If you are an investor looking for safe investments, tax savings, and long-term capital growth, the Post Office National Savings Certificate (VIII Issue), also known as the NSC (VIII Version), is a viable savings scheme offered by the Indian Postal Department. This scheme offers investors the option to invest over a long period at a fixed interest rate, ensuring the safety of their capital and generating good returns.

Significant Features of the Post Office National Savings Certificate

Investment Period: 5 Years

Interest Rate: Fixed by the government from time to time, compounded annually.

Interest Payment: Interest is paid upon maturity, but its benefits are accrued during the investment period for tax savings.

Tax Benefits: The invested amount is eligible for income tax exemption under Section 80C, resulting in tax savings.

Reinvestment: Interest earned can be reinvested.

Loan Facility: Loans can also be availed based on the investment amount.

Security: This scheme is fully government-backed, so investments are protected.

Account Opening Process: An account can be opened by visiting the nearest post office or by applying online.

Deposit Amount and Interest Rate

You can invest a minimum of ₹1,000 in the Post Office National Savings Certificate Scheme, and any amount you wish in multiples of 10 thereafter. There is no maximum investment limit in this scheme.

A ₹4,00,000 deposit will yield a return of ₹1,79,613.52.

If you deposit ₹4,00,000 in the Post Office National Savings Certificate Savings Scheme, then after five years, as calculated, you will receive a return of ₹1,79,613.52 at an interest rate of 7.7 percent. That too, guaranteed. Therefore, after five years, you will have a total corpus of ₹5,79,613.52.

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However, there has been no change in the interest rates of many post office savings schemes including Public Provident Fund (PPF), National Savings Certificate (NSC).

Over the years, post offices have designed several small savings schemes to meet the needs of investors, mostly small towns and rural areas. At present, an interest rate of 4 per cent per annum is being offered in personal and joint post office savings accounts. Also there is no tax up to Rs 10,000 in the interest paid in a financial year.

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