The National Savings Certificate (NSC) scheme launched by the post office is a safe and tremendous return scheme, which is mainly popular among the middle class and small investors.
The government gives the benefit of 7.7% annual interest under this scheme and investing for 5 years in this scheme gives a great return.
If you invest ₹ 6.50 lakh in Post Office NSC, it takes the form of about ₹ 9,41,872. Let’s know all the important information related to this scheme and the calculation of the investment that remains till the end.
NSC Scheme- Safe and profitable investment
The National Savings Certificate Scheme of the post office is one of the major savings schemes of the Indian Post Office.
It is mainly designed for those citizens who want to invest with low risk. The money invested under this scheme is in government security and does not involve any kind of risk.
This scheme is mainly designed keeping in mind the middle-class and lower-class citizen investors, which provides great interest along with long-term savings.
Under the National Certificate Savings Scheme, you can start investing with a minimum of ₹ 1,000 and many benefits are also available under this scheme, such as income tax benefits up to ₹ 1.5 lakh under 80C.
Calculation of interest rate and return
If its interest rate is calculated, then currently the government is giving the benefit of a 7.7% interest rate in the post office NSC scheme and this interest rate keeps getting added in the form of compound interest on the amount invested for 5 years.
In this way, interest gets added to the deposit amount every year and the benefit of interest is received next year and your invested money also increases by getting interest on the increase.
Return on investment of ₹6.50 lakh
If a citizen completes an investment of ₹6.50 lakh in the NSC scheme, he gets an amount of around ₹9,41,872 after the completion of 5 years of maturity and if calculated, it is something like this.
Original investment: ₹6,50,000
Annual interest rate: 7.7%
Total period: 5 years
Total amount on maturity: ₹9,41,872
Citizens investing under this scheme get an interest benefit of ₹2,91,872 and the compound interest on an investment of ₹6.50 lakh is amazing. It is a scheme that gives great returns, especially when you are looking for an option to invest your money safely.
Key Benefits of the NSC Scheme
The money invested in the NSC scheme is held in government security, making it risk-free.
Under NSC, income tax benefits up to ₹1.5 lakh are available under section 80C and it helps in reducing the tax liability.
Currently, the post office is offering an annual interest rate benefit of 7.7% and a 100% guaranteed return.
If required, you can easily transfer the NSC account from one post office to another.
How to invest
Investing under the NSC scheme is very easy and simple. First of all, you get the facility to open an account easily by visiting your nearest post office and every citizen can open an account with a single account and a joint account.
Also note that there is a facility to open an NSC account in the name of a minor as well but you have to open the account together with the guardian.
There is a facility to apply online in this scheme of the post office. You can apply online through its official website.