Small Savings Schemes/ Postal Schemes

National Savings Certificates (NSC)
Minimum investment Rs. 500/- No maximum limit.
Rate of interest 8% compounded half yearly.
Rs. 1000/- grow to Rs. 1601/- in six years.
Two adults, Individuals, and minor through guardian can purchase.
Companies, Trusts, Societies and any other Institutions not eligible to purchase.
Non-resident Indian/HUF can not purchase.
No pre-mature encashment.
Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of 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.
Certificate can be pledged as security against a loan to banks/ Govt. Institutions.
Facility of encashment of certificates through banks.
Certificates are encashable any Post office in India before maturity by way of transfer to desired post office.
Certificates are transferable from one Post office to any Post office.
Certificates are transferable from one person to another person before maturity.
Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
Nomination facility available.
Facility of purchase/payment to the holder of Power of attorney.
Tax Saving instrument - Rebate admissible under section 80 C of Income Tax Act.
Interest income is taxable but no TDS
Deposits are exempt from Wealth tax.
Avdhoot Investment