How To Purchase NSC Bonds Online?

By The Money Farm Team

NSCs are now unavailable for purchase online. The primary steps for making NSC investments are as follows: Complete the NSC application form, which is available both online and at all Indian post offices. Self-attested copies of all essential KYC documents must be submitted.

Is NSC accepted by banks?

Minimal investments: A certificate can be acquired for Rs.100 as a minimum investment. The certificate is available in the following denominations: Rs.10,000, Rs.5,000, Rs.1,000, Rs.500, and Rs.100. Small investments can be made at first, and as time goes on, individuals can expand their investments.
Individuals can pick between two maturity periods of the scheme: 5 years and 10 years.
Interest rate: The current interest rate has been decreased from 7.9% to 6.8%. On an annual basis, it is compounded. The interest, on the other hand, is only paid at the end of the term. For example, a subscriber who invests Rs.100 will receive Rs.146.93 after 5 years.
Nominations: The investor can add family members, including minors, as nominations. If the investor dies while the scheme is still active, the nominee will be eligible to inherit the scheme.
Different forms of NSC: Initially, the two types of certificates offered were the NSC IX Issue and the NSC VIII Issue. The NSC IX issue was, however, halted by the Indian government in December 2015. As a result, the NSC VIII Issue is the only one available.
Loans secured by NSC: The NSC can be used as a security or collateral to obtain loans from banks. The certificate must, however, be transferred to the bank with the permission of the individual postmaster.
NSCs can be obtained at post offices after the relevant documentation have been submitted.
Certificate transfer: NSCs can be transferred from one post office to another. It is also possible to transfer a certificate from one person to another. The certificate, on the other hand, will remain the same, with the new owner’s name put on it and the previous owner’s name rounded.

What is the procedure for purchasing NSC bonds?

How to Purchase

The certificate can be purchased using cash, a check, or a demand draft drawn on the postmaster of the post office where you are purchasing the NSC.

Is it possible to purchase NSC from HDFC Bank?

The government has enabled banks, including private ones (ICICI Bank, HDFC Bank, and Axis Bank), to accept deposits under various programs such as National Savings Certificates (NSC), recurring deposits, and monthly income schemes in order to make small savings investments easier and more convenient (MIS). Banks currently accept deposits through the Public Provident Fund, Sukanya Samriddhi Account, and the Senior Citizen Savings Scheme-2004. Because interest rates on small savings are higher than those on bank deposits with similar maturities, the government’s approach will result in larger mobilization under the scheme. Interest rates for modest savings schemes have been changed every quarter since April 2016, based on the bond yield. Despite the fact that bond yields had declined in the previous three months, the government did not modify the interest rates on modest savings programs for the October-December quarter in September this year.

Aadhaar has also been made mandatory for all modest savings programmes by the government. Existing depositors have until December 31, 2017 to produce the 12-digit unique identification number and link their accounts to it.

Is it possible to purchase NSC from SBI?

You can buy NSC or KVP certificates in e-mode if you have a savings account with a bank or post office.
If you don’t already have a savings account, you’ll need to get one and apply for Internet Banking before buying NSC or KVP.

How do I electronically move my NSC from one post office to another?

1) If your NSC has not yet developed, you must first consider whether you will be able to reach the relevant post office without difficulty. If not, the next step is to apply for a transfer. The steps are as follows.

Form NC-32 can be downloaded at the Post Office Portal. You can apply for a transfer using this form.
Provide NSC information such as the name(s) under which the certificates were issued, the serial number, the date and denomination of the certificates, the serial number of the identity slip, and the details of the issuing office.
This form must be signed by the NSC holder. If the holding is numerous or joint, the signatures of all such holders are required. The guardian must sign in the case of minors.
Send this form to the local post office or to the location where you wish it to be forwarded. Along with Form NC-32, you must also send a photocopy of your NSC and proof of identification. The application will be sent to the post office where you originally purchased it from the concerned post office.

2) If the NSC has already reached its maturity dateIf the NSC’s maturity date has already passed, there are two options for encashment.

Is NSC available at any post office?

The National Savings Certificate (NSC) is one of the government’s popular small-savings programs. A NSC can be obtained from any general post office in the United States. In addition to tax rebates under Section 80C of the Income Tax Act of 1961, NSC offers guaranteed returns. The interest rates for NSC VIII (five years) and NSC IX (10 years) are 8.5 percent and 8.8 percent, respectively. The interest is compounded on a half-yearly basis in this program. The NSC is one of the most popular investment schemes or options for retirement planning in India because of the tax benefits, regular payouts, and ease of access.

Single holder, joint certificate A, and joint certificate B NSC accounts can be opened at any authorized and head post office in India.

NSC or Kisan Vikas Patra: which is better?

Investors looking for a safe fixed income choice might consider Kisan Vikas Patra and National Savings Certificate. The interest rates are practically identical as well. However, the following are some guidelines that might assist investors in selecting the best KVP vs NSC scheme:

You want to put your money into a safe, low-risk investment that will double your money when it matures.
In the case of NSC, you would like a 2.5-year lock-in rather than a 5-year lock-in. In the event of an emergency, KVP has more liquidity than NSC.

What is the current NSC post office interest rate?

A one-of-a-kind strategy that guarantees a fixed monthly income on a lump-sum investment made by the investor.
In a single or shared holding pattern, any resident individual can open a MIS account. This programme is open to minors as well. If the youngster is over the age of ten, he can even manage the account.
Under the Monthly Income Scheme of the Post Office, the lowest investment limit is Rs. 1000, and the highest investment limit is Rs. 4.5 lakhs in a single holding account and Rs. 9 lakhs in joint accounts.
Currently, the post office’s MIS interest rate is 6.6 percent per year, payable monthly with a 5-year maturity period. Mr. Suresh, for example, deposits Rs. 200,000 in the Post Office Monthly Income Scheme. For the next five years, he would be paid Rs. 1068 every month in interest. On completion of the term, he will receive his deposit back. The money collected on a monthly basis can also be put into post office recurring deposits.
By aggregating the balances in all of the accounts, investors can invest up to Rs. 4.5 lakh in various accounts. All holders of joint accounts will have equal shares. Continuing with the previous example, Mr. Suresh might open a joint account with his wife for a maximum of Rs. 2.5 lakh.
The monthly income scheme from the Post Office also provides liquidity by allowing investors to withdraw their money after a year. However, if the deposit is removed between 1 and 3 years, a penalty of 2% will be applied to the deposit, and a penalty of 1% will be applied to withdrawals after 3 years.

Post Office Recurring Deposit

The Post Office RD is essentially a monthly investment with a 5.8% annual interest rate for a fixed period of 5 years (compounded quarterly).
A five-year fixed-term RD account with a monthly investment of Rs. 10,000 will yield Rs. 3,256.48 at the end of the five-year period.
Small investors benefit from Post Account RD since it allows them to invest as little as Rs.100 per month and any amount in multiples of Rs.10. There is no limit to the amount of money that can be invested.
Two adult adults can also open a joint account. It is also possible to open an account in the name of a minor. It is also possible to create multiple accounts.
If you skip a monthly investment, you will be charged a default cost of 1 rupee every 100 rupees.
After a year, the account offers flexibility by permitting a partial withdrawal of up to 50% of the value.

Interest from the post office RD is not subject to TDS. Investors’ income, on the other hand, is taxed according to their tax bracket. It’s one of the greatest investment options for anyone searching for a risk-free way to put money aside every month in a regular manner.

Post Office Time Deposit

For investment, post office time deposits come with a variety of tenure possibilities. The current applicable interest rate is as follows:
A minimum investment of Rs. 1000 is required. There is no limit to what you can do. There is no limit to the number of accounts a person can have.
Accounts can be opened in either a single holding pattern or in a shared holding pattern. It is also permissible to invest in the name of a minor.
Accounts can be transferred across India from one post office branch to another.
Once a time deposit has reached maturity, it will automatically renew for the same term at the current interest rate on the maturity date.
The investment in a 5-year post office time deposit qualifies for a tax break. The investment is eligible for a deduction under Section 80C of the Internal Revenue Code of 1961.

Kisan Vikas Patra (KVP)

The interest rate on Kisan Vikas Patra is 6.9% compounded annually. It is available for purchase at any post office.
The investment has a Rs.1,000 minimum and no maximum restriction, and it can be made in multiples of 100.
The certificate is somewhat liquid due to the fact that it can be redeemed after 2.5 years of investment.

The principle amount invested is not tax deductible, and interest on the KVP is also taxable. As a result, the Kisan Vikas Patra scheme is not tax-efficient. It is designed for new and small investors who live in rural areas and do not have access to other financial products.

Senior Citizen’s Savings Scheme

In order to participate in the Senior Citizen Savings Scheme, you must be at least 60 years old (SCSS). This account can be opened within a month of receiving retirement benefits by someone who has opted voluntary retirement after the age of 55. In such instances, the amount invested should not exceed the value of the retirement fund.
The maximum investment limit per individual is Rs. 15 lakhs (total balances in all accounts). The amount of money invested can be in multiples of Rs.1000.
A person can have many accounts in his or her name or in joint ownership with his or her spouse.
The current interest rate is 7.4 percent per year, payable on the first business day of each quarter. The deposit has a 5-year maturity period. For example, if you deposit Rs. 12 lakh in this scheme today, you will receive Rs. 94,800 in quarterly interest.
Premature withdrawals of deposits are permitted in the Senior Citizen Savings Scheme at any time after the account is opened, however there are penalties. Before the account has been open for two years, a penalty of 1.5 percent of the deposit amount is imposed. After two years of deposit, a penalty of 1% is imposed.
Investments qualify for a tax deduction under Section 80C of the Internal Revenue Code. If the amount of interest paid in a year exceeds Rs.10,000, the tax will be deducted at source.

Public Provident Fund (PPF)

PPF is a long-term investment with a 15-year term and a current interest rate of 7.1 percent per year (compounded yearly). In a financial year, the maximum sum available under this scheme is Rs.1,50,000. Furthermore, the deposit qualifies for an income tax deduction under Section 80C of the Internal Revenue Code.

In a financial year, investments with a minimum of Rs. 500 and a maximum of Rs. 1.5 lakhs are permitted. Investing can be done in a flat sum or over time.
By aggregating the balances of all your accounts, you can invest in the name of a minor without exceeding your maximum investment limit.
After completing the 15-year period, the maturity period might be extended for another 5 years. You can keep increasing your maturity in five-year increments indefinitely.
PPF is a long-term investment plan that allows for early withdrawal only after 5 years from the date of account opening and only for serious illnesses or higher education. Partially withdrawing from a PPF account is also possible after 5 years from the end of the year in which the account was opened.
From the second financial year to the fifth year after account opening, investors can take out a loan.
Section 80C of the Income Tax Act allows for a tax deduction for contributions to a PPF account. It also provides a tax-efficient return due to the fact that its interest is tax-free. PPF interest, on the other hand, must be reported on your income tax return.

It’s a good strategy for investors who desire a tax break as well as the security of their principle and tax-free returns.

National Savings Certificate (NSC)

The NSC has a 5-year maturity period. The NSC interest rate is 6.8% per year, compounded half-yearly and due at maturity. That means a Rs. 100,000 investment will generate Rs. 1,38,949 after 5 years.
There is no maximum investment restriction, and a minimum investment of Rs.1000 is required. Investing in denominations of Rs.100, Rs.500, Rs.1,000, Rs.5,000, and Rs.10,000 is possible.
The NSC Certificate can be obtained in a single holding, joint holding (up to 3 adults), by a guardian on behalf of a minor/person of unsound mind, or in the name of a minor over 10 years.
NSC investments are tax deductible under Section 80C of the Internal Revenue Code. Except for interest in the final year of the NSC, interest on NSC is presumed to be reinvested and hence tax deductible under Section 80 C.
Transferable certificates are available. During the investment period, only one transfer from one person to another is permitted.

For long-term and traditional investors with no risk appetite, NSC is a risk-free and tax-efficient savings plan.

Sukanya Samriddhi Scheme

Sukanya Samriddhi Yojana (SSY) is a scheme that was created to help girls. It now has a great yearly interest rate of 7.6% compounded annually.
In a financial year, you can invest as little as Rs.1000 and as much as Rs.1,50,000. From the date of account opening, you must invest at least the required amount every year for 15 years. Following that, the account will continue to receive interest until it reaches maturity.
Investments in the Sukanya Samridhhi Account are tax deductible up to Rs 1.5 lakh per year under Section 80 C. The interest earned on the Sukanya Samriddhi Account is tax-free, as is the maturity sum.
The investment will mature after 21 years from the date of account opening or upon the marriage of the female child after she has reached the age of 18. If the girl kid becomes an NRI or loses her Indian citizenship, the account must be cancelled.
Only the parents or legal guardians of a girl child can register a Sukanya Samriddhi account in her name. On the day the account is opened, the girl must be 10 years old or younger.
Multiple accounts in the name of a single girl kid are not permitted. A parent or guardian can open a maximum of two accounts in the names of their two daughters.
If the minimum amount is not deposited in a financial year, a penalty of Rs.50 will be imposed.
Only a girl kid can close her eyes prematurely when she reaches the age of majority, which is 18 years, for the purpose of marriage or higher education.
After reaching the age of 18, a girl can request a partial withdrawal (up to 50% of the balance).
Section 80C of the Income Tax Act allows parents and guardians to claim a tax deduction for the amount invested. The girl child receives the maturity revenues, which are tax-free in her hands.

The SSY initiative has gained a lot of traction, particularly in rural India. It’s a good way to give the next generation of women in the country financial security.

Learn everything there is to know about the Sukanya Samriddhi Yojana (SSY) including the interest rate, benefits, and tax rules.

Is Fd superior to NSC?

Both the NSC and the FD instruments have benefits and drawbacks. NSC offers a number of advantages over fixed deposits, including lesser risks and greater interest rates. The reason for this is that TDS is taken from FD interest. Even though FDs offer a little higher interest rate, post-tax returns may be lower due to TDS deduction. As a result, while comparing these two tax-saving instruments, it’s important to evaluate the interest yielded on maturity on FDs and NSCs, not just the interest rate.

If the investor is over the age of 65 and earns less than the taxable limit, they can get a higher interest rate (banks provide preferential interest rates for senior citizens). They can also submit Form 15H or 15G to avoid paying TDS. As a result, if these forms are submitted to avoid TDS, these two saving instruments will mature at the same time. In addition, additional aspects such as interest rate, compounding frequency, and so on must be considered.

When choosing the right investment vehicle, an investor must consider all of the aspects. Furthermore, keep in mind that interest gained on NSCs and FDs is accrued rather than paid out. As a result, these programs should only be considered by those who do not require a steady income.

In a larger sense, because NSC is illiquid, it can be used for long-term goals such as retirement benefits in old life. FDs, on the other hand, might be useful in terms of liquidity because they can be broken whenever money is needed. As a result, one should select an investment vehicle based on their financial goals, time horizon, and risk tolerance.