Post Office NSC: If you are looking for a safe way to grow your savings without taking any risk, then this government scheme might interest you. National Savings Certificate (NSC) operated through post offices is a popular option for people who want guaranteed returns with tax benefits.
NSC is a savings scheme operated by the central government through post offices. It offers guaranteed returns, so you don’t have to worry about market fluctuations. For the current quarter, the interest rate has been fixed at 7.7% per annum.
This interest rate is subject to quarterly revision by the government, so that it remains competitive. Along with this, you also get tax benefits of up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act.
How much can you earn?
The appeal of NSC lies in its compounding effect. An investment of Rs 25 lakh now can grow to Rs 36.47 lakh in five years. Of this, you will earn interest of around Rs 11.47 lakh.
Easy to open
You can open an NSC account with just Rs 1,000. There is no upper limit, so you can invest as much as you want. You just need to take the basic KYC documents to your nearest post office.
If the account is opened in the name of a minor, it will mature when the minor turns 18. This flexibility helps families plan effectively for their future financial needs, providing a safe option for long-term savings.
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Use it for loans when needed
In addition to savings benefits, NSC certificates are accepted as collateral for secured loans by banks and non-banking financial companies (NBFCs). This feature adds a layer of financial security and flexibility for investors who need to access funds without compromising their savings. The ability to use NSC certificates for loans can be an important financial tool when needed.
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Who should invest?
This scheme is best for those who want safe and steady returns without any risk. It is a good choice for small to middle income families who want to grow their savings and save tax at the same time.
So, if you are looking for a safe place to invest your hard-earned money, Post Office National Savings Certificate is worth considering.
(Disclaimer: This article is for general information purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before taking any investment or financial decision. The views expressed are independent and do not reflect the official position of the India Today Group.)
Avijit
A digital media professional with 4 years of experience, skilled in online content creation, media and information work, his goal is to regularly bring updates on government projects, scholarships and jobs to his readers.
