Scheme: Invest in Post Office's National Savings Certificate Scheme and get higher returns with more interest than FD as well as tax exemption
To get income tax exemption for the year 2021-22, you have to invest in some special schemes till March 31. So if you want to get a higher return on your investment along with saving tax, you can invest in Post Office's National Savings Certificate (NSC) scheme. At present 6.8% annual interest is being paid under this scheme. Here you will find detailed information about this scheme.
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The scheme will earn interest
at the rate of 6.8%. At present, interest is being paid at the rate of 6.8% per annum on investment in this scheme. The interest is calculated annually. But the amount of interest is paid after the end of the investment period. The tenure of this scheme is 5 years. However, the scheme can be extended for another 5 years after maturity.
Account can also be opened
in the name of the child. In this scheme account can also be opened in the name of the child. If the child is below 10 years of age, an account can be opened in his name on behalf of the parents. After the age of 10 the child can run his own account, when he becomes an adult he gets full responsibility of the account.
Apart from this, an 18 year old can invest in NSC on his own or on behalf of a minor. This account can also be opened as a joint account in the name of 3 adults.
The scheme will earn interest
at the rate of 6.8%. At present, interest is being paid at the rate of 6.8% per annum on investment in this scheme. The interest is calculated annually. But the amount of interest is paid after the end of the investment period. The tenure of this scheme is 5 years. However, the scheme can be extended for another 5 years after maturity.
Account can also be opened
in the name of the child. In this scheme account can also be opened in the name of the child. If the child is below 10 years of age, an account can be opened in his name on behalf of the parents. After the age of 10 the child can run his own account, when he becomes an adult he gets full responsibility of the account.
Apart from this, an 18 year old can invest in NSC on his own or on behalf of a minor. This account can also be opened as a joint account in the name of 3 adults.
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of Income Tax Exemption Benefit of Income Tax Exemption on Deposit in National Savings Certificate. Investing in NSC is tax deductible under Section 80C of the Income Tax Act. However, this discount is only available on investments up to Rs 1.5 lakh.
Account can be transferred
. VIII issue of NSC can be transferred to another person. However, this facility can be availed only once before its maturity. This can be done only once from the date of issuance of certificate to the date of maturity from one person to another.
5 year lockin period
If you want to withdraw your investment you have to wait 5 years. The lockin period in this scheme is 5 years. That means you can't withdraw your money 5 years ago.
In how much time will the money double?
The scheme is currently earning interest at an annual rate of 6.8%. In such a case, according to Rule of 72, if you invest in this scheme, it will take 10 years and 6 months for the money to double.
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Important Things to Know Before Investing
If you want to withdraw the interest earned on this scheme during the maturity period, it may not work.
The scheme has a lock-in period of 5 years. That means you can't withdraw money for 60 months. So this scheme is not suitable for those who want to invest for 1-2 years.
Important Things to Know Before Investing
If you want to withdraw the interest earned on this scheme during the maturity period, it may not work.
The scheme has a lock-in period of 5 years. That means you can't withdraw money for 60 months. So this scheme is not suitable for those who want to invest for 1-2 years.
