Government Scheme: It is completely safe to invest in small savings schemes of the government. In addition, investors get guaranteed returns in this. Tax deduction up to Rs 1.5 lakh is also available under section 80C of income tax on deposits in NSC.
Government Scheme: It is completely safe to invest in small savings schemes of the government. In addition, investors get guaranteed returns in this. If you also want a safe and guaranteed return for investment, then investing in National Savings Certificate (NSC) can be a better option. NSC account can be opened in the post office. The specialty of this post office small savings scheme is that there is no maximum investment limit. At the same time, multiple accounts can be opened in this. Tax deduction up to Rs 1.5 lakh is also available under section 80C of income tax on deposits in NSC.
How much interest is getting on NSC
The National Savings Certificate (NSC) scheme of the post office is currently getting interest at the rate of 6.8 per cent per annum. The interest is compounded on an annual basis but is paid on maturity only. The maturity of this scheme is 5 years. According to the information given on the post office website, if you invest Rs 1000 in NSC, then after the next 5 years you will get Rs 1389.49. NSC account can be opened with a minimum of Rs 1000. At the same time, there is no maximum limit for investment in this. You can make multiple deposits of Rs 100 in the scheme.
₹ 13.89 lakh will be available on ₹ 10 lakh deposit
According to the NSC calculator, if a lump sum of Rs 10 lakh is deposited in this scheme, then a total of Rs 13,89,493 will be available on maturity after 5 years. In this, there will be an income of Rs 3,89,493 from interest. Investment in National Savings Certificate (NSC) can be done from any post office where the facility of opening a savings account is available.
NSC account can be opened in post office branches across the country. Any adult can open an account. In this, apart from the joint account, the parents or legal guardian of children above the age of 10 years can buy the certificate. You cannot withdraw before 5 years in NSC. Exemption is available only in certain circumstances. The government revises the interest accrued on the Small Savings Scheme after 3 months.
Some other features of NSC
- NSC can be purchased from any Indian post office.
- NSC is accepted by all banks and NBFCs as collateral or security for loans.
- The NSC can be transferred from one person to another in the name of one person only once between its issuance and maturity date.
- An investor can make any member of his family as a nominee.
- Interest is accrued annually but payment is made only on maturity.
