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 ?
Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch annual interest rate of 7.9 percent from the existing rate of 8 percent, while Kisan Vikas Patra (KVP) will yield 7.6 percent with maturity of 113 months.
The government has cut interest rates on domestic savings like Public Provident Funds (PPF), National Savings Certificate (NSC), and recurring deposits.
The National Savings Certificate schemes are one of those programmes with a relatively stable stream of return.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch annual interest rate of 8 percent as compared to existing 7.6 percent, while Kisan Vikas Patra (KVP) will yield 7.7 percent and mature in 112 months as against 118 months in the previous quarter.
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 compounding of interest which is bi-annual in the case of 10 year National Savings Certificate (discontinued since 20.12.2015), 5 year National Savings Certificate and Kisan Vikas Patra, shall be done on an annual basis from 1.4.2016.
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.
A finance ministry notification also showed that the interest rates have been slashed for the five year National Savings Certificate to 7.6 percent from 7.8 percent in the third quarter while the interest rate for Public Provident Fund Scheme has also been cut from 7.8 percent to 7.6 percent for January-March quarter.
A finance ministry notification said investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.9 per cent, the same as 5-year National Savings Certificate. Theexisting rate for these two schemes is 8 per cent.
Under Section 80C of the Income Tax Act, one can claim deduction from taxable income if one invests in Public Provident Fund ( PPF), Employee Provident Fund ( EPF), National Savings Certificate ( NSC), insurance policies, tax-saving bank fixed deposits, Senior Citizen Savings Schemes, tax-saving mutual funds and to repay home loan principal.
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 8.5 per cent and 8 per cent, respectively.

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