New Delhi: Post office’s National savings certificate (NSC) is a fixed income investment scheme. It is a good scheme to not only invest your money at a risk free place but also to earn some steady income. It’s safe and trustable. Your money is secured in the safe hands. This scheme is part of Post office’s saving schemes.
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How to do investment?
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Before you do investment, you should know that the scheme has five-years lock in period. That means you can’t withdraw your invested money before five years. Now there are three options to do the investment in the scheme. You can open the scheme in any Post office branch.
- Single Type – You can invest for yourself or a juvenile through single type scheme of NSC.
- Joint A Type – Two people can purchase together this type of certificate. So two people can together invest in the scheme. It is to be noted that on the time of maturity, both people should be present to withdraw the amount from the saving scheme.
- Joint B Type – Though two people together can invest in the certificate scheme, only one will be given the amount on the time of maturity.
How much you can Invest?
The minimum amount is Rs 1000 to begin the saving certificate scheme and you can increase the investment in the multipe of Rs 100. However, there is no maximum limit for the scheme. And the scheme offers a interest rate of 6.8 %.
Tax benefits
If you’re investing in NSC scheme, you will get tax exemption under section 80C of Income Tax. However, you will get tax exemption up to Rs 1.5 lakhs. If your investment is taxable income, tax will be cut from the total amount of the investment according to the prescribed rates.
