Top News

investment in post office scheme

If you are looking for a place to invest where your money is safe and you get strong returns, then Post Office Small Savings Schemes can be a great option for you. Due to government guarantee, the risk in these schemes is almost negligible. One of these very popular schemes is National Savings Certificate (NSC), in which you can earn profit of lakhs by making just one investment.

Strong interest of 7.7%

Every investor wants that his hard-earned money is safe and he also gets good returns. The NSC scheme is known for this balance. The government gives a fixed interest of 7.7% on this scheme, which gets compounded every year. The most important thing is that the entire interest is received together at the time of maturity, that is, your money keeps growing continuously and after 5 years it becomes a substantial amount.

Now let us understand how this scheme generates returns worth lakhs of rupees, if an investor invests ₹ 11,00,000 at one time in NSC, then after 5 years at 7.7% compounding interest, he will get approximately Rs 15,93,937. Out of this, Rs 4,93,937 will be only interest. That means a profit of about Rs 5 lakh without any risk. If the amount of investment is increased then the returns can also be higher.

Starting from minimum Rs 1,000, no upper limit

Even if you do not have much money in the beginning, there is no need to worry. NSC account can also be opened for just Rs 1,000. There is no maximum limit on investment in this. In this, account can also be opened in the name of children.

5 years lock-in, only then you will get full benefit

NSC has a fixed rule, the account cannot be closed before completion of 5 years. If you close it midway, you will get only your principal amount and no interest. Therefore, you get the full benefit of this scheme only when you complete the entire lock-in period. As soon as five years are completed, the entire amount including interest is transferred to your account.

You will get big savings in tax also

NSC not only gives interest but also helps in tax saving. Under Section 80C of the Income Tax Act, a rebate of up to Rs 1.5 lakh can be availed in a financial year on investments made in it. For those who want to save tax with safe investments, this scheme provides double benefits.