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National Savings Certificate: Small savings schemes of post office are quite popular among the people. The biggest advantage of investing in these schemes is that the money remains safe and the returns are also very good. National Savings Certificate (NSC) is also one such scheme.
National Savings Certificate
National Savings Certificate (NSC) is run by the government. Its interest rate is revised every quarter by the government. At present 7.7 percent interest is being given by the government on NSC. The advantage of investing in this scheme is that you get the benefit of income tax exemption along with good returns.
If a person invests up to Rs 1.5 lakh in NSC in a financial year, he can get exemption on it under Section 80C of Income Tax.
Lock-in period of 5 years
National Savings Certificate has a lock-in period of 5 years. If the ANS is closed within one year of account opening, only interest of any kind will be paid. Only the investment amount will be given.
more interest than FD
At present, the government is giving 7.7 percent interest on NPS. At the same time, the interest rate on 5 year tax saving FD in the bank is between 7 to 7.5 percent. If seen this way, tax saving FD is getting more interest than bank FD.
Can start from Rs 1000?
You can invest in NPS with a minimum of Rs 1000. There is no limit of any kind regarding maximum investment. Investment in NPS can be done both offline and online. To invest offline you have to go to your nearest post office and you can invest online through the post office website.
