There are many options for investment today, but security and fixed returns are guaranteed in very few schemes. National Savings Certificate (NSC), which is a small savings scheme of the post office, gives complete security and guaranteed returns to investors due to being backed by the government. Let us know about this scheme in detail and understand how it can be beneficial for you.
Who can invest in NSC?
Any Indian citizen can open an account in NSC. You can open a single or joint account (maximum 3 adults) in it. If someone is a minor, their guardian can open an account in their name. There is no limit on the number of accounts you can open in this scheme.
How much money can be deposited
You can deposit a minimum of ₹ 1000 in a National Savings Certificate. There is no maximum deposit limit in it. The amount invested in this scheme also gets tax exemption under Section 80C of the Income Tax Act, which makes it even more attractive. You can also take a loan by pledging this certificate in banks, which is an additional benefit.
Interest rate and maturity period
Post Office NSC is currently getting a compound interest of 7.7% per annum. This means that you also get interest on your interest, which increases your returns rapidly.
Interest Rate: 7.7% (Compound)
Investment period: 5 years
Lump sum investment: ₹9,00,000
Total amount on maturity: ₹13,04,130
Total interest income: ₹4,04,130
As you can see, the maturity period of NSC is 5 years. On completion of 5 years, you get back all your invested money with interest.
Return of ₹13 lakh on investment of ₹9 lakh
If you invest ₹9 lakh in this scheme in a lump sum, then on maturity after 5 years, you will get ₹13,04,130. This includes your interest income of ₹4,04,130. This is a great return that you get with a guarantee without any risk.
Investing in NSC is a great decision for those who want a fixed and good return while keeping their money safe.