Post Office NSC Scheme: This scheme of the post office offers an interest rate of more than 7% and also offers tax exemption under section 80C of the Income Tax Act.
Everyone wants to save some amount of their income and invest it in a place where their money is safe and they get great returns. If you are also planning to invest with this in mind, then Post Office Saving Schemes can prove to be the right option.
The government is running savings schemes for every age group through the post office and one of the special schemes is the National Savings Certificate (NSC). By investing in this scheme, you can get a benefit of Rs 5 lakh in just five years. Let’s know about it in detail…
The scheme is offering a great interest of 7.7%
Post Office’s National Savings Scheme or National Savings Certificate Scheme (NSC Scheme) is one of the most popular small savings schemes due to its returns and benefits. NSC Account can be opened in any post office in the country with a minimum investment of Rs 1,000. It offers an annual interest of 7.7 per cent on investment and under the scheme, this interest rate is offered on the basis of compounding. In this, the interest amount is transferred to the account only after 5 years of investment. The interest rates of NSC and other post office small savings schemes are revised every three months. The special thing is that the government itself guarantees security of investment in these schemes.
Along with strong interest, NSC account holders also
get the tax benefits of Section 80C of the Income Tax Act, which makes this Post Office Scheme even more popular. This is the reason why the number of people investing in it is constantly increasing. By investing in National Savings Certificate, you can save tax on a maximum of Rs 1.5 lakh in a financial year while claiming tax exemption. There is no maximum limit set for investment in this, that is, you can invest as much as you want.
5-year lock-in period
If you want to take full advantage of the interest offered in this government scheme, then you will have to keep your investment till the lock-in period, only then you will be paid the full interest. NSC has a lock-in period of 5 years. In other words, if you open an account in this savings scheme and close it after running it for one year, then you will only be returned the amount invested by you, not a single penny of interest.
In such a situation, it is necessary to operate it for the entire five years. Apart from this, the facility of opening an account in the name of children is also provided in the NSC scheme. As per the rules, the account opened in the name of a child below 10 years of age is operated by his parents. You can go to the nearest post office. Apart from this, the facility of online investment is also provided in it.
Calculation of 5 lakhs in five years
Now let us tell you how you can earn five lakh rupees in just five years. So let us tell you that the interest rate of NSC scheme is 7.7% and if an investor invests Rs 11,00,000 in it at one go for five years. In such a situation, with compounding interest, you will get Rs 15,93,937 on maturity. According to the interest rate, you will get a total interest of Rs 4,93,937 in these five years. At the same time, you can get more benefit by increasing the investment.
