digital desk- If you want to invest your money safely without any risk and want to create a strong fund for the future, then the National Savings Certificate (NSC) Scheme of the Post Office can prove to be a great option for you. This is a government savings scheme, in which investors not only get complete protection, but also guaranteed fixed and stable returns. National Savings Certificate has been specially designed for those who want to make safe investments away from the ups and downs of the stock market. This scheme has a guarantee from the Central Government, due to which investors have no fear of losing their money. At present, 7.7 percent annual interest is being given on NSC, which is available on the basis of compounding. That is, the interest received every year is added to the principal amount and interest is also paid on it in the next year. For this reason this scheme gives good returns in the long run. If an investor invests Rs 10 lakh in this scheme, then after maturity of 5 years he gets around Rs 14.49 lakh. This means that around Rs 4.5 lakh is earned from interest alone.
Fixed maturity of 5 years
The maturity period of NSC is 5 years. In this, investors can start investing with a minimum of Rs 1,000. The special thing is that there is no maximum limit for investment in this scheme, that is, you can invest any amount as per your financial capacity. By investing in NSC, taxpayers get tax exemption of up to Rs 1.5 lakh annually under Section 80C of the Income Tax Act. Not only this, the interest that is added to the account every year is considered reinvested, which provides further tax relief. However, the amount received on maturity is taxable.
Who can open NSC account?
Only Indian resident citizens can buy National Savings Certificate. NRIs and companies are not allowed to invest in this scheme. NSC account can be opened both as single or joint account. A child of 10 years of age or above can take NSC in his/her name, while for children below this age, a parent or guardian can open the account. Due to government guarantee, fixed returns, tax exemption and easy investment process, NSC still remains the first choice for the middle class and those planning for retirement. This scheme is proving to be a strong and reliable option for those who want a secure future.
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