Post Office NSC Scheme: This scheme of the post office is offering more than 7 percent interest and along with this, the benefit of tax exemption is also being given under Section 80C of the Income Tax Act.
Everyone wants to save some of their earnings and invest it in a place where their money is safe and the returns are also great. If you are also planning to invest thinking this, then in this regard, Post Office Saving Schemes can prove to be the right option.
Saving schemes are being run by the government for every age group through the post office and one of these special schemes is the National Savings Certificate i.e. NSC, by investing in this scheme, you can get the benefit of Rs 5 lakh in just five years. Let us know about it in detail…
7.7% interest is being offered in the scheme
Post Office’s National Savings Scheme or National Savings Certificate Scheme (NSC Scheme) is one of the most popular small savings schemes due to its returns and benefits. NSC Account can be opened in any post office of the country with a minimum investment of Rs 1,000. In this, interest is being given at an annual rate of 7.7 percent on investment and under the scheme this interest rate is offered on the basis of compounding. In this, the interest amount is transferred to the account only after 5 years of investment. Every three months, the interest rates of other post office small savings schemes including NSC are revised. The special thing is that the government itself guarantees security on investment in these schemes.
Tax benefits too
NSC account holders get strong interest as well as tax benefits of Section 80C of the Income Tax Act, which makes this Post Office Scheme even more popular. This is the reason why the number of people investing in it is constantly increasing. By investing in National Savings Certificate, you can save tax on a maximum of Rs 1.5 lakh in a financial year while claiming tax exemption. There is no maximum limit of investment in this, that is, you can invest as much as you want.
5 years lock-in period
If you want to take full advantage of the interest being offered in this government scheme, then you will have to keep your investment going till the lock-in-period, only then you will be paid the full interest. NSC has a lock-in period of 5 years. In other words, if you open an account in this savings scheme and close it after running it for one year, then you will only get the amount invested by you back, not a single penny of interest will be given.
In such a situation, it is necessary to operate it for the entire five years. Apart from this, the facility of opening an account in the name of children is also given in the NSC scheme. Under the rules, the account opened in the name of a child below 10 years of age is operated by his parents. You can go to the nearest post office. Apart from this, the facility of online investment is also given in it.
Calculation of 5 lakhs in five years
Now let us tell you how you can earn five lakh rupees within just five years. So let us tell you that the NSC Scheme Interest Rate is 7.7% and in this, if an investor invests Rs 11,00,000 at once for five years. In such a situation, with compounding interest, you will get Rs 15,93,937 on maturity. According to the interest rate, you will get a total interest of Rs 4,93,937 in these five years. At the same time, you can get more benefit by increasing the investment.
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