New Delhi: Investing in the post office is considered completely safe, with no risk of losing even a single rupee. Most people consider investing in these schemes. If you’re looking for a scheme for your future, don’t delay. Investing in a post office scheme can build a substantial corpus. You’ve likely heard of the Post Office’s National Savings Certificate Scheme.
Everyone, young and old, can join this scheme and invest. You can build a corpus of up to Rs 22 lakh in 5 years. Investing in the National Savings Certificate Scheme can earn higher returns than bank fixed deposits. Most importantly, you can also save significant taxes. If you’re planning to invest in a post office scheme, here are some important things to know first.
What is the National Savings Certificate Scheme?
Most importantly, any Indian citizen can open an account under the National Savings Certificate Scheme. Investments can also be made in the name of a child. If your child is 10 years old, their account will be opened by their parents. Overall, a 10-year-old child can operate their account on their own. Upon reaching adulthood, they gain full responsibility for the account. An 18-year-old can also invest in the National Savings Certificate Scheme on their own or on behalf of a minor. Importantly, a joint account can also be opened under this scheme in the name of three adults.
Investment Limits in the Scheme
Investments in the National Savings Certificate Scheme can begin with a total of Rs 500. There is no maximum investment limit. Furthermore, if you are taking a loan from a bank, you can also use NSCs as security. There are three types of investments available in this scheme: single, joint A type, and joint B type.
You cannot transfer your National Savings Certificate Scheme for one year. The scheme also provides for transfer in the event of the investor’s sudden death. If the scheme is being transferred to a minor, a parent’s signature is required. Currently, this scheme offers 7.7% interest. If you plan to withdraw your investment after the lock-in period, you’ll have to wait 5 years.
How to create a fund worth 22 lakhs
You’ll need to invest Rs 15 lakh in a National Savings Certificate. The scheme offers investors annual compounding interest at 7.7%. The tenure of the National Savings Certificate is 5 years, meaning you can’t withdraw the money before 5 years. After 5 years, you’ll receive a profit of Rs 21,73,551. After 15 years, the investment will yield interest of Rs 6,73,551.