Whatever money you invest in the National Savings Certificate Scheme (NSC Scheme) of Post Office, not only does it offer great interest, but you also get the benefit of tax exemption on the investment amount under Section 80C of the Income Tax Act.
Great returns and safe investment… These two things create the most turmoil in the minds of investors who invest while saving from their hard-earned money. If you are also planning to invest, then in this regard, Post Office Saving Schemes can be the right option. The government is running schemes for every age group through the post office and one of these special schemes is the National Savings Certificate i.e. NSC, in this scheme, not only does one get a great interest of more than 7 percent, but investors can also save taxes. Let’s know about it in detail…
Popularity increased due to great interest rate
The National Savings Scheme or National Savings Certificate (NSC) is one of the most popular small savings schemes of the post office due to its returns and benefits. This is the reason why the number of people investing in it is continuously increasing. Talking about the interest received by the investor opening an NSC account, it is currently 7.7 percent. Under the scheme, this interest rate is offered on the basis of compounding. In this, the interest amount is transferred to the account only after 5 years of investment.
More interest than Bank FD
Actually, the interest rate being offered in this government scheme is usually higher than the interest received on fixed deposit (FD) in a bank. In most banks, FD interest rate is being offered around 7 to 7.5 percent. The interest rates of National Savings Certificate and other post office small savings schemes are revised every three months. The government itself guarantees the safety of the investment made in it.
You will have to invest for 5 years
It is important to note here that if you want to take full advantage of the interest being offered, then you will have to keep your investment in this post office scheme till the lock-in-period, all the time you will be paid the full interest. A lock-in period of 5 years has been fixed in NSC. In other words, if you open an account in this savings scheme and close it after running it for one year, then you will only be returned the amount invested by you, not a single penny of interest.
You will get a tax exemption of Rs 1.5 lakh
The post office offers 7.7 percent return on whatever money you invest in the National Savings Certificate. So the second big advantage of investing in this scheme is that the benefit of tax exemption is also given on the investment amount under Section 80C of the Income Tax Act. By investing in NSC, you can save tax on a maximum of Rs 1.5 lakh in a financial year by claiming tax exemption.
Open account online or offline
The NSC scheme also provides the facility to open accounts in the name of children. As per the rules, the account opened in the name of a child below 10 years of age is operated by his parents, while the child can take control after completing 10 years of age. In this government scheme, you can open an account with a minimum deposit of just Rs 1000 and for this you can go to the nearest post office. Apart from this, the facility of online investment is also provided in it.
