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Vinod Kumar Shukla

Vinod Kumar Shukla (Querist)

20 May 2011 Dear Sir/Madam,
I want to what is NSC and how the interest is calculated on it.

U S Sharma

U S Sharma (Expert)

20 May 2011 National Saving Certificate (VIII) is issued for 6 years. Premature withdrawl is not allowed.No TDS at the time of encashment.Can be purchased on Minor’s name , but an NRI is not eligible to purchase NSC.It is available in denomination of Rs100,Rs500,Rs 1000, Rs 5000 & Rs 10,000.

Accrued Interest on NSC of Rs 100
Year of Accrual If purchased on or after 1/3/2001 but before 1/3/2002 If purchased on or after 1/3/2002 but before 1/3/2003 If purchased on or after 1/3/2003
First year 9.72 9.20 8.16
Second Year 10.67 10.05 8.83
Third year 11.71 10.97 9.55
Fourth Year 12.85 11.98 10.33
Fifth Year 14.10 13.09 11.17
Sixth Year 15.47 14.29 12.08

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