Opened at any Post Office branch near you, The National Savings Certificate (NSC) offers you a fixed income investment scheme. Run by the Government of India, this scheme is a savings bond which is helpful for the small to mid-income investors enabling them to save while saving on income tax.
Just like many other savings schemes in India, this scheme also offers a low risk and fixed income to the user. If you want to get one for yourself, you can reach out to the nearest post office to your place. If you want to open it for a minor, then you can open it in your your name or with another adult in the face of a joint account.
A fixed-income instrument like Public Provident Fund and Post Office FDs, this scheme too is a low-risk fixed-income product. You can buy it from the nearest post office in your name, for a minor or with another adult as a joint account. NSC comes with a fixed maturity period of five years. There is no maximum limit on the purchase of NSCs, but only investments of up to Rs.1.5 lakh can earn you a tax break under Section 80C of the Income Tax Act. The certificates earn a fixed interest, which is currently at a rate of 6.8% per annum. The interest rate is revised on a regular basis by the government.
The Department of Post has introduced online account opening and closure for National Savings Certificates (VIII Issue) (NSC) accounts using the Post Office internet banking facility.
How to open a National Savings Certificates (NSC) Account online?
If you wish to open a National Savings Certificate (NSC) account online, then I suggest you to follow the steps mentioned below:
- Login with the internet banking offered by The Department of Post.
- Generate ‘New Request’ from the ‘Service Requests’ placed under ‘General Services’.
- Click on ‘Open a NSC Account’ under NSC Account.
- Enter the amount you wish to open NSC for. Please note that the minimum amount to open an NSC account is Rs. 1000.
- Now, select the Debit Account that is linked to PO Savings Account.
- Read and accept the terms and conditions given on the webpage.
- Enter your transaction password and submit the request online.
- Login with the website again to check the details of your NSC account under the tab ‘Accounts’.
Also Read:Want Income Tax Benefits? Invest in These Five 5 Post Office Savings Schemes