Overview
National Savings Certificate (NSC) A Government of India initiative, the National Savings Certificate (NSC) is a fixed-income investment scheme that you can open easily with any post office.Regular Savings Account (RSA) The Regular Savings Account can be opened at the bank’s access points and your doorstep. This account can be used to keep funds secure, withdraw cash, deposit money and perform easy remittances, besides a host of other benefits. In addition, interest can be earned on the money kept in this account and the cash withdrawals allowed in this account are unlimited.
Senior Citizen Savings Scheme (SCSS) SCSS full form is Senior Citizen Savings Scheme. It is a government-sponsored savings instrument for individuals above the age of 60. The Government of India introduced this scheme in 2004, intending to provide senior citizens with a steady and secure source of income for their post-retirement phase.
Who Should Invest in NSC?
Anyone looking for a safe investment avenue to earn a steady interest while saving on taxes can choose to invest in NSC. NSC offers guaranteed interest and complete capital protection. However, like most fixed income schemes, they cannot deliver inflation-beating returns like tax-saving mutual funds and the National Pension System.
The government has promoted the National Savings Certificate as a savings scheme for individuals. Hence, Hindu Undivided Families (HUFs) and trusts cannot invest in it. Furthermore, even non-resident Indians (NRI) cannot purchase NSC certificates. The scheme is open only for individual Indian residents.
The following are the NSC eligibility conditions that must be met in order to invest in NSCs.
- Hindu Undivided Families (HUFs), Trusts, Private and Public Limited Companies (PLCs) are not permitted to invest in NSC.
- The person must be an Indian citizen. Non-Resident Indians (NRIs) are not permitted to invest in NSC.
- There is no minimum or maximum age for purchasing a certificate.
How to invest in NSC?
Steps to Apply for NSC Online
- Step 1: Open Department of Posts (DOP) net banking and log in.
- Step 2: Under 'General Services', select 'Service Requests'.
- Step 3: Click on 'New Requests' and choose ‘NSC Account – Open an NSC Account (For NSC)’.
- Step 4: Enter the deposit amount and choose the debit account linked to the PO savings account.
- Step 5: Choose ‘Click Here’ to run through the terms and conditions. Accept them once done.
- Step 6: Enter the transaction password and click on ‘Submit’.
- Step 7: The deposit receipt will be there to view and download.
- Step 8: Login and click on 'Accounts' to view the details of your NSC account.
Steps to Invest in NSC Offline
- Step 1: Collect the NSC application form online or at any post office.
- Step 2: Fill out the form with all the details.
- Step 3: Submit the form with self-attested copies of the required KYC documents.
- Step 4: Take the original documents for verification and pay the amount you want to invest.
- Step 5: Upon approval, collect the NSC of your application.
Benefits Of NSC
How to request for a duplicate NSC?
You can seek a duplicate if your original NSC certificate is lost, stolen, destroyed, damaged, or mutilated. Simply complete and return the Duplicate Savings Certificates form to the post office that issued the NSC that needs to be replaced.
- Serial numbers, denominations, NSC issue, and other information regarding the certificate(s).
- The purchase date of the certificates.
- The objective for filing for a duplicate certificate, together with additional details, must be indicated.
Benefits Of RSA
Features of RSA
- Banking at your convenience
- Instant and paperless account opening using Aadhaar as per the applicable rules
- Easy and convenient Non-eKYC account opening
- RuPay Virtual Debit Card for online transactions
- No monthly average balance required to be maintained
- The account can be opened with zero balance
- Free monthly e-statement
- Mini statement through SMS
- Simplified banking services through QR card
- Instant fund transfer through IMPS
- Easy bill payment and recharges
- Can be linked to POSA (Post Office Savings Account)
- Send and receive money using BHIM UPI
How regular savings accounts work
Different accounts work in different ways, but with most banks and building societies:
You usually have to pay into your regular savings account every month.
You might have to make a minimum number of monthly payments – often 10 or 11 – and the account might have a fixed term of, say, one year.
With bank regular savings accounts, you’ll usually need to open a current account before qualifying for a regular savings account and your money will be moved to the current account once the limited term of the regular savings account ends.
Risk and return of regular savings accounts
At the end of the term, you’ll get back all the money you’ve paid into the account plus the accrued interest.
These accounts usually offer higher interest rates than current or instant access accounts. Some offer a fixed interest rate. With others, the rate is variable.
The interest rate might be reduced if you don’t save every month or if you need to make a withdrawal.
Rates Of RSA
| Annual Interest Rates | Frequency of payout | |
|---|---|---|
| Balance up to INR 1 Lakh – 2.00% | Quarterly | |
| Balances above INR 1 Lakh & up to INR 2 Lakh – 2.25% | ||
| (Applicable from 1st of June 2022) | ||
What is the Senior Citizen Savings Scheme (SCSS)?
A Senior Citizens’ Saving Scheme (SCSS) is a government-backed retirement benefits programme. Senior citizens resident in India can invest a lump sum in the scheme, individually or jointly, and get access to regular income along with tax benefits. It is a Post Office savings scheme. Senior citizens can open an SCSS account to get the benefits of the SCSS. They can open an account in a Post Office branch or an authorised bank.
Features of a (SCSS)
| Senior Citizen Savings Scheme (SCSS) | Particulars |
|---|---|
| Tenure | 5 years |
| Interest Rate | 8.2% p.a. |
| Minimum Investment Amount | Rs.1000 |
| Maximum Investment Amount | Rs 30,00,000 |
| Tax Benefits | Available under Section 80C upto Rs.1.5 lakh |
| Premature Closure | Available |
| Nomination Facility |
Benefits Of SCSS
Eligibility for SCSS
The following individuals can open a SCSS account with a post office or bank
- Banking at your convenience
- Easy and convenient Non-eKYC account opening
- Instant Aadhaar-based account opening, paperless and compliant
- RuPay Virtual Debit Card for online transactions
- No monthly average balance required to be maintained
- The account can be opened with zero balance
FAQs
As of today, you cannot subscribe to NSC online. You will be required to visit the nearest Post Office to fill out the NSC application form and submit it to the executive in order to open an NSC account.
The money you invest into NSC gets income tax deductions under Section 80C of the Income Tax Act, 1961.
The real term of the PPF account is 15 years, which is the minimum lock-in time for a PPF account.
Any individual above 10 years of age with valid KYC documents is eligible to open a regular savings account.
No. You are allowed to hold only one account under a particular product category.
No. You cannot open a joint regular savings account since the account can be held only under a single person’s name.
If individuals make partial withdrawals from their SCSS account after one year of account opening, then penalty charges will not apply.
Yes, the joint account facility is available only if an individual opens an account with his/her spouse.
If the deposit amount is higher than Rs. 10 Lakh, then the deposit shall be made through cheque.