1. What is National Saving Certificate Scheme?

The National Saving Certificate (NSC) is a fixed income investment scheme that you can open with any post office. It is a government backed saving bond, primarily used for small savings and income tax saving investments in India.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (%)
• \( 5 \) — Investment period in years

Explanation: The formula calculates the future value of an investment based on compound interest over a 5-year period.

3. Importance of National Saving Certificate

Details: NSC offers a safe and secure investment option with guaranteed returns. It also provides tax benefits under section 80C of the Income Tax Act in India.

4. Using the Calculator

Tips: Enter the principal amount in dollars and the annual interest rate in percentage. The calculator will compute the maturity amount after 5 years.

5. Frequently Asked Questions (FAQ)

Q1: What is the lock-in period for NSC?
A: The lock-in period for National Saving Certificate is 5 years.

Q2: Is NSC interest taxable?
A: The interest earned on NSC is taxable but qualifies for deduction under Section 80C of the Income Tax Act.

Q3: Can I withdraw NSC before maturity?
A: Premature withdrawal is allowed only in specific cases like death of the holder or forfeiture by a pledgee.

Q4: What is the minimum investment amount?
A: The minimum investment amount for NSC is $1 or equivalent in local currency.

Q5: Is NSC transferable?
A: Yes, NSC can be transferred from one person to another under certain conditions.