Along with better returns in this scheme, you also get the benefit of tax exemption. The scheme is also special because it has a facility that you can transfer the account to another person as well.
For traditional investors who do not like risk in investment, there are many schemes which give guaranteed returns and their investment amount is also safe. One such special small savings scheme in the post office is National Savings Certificate (Eighth Issue) which gives you guaranteed returns. Your money also remains safe, because this scheme gets direct support from the Government of India.
Investment is made in National Savings Certificate i.e. NSC for five years. Along with better returns, you also get the benefit of tax exemption in it. This scheme is also special because it has a facility that you can transfer the account to another person. Let us discuss this saving scheme.
Post Office National Savings Certificate Scheme
According to the official website of India Post, a single adult can open an account. Apart from this, three adults can also open an NSC account together. A guardian can also open this account on behalf of a minor. One more special thing, if the minor is more than 10 years old, then he can also open an account in his own name.
Understand the return like this
According to the official website, Post Office National Savings Certificate (eighth issue) is currently getting 7.7 percent annual interest. This rate is compounded annually but is payable on maturity. If you want to understand the return in this, then understand it like this that if you invest Rs 10,000 in this scheme today, then on maturity i.e. after five years, you will get a total of Rs 14,490. That is, after five years, you will get Rs 4,490 as return amount. Here, know that the interest rate on Post Office Small Savings Scheme is decided by the Government of India on the basis of quarterly review.
How much can you invest in NSC
Any investor can start investing in National Savings Certificate (NSC) with a minimum of Rs 1000. Apart from this, you can invest any amount in multiples of Rs 100. According to the official website, there is no maximum investment limit in this. Investment in NSC also provides exemption under Section 80C of the Income Tax Act.
If you want to exit the scheme before maturity then…
According to the rules, the Post Office National Savings Certificate Scheme account cannot be closed before maturity in general. It can be closed only in special circumstances. For example, suppose the NSC account holder dies or any one of the joint account holders of three people dies, then the account can be closed. Apart from this, if there is a special order of the court or if the account is mortgaged to any authority, the NSC account can also be closed.
