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.
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national savings certificatea 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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson