National Saving Certificate interest rate hiked: NSC rate for Jan-Mar 2023 quarter
The government has hiked the National Savings Certificate interest rate for the January-March 2023 quarter to 7% from earlier 6.8%.The National Savings Certificate, or NSC, is a trusted savings product offered by the Indian Post Office that is well-liked by investors as a low-risk investment alternative. An NSC can be opened by an adult, a minor, or a trust. The annual compounded NSC interest rate for the quarter ending March 31, 2023 is 7%.
NSC tax benefits
The National Saving Certificate Scheme has no maximum purchase amount, but a person can only receive benefits on investments up to 1.5 lacs. The Income Tax Act's Section 80C deduction applies to the tax benefits associated with an investment in NSC.
NSC fixed income
The government's regularised interest rate on the National Savings Scheme, for instance, enables an individual to generate a guaranteed return on the NSC at a rate of 7%. The NSC's annual fixed interest on a quarterly basis, ensuring a consistent income for the investor.
Maturity period: The fixed maturity time for NSC is five years.
NSC loan
NSC is accepted as security or collateral by banks and NBFCs for secured loans. To accomplish this, the responsible post office should transfer the certificate to the bank and stamp it with a transfer stamp.
How to open NSC accounts online via India Post internet banking facility
Step 1: Login into DOP internet banking .
Step 2: Under ‘General Services' >'Service Requests' > 'New Requests' .
Step 3: Click on NSC Account - Open a NSC account and KVP Account to open a KVP account.
Step 4: Enter Amount for which NSC to be opened minimum is Rs 1000 and in multiple of Step 5: Select the Debit Account linked PO Saving Account
Step 6: Click on 'Click Here' to read terms and conditions and accept terms and conditions .
Step 7: Submit online
Step 8: Enter transaction password and submit.
Log in again to view the details of NSC opened under ‘Accounts'.
Transfer of account from one individual to another
NSC may be transferred from one person to another person on the following conditions only.
(i) On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.
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This story originally appeared on: India Times - Author:Faqs of Insurances
