Even PM Modi invests in this Post Office scheme; interest alone can generate earnings of lakhs.
Post Office National Savings Certificate Scheme: This Post Office savings scheme is renowned not only for being a safe investment but also for the potential to earn lakhs of rupees solely through interest.
Post Office Scheme: Investing money in the right place at the right time is crucial for a secure future, ensuring that one never has to rely on others during a financial emergency. If you are looking for a good scheme to invest your hard-earned money, the Post Office National Savings Certificate (NSC) scheme could prove highly beneficial for you. Notably, even Prime Minister Narendra Modi invests in this scheme.
Post Office National Savings Certificate
The Post Office National Savings Certificate scheme is famous not only for its safety but also for offering impressive returns. It is a secure scheme managed by the Post Office and the Government of India, and it is free from market risks. You can start investing in the NSC scheme with as little as ₹1,000, and there is no upper limit on the investment amount; essentially, you can invest as much as you wish.
What are the returns?
The National Savings Certificate scheme offers an interest rate of 7.7%, compounded annually. This means that interest is earned on the accumulated amount (principal plus previously earned interest) at the same 7.7% rate. The scheme has a lock-in period of 5 years. If you invest ₹5 lakh in the scheme for five years, you will receive a total of ₹7,24,517 upon maturity—meaning you earn ₹2,24,517 solely as returns.
What are the tax benefits?
The National Savings Certificate scheme also offers tax benefits. Under the Old Tax Regime, investments of up to ₹1.5 lakh qualify for a tax deduction under Section 80C. The annual interest earned under the scheme is automatically reinvested; therefore, no tax is levied on the interest accrued during the first four years. Only the interest earned on the maturity amount in the fifth year is taxable.
PM Modi has also invested
Prime Minister Narendra Modi has also invested in the Post Office National Savings Certificate (NSC). He has invested ₹9.12 lakh in the NSC. During the 2019 elections, his investment stood at ₹7.61 lakh, a figure that has since grown to ₹9.12 lakh.
