certificate for himself or for a minor.
  • Two people over the age of eighteen can together buy a National Savings Certificate.
  • Any trust can buy a National Savings Certificate.
  • The minors are also eligible to buy a National Savings Certificate

Availability of National Savings Certificate (NSC)
The National Savings Certificates are normally sold at the post offices across India.

Term Periods of National Savings Certificate (NSC)
The maturity period of a National Savings Certificate is six years.

Nomination and Transferability Benefits of National Savings Certificate (NSC)
The National Savings Certificate or NSC provides its owners with nomination facilities. The owner may also transfer the particular National Savings Certificate from a post office to another one. The ownership of the National Savings Certificate can be changed from one person to another. However, such a transfer is only permitted under specified circumstances.

Deposit Limits and Denominations of National Savings Certificates (NSCs)
There is no upper limit of investing in the National Savings Certificates.

The National Savings Certificates (NSCs) are mainly sold in the following denominations:

  • Rs.100
  • Rs. 5000
  • Rs. 500
  • Rs. 10,000
  • Rs. 1000

Maturity Value and Interest Rate provided by National Savings Certificates (NSCs)
The National Savings Certificates provide a maturity value of Rs. 160.10 if the value of the particular certificate is Rs.100. The maturity values of other National Savings Certificates having separate denominations are determined in proportion to the particular denomination.

The income that is made from the interest provided by the National Savings Certificates can be subjected to income tax. However, if the earning is invested again then it may not be taxed.

More Information On Savings
Determinants of Savings Savings Concept
Economic Growth of Savings Account Savings Plan
National Savings Economies of Scale in Savings
MPS Savings Concept National Savings Certificate
Consumption and Savings Savings Schemes
Factors of Savings Diminishing Return
Life Cycle of Savings Household Savings
Economics of Savings Savings and Investment
Harrod-Domar Savings Concept Micro savings
Aggregate Savings Savings Motive
Savings Account Personal Savings
Savings Bond World Savings Rate

Last Updated on : 3rd August 2013