If you want to increase your money without any risk, the National Savings Certificate (NSC) scheme of the post office is a great option for you. This is a guaranteed scheme by the government, which matures in 5 years. If you have retirement money, money from selling land or some big lump sum, then you can earn good interest by investing it in NSC. Return is fixed in this and your money is completely safe. You can just go to your nearest post office and open KYC and necessary documents and open an account.
Who can invest in it?
Any person can invest in this scheme. You can open an account alone or also open a joint account. Which can include a maximum of 3 adults. Children aged 10 years or older can also open their account. If the child is young or a person is mentally ill, his parents can open an account in his name. If you want, you can make a family member a nominee. You can open as many accounts as you want in this scheme. The minimum investment is only Rs 1,000 and there is no limit of maximum amount. You can invest as much as you want. The best thing is that the investment made in it comes under tax exemption under Section 80C of the Income Tax Act. You can invest up to Rs 1.5 lakh in a year.
How much return you will get?
Currently, the scheme pays 7.7% annual interest, which keeps connecting with compound interest. The amount of interest is available only on completion of 5 years. The first 4 years of interest is reinstated, on which tax exemption is received, but the 5th year interest is taxable.
You can also take a loan if needed
If you ever need money, you can also take a loan by pledging your NSC in a bank or NBFC. This will not require you to break your savings and money will also be arranged. However, the account cannot be closed before 5 years, except for some situations such as investor death or court order.
Beneficial for both husband and wife
If both husband and wife are employed, they can get more benefits by opening a joint account. Suppose you both invest 9 lakh rupees together, then after 5 years you will get about 13,04,130 rupees. Out of this, Rs 4,04,130 will be in the form of interest. Overall, this scheme is right for those who want safe return with government guarantee at low risk. Post office NSC not only increases money, but also helps in saving tax.
