National Savings Certificate: Small savings schemes of post office are quite popular among the common people. The biggest advantage of investing in these schemes is that the money remains safe and the returns are very high.
Small savings schemes of post office are quite popular among the common people. The biggest advantage of investing in these schemes is that the money remains safe and the returns are very high. One such scheme is National Savings Certificate (NSC). National Savings Certificate (NSC) is run by the government. Its interest rate is revised every quarter by the government.
7.7% interest is being given in the scheme
At present 7.7% interest is being given on NSC by the government. The advantage of investing in the scheme is that along with good returns, one also gets the benefit of income tax exemption. If a person invests up to Rs 1.5 lakh in a financial year, he can get exemption under Section 80C of Income Tax.
5 year lock-in period
National Savings Certificate (NSC) has a lock-in period of 5 years. If NSC is closed within one year of account opening, no interest is paid. Only the investment amount will be given.
More interest than FD
7.7 percent interest is being given on NSC. At the same time, the interest rate on 5 year tax saving FD in the bank is 7 to 7.5 percent. If seen this way, tax saving FD is getting more interest than bank FD.
You can start investing from Rs 1000
You can invest in NSC with a minimum amount of Rs 1000. There is no limit regarding maximum investment. Investment in NSC can be made offline and online. To invest offline, go to your nearest post office and you can invest online through the post office website.
