Kisaan Vikas Patra / National Savings Certificate

akshaya123 · Oct 2, 2009

Nsc - is it a conservative investment????

Hi all,

I have seen my father when he was in job... he used to invest in Nsc and Nss.... Now we hestitate ane tell them no papa it is a very conservative form of investment?? does it really so? or is it due to wider choice of Investment opportunities available???:bowdown

Shanvy · Oct 2, 2009

Re: Nsc - is it a conservative investment????

akshaya,

During our father's times, nsc, nss were good investments with tax rebates. today the spectrum of investments that are eligible for tax rebates have grown wider and people have more choice.

this does not mean that there is less investment in these. even today you have a lot of schemes under these. just check out the offerings through google.

hat · Oct 2, 2009

Re: Nsc - is it a conservative investment????

Hi

It is a conservative but absolutely safe investment. You could invest a small amount of your cash here and diversify the rest of your investments into shares, fds, mutual funds, etc.

SriVidya75 · Nov 26, 2009

Friends

I want to know few ideas/suggestions on this medium of investment/savings....is it really possible to exchange the certificates in a bank after the specified period? are they paying the money or giving us another set of certificates again? did anyone cash these certificates...Please share your experiences!!!

Laks09 · Nov 26, 2009

Hi SV,
Yup, I have seen my aunt saving by buying NSCs. These are not purchased from the Bank. We need to buy it from a Post Office. After the seven yrs of holding it,she would get the cash in exchange for the NSCs. Some of them, she would renew. Mom is now investing in Kisan Vikas Patras, she told me it was just like NSCs. I didn't ask her for the details. You need to be into agriculture to buy KVPs though, right?
I recently got NSCs for myself. It is a good option. So is the post office savings scheme. It is a laborious process to get it. You need to go to the PO, stand in an NSC queue, pay via check/DD get the acknowledgement and leave. You need to go back in a couple of weeks for the NSC certs(yup, again stand in the same long queue).

HTH,
L

Shanvy · Nov 26, 2009

Srividhya,

If I am not mistaken, they are for Indian residents. an nri cannot purchase.

the flexibility of these certificates is good.

you can buy it in a x branch, and continue it in a y branch and encash it at z.

you can transfer the certificate to another person before maturity.

you can encash it only on maturity (after 6 years and the roi is around 8%). (exception it only if there is a death of the holder)

you can invest a maximum of 70k.

Kisan vikas patra (KVP)

you can invest if you are a resident indian.

KVP is suitable for an increase in investment as it accumulates money at a fixed rate, and money doubles at the end of the specified period good for people who are risk averse but looking for guaranteed returns.right now the time period is 8 years 7 months and the rate of interest (ROI) is higher than NSC. 8.25%(?)

There is no limit.

these too can be purchased at any of the post office.

Shanvy · Nov 26, 2009

Laks,

The post office near my place has this very nice gentleman, when i went to him to find out details, he gave me the form with all the x marked for signature. infact he was willing to fill the form and do all the needful...:thumbsup to the guy.

Look out for a remote branch to open, and collect the certificate and then continue in the local.

I think some of the online trading facilities allow investments in NSC. I remember reading about it.:idea:idea

SriVidya75 · Nov 26, 2009

Laks09 said: ↑

Hi SV,
You need to be into agriculture to buy KVPs though, right?
HTH,
L
Click to expand...

Laks

I didnt knew this point about KVP!!! I thought anyone can buy it

SriVidya75 · Nov 26, 2009

Shanvy said: ↑

Srividhya,

If I am not mistaken, they are for Indian residents. an nri cannot purchase.
Click to expand...

Hello Shanti

Thank you for the information...I have found out the information about these on a website however, I was wondering do they really cash out the certificates.

So If we are NRIs , can we buy the certificates jointly, with a parent/sibling who lives in India?

vijjianand · Nov 26, 2009

hi,
be careful with postoffices.make sure you have the same signature throughout the 8 years. my parents had lots of problems getting their money back. my father a retired gazetted officer and my mother a teacher, both their signatures changed a bit due to repeatedly signing many things. while claiming their money back, they had to struggle a lot to prove that it was their signature.
i think banks are best since ppl in the bank recognize you well.

regards,
viji