national savings certificate

National Savings Certificate

An investment vehicle in India whereby one is able to gather savings tax-free. The interest on a national savings certificate is taxable but is considered to have been reinvested and is therefore not actually taxed. Additionally, one receives an income tax rebate for the amount one invests in a national savings certificate. Interest on national savings certificates compounds twice a year. Middle class families in India commonly use national savings certificates as a way to save and invest. They are available for purchase at every post office. See also: Certificate of deposit.

national savings certificate

a FINANCIAL SECURITY issued by the UK government as a means of raising money for the government and encouraging private SAVING. National Savings Certificates are issued in small denominations through post offices and banks; holders receive interest on them which is free of income tax, but the number held by any one person is limited to (currently) 20,000.
References in periodicals archive ?
A finance ministry notification also showed that the interest rates have been slashed for the five year National Savings Certificate to 7.
9 per cent, the same as 5-year National Savings Certificate.
The interest rate on other small savings schemes, namely, Kisan Vikas Patra, Senior Citizen Savings Scheme and National Savings Certificate, is also cut by 10 basis points ( 100 basis points is equal to one per cent).
ELIGIBLE FOR DEDUCTION UNDER SECTION 80C SMALL SAVINGS SCHEMES: These include Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Schemes (SCSS) and five-year post-office deposits.
The rate of interest for the third quarter for 5-Year Senior Citizens Savings Scheme and 5-Year National Savings Certificate has been reduced to 8.
A National Savings Certificate with insurance cover will also be launched to provide additional benefits for the small saver.
Also, the interest earned on your investment in the National Savings Certificate (NSC) is not exempt from tax, which brings down your effective rate of return.
Q: I HAVE a National Savings Certificate book that my grandfather started for me in 1966.
The compounding of interest which is bi-annual in the case of 10 year National Savings Certificate (discontinued since 20.
NEW DELHI -- The government on announced a 20-50 basis point increase in interest rate on small savings schemes such as public provident funds, post office deposits and National Savings Certificate (100 basis points equal one percentage point).
The Budget has also announced a National Savings Certificate with insurance cover to provide additional benefit to small investors.
The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) has been reduced from 6 years to 5 years.

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