What’s inside:
This article explains the National Savings Certificate (NSC) scheme, who can invest, the investment details, and potential returns.
The National Savings Certificate (NSC) is a safe investment option offered by the post office. It is backed by the government and is suitable for those looking to invest a lump sum amount and earn guaranteed returns.
Anyone who is an Indian citizen can open an NSC account. You can choose to open a single account or a joint account with up to three adults. Parents are allowed to open an account for their minor children, and there is no limit on the number of accounts you can have.
The minimum investment amount is ₹1,000, but you can invest as much as you like. The money you invest in NSC qualifies for tax benefits under Section 80C. Additionally, you can use your NSC certificate as collateral for loans from banks if you need cash.
The current interest rate for NSC is 7.7% per annum, compounded annually, with a maturity period of five years. For example, if you invest ₹9,00,000, you will receive ₹13,04,130 at the end of five years, earning a total interest of ₹4,04,130.
Investors can expect a reliable return with low risk through the NSC scheme. It’s a practical choice for those looking for a secure way to grow their savings with guaranteed returns.
Summary:
- The NSC is a government-backed savings scheme.
- Open accounts individually or jointly, with no limit on the number of accounts.
- Minimum investment is ₹1,000; no maximum limit.
- Current interest rate is 7.7% with a maturity of five years.
- Guaranteed returns make it a low-risk investment option.
