Salient Features

• Rate of interest 8.60%p.a. compounded half yearly.
• Minimum investment Rs. 500/-
• Maximum no limit.
• Certificates can be pledged as security against a loan to banks/ financial Institutions.
• A Tax saving investment under Sec 80C
• Individual or minor can apply
• Two adults, individuals, and minor through guardian can purchase.
• Companies, Trusts, Societies or any other Institutions are not eligible to purchase.
• Non-resident Indian/HUF cannot purchase.
• No premature encashment.
• Annual interest earned is deemed to be reinvested and qualifies for tax rebate for the first 5 years under section 80 C of the Income Tax Act.
• Maturity proceeds not drawn are eligible to Post Office Savings Account interest for a maximum period of two years.
• Facility of reinvestment on maturity.
• Facility of encashment of certificates through banks.
• Certificates are encashable at any Post Office in India before maturity by way of transfer to desired Post Office.
• Certificates are transferable to any Post office in India.
• Certificates are transferable from one person to another person before maturity.
• Duplicate certificate can be issued for in case the orginal one gets lost, stolen, destroyed, mutilated or defaced certificate.
• Nomination facility is available.
• Facility of purchase/payment to the holder of Power of Attorney.
• Tax Saving instrument - Rebate admissible under section 80 C of the Income Tax Act.
• Deposits are exempt from Wealth Tax.
• NSCs with a maturity of 10 years will offer a rate of interest at 8.90% p.a.
• This reduction in the term from 6 to 5 years means you would have your money locked in for lesser time. If you want to stay invested for longer, you can invest in the 10 year NSCs..