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NATIONAL SAVING CERTIFICATE


NATIONAL SAVING CERTIFICATE of India is one the oldest and most popular form of investment in India. As many people in Indian lock their hard earned money in NSC (National Saving Certificate) for long term and lock its interest too.


Earlier their was only one version of the NSC is available in this lock in period was for 6 years and rate of interest is around 8.6% and their is no partial or full payout in available before its maturity. That mean investors will get its principle plus its interest at the time of maturity only. The money was compounding on a half yearly basis. This is totally different kind of investment if we compare it with others like fix deposits , bonds, investing in stock market etc. In that we can take our money whenever we want.



But now Post Office has introduced two version of NSC (National Saving Certificate). So this gives investors wide options to choose as per their requirement and suitability. Once investors understood these two versions then its easy to choose NSC by investors. Here are the two version of NSC and how they are different from each other.



Now their are 5 years instrument and 10 year instrument. Rate of interest on 5 year NSC is 8.6% and for 10 years of NSC rate of interest is 8.9%. As both of the NSC have different lock in period, so the rate of interest is also different as per lock in period , the more the lock in the better the interest will be and min the lock in less the interest will be. So now investors will invest either for 5 years or 10 years. Other options like payment of maturity will be the same as we have discussed on the old version of NSC (6 years).



TAX BENEFIT is the major attraction of NSC (National Saving Certificate) , the amount invested in NSC is allowed as a deduction under section 80C of the income tax and this is part of the overall Rs. 1,00,000/- limit that is present. The amount that is reinvested can be added on the deduction figure which is actually benefit for investors. But the interest earned every year from NSC is actually taxable.

So NSC (National Saving Certificate) is suitable for all those investors who want to block their money for long term and looking for some tax benefits too. 

Some other features of NSC
  • Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.
  • No maximum limit for investment.
  • No Tax deduction at source.
  • Certificates can be kept as collateral security to get loan from banks.
  • Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.
  • Trust and HUF cannot invest.
Other article you might interested in reading Tips for Investing in IPO

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BANK OF INDIA on the verge of breakout above 248.50. - 12th May 2014.





  • BANK OF INDIA has for bullish head and shoulder formation.
  • Stock also trading above 20 days moving average, looks bullish
  • Close Watch stock will be facing its trend line resistance around 248.50. Once starts trading above 248.50 with volumes then can move further.
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HDIL on the verge of breakout above 82. - 12th May 2014 (Monday).




  • HDIL moving up from 2nd fibonacci retracement 
  • Stock also moving up from trend line support zone.
  • HDIL is now facing its weekly trend line resistance around 82, close watch once starts trading above 82 with volumes and sustains above, then stock looks good.


Bullish Breakout In ABB LTD Above 870. - 12th May 2014 (Monday).




  • ABB LTD moving in a bullish flag formation.
  • Stock also moving up from its 10 Weeks moving average support zone, as shown above.
  • Stock will face its strong trend line support zone around 870, close watch stock looks good once starts trading above 870 with volumes.


BGR ENERGY SYSTEMS LTD Holding strong at current levels.





  • BGR ENERGY holding strong its 1st fibonacci retracement support zone.
  • Stock Also holding above its 20 days moving average, as long as stays above BGR looks good.
  • Close watch stock will face its trendline resistance around 143.


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