National Saving Certificate: This is one of the post office’s most popular schemes because it provides investors with substantial returns quickly. The fact that there is no maximum investment limit distinguishes this scheme. It is also resistant to market risk and capable of providing substantial profits to customers.
What exactly is the National Savings Certificate Scheme (NSCS)?
The National Savings Certificate is one of the most well-known post office schemes (NSC). Under this scheme, a certificate equal to the investor’s investment can be purchased from the post office. This is a small postal savings programme. You can invest in it based on your needs. This scheme requires a minimum investment of Rs 1,000. At the same time, there is no maximum investment limit.
Details about the scheme’s interest rate and investment period:
The Post Office offers customers a 6.8 percent interest rate on National Savings Certificates. Remember that this interest is calculated on a compounding basis. You can invest in this plan for a maximum of five years. Keep in mind that a person who invests Rs 1,000 in this scheme will receive a return of Rs 1,340 after 5 years. The scheme should only be invested in multiples of Rs. 100.
- You can open a single or joint account in the NSC plan.
- Two or three people can open a joint account at the same time.
- Parental supervision is in place for a 10-year-old child’s account until the child reaches the age of 18.
- By investing in this scheme, you can receive a tax rebate of Rs. 1.5 lakh under Section 80C of the Income Tax Act.
Know about the return amount of investment
An investor who invests Rs. 10 lakh in this scheme after five years will receive a return of Rs. 13.40 lakh. You will receive Rs 3.40 lakh in interest from this scheme in just 5 years. To take advantage of this scheme, you can open this account at any nearby post office.
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