If you want to invest your hard-earned money in an option where not only the capital is safe but also you get good returns on it, then Post Office Saving Schemes can be a great solution.
Especially in times of market volatility, government-backed schemes stand as a strong foundation of stability and confidence. A powerful name among these schemes is National Savings Certificate (NSC) – which has been popular among investors for a long time and has now again become the center of attraction. 7.7% compound interest – Great returns with safe investments The NSC scheme currently operates at a 7.7% annual interest rate, which grows compounded over a lock-in period of five years. Investment in this scheme can be started with a minimum of ₹1,000 and there is no limit on the maximum investment. The most important thing is that the interest is compounded every year and finally comes together – which makes the returns much higher.
Profit of around Rs 5 lakh in 5 years – Know how If an investor invests ₹ 11 lakh in lump sum, then after 5 years the maturity amount reaches ₹ 15.93 lakh. That means a total interest of around ₹4.94 lakh – that too without any risk. It is an ideal option for those who want safe and stable returns in the long term.
Double benefit of tax exemption: Another big benefit of this scheme is that on investing in NSC, tax exemption of up to ₹ 1.5 lakh is also available under Section 80C. This means that you are not only earning good returns but can also save on income tax every year.
Investment is possible in the name of children also. Under the NSC scheme, parents can open an account in the name of children below 10 years of age. All responsibilities for the account rest with the parents. This is a great way to create financial security for the future of children.
Both offline and online options: You can open NSC account by visiting the nearest post office or you can also apply through online platforms. Its operation is completely under the guarantee of the government, due to which the investment remains completely safe.
Lock-in of 5 years- Take the decision wisely. After investing in NSC scheme, a lock-in period of 5 years is mandatory. If you withdraw the amount before then, you will get only the principal – not the interest. Therefore, it is important to clearly understand your needs and financial goals before investing in it.