Invest in This Post Office Scheme and Earn ₹1,16,062 in Fixed Returns
For investors who value capital safety, zero market risk, and assured returns, the Post Office ’s National Savings Certificate (NSC) stands out as a reliable choice. Backed by the Government of India, this scheme offers complete security and peace of mind. Since it is not linked to the stock market, your investment remains unaffected by market ups and downs, making it ideal for long-term planning.
Interestingly, the interest earned each year (except the final year) is treated as reinvested. This reinvested interest also qualifies for deduction under Section 80C. However, the total maturity amount received at the end of five years is taxable.
At maturity, the total amount you receive is around ₹3,66,062. This return is fully guaranteed and remains untouched by market volatility.
Adults can invest individually or on behalf of minors or mentally incapacitated persons. Minors aged 10 years and above can also invest in their own name. While Trusts and HUFs cannot invest directly, the Karta (Head) of an HUF can buy NSC in their personal capacity.
If you’re looking for a low-risk investment that offers fixed returns along with tax benefits, the National Savings Certificate is worth considering. It combines safety, predictability, and tax efficiency, making it a dependable choice for disciplined investors.
Why NSC Is a Smart Pick for Conservative Investors
NSC is designed for those who prefer guaranteed growth over high-risk returns. The interest rate is locked in at the time of investment and remains unchanged throughout the tenure. This means you know exactly how much you will receive at maturity, no surprises, no uncertainty.Interest Rate and Tax Benefits Explained
Currently, NSC offers an annual interest rate of 7.7%. The interest is compounded yearly but paid only at the end of the five-year maturity period. A key tax advantage is that investments made in NSC qualify for tax deduction under Section 80C of the Income Tax Act.Interestingly, the interest earned each year (except the final year) is treated as reinvested. This reinvested interest also qualifies for deduction under Section 80C. However, the total maturity amount received at the end of five years is taxable.
Returns on a ₹2.5 Lakh Investment
If you invest ₹2,50,000 in NSC at the current interest rate of 7.7%, your money grows steadily through compounding. After five years, you earn an interest of approximately ₹1,16,062.At maturity, the total amount you receive is around ₹3,66,062. This return is fully guaranteed and remains untouched by market volatility.
Who Is Eligible to Invest in NSC?
All Indian residents can invest in NSC. The scheme is not open to NRIs, but if an investor becomes an NRI after investing, the certificate can still be held until maturity.Adults can invest individually or on behalf of minors or mentally incapacitated persons. Minors aged 10 years and above can also invest in their own name. While Trusts and HUFs cannot invest directly, the Karta (Head) of an HUF can buy NSC in their personal capacity.
If you’re looking for a low-risk investment that offers fixed returns along with tax benefits, the National Savings Certificate is worth considering. It combines safety, predictability, and tax efficiency, making it a dependable choice for disciplined investors.
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