New Delhi: The National Savings Certificates (NSC) offered by the Post Office are part of their small savings schemes aimed at providing individuals with guaranteed returns that beat inflation. NSCs are particularly known for their reliability and stable returns.
NSCs have a tenure of 5 years with an interest rate of 7.7 per cent per annum, compounded annually but payable only at maturity, starting from January 1, 2024. The minimum deposit required to open an NSC is Rs 1000, and thereafter, deposits can be made in multiples of Rs 100 with no maximum limit. This flexibility allows investors to start small and add more over time.
How much Interest can be earned?
For an investment of Rs 100,000 at an interest rate of 7.7 per cent per annum, the total interest accrued is Rs 44,903, resulting in a maturity amount of Rs 1,44,903. Similarly, investing Rs 300,000 yields Rs 1,34,710 in interest, leading to a maturity amount of Rs 4,34,710. Investing Rs 5,00,000 accumulates Rs 2,24,517 in interest, resulting in a maturity amount of Rs 7,24,517 at the end of 5 years.
Amount Invested
Total Interest
Maturity amount
Rs 100,000
Rs 44,903
Rs 1,44,903
Rs 300,000
Rs 1,34,710
Rs 4,34,710
Rs 5,00,000
Rs 2,24,517
Rs 7,24,517
Who can open NSC?
Various individuals are eligible to open NSCs, including single adults, up to three adults in a joint account, guardians on behalf of minors or individuals of unsound mind, and minors above 10 years old in their own names. Each deposit made under NSC qualifies for deduction under Section 80C of the Income Tax Act, offering tax benefits to investors.
NSC Premature closure
Maturity occurs at the end of the 5-year period from the date of deposit. Upon maturity the invested amount along with accumulated interest is returned to the investor. Premature closure of NSCs is generally not allowed before the completion of 5 years, except under specific circumstances such as the death of the account holder(s), forfeiture by a Gazetted officer, or on court orders.
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NSCs offered by the Post Office provide a safe and tax-efficient way for individuals to invest their savings, with guaranteed returns that are protected against inflation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
