The National Savings Certificate (NSC) is a type of savings bond issued by the government. The National Savings Certificate, which is issued by the postal service, is one of the most popular minor investment options available. It is a fixed investment scheme that may be obtained from any post office location. It encourages persons with low and moderate incomes to invest while also saving money on taxes through Section 80C, up to a maximum claim of Rs.1.5 lakhs. Even those looking for loans can tap the door of the loan against the NSC facility if available.
What is an NSC calculator tool?
Knowing the possible returns of an investment helps one decide whether to make one at all. The NSC Calculator enables investors to estimate the returns from their investment by computing the expected maturity amount as well as the NSC interest amount. This digital tool computes returns right once the investment is entered. This calculator guides your wise investment planning and informed decision-making about your savings, helping you maximise them and also reach your financial goals.
Advantages of NSC Calculator
- Ease of usage makes it user-friendly since it is straightforward and handy.
- Accuracy ensures appropriate results free of mistakes and errors resulting from hand calculations.
- Being free of cost makes the investment appealing.
- By converting maturity and interest amount in just a few seconds, the NSC calculator tool helps to save time.
- Comparison helps the investor to evaluate several investing possibilities before deciding which one to choose.
FAQs on NSC
How can one open an NSC account?
Post office internet banking allows one to open NSCs online. Log into Internet banking then make a fresh request for the necessary investment.
Should you invest in NSC if you already have life insurance?
Certainly. Even if you have bought 1 crore term insurance already, remember that the objective of investing in NSC is different and separate. Investing in NSC would help you gradually save some money without taking too much risk, and also fetching income tax benefits.
How one might obtain an NSC Certificate?
Should you send the NSC account opening form together with KYC paperwork, you have to pay from the same side. The post office will provide you an NSC certificate once handled.
What is NSC’s current interest rate?
Since April 2023, NSC interest rate has remained unchanged at 7.7%.So, when utilizing the online NSC calculator tool, you can take 7.7% as the expected returns and choose the amount and tenure as per your financial requirements.
List of alternative investment options for NSC
In case you are looking for other investment options that can serve as an alternative to NSC, then here are some of such small savings schemes:
- PPF (Public Provident Fund PPF)
The PPF is another popular savings plan among individuals, especially small investors who may have low income and require a loan but often have little savings to invest, if any. This PPF facility hence, serves as a suitable investment place for them. It has an initial 15-year term that can be extended in increments of five-year increments. PPF has been a good savings option for many years because of the ease of depositing a small sum of Rs.500. PPF has been a good savings option for many years because of the risk-free rewards it offers. Every year, a maximum of Rs.1.5 lakh can be invested in a PPF, and any amount deposited in excess of this Rs.1.5 lakh limit is not eligible for interest.
Every individual, with the exception of NRIs and HUFs, is only permitted to hold one PPF account in their name, unless the second account is for the benefit of a minor. Along with the ability to make partial withdrawals after six years, the system also provides the option of taking out a loan against the PPF. Another significant advantage of saving through PPF investing is that it belongs under the EEE category, which means that all of its deposits, returns, and withdrawals are all tax-free when made.
- Sukanya Samridhi Yojana (SSY)
This government-sponsored scheme, which was launched in 2015, is aimed at encouraging parents of girl children to make investments in their daughters’ higher education and future marriage. With the present interest rate of 8.1 percent per annum and tax exemptions on the interest component as well as on withdrawals after maturity, this scheme has the potential to last for a maximum of 21 years from the date of its inception. During the investment period, those investors who require instant Loan without cibil can avail the loan against investments or insurance, as these are secured loans and hence, generally involve lower interest rates.
Any period between the birth of a female child and the age of ten can be used to start a savings account for that child. This scheme has proven to be a successful step forward in the encouraging of female child education, and it has become a popular investment option for parents looking to invest in their daughter’s future. These accounts can be opened at post offices or commercial banks that have been allowed to do so.
- Senior Citizen Savings Scheme(SCSS)
This scheme is designed specifically for senior citizens, and it provides a regular income as well as tax-saving investments that are completely risk-free. It can be obtained through authorized financial institutions and post offices. Retirees who have chosen VRS or superannuation who are between the ages of 55 and 60 must make an investment within one month of receiving their retirement payments in order to be eligible for this scheme.
Additionally, retired defense personnel who are 50 years old or older can make an investment in the SCSS. HUFs and NRIs, on the other hand, are unable to take advantage of this scheme. Individuals can claim a tax deduction of up to Rs.1.5 lakhs under Section 80C if they invest in this programme at the current interest rate of 8.3 percent. The initial term is for 5 years, with the option to extend it for an additional 3 years.
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