If you have a lump sum amount and want to invest it in a scheme with safe and guaranteed returns, then the Post Office’s National Savings Certificate (NSC) scheme can be a great option for you. This is a government-backed small savings scheme on which the government fixes the interest rate every three months.
Who can invest?
Any Indian citizen can open an account in NSC. You can open a single or joint account (maximum 3 adults) in it. Guardians can also open an account for a minor. You can open any number of accounts in this scheme.
How much money can I deposit?
You can invest a minimum of ₹1,000 in this scheme. There is no maximum limit on investment in this. The amount invested in NSC also qualifies for tax exemption under Section 80C. If needed, you can also take a loan by pledging this certificate in banks.
This way 9 lakh rupees will become 13 lakh
Currently, Post Office NSC is offering an annual compound interest rate of 7.7%. Its maturity period is 5 years. If you invest a lump sum of ₹9,00,000 in this scheme, then after 5 years on maturity you will get ₹13,04,130. In this way, your total interest income will be ₹4,04,130.
Scheme Details:
| Description | Amount (in ₹) |
| Investment Plan | Post Office NSC |
| Rate of Interest (Annual) | 7.7% (compounded) |
| Investment Period | 5 years |
| Lumpsum Investment | ₹9,00,000 |
| Total Amount on Maturity | ₹13,04,130 |
| Total Interest | ₹4,04,130 |
NSC is a good option for those who want a fixed and good return with low risk.
