The government has increased the National Savings Certificate interest rate for the January-March 2023 quarter to 7% from earlier 6.8%. The National Savings Certificate is a trusted saving product offered by the Indian Post Office that is well-liked by investors as a low-risk investment alternative. An NSC can be opened by an adult, a minor, or a trust. The annual compounded NSC Interest Rate for the quarter ending 31st March 2023 is 7%.
National Saving Certificate Interest Rate Hiked for Jan-Mar 2023 Quarter- Key Points
- The National Savings Certificate scheme has no maximum purchase amount, but a person can only receive benefits on investments up to 1.5 lacs.
- The Income Tax Act’s Section 80C deduction applies to the tax benefits associated with an investment in NSC.
- The government’s regularized interest rate on the National Savings Scheme l, enables an individual to generate a guaranteed return on the NSC at a rate of 7%.
- The NSCs annual fixed interest every quarter, ensuring a consistent income for the investor.
- NSC is accepted as security or collateral by banks and NBFCs for secured loans.
- The responsible post office should transfer the certificate to the bank and stamp it with a transfer stamp.
National Savings Certificate: Transfer of Account from One Individual to Another
NSC can be transferred from one person to another person with the following conditions only.
- On the death of the account holder to nominee/legal heirs.
- On the death of the account to the joint holder (s).
- On order by the court.
- On pledging of account to the specified authority.