Post Office NSC Return: National Savings Certificate is a savings scheme of the post office. It is a government-backed scheme. This scheme matures in 5 years.
Post Office NSC Return: Many times we get a lump sum amount. Whether it is from selling land, received in partition, FD matured or retirement money. If you want to invest this money in a safe place, then National Savings Certificate is a good option. This is a post office scheme. The government fixes its interest rate every three months. Being a government-backed scheme, it gives guaranteed returns. You can open an account in this scheme by completing KYC in any post office and submitting the necessary documents. Let’s know about this scheme in detail.
Who can invest in Post Office NSC?
You can open a single or joint account in the National Savings Certificate Scheme of the Post Office. There can be a maximum of 3 adults in a joint account. Guardians can open an account in the name of a minor person. Guardians can also open an account in the name of a mentally deranged person. A minor who has crossed the age of 10 can open an account. Also, any number of accounts can be opened under this scheme. An investor can make any of his family members, even a minor, a nominee in this account.
How much money can be deposited in Post Office NSC?
A minimum of Rs 1000 can be deposited in the National Savings Certificate account of the post office. There is no limit on the maximum deposit. The money invested in this scheme is eligible for tax exemption under Section 80C of the Income Tax Act. Under Section 80C, an investment of up to Rs 1.5 lakh in a financial year remains tax free.
How much interest is received?
National Savings Certificate is currently offering an interest rate of 7.7 percent. This is an annual compound interest rate. Interest is paid on maturity.
You can take loan by pledging it in banks
You can also take secured loans by pledging National Saving Certificate in banks or NBFCs. With this, investors can also take loan if needed without harming their savings.
Maturity period
National Saving Certificate matures in 5 years. For the first four years, interest is reinvested annually. Tax exemption is available on this interest income. On the other hand, interest is not reinvested in the fifth year. Therefore, the interest of the fifth year is taxable. On completion of maturity, you get the full amount, which includes principal and interest. Usually this account cannot be closed before maturity. The account is closed before maturity only in exceptional cases like death of the investor or court order.
This is how you can get interest of Rs 4 lakh in 5 years
If both husband and wife are employed, then together they can invest their savings in this scheme. If both of you open a joint account in this scheme and invest Rs 9 lakh in lump sum, then you will get interest of more than Rs 4 lakh in just 5 years. On maturity, you will get a total of Rs 13,04,130 in this investment. Out of this, Rs 4,04,130 will be interest income.
Most Read Articles:
- Tax Free Income: There is no tax on these 10 types of income, see the full list here
- SBI PPF Latest interest Rate 2025: Big news! SBI gives Bumper interest on Public Provident Fund, know interest and benefits here
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
