The Government has raised the interest payable on National Saving Certificates to 8.7 per cent.
Accordingly, an investment of Rs 10,000 in 10-Year National Savings Certificate on December 1 this year will fetch Rs 23,435 in the year 2021. The Finance Ministry notified the new instrument on Tuesday, which will be available for investment from December 1.
According to the notification, investments in such a certificate will earn interest at an annual rate of 8.7 per cent, compounded semi-annually. The certificates will be available in the denomination of Rs 100, Rs 500, Rs 1,000, Rs 5,000 or Rs 10,000. There will be no upper limit for investment.
This Certificate can be transferred from a post office where it is registered to any other post office and it can be pledged as a security.
The Ministry decided to issue this instrument on the basis of the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF), headed by Ms Shyamala Gopinath. Notifications regarding other instruments have already been issued.