Post office scheme national saving certificate scheme: The biggest feature of this scheme is that you can start investing in this scheme from a minimum of Rs.100 per month. So this scheme is suitable for those who want to invest less amount.
The Post Office offers many good savings investment plans for us. The Post Office offers many beneficial plans to keep your money safe and offer more benefits than other corporate investment plans. These post office savings plans are the safest investment plans.
Let us now look at the savings plan that offers the lowest investment and highest return on post office savings plans.
National Savings Certification Scheme
The Post Office offers us the National Savings Certificate (NSC) scheme. With this plan, you can make big money in a few years by investing. Your money will be completely safe at the post office. So, you can invest your money in it without any risk. This can secure the future of you and your family.
Benefits of the National Savings Certification Program
The maturity period of the National Savings Certificate Scheme is fixed at 5 years. You can extend the maturity period if you wish. Also, if you need money within 5 years, you can withdraw money from your account after 1 year with certain conditions. Interest rates are set by the government at the beginning of each quarter of the financial year (once every 3 months).
What is the investment amount?
The biggest highlight of this plan is that you can start investing in this plan from a minimum of Rs.100 per month. So this scheme is suitable for those who want to invest less amount. At the same time it is an investment plan that can bring high returns to a low investment. Let’s see how it goes.
For example, you can invest Rs. If you invest Rs 15 lakh, you will get Rs 20.85 lakh after 5 years at an interest rate of 6.8. You will get an interest return of around Rs 6 lakh on your investment.
National Savings Certificate Scheme Interest Rate
The interest rate for this investment plan is currently 6.8% per annum. And the government revises it every quarter. It adds interest annually and is available with your investment at maturity. The interest rate on NSC is higher than the interest rate that banks offer on fixed deposits. Banks’ interest rates range from 5 to 6%.
The scheme comes under Section 80C of the Income Tax Act. So, you can get tax deduction of Rs 1.5 lakh per annum for your investment.
Closing the account in advance
This National Savings Plan can be completed up to 5 years in advance with the following conditions.
The account may be prematurely closed due to the death of the investment account holder, or the death of someone in the joint account.
May be confiscated by the pledge of a Gazetted Officer.
The account may be closed by order of the court.
The account cannot be completed earlier than 5 years for any other reason.
Even if the account is closed in advance after one year, advance closure will be allowed up to three years before the deposit date. Also the interest on the principal amount will be kept in the account from time to time at the rate applicable to the post office savings account for the entire month.
