National Savings Certificate (NSC) Interest Rate April-June 2023: The Finance Ministry has increased the National Savings Certificate (NSC) interest rate to 7.7% for the first quarter of FY 2023-24 starting tomorrow (April 1). For the fourth quarter of FY 2022-23, the NSC interest rate was 7%.
Along with NSC, the Government has also revised the interest rates of some other small savings schemes like Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana, Kisan Vikas Patra, Post Office Fixed Deposits, Post Office Monthly Income Scheme and Post Office Recurring Deposit. There is no change in Public Provident Fund (PPF) interest rate.
National Savings Certificate offers several benefits to investors including guaranteed returns. The scheme enjoys a sovereign guarantee like Public Provident Fund.
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Like PPF and SCSS, the amount deposited in NSCs can also be claimed as a deduction under Section 80C of the Income Tax Act subject to an annual limit of Rs 1.5 lakh/year.
The deposits made in NSCs earn compound interest, providing depositors with an opportunity to grow their wealth significantly over the 5-year period for which the certificates are issued. There is no maximum deposit limit under the NSC scheme while the minimum amount required to invest in this scheme is just Rs 1000. Children above 10 years can also buy NSC in his/her own name. An individual is allowed to open any number of NSC accounts.
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You can invest in the NSC scheme through the post office. These certificates may be pledged or transferred as security, by submitting the prescribed application form at the concerned Post Office supported with an acceptance letter from the pledgee.
The National Savings Certificates mature on the completion of five years from the date of the deposit.
The Government revises interest rates for various small savings schemes on a quarterly basis. The next revision of the interest rates will happen by June 30, 2023.
The Government revises interest rates for various small savings schemes on a quarterly basis. The next revision of the interest rates will happen by June 30, 2023.