Post Office Scheme: For a secure future, it is very important to invest money at the right time and in the right place so that if money is needed during an emergency, there is no need to resort to anyone. If you are also looking for a good scheme to invest your hard-earned money, then the Post Office’s National Savings Certificate i.e. NSC Scheme can prove to be of great use to you. The biggest thing is that the Prime Minister of the country Narendra Modi himself invests in this scheme.

Post Office National Savings Certificate

The National Savings Certificate Scheme of the Post Office is famous not only for its security but also for its bumper returns. This is a safe scheme run by the Post Office and Government of India, which is free from market risk. You can start investing in Post Office National Savings Certificate Scheme with a minimum of Rs 1000 and there is no maximum investment limit. That means you can invest as much money as you want.

How much return do you get?

The National Savings Certificate Scheme gives interest at the rate of 7.7% and it gets compounded annually, that is, the investment amount increased by interest again gets interest at the rate of 7.7%. The lock-in period in this is 5 years. If you invest even Rs 5 lakh in the scheme for five years, then at the time of maturity you will get a total of Rs 7,24,517, that is, you will get only a return of Rs 2,24,517.

What is the tax benefit in the scheme?

Tax benefits are also available in the National Savings Certificate Scheme. Under the old tax regime, tax exemption under Section 80C is available on investments up to Rs 1.5 lakh. The annual interest received under the scheme is automatically reinvested, so there is no tax on the interest for the first four years. The interest received on the maturity amount is taxable only in the 5th year.

PM Modi has also invested

Prime Minister Narendra Modi has also invested in the National Savings Certificate of the Post Office. He has invested Rs 9.12 lakh in National Savings Certificate (NSC). During the 2019 elections, his investment was Rs 7.61 lakh, which has now increased to Rs 9.12 lakh.

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