Post Office Scheme- Want to invest on something for better future? Then todays article is made for you. If you want to grow your money without any risk, then the National Savings Certificate (NSC) scheme of the post office is a great option for you. This is a government-guaranteed scheme, which matures in 5 years.
If you have retirement money, funds received from selling land or a large lump sum, then you can earn good interest by investing it in NSC. The return in this is fixed and your money is completely safe. You can open an account by just going to the nearest post office and submitting KYC and necessary documents.
Who can invest?
Any person can invest in this scheme. You can open an account alone or if you want, you can also open a joint account. In which a maximum of 3 adults can join. Children of 10 years or above can also open their own account. If the child is young or a person is mentally ill, then his guardian can open an account in his name. If you want, you can make any member of the family a nominee. You can open as many accounts as you want in this scheme.
The minimum investment is just Rs 1,000 and there is no limit on the maximum amount. Invest as much as you want. The best part is that the investment made in it comes under the purview of tax exemption under Section 80C of the Income Tax Act. You can invest up to Rs 1.5 lakh tax free in a year.
How much return will you get?
Currently, this scheme gives 7.7% interest per annum, which keeps increasing with compounding. The interest amount is received only after completion of 5 years. The interest for the first 4 years is reinvested, on which tax exemption is available, but the interest for the 5th year is taxable.
If you ever need money, you can take a loan by pledging your NSC in a bank or NBFC. This way you will not have to break your savings and you will also be able to arrange for money. However, the account cannot be closed before 5 years, except in certain situations like the death of the investor or in case of a court order.
Beneficial for both husband and wife
If both husband and wife are employed, then they can get more benefits by opening a joint account. Suppose both of you invest Rs 9 lakh together, then after 5 years you will get around Rs 13,04,130. Out of this, Rs 4,04,130 will be in the form of interest. Overall, this scheme is right for those who want safe returns with government guarantee at low risk. Post Office NSC not only grows money but also helps in saving tax.