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Great returns and safe investment… These two things create the most turmoil in the minds of those investors who invest by saving their hard-earned money. If you are also planning to invest, then in this regard, post office savings schemes can be the right option. The government is running schemes for every age group through the post office and one of these special schemes is the National Savings Certificate i.e. NSC, in this scheme not only does one get a great interest of more than 7 percent but investors can also save tax. Let us know about it in detail…
Popularity increased due to better interest rates
National Savings Scheme or National Savings Certificate (NSC) is one of the most popular small savings schemes of the post office due to its returns and benefits. This is the reason why the number of people investing in it is constantly increasing. Talking about the interest received by the investor opening an NSC account, it is currently 7.7 percent. Under the scheme, this interest rate is given on the basis of compounding. In this, the interest amount is transferred to the account only after 5 years of investment.
Higher interest than bank FD
Actually, the interest rate being given in this government scheme is usually higher than the interest received on fixed deposits (FD) in the bank. Most banks are giving interest rates of around 7 to 7.5 percent on FD. The interest rates of National Savings Certificate and other Post Office Small Savings Schemes are revised every three months. The government itself guarantees the safety of the investment made in it.
You have to invest for 5 years
It is important to note here that if you want to take full advantage of the interest being given, then you will have to keep your investment in this post office scheme till the lock-in-period, for as long as it takes you will get the full interest. A lock-in period of 5 years has been fixed in NSC. In other words, if you open an account in this savings scheme and close it after running it for a year, then you will only get back the amount you invested, not a single penny of interest.
You will get a tax exemption of Rs 1.5 lakh
The post office gives a return of 7.7 percent on whatever money you invest in the National Savings Certificate. So the second big advantage of investing in this scheme is that the invested amount also gets the benefit of tax exemption under Section 80C of the Income Tax Act. By investing in NSC, you can save tax by claiming tax exemption on a maximum of Rs 1.5 lakh in a financial year.
Open an account online or offline
The NSC scheme also provides the facility to open an account in the name of children. According to the rules, the account opened in the name of a child below 10 years of age is operated by his parents, while after completing 10 years of age, the child can take control of it. In this government scheme, you can open an account with a minimum deposit of just Rs 1000 and for this you can go to the nearest post office. Apart from this, the facility of online investment is also provided in it.