Post office

If you want to increase money without any risk, then the National Saving Certificate (NSC) scheme of the post office is a great option for you. This is a government guaranteed scheme, which is matured in 5 years. If you have a fund for retirement money, funds from selling land or any big lump sum, then you can earn good interest by applying it in NSC. The return is fixed in it and your money is completely safe. You can only open the account by submitting KYC and necessary documents by going to the nearest post office.

Who can invest in it?

Any person can invest in this scheme. You can open an account alone or if you want, you can also open a joint account. Which can include maximum 3 adults. 10 years or older children can also open their own account. If the child is small or a person is mentally unwell, then his parents can open an account in his name. If you want, you can make a family member a nominee. In this scheme, you can open accounts as much as you want.

The minimum investment is only Rs 1,000 and there is no limit of maximum amount, invest as much as you want. The best thing is that the investment made in it comes under the tax exemption under section 80C of the Income Tax Act. You can invest tax free up to Rs 1.5 lakh in a year.

How much return will you get?

Currently, 7.7% interest is received annually on this scheme, which keeps on connecting with compounding. The interest amount is available only on completion of 5 years. The first 4 years of interest is re -investment, which gets tax exemption, but the interest of the 5th year is taxable.

If needed, you can also take a loan

If you ever need money, you can also take a loan by pledging your NSC in a bank or NBFC. This will not have to break your savings and money will also be arranged. However, the account cannot be closed before 5 years, except certain situations such as the death of an investor or the order of the court.

Beneficial for both husband and wife

If both husband and wife do jobs, then they can benefit more by opening a joint account. Suppose you both invest 9 lakh rupees together, then after 5 years you will get about 13,04,130 rupees. Out of this, Rs 4,04,130 will be in the form of interest. Overall, this scheme is correct for those who want safe return with government guarantee at low risk. The NSC of the post office not only increases money but also helps in saving tax.