In today’s era, due to inflation and rate hike, there is pressure on the equity market. Due to this, the focus of investors is increasing again on schemes with fixed income or guaranteed returns.
Post Office Small savings Scheme: In today’s era, due to inflation and rate hike, there is pressure on the equity market. There is uncertainty about returns in the debt market as well. In such a situation, the focus of investors is increasing again on schemes with fixed income or guaranteed returns. In these, the returns may be less but guaranteed. Most of the people opt for bank FD in small savings, but a scheme doubles your money more quickly than bank FD. This scheme is the National Savings Certificate of the Post Office ie NSC. This scheme can be taken in any post office branch of the country. The maturity period of NSC is 5 years. It is currently getting 6.8 percent annual interest, which is more than FD.
14 lakh will be available on 10 lakh investment
The NSC scheme of the post office is currently getting interest at the rate of 6.8 percent per annum. Whereas the maturity period in this scheme is 5 years. In this sense, if you invest Rs 10 lakh in this, then in 5 years your amount will become Rs 14 lakh. In this scheme, the account can be opened with a minimum of Rs 1000. There is no maximum investment limit.
How to take NSC
A single holder type certificate can be purchased by any adult in his own name or in the name of his child. Certificates of 100, 500, 1000, 5000, 10,000 or more are available in NSC. There is no limit to invest in it. You can buy NSC for any amount according to your capacity.
The interest rate on NSC is currently available at 6.8 percent per annum. It will take 126 months to double your money here. At the same time, in most banks, the interest rate on FD of 5 years is only up to 6 percent. The interest rate on Post Office Time Deposit (TD) is also 6.7 percent per annum. It is clear that in NSC your money will double soon.
There are 3 types of certificates
Single Type: This type of certificate can be taken for self or for a minor.
Joint A Type: This type of certificate can be taken by joint account i.e. 2 investors together.
Joint B Type: In this type of joint account, money is invested by 2 people together, but on maturity the money is given to only one investor.
Benefits of the scheme
Investing in NSC provides tax exemption under section 80C of the Income Tax Act. However, this exemption is available only on investments up to Rs 1.5 lakh. NSC is accepted by all banks and NBFCs as collateral or security for loans. An investor can nominate any member of his family. Issue VIII of NSC can be transferred to any other person. However, this can be done only once before its maturity. On transfer of the certificate, the name of the new holder is written after cutting off the name of the old holder on the old certificate and its purchase application. The government has 100% guarantee on your money deposited in the post office. That is, your money is also completely safe.