If you are looking for a safe investment that also offers good returns, Post Office small savings schemes can be a great choice.
Among these, the National Savings Certificate (NSC) is the most popular. It provides reliable returns backed by the government.
The NSC offers a fixed interest rate of 7.7%, which compounds annually and is paid in a lump sum at maturity.
For example, if you invest ₹11,00,000 in NSC, after 5 years you can expect around ₹15,93,937, with approximately ₹4,93,937 coming purely from interest.
This allows investors to earn an additional profit of roughly ₹5 lakh without taking any risk.
Flexible Investment and Tax Benefits
The minimum investment in NSC starts at just ₹1,000, and there is no maximum limit. You can even open an account in the name of children.
However, to enjoy the full benefits, you must complete the 5-year lock-in period. If the account is closed before five years, only the principal is returned, and no interest is earned.
Besides earning interest, NSC also helps in tax saving. Investments in this scheme are eligible for a deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act.
This combination of safety, good returns, and tax benefits makes NSC a very attractive option.
Long-Term Benefits for Investors
The NSC scheme is not only safe but also provides stable and reliable returns over the long term.
For investors who want to protect their money while earning significant returns, NSC proves to be a strategic and financially beneficial choice.
