scorecardresearchNational Savings Certificate interest rate hiked for January-March quarter; check here

National Savings Certificate interest rate hiked for January-March quarter; check here

Updated: 09 Jan 2023, 06:23 PM IST
TL;DR.
The interest rate on National Savings Certificate has been hiked to seven percent.
National Savings Certificate interest rate hiked to 7%

National Savings Certificate interest rate hiked to 7%

Risk-averse investors looking for better yields from their fixed-income instruments can now rejoice as the government has hiked the interest rate on National Savings Certificates (NSCs) to seven percent for the January-March quarter from the earlier stipulated 6.8 percent.

The NSC, a dependable savings product provided by the Indian Post Office, is popular among investors as a low-risk investment option. An adult, a minor, or a trust can open an NSC.

The government’s regularised interest rate on the National Savings Scheme allows an individual to generate a guaranteed return on the NSC. The NSC pays a quarterly fixed interest, thereby, ensuring a consistent income for the investor.

Other than the relatively high interest rate, people park money in NSC to avail of the tax benefits up to 1.5 lakh under Section 80C of the Income Tax Act, 1961. The NSC comes with a fixed maturity time of five years.

Another benefit of investing in the NSC scheme is that banks and NBFCs accept this instrument as a security or collateral from investors applying for secured loans. However, to accomplish this, the certificate should be transferred to the bank and stamped with a transfer stamp by the responsible post office.

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First Published: 09 Jan 2023, 06:23 PM IST