It is very important to invest money in the right place at the right time for a secure future, so that you never have to depend on others during financial crisis. If you are looking for a good plan to invest your hard-earned money, then Post Office National Savings Certificate (NSC) Plan can prove to be very beneficial for you. It is noteworthy that Prime Minister Narendra Modi himself invests in this scheme.
Post Office National Savings Certificate
The Post Office National Savings Certificate Scheme is famous not only for its security but also for giving impressive returns. It is a safe scheme managed by the Post Office and the Government of India, and is free from market risks. You can start investing in the NSC scheme with as little as ₹1,000, and there is no upper limit on the investment amount; Basically, you can invest as much as you want.
What is the compensation?
The National Savings Certificate Scheme offers an interest rate of 7.7%, which is compounded annually – that is, the interest earned is added to the principal amount, and then interest is calculated on this compounded amount. The lock-in period of this scheme is five years. If you invest ₹5 lakh for five years, you will get a total of ₹7,24,517 on maturity, resulting in a return of ₹2,24,517.
What are the tax benefits?
The National Savings Certificate Scheme also offers tax benefits. Under the old tax regime, investments up to ₹1.5 lakh were eligible for tax deduction under Section 80C. Since the annual interest is automatically reinvested, there is no tax on the interest earned during the first four years; The interest earned on the maturity amount is taxable only in the fifth year.
PM Modi has also invested
Prime Minister Narendra Modi has also invested in the Post Office National Savings Certificate Scheme. He has invested ₹9.12 lakh in National Savings Certificate (NSC). During the 2019 elections, this investment was Rs 7.61 lakh, which has now increased to Rs 9.12 lakh.
