National Saving Certificate Interest Calculation: If you are a conservative investor and do not want to take market risk, then the National Saving Certificate (NSC) of the post office can be a better option. Returns are guaranteed in this small savings.
In this, you also get the benefit of tax exemption under section 80C of the Income Tax Act on investments up to Rs 1.5 lakh. Due to being a government scheme, your money here also increases according to the fixed interest, while remaining completely safe.
How much interest is getting on NSC
The interest rate on National Savings Certificate is 6.8 percent. Its maturity period is 5 years. The interest rates on NSC and other small savings are reviewed by the government every quarter.
NSC: How much will be earned from interest
The interest on NSC is compounded annually but the payment is made on the payment maturity of 5 years. If you invest Rs 5 lakh in this scheme, you will get Rs 6,94,746 on maturity at 6.8 percent interest. That is, you will get the benefit of interest of Rs 1,94,746.
For how much value can NSC buy You can buy National Savings Certificate from any branch of the post office. You can buy this certificate in denominations of Rs 100, 500, 1000, 5000 and Rs 10,000. The minimum amount for investment should be Rs 100. While there is no limit on the maximum amount.
Benefits of NSC
An amount of up to Rs 1.50 invested in NSC gets the benefit of tax exemption under section 80C of the Income Tax Act. It is getting higher interest as compared to fixed deposit. This certificate can be used as collateral. Being a government scheme, returns are guaranteed on it.
