Post Office Saving Scheme: Post Office Saving Schemes get more returns than any other government scheme. Investor’s money is also completely safe. India Post has launched a total of 9 small savings schemes. One of these small savings schemes is the National Savings Certificate or NSC.
You can also deposit your money under this post office scheme. In this, not only do you get the benefit of better interest rate, but you also get government security on your deposits.
Under the National Savings Certificate, you can open your account in an amount of at least 1000 rupees or in multiples of 100 rupees. Under this, no maximum limit has been set for depositing the amount. The tax deposited under this would have been eligible for deduction under section 80C of the Income Tax Act.
Maturity Period (NSC)
Under the National Savings Certificate Scheme of the Post Office, the maturity period is 5 years. Apart from this, on the death of the account holder, it is closed even before the maturity period.
What is the interest rate (NSC Interest Rate)
Under this scheme of India Post, compound interest is given on deposits at the rate of 6.8 percent annually. If someone deposits 1000 rupees under this scheme, then after 5 years he will get 1389.49 rupees.
National Savings Certificate Benefits (NSC)
Being backed by the Government of India, this investment is almost risk-free. Here you get the most profit in the instrument. Here you can invest the maximum amount with a minimum investment of at least Rs 100. National Savings Certificate is easily available as it can be bought from any Indian post office. NSC can also be purchased in the name of a minor. Tax deduction benefit is available on annual investment up to Rs 5 lakh.
Who can open his account
Under this scheme, any Indian person whose age is more than 18 years, can open his account. In this, three persons can also open their joint account. Apart from this, the account of a minor person can also be opened by the guardian under this scheme of the post office.
NSC Tax Benefit
NSCs are primarily tax saving investments as the benefit of tax deduction is available on investments up to Rs 1.5 lakh annually under Income Tax Section 80C. However, interest earned in the 5th year will be taxed as per the existing tax slab of the investor.
