Post Office Scheme: If you want to invest your money in a place where it is completely safe and you also get a good return, then the Post Office’s small savings schemes are an excellent option for you. Investments in these schemes are government-guaranteed, meaning your money is completely secure.
We are talking about the Post Office NSC scheme (National Savings Certificate). With a one-time investment in this scheme, you can earn lakhs of rupees just from the interest. Currently, this scheme offers an annual interest rate of 7.7%, which is compounded and transferred to your account at maturity.
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Who can invest?
Now the question arises, who can invest in this scheme? You can start investing in this scheme with just one thousand rupees. The special thing about this scheme is that there is no limit to the investment amount. The more you invest, the higher the return you will receive. An account can also be opened in the name of children. Accounts for children under 10 years of age are operated by their parents. Online investment facilities are also available.
Lock-in Period and Benefits
The lock-in period for the NSC scheme is 5 years. It is necessary to maintain the investment for the entire period to receive the full interest. If you close the account before maturity, only your principal amount will be returned, not the interest.
Tax Benefits
By investing in this scheme, you can also avail of tax benefits under Section 80C of the Income Tax Act. A maximum of ₹1.5 lakh in tax can be saved in a financial year.
How much will you earn from interest?
If you make a lump-sum investment of ₹5 lakh and maintain it for 5 years, then according to the 7.7% interest rate, you will receive a total of ₹7,24,517 at maturity. Of this, ₹2,24,517 will come solely from interest. However, if you invest ₹11,00,000, the interest earned over 5 years will be approximately ₹4,93,937.
