Post Office Scheme: In this scheme you can save income tax along with excellent returns

Like banks, many schemes are run in post offices also. In these schemes, investors get better interest and also get tax exemption. One of these schemes is National Savings Certificate (NSC). This scheme matures in 5 years.

Getting 7.7 percent interest

At present 7.7 percent interest is being given in NSC. Interest is calculated on an annual basis. However, the amount is paid to you on maturity. If you want to invest money in this 5 year scheme, then you should understand some rules related to it.

Withdrawal before 5 years only under these conditions

If you invest money in NSC for 5 years then you cannot withdraw it before 5 years. Nor can partial withdrawal be made in it. You will get the facility of premature withdrawal only in special circumstances like in the event of death of the account holder, in the event of death of one or all the account holders in a joint account, when a court order is issued or during the process of confiscation. , , It can be encashed only by a Gazetted Officer.

If the amount is not withdrawn even after maturity…

If NSC matures after 5 years, but you are still not able to encash it, then it does not renew automatically. In such a situation, after maturity, you are given interest on NSC like a normal savings account and that too can be given only for the next two years.

extension rule

If you want to continue NSC for next 5 years even after maturity, then you will have to apply again for it. In such a situation, it will be considered as the deposit amount of the new date and the benefit of interest on it will also be available as per the interest of the new certificate taken on that date.

How much can you invest?

You can invest in NSC with a minimum of Rs 1000 and in multiples of Rs 100 thereafter. There is no limit on maximum investment.

Who can invest

Any Indian citizen can open an NSC account. NSC can also be purchased in the name of the child on behalf of his/her parents or guardian, while a child above 10 years of age can also purchase NSC in his/her own name. Two to three people can also open a joint account.