This post office savings scheme is an ideal option for investors who want to enjoy guaranteed returns and tax savings with low risk. This plan not only protects your capital but also allows it to grow at a steady pace.
If you’re an investor looking for safe investments, tax savings, and long-term capital growth, the Post Office National Savings Certificate (VIII Issue), also known as the NSC (VIII Version), is a viable savings scheme offered by the Indian Postal Department. This scheme offers investors the option to invest over a long period of time at a fixed interest rate, ensuring capital protection and generating good returns.
Highlights of Post Office National Savings Certificate
Investment period : 5 years
Interest rate: Fixed by the government from time to time, and paid on an annual compounding basis.
Interest payment: Interest is paid upon maturity, but tax benefits are available throughout the investment period.
Tax benefits: The invested amount is eligible for income tax exemption under Section 80C, resulting in tax savings.
Reinvestment: Interest earned can be reinvested.
Loan facility: Loans can also be availed against the invested amount.
Security: This scheme is fully government-backed, ensuring safe investment.
Account opening process: An account can be opened by visiting the nearest post office or applying online.
Deposit amount and interest rate
You can invest a minimum of ₹1,000 in the Post Office National Savings Certificate Scheme, and any amount you wish thereafter in multiples of 10. This means there is no maximum investment limit in this scheme.
A deposit of ₹4,00,000 will yield a return of ₹1,79,613.52
If you deposit ₹400,000 in the Post Office National Savings Certificate Savings Scheme, then after five years from the date of deposit, according to calculations, you will receive a return of ₹179,613.52 in interest at a rate of 7.7 percent. That’s guaranteed. Therefore, after five years, you will have a total corpus of ₹579,613.52.
