- Date : 09/03/2023
- Read: 4 mins
The latest interest rate for National Savings Certificate (NSC) purchased on or after 1st January 2023. Learn about NSC and its benefits, how to invest in NSC, and more.
National Savings Certificate: What will be the Interest on NSC Purchased on or after January 1, 2023
National Savings Certificate (NSC) is a popular savings instrument offered by the Indian Post Office. It provides a safe and secure way for investors to save money and earn returns. The government revises the interest rate on NSC periodically, and the latest revision has taken effect from January 1, 2023.
Highlights of the NSC Interest Revision:
- NSC interest rate is revised periodically by the government
- The latest revision has taken effect from January 1, 2023
- NSC provides a safe and secure investment option
- NSC is available for purchase at any post office
- NSC interest is compounded annually
- The interest rate on NSC for the quarter ending March 31, 2023, has been set at 6.0%. This is a 0.1% increase from the previous quarter and is applicable to all NSC certificates purchased on or after January 1, 2023.
The interest on NSC has compounded annually, which means that the interest earned on the investment is added to the principal, and the investor earns interest on the interest.
Also Read: Interest Rate on National Savings Schemes
Impact of NSC Interest Revision on Investors:
The revision of the interest rate on NSC provides an excellent opportunity for investors to maximize their returns. With the current interest rate of 6.0%, NSC offers a safe and secure investment option for individuals who are looking for a fixed-return investment. Additionally, the interest earned on NSC is tax-free, and the investment is eligible for a deduction under Section 80C of the Income Tax Act. This makes NSC an attractive investment option for taxpayers who are looking to reduce their tax liability.
According to a financial advisor, Mr. XYZ, the revision of the interest rate on NSC provides a great opportunity for investors to maximize their returns. He states, "NSC is a safe and secure investment option for individuals who are looking for a fixed return investment. With the current interest rate of 6.0%, NSC offers a good return on investment, and the investment is eligible for a deduction under Section 80C of the Income Tax Act, making it an attractive option for taxpayers."
Before investing in NSC, it's essential to know the lock-in period, minimum and maximum investment, premature withdrawal process, and how to open NSC online.
- Lock-in period: NSC comes with a lock-in period of five years. During this period, the investor cannot withdraw the investment. However, if the investor wants to withdraw the investment after the lock-in period, they can do so by visiting the post office.
- Minimum and maximum investment: The minimum investment amount for NSC is Rs. 100, and there is no upper limit on investment. However, the investor can invest only in multiples of Rs. 100.
- Premature withdrawal process: In case of an emergency, the investor can withdraw the investment before the maturity period. However, premature withdrawal comes with a penalty. If the investment is withdrawn before one year, there is no interest payout. If the investment is withdrawn after one year but before three years, the investor will receive the principal amount along with a penalty of 2%. If the investment is withdrawn after three years, the investor will receive the principal amount along with the interest rate of a post office savings account.
- How to open NSC online in India: NSC can be opened online through the India Post website. The investor needs to register themselves on the website and fill the NSC application form. After filling the form, the investor needs to make the payment through internet banking. Once the payment is made, the investor will receive an electronic certificate, which can be downloaded and printed.
If you are looking for a safe and secure investment option, NSC is a great option to consider. With the current interest rate of 6.0% and the investment is eligible for a deduction under Section 80C of the Income Tax Act, NSC offers a good return on investment. You can purchase NSC certificates at any post office, and the process of opening an NSC account is straightforward and easy.