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NSC vs SSY: Comparing Investment Schemes

Compare NSC and SSY investment schemes to find the best savings option for secure and profitable returns.

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NSC vs SSY: Comparing Investment Schemes

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  1. NSCvs SSY:ComparingInvestment Schemes Whenitcomestomakinginvestments,whosereturnswill helptosecure your financialfuture, people generallyopt for governmentinvestment policiesbecausetheyaresafe.Outoftheseavailableinstruments, theNationalSavingsCertificate(NSC)andSukanyaSamriddhiYojana (SSY)are the most commonlypreferred instruments for the girl child. However,whichoftheoptionsoffersmorebenefits? NSCis a safe, fixed-income,long-term,taxableand government- backedinstrument of saving,floated by the Governmentof India.Itis the safest form of investment since some of the cashis guaranteedto be recoveredandinaddition,onegetsextracoins.Manyfinancialfirms willsportanonlineNSCcalculatorwhereyoucanputyourdatatofind out the amount of moneythat youwill receiveon your investment dependingon thecurrentprevailinginterestrates. Whiletheotherschemeisasmallsavingsschemewhich is particularlymeantandtargetedfor thegirl child of the country,the SSYis an initiative. It makes parentsand legal guardianssave for her education and wedded blessingson herexpulsion from childhood.You wantto know how much it concerns the moneythat you have invested, with thehelp of the SukanyaSamriddhiYojana calculator, youcan have anideaaboutthevalue. Let'scomparethesetwoschemesbasedonsomekeyfactors: 1.Eligibility: Althoughthe NSC is allowed to all the residingpeople of India,the SSY is available only for Girl children up to the age of 10 years. Therefore, if youareafatheror haveadaughter,theSSYwillbehelpfulto youotherwise;youcanchoosetheNSC.

  2. InvestmentPeriod: TheNSC comeswith a maturity period of 5 or 10 yearswhilethe SSY comeswithaninvestmenttenureof21yearsfromthedateofopeningof theaccountorfromthedatewhenthegirlchildturns21 years ofagewhicheverisearlier. InterestRates: Both theseschemesaregoodfromtheinterestratespointofviewbutthe presentinterestrate of SSYis betterthan the NSC. Nevertheless,it shouldbeunderstoodthattheinterestratesfluctuateovertime. TaxBenefits: While the NSCcomes underSection 80C of the IncomeTax Act,the SSYalso falls underthesame section, which makesboth of them preferablyinvestedfortax-savingpurposes. Liquidity: TheNSCallowsearlyencashmentafteronlythreeyears,thoughthereis also an associated cost to it. TheSSYhasrigid rules regarding withdrawalandoffersonlypartialwithdrawalsinspecific circumstances. InvestmentLimits: TheredoesnotseemtobeanyinvestmentlimitsintheNSCwhileinthe caseofSSY,corporatescaninvestuptoRs1.5lakhs. Transferability: TheNSC can be transferredto legal heirsor nomineesasearly as possible;theSSYaccountcannotbetransferredorclosedbeforethegirl reachesthemajority21yearsofage. Conclusion:

  3. Inotherwords,thereisnowayof determiningthatoneissuperiortothe other in offering an adequateand accurate depictionof selection.If one is a parentwho has a daughterand wishes to preparefor herfuture, then theSSYisidealbecauseithashigherratesofreturnstaxed excepted.However,shouldyouwishtoinvestinamorediversechoice or do not own a daughter,the NSC may well bea more suitable investmentinstrument.Tools such as NSCcalculator and Sukanya SamriddhiYojana calculatorhelp to determine the return of these schemestoenhanceinvestment.

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