Every person wants some part of his earnings to be a safe place where his money is not only safe but also good returns on him. In such a situation, if you are looking for an option that gives good interest with government guarantee, then the National Savings Certificate (NSC) scheme of the post office can be a great option for you.
NSC means National Savings Certificate, Post Office is a small savings scheme. The most important thing about this scheme is that the interest received in it is compound every year. Currently, this scheme is getting 7.7% annual interest which proves to be very beneficial according to compounding.
How to earn 5 lakh rupees in 5 years?
Now the question arises that how can we earn 5 lakh rupees in this scheme in five years? So its simple mathematics is that if you invest 11 lakh rupees at a time, then after 5 years you will get Rs 15,93,937 with compounding interest. This means that you will get an interest of Rs 4,93,937. That is, you can earn a benefit of about 5 lakh rupees in just 5 years without any risk.
You can start investing with small amount
If you do not have a large amount, then there is no concern, then you can start with a small amount and gradually increase the investment. In this, an account can also be opened in the name of children, which their parents operate. In NSC, you can open an account with a minimum of Rs 1,000 and you can invest as much money as you want, there is no maximum limit. This scheme is for 5 years, that is, you will have to keep money for at least 5 years, only then you will get full benefit.
There will also be a discount in tax
Another big advantage of this scheme is that by investing in it, you also get tax exemption under Section 80C of Income Tax. You can save tax on investment up to Rs 1.5 lakh in a financial year.