Like banks, many types of schemes are run in post office also. One of these schemes is National Savings Certificate (NSC). This scheme has been specially designed for those people who want guaranteed high interest along with safe investment. NSC is like a kind of deposit scheme in which better interest can be availed by depositing money for 5 years. At present, interest is being given on this scheme of post office at the rate of 7.7%. Know the benefits of NSC and calculation of interest on deposit amount of Rs 10 lakh.
You can start investing from Rs 1000
Investment in NSC can be started from a minimum of Rs 1000 and no limit has been set for maximum investment. That means you can invest any maximum amount in it. Any citizen can open an account in this. There is also the facility of joint account. Two to three people can open a joint account. Parents or guardians can invest in the name of the minor, while children up to 10 years of age can buy NSC in their name. You can also open multiple NSC accounts simultaneously.
The scheme matures after 5 years
One advantage of NSC is that you do not have to deposit money for a very long time. This scheme matures in just 5 years. Interest is compounded on annual basis and guaranteed returns are available. The interest rate for 5 years is calculated according to the interest rate applicable at the time of your investment. Even if the interest rate changes in the meantime, it does not affect your account. Tax exemption is available on the deposited amount under Section 80C, that is, tax exemption can be availed on deposits up to Rs 1.50 lakh every year.
No partial withdrawal facility
Unlike other schemes, there cannot be any partial withdrawal in this. Meaning, you will get the entire amount at once only after 5 years. At the same time, premature closure can also be done only in special situations like-
- On the death of any or all the account holders in a single account or joint account
- On seizure by the mortgagee being a Gazetted Officer.
- On the orders of the court.
How much will you get if you deposit 10 lakhs
If you invest Rs 10 lakh for National Savings Certificate, then at the interest rate of 7.7, you will get Rs 4,49,034 only as interest, which is approximately Rs 4.5 lakh. In such a situation, after 5 years you will get the total amount of Rs 14,49,034. If you also want to invest in this scheme, then you can avail its benefits in any post office of the country.
