In this video, we discuss, key features of National Savings Certificate or NSC
Edited highlights
0:10 In this video, we discuss, key features of National Savings Certificate or NSC
2:47 NSC can be bought from a post office
2:51 Currently, NSC has a maturity period of 5 years
3:08 It is a debt instrument with a fixed interest rate. NSC interest rates are typically higher than bank FDs of 5 years
3:29 NSC gets annual tax deduction under Section 80C of upto Rs 1.5 lakh
4:11 You receive a certificate of your investment
4:23 You can endorse it in any other person's name. One can also take a loan against NSC
4:42 Interest earned from an NSC also qualifies for Section 80C tax deduction
6:15 NSC maturity proceeds after 5 years are taxable
6:42 Remember, unlike NSC, maturity proceeds of PPF are tax free
7:10 Tax deductions for contribution, interest and maturity actually provide you with a higher effective interest rate
7:42 In NSC, the interest is calculated twice in a year. So, if PPF and NSC have the same interest rate, NSC is likely to have a higher yield
7:58 In PPF the compounding of the interest happens annually
8:41 Unlike NSC where the interest rate remains the same, in PPF the interest rate is periodically revised since they are linked to government securities
9:40 Unlike bank FDs, there is no deduction of 10% TDS or tax deducted at source for NSC
9:57 Remember, also provide notified FDs or tax saving FDs that qualify for Section 80C tax deduction
