PM Modi is a fan of this scheme of post office, he earns lakhs of rupees only from interest; Know what is the plan

Post Office National Savings Certificates: Financial security is extremely important for any emergencies in the future, so that a person does not need to run here and there for money at the time of any immediate needs. Many times, when a common man faces an emergency, he takes a loan with huge interest or by mortgaging his property. In this situation, many times they have to face huge losses. But, if you remain alert in advance, these bad times can be avoided. For this, today we are going to talk about a scheme which gives better returns even on small investments without any risk.

Almost everyone knows about the Indian Post Office, which provides opportunities to invest in various types of savings schemes. One of them is National Savings Certificate i.e. NSC Scheme. This scheme can prove to be of great use to everyone. The most interesting thing is that the Prime Minister of India Narendra Modi himself invests his own money in this scheme.

What is National Savings Certificate?

National Savings Certificate The scheme is a savings scheme run by India Post. This scheme is known not only for its security but also for its better returns. This scheme, run by the Post Office and the Government of India, is completely free from other market risks. The most special thing about this scheme is that you can start investing with a minimum of Rs 1000. At the same time, there is no limit on maximum investment. This means that anyone can invest as much money as they want according to their budget and their goals.

How much return is available on NSC?

Let us tell you that by investing in this scheme, you get annual returns at a fixed interest rate of 7.7 percent. What makes this plan most special is the compound formula. This means that the investment amount increased by interest earned on your investment again gets interest at the rate of 7.7 percent. The lock-in period of the National Savings Certificate Scheme is 5 years. If a person invests Rs 5 lakh in this scheme for five years, then after the scheme matures he will get a total of Rs 7,24,517. With a small investment without any risk he will get a direct profit of Rs 2,24,517.

Lakhs of tax on this scheme also

Tax savings are also available in the Post Office National Savings Certificate Scheme. Under the old tax system, investment up to Rs 1.5 lakh remains tax free under Section 80C. At the same time, the annual interest received on the money invested in this scheme is automatically reinvested, hence no tax of any kind has to be paid on the interest for the first four years. However, the interest received on the scheme maturity amount becomes taxable in the 5th year.

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Prime Minister Modi also invests

In the National Savings Certificate Scheme run by the Post Office and Government of India. Prime Minister Narendra Modi Also invest. Till now he has invested a total of Rs 9.12 lakh in this scheme. He had given this information in his affidavit during the 2019 Lok Sabha elections. At that time his total investment was Rs 7.61 lakh, which has now increased to Rs 9.12 lakh.