New Delhi: Post office savings schemes have been an all-weather investment tool for those who want to earn big in the traditional investment ways. Since the Post office scheme are government backed, they prove beneficial to those investors who have zero risk appetite and want guaranteed return on their investment.
The National Savings Certificates (NSC) Scheme is one such scheme that comes with guaranteed return on your investment. The government has kept the interest rate of small savings schemes unchanged for October to December 2020 quarter. That means that you will get 6.8 percent per annum interest rate on the National Savings Certificates
Investors can start an investment as low as Rs 100. Minimum Amount for opening of account is Rs 1000 and in multiples of Rs 100 while there is no maximum limit and maximum balance. In the National Savings Certificates Scheme, if you spend Rs 1000, your money grows to Rs 1389.49 after 5 years. So calculating this, the more you invest, the more you reap. If you invest Rs 1 lakh in this NSC scheme, it will fetch you Rs 1,38,949 after the end of five years. You can thus see your money grow into lakhs in this Post office scheme.
The 6.8 percent interest rates in the NSC scheme is compounded annually but payable at maturity.
Who can buy National Savings Certificates (NSC) Scheme?
Certificate may be purchased by
(i) a single adult
(ii) Joint A Account (Maximum 3 adults)
(ii) Joint B Account (Maximum 3 adults)
(iv) Minor above 10 years of age
(iv) An adult on behalf of a minor.
(v) A guardian on behalf of a person of unsound mind
NSC is issued in the shape of Passbook. Deposits under the scheme qualify for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
In case of NSC VIII , transfer of certificates from one person to another can be done only once from date of issue to date of maturity. At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.