NSC Scheme: The central and state governments operate several investment schemes. The special feature of these schemes is that they offer excellent returns without any risk. These are government-backed schemes. We are talking about the Post Office National Savings Scheme, which is currently very popular. This scheme offers investors a return of more than 7 percent. While schemes like PPF offer interest at the rate of 7.1 percent, the NSC (National Savings Certificate) scheme provides an annual interest rate of 7.7 percent.
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Learn the details of the NSC scheme
The National Savings Certificate scheme can be started at any post office in the country. This scheme is designed keeping in mind the needs of low and middle-income groups. This scheme offers tax benefits up to ₹1.5 lakh under Section 80C of the Income Tax Act. You can invest in this scheme for a period of 5 years. Currently, this scheme offers interest at the rate of 7.7 percent. Regarding investment, a minimum of ₹1000 can be invested in this scheme. There is no maximum investment limit. Also, no TDS is deducted on the NSC scheme.
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What is required for a loan?
A special feature of the NSC scheme is that it can be used as collateral to obtain loans from banks and NBFCs. This provides liquidity when needed without having to stop the investment. Investors can also nominate any family member, including minors, to receive the benefits in case of their death.
NSCs are available at post office branches and can be transferred to another branch or another person. Your investment matures in 5 years. On maturity, the entire amount, including interest, is paid to the investor.
