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