National Savings Certificate is a government small savings scheme of India Post. It is designed for safe and assured returns. Your investment is completely protected as it is backed by the Government of India.

Investment Amount and Lock-in Period

You can start investing in NSC with a minimum of ₹1,000. There is no maximum investment limit. The lock-in period of this scheme is 5 years. Early withdrawal is possible in special cases like death of the investor.

Interest Rate and Compound Interest Benefit

Currently, NSC offers an annual interest rate of 7.7%, which is calculated on an annual compounded basis. At the end of the tenure, the principal and interest are credited to your linked savings account.

Zero Risk and Government Guarantee

The biggest advantage of NSC is that it is a zero-risk investment. Since it is backed by the Central Government, there is no possibility of losing money. It does not depend on market conditions, hence it is a reliable option.

How to earn more than ₹2 lakh in interest

If you invest ₹5,00,000 in a National Savings Certificate and hold it for a full five years, you will get the benefit of compound interest. At the end of the tenure, you can earn more than ₹2,00,000 in interest.

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