Finally interested in creating your future wealth? If yes, then a low-risk and high return will be the option for you to start. Follow this article to the last to know all about the National Savings Certificate or NSC, a successful path towards your financial goals.
What are National Savings Certificates?
The National Savings Certificate or NSC is a fixed-income offering savings scheme which can be bought from the nearest branch of the post office. It’s a low-risk investment plan, backed by the Government itself, that offers fixed income along with tax benefits to mid-income generating individuals. Moreover, not only adults but minors can also register for NSC by opening a joint account with an adult, either their parents or guardian.
The maturity period of NSC is five years during which an investor will make his or her contributions. No maximum limit is set to invest in National Savings Certificates, but remember the tax benefits under Section 80C of the Income Tax Act are allowed till an investment amount of ₹1,50,000 is contributed in a financial year. After investing your certificate will earn at a rate of 6.8% per annum, but remember the interest rate on NSC is revised by the Government quarterly.
Current Interest Rate on NSC And Other Info
- Interest Rate is 6.8% per annum.
- Minimum Investment amount is Rs.1,000
- Lock-in Period is 5 years
- Tax Benefits till the investment amount of ₹1.5 lakh in a financial year.
Benefits of National Savings Certificates 2023
Get Returns Surely
- In NSC your returns are guaranteed to be delivered. As it’s backed by the Government itself, it has the same significance as the Public Provident Fund or PPF.
Tax Benefits on Investment
- Similar to PPF and SSC, this scheme is allowed for deductions. So, the deposited amount in NSC can be claimed as a tax deduction under Section 80C of the Income Tax Act. But remember the deductions are only allowed till an investment amount of ₹1,50,000 is contributed in a financial year.
Money Grows With Compounding Interest
- Money invested in NSC earns some serious returns with the power of compounding interest for five years till the maturity date.
Also read:
Best LIC Scheme: How To Get ₹48.5 Lakh After Investing ₹71 Only
Start Investing With ₹1,000
- The best thing about the NSC investment plan is that a low-income generating individual can also start his future wealth planning with as low as ₹1,000. Moreover, children aged 10 years or above can also buy NSC in their own name.
