Post Office Scheme: If you want to invest for safe and guaranteed returns, then there are better options for small savings schemes of the post office. One superhit scheme of the post office is the National Savings Certificate (NSC).
The specialty of this small savings schemes is that lump sum investment has to be made in it and there is no maximum limit. As much as the investor wants, he can deposit money in this government scheme. There is also a facility to open multiple accounts in NSC. Also, tax deduction up to Rs 1.5 lakh can be availed under section 80C of income tax on deposits.
If you deposit ₹ 5 lakh, you will get ₹ 6.95 lakh
The Post Office’s National Savings Certificate (NSC) scheme is currently earning interest at the rate of 6.8 per cent per annum. According to the NSC Calculator, if a lump sum amount of Rs 5 lakh is deposited in this scheme, then a total of Rs 6,94,746 will be received on maturity after 5 years.
In this, there will be a guaranteed income of Rs 1,94,746 from interest. The compounding of interest is done on an annual basis but it is paid only on maturity. The maturity of this scheme is 5 years. Investment in National Savings Certificate (NSC) can be done from any post office where the facility of opening savings account is available.
Account can be opened with ₹ 1,000
NSC account opens with a minimum of Rs 1000. At the same time, the maximum limit of investment in this is not fixed. You can deposit in the scheme in multiples of Rs.100. Investment in this is completely safe. Market risk has no effect on it. NSC account can be opened in any post office branch across the country. Any adult can open an account. In this, apart from joint account, parents or legal guardian of children above 10 years of age can buy certificate.
Can’t withdraw in NSC before 5 years. There is an exemption only in certain circumstances. The government revises the interest received on the Small Savings Scheme after 3 months. NSC is accepted by all banks and NBFCs as collateral or security for loans. The investor can nominate any member of his family as a nominee.
