National Savings Certificate: While investing money, every investor wants only two things, one should keep his money safe and second he should get good returns. There are many such savings plans of the post office in which you can get both these things.
One such scheme of the post office is National Saving Certificate (NSC). This can give you more interest than FDs of many banks. At present, 6.8 percent interest rate is being offered on the post office’s NSC scheme. Keep in mind that the money you invest in NSC will keep adding interest annually, but you will be paid simultaneously only on maturity.
The maturity period of NSC scheme is 5 years. If you wish, you can extend your investment for another 5 years after maturity. You have to invest at least Rs 100 in NSC. Because the cheapest NSC is available at this rate. When it comes to maximum investment, there is no limit.
NSC is a tax saving option. Under Section 80C of the Income Tax Act 1961, NSC investors get tax exemption on investments up to Rs 1.5 lakh per annum. At this time you will get NSC in the rate of Rs 100, Rs 500, Rs 1000, Rs 5000 and Rs 10,000. You can invest in NSC by buying as many certificates of different value as you want.
Interest of Rs 6 lakh in 5 years
If an investor invests Rs 15 lakh in NSC, then the investment amount of that investor will become Rs 20.85 lakh in 5 years at an interest rate of 6.8 percent. That is, he will get the interest of about Rs 6 lakh in 5 years only.