National Savings Certificate (NSC) is considered as one of the best savings instruments to secure a financially stable future. National Savings Certificate VIII Issue is an excellent scheme wherein not only initial deposit but also the accrued interest for the first 4 years enjoys the benefit of Section 80C of Income Tax. Here is all you need to know about national Savings Certificate (NSC):-

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- Interest rates: As per the latest notification, National Savings Certificate will fetch 6.8% in July to September quarter

- Min. Rs 100/- and no max. limit

-Certificate shall be issued on Passbook or exclusive e-mode

-A single holder type certificate can be purchased by an adult for himself or on behalf of a minor

-Joint 'A' Type certificate may be issued to two adults payable to both the holders jointly or to the survivor

-Joint 'B' Type certificate may be issued to two adults payable to either of the survivor

-Rate of interest is notified by the government from time to time on quarterly basis and is calculated on half yearly compounded basis

-Current Rate of Interest Payable and maturity value

-Loan facility available by pledging with the banks

-The deposits as well as interest accruing annually but deemed to have been reinvested qualify for deduction u/s 80-C of I.T. Act

-Interest accrual on investment of Rs 100/- and in proportion for other denominations, on yearly basis for income tax purpose

Noteworthy, Non Resident Indians are not eligible to purchase the National Savings Certificates. Provided that if a resident who subsequently becomes Non Resident Indian during the currency of maturity period, shall be allowed to avail the benefits of the certificates on maturity on a Non Repatriation Basis.