Post Office Scheme - National Savings Certificate


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  • Minimum investment Rs. 500/- No maximum limit.
  • Rate of interest 8% compounded half yearly.
  • Rs. 1000/- grow to Rs. 1601/- in six years.
  • Two adults, Individuals, and minor through guardian can purchase.
  • NRI/HUF can not purchase.
  • Pre- Mature withdrawl is not allowed
  • The interest earned annualy will be automatically reinvested and this qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.
  • Any Maturity amount not drawn are eligible to Post Office Savings account interest for a maximum period of two years.
  • You can also pledge the Certificates as security against a loan to banks/ Govt. Institutions.
  • Facility of encashment of certificates through banks.
  • Certificates are encashable any Post office in India before maturity by way of transfer to desired post office.
  • Certificates are transferable from one Post office to any Post office.
  • Certificates are transferable from one person to another person before maturity.
  • Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
  • Nomination facility available.
  • Facility of purchase/payment to the holder of Power of attorney.
  • You also get a tax rebate for all investments made under section 80 C of Income Tax Act.
  • Interest income is taxable but no TDS
  • Deposits are exempt from Wealth tax.

Also See

Kisan Vikas Patra

National Savings Certificate

Reccuring Deposit Account

Monthly Income Scheme

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