Maturity value of Rs.5000 NSC post-office scheme certificate?



The advertised tax return is 8% but on my 6-year maturity certificate it is only written Rs.8005 on maturity. It was originally printed as Rs.10,005 but they have striked it and written Rs.8005. Why is it so low?
I still don’t get it. If it is 8% compunded half yearly for 6 years then it should be
5000 * (1.08)^12 = 12590
isn’t it?!!

Maturity value of Rs.5000 NSC post-office scheme certificate?
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3 Replies to “Maturity value of Rs.5000 NSC post-office scheme certificate?”

  1. NSC use to be 15% – that was 10005. Then the interest was reduced, and so instead of printing the new ones – the same are used.
    The 8005 is the correct value at 8% compounded.

    Low or high is a question that has to be seen before you buy the certificate.


  2. Rate of interest 8% compounded half yearly.
    # Rs. 1000/- grow to Rs. 1601/- in six years.

    Old Nsc rates was 12% and so it was double the invested amount. Post office is using old stationery.
    ANSWER TO
    I still don’t get it. If it is 8% compunded half yearly for 6 years then it should be
    5000 * (1.08)^12 = 12590
    isn’t it?!!

    It is 8005.16 AND NOT 12590 !






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