National Saving Certificate scheme: Invest Rs 10 lakh in this scheme to get Rs 14 lakh in 5 years

Want to invest your money in a plan that gives you assured returns with minimal risk involved? Well, we have an answer for you. The National Saving Certificate (NSC) scheme offered by the Post Office gives substantial returns to investors quickly. The minimum investment threshold is Rs 1000. The deposit matures five years later from the date of deposit. This scheme allows you to open any number of accounts, and the deposits qualify as tax deductible under section 80 C of the Income Tax Act. The special feature of this scheme is that it has no upper investment limit. Also, it is resistant to market risk. Under this scheme, a certificate equal to the investor’s investment can be bought from the Post Office. The scheme is a small postal savings initiative, and you can make investments based on your requirement.

Know the interest rate:

You will receive a compounded interest rate of 6.8 percent every year on your deposit. It should be noted that the interest is payable only at maturity. An investment of Rs 1000 will amount to Rs 1389.49 after five years. Similarly, if you invest Rs 10 lakh, you will get Rs 13.89 lakh after five years.

Premature closure of NSC account:

The closure of NSC is possible before the completion of five years in some cases, such as:

• Death of either the single account holder, or the demise of any or all account holders in a joint account.
• If the court orders.

Pledging of account:

One can submit the prescribed application form at the required Post Office supported with an acceptance letter in order to pledge the NSC or transfer it as security. These are the following authorities to which the transfer/pledging can be made:

• RBI, Co-operative Society, Co-operative Bank, Scheduled Bank.
• The President of India or Governor of the State.
• Corporation; be it public, private, government, or local authority.
• Housing finance company.

Transferring of account from one person to another:

The NSC can be transferred from one person to another in some conditions, such as:

• The demise of the account holder. In this case the scheme will transfer to the nominee or legal heirs. It is also the same case with a joint National Savings Certificate account.
• It can also happen if the court gives an order.
• In case of pledging the account to the specified authority.

Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .