Srinagar, May 21: Post Office offers many beneficial schemes to keep your money safe and give more benefit than any other sources. They are time-tested and are in a way safe investment schemes.
National Savings Certificates (NSC) is a time-tested plan offered by India Post. In this scheme, you can earn big money in few years. Your money will be completely safe in the post office. Therefore, you can invest your money in it without any risk and make your and your family’s future safe.
Benefits of National Savings Certificates scheme
The maturity period of the National Savings Certificate scheme is fixed for 5 years. However, you can withdraw money from your account after 1 year with certain conditions. The interest rates are set by the government at the beginning of every quarter (3 Months) of the financial year.
How much should you invest?
You can start investing in this scheme with as little as Rs 100 a month.
If you want the amount of Rs 20.85 lakh after 5 years at an interest rate of 6.8 then you have to make an investment of Rs 15 lakh over 5 years and you will get a profit of about Rs 6 lakh as interest.
Interest rate of National Savings Certificates scheme
The current interest rate is 6.8% p.a., with the government revising it every quarter. It will be compounded annually and paid out at maturity. The interest rate on NSC is much higher than the interest rate of bank FDs, which is now as low as 5 to 6%. Under this scheme, you can get tax exemption of 1.5 lakh rupees annually under Section 80C of Income Tax.
Premature closure of the account
NSC may not be prematurely closed before 5 years except the following conditions:
1. On the death of a single account, or any or all the account holders in a joint account.
2. On forfeiture by a pledgee being a Gazetted officer.
3. On order by court.
In case the account is prematurely closed after one year but before three years from the date of deposit, the premature closure will be permitted, and interest on the principal amount will be paid at the rate applicable to the Post Office Savings Account from time to time for the entire months the account has been kept. (DNA)