Post Office Scheme: If you invest ₹15 lakh in a National Savings Certificate, you will receive over ₹6.50 lakh in interest on maturity, in addition to the investment amount. You can see the complete calculation here.
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Post Office Scheme: National Savings Certificates (NSC), Post Office Schemes: The National Savings Certificate (NSC) is a popular and reliable small savings scheme offered by the Post Office, guaranteeing excellent returns with minimal risk. If you’re looking for a stable and secure investment, this government scheme could be an excellent option. Investing in it offers returns that are significantly higher than a bank savings account, and the interest rate is comparable to many bank FD schemes.
Deposit ₹15 lakh in NSC to earn ₹6.50 lakh in interest; learn the calculation.
The current interest rate is 7.7% per annum. This interest is compounded, meaning you earn interest on interest every year. It’s important to note that interest payments are made after maturity, i.e., after 5 years. For example, if you invest ₹15 lakh in a National Savings Certificate (Post Office Savings), you will receive over ₹6.50 lakh in interest on maturity, in addition to the investment amount. You can see the full calculation here.
Deposit amount – Rs 15 lakh
Interest rate – 7.7% compounded annually
Tenure period – 5 years
Total amount at maturity – Rs 21,73,551
Interest benefit – Rs 6,73,551
So, for Rs 15 lakh, you will get a profit of approximately Rs 6.7 lakh after 5 years, which is a great return.
Who can invest NSC and how much?
You can purchase a National Savings Certificate (NSC) from any post office branch. The minimum amount required to invest is ₹100, and you can invest as much as you want. There is no maximum limit. You can open it in a single or joint account. It is also issued in the form of a passbook. Here’s an interesting point: you can also purchase NSC in the name of your minor children, making it an excellent investment option for their financial future. However, certain individuals, such as NRIs (Non-Resident Indians), HUFs (Hindu Undivided Families), companies, and trusts, are not eligible to participate in this scheme.
What is the tax status on NSC?
Investing in NSC entitles you to tax exemption under Section 80C of the Income Tax Act, but keep in mind that this exemption is only applicable on investments up to Rs 1.5 lakh. Regarding interest, the interest earned for the first four years will be reinvested to qualify for tax exemption. However, the interest earned after five years will be taxable, depending on your tax slab.
Withdrawal Facility
A key feature of NSC is that you cannot withdraw it before maturity. If the account holder dies, the situation may change, but generally, withdrawal is not available.
If you’re looking for an investment with a safe and assured return, the National Savings Certificate (NSC) could be an excellent option. It offers tax benefits, attractive interest rates, and the flexibility to invest any amount, from a minimum to a large one. So, if you’re looking for good returns without any risk, you might want to consider investing in NSC.
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