Since the COVID-19 pandemic hit and the finances of many took a toll, people started resorting to investment options through many schemes and mutual funds available. One of the most popular investment options in India remains the Post Office.
The Post Office has multiple schemes and plans that can help you invest your savings and get a huge return after a certain period of time. If one is looking for a low-risk investment option, the National Savings Certificate (NSC) scheme can be a good plan to invest in.
Some of the reasons why this scheme is so popular among investors are because there is no upper limit when it comes to investing, and a person can open multiple accounts for it at the same time. The Income Tax deduction up to Rs 1.5 lakh is also available under section 80C of income tax on deposits in NSC.
The NSC scheme offered by the Post Office currently has an interest rate fixed at 6.8 percent. According to the rules of the scheme, the interest is compounded on an annual basis but is paid after the maturity period is over, which is five years. The official website states that on an initial investment of Rs 1000 in NSC, you will get a return of Rs 1389 after 5 years.
Now, as per the calculations mentioned on the website, if you initially invest a sum of Rs 5 lakh in the National Savings Certificate scheme, a total amount of Rs 6,94,746 will be available on maturity after 5 years. Thus, you will have a total income of Rs 1,94,746 lakh over the course of 5 years.
Interested people may note that the account in the NSC scheme can be opened with a small amount of investment, as little as Rs 1000. There is no upper limit for the scheme, and you can make small deposits throughout the scheme. The NSC plan has minimum risk and market rates have no effect on it.
If you wish to open an account in the Post Office under the NSC scheme, you can visit your nearest branch and fill out the designated form. Any adult is eligible to open this account. Children above the age of 10 can also open a joint account under NSC with a legal guardian or parent.
