National Savings Certificate

• 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.  
• Companies, Trusts, Societies and any other Institutions not eligible to purchase.  
• Non-resident Indian/HUF can not purchase.  
• No pre-mature encashment.  
• Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.  
• Maturity proceeds not drawn are eligible to Post Office Savings account interest for a maximum period of two years.  
• Facility of reinvestment on maturity.  
• Certificate can be pledged 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.  
• Tax Saving instrument - Rebate admissible under section 80 C of Income Tax Act.  
• Interest income is taxable but no TDS  
• Deposits are exempt from Wealth tax.