Post Office Savings Scheme Interest Rates: The government has recently said in an order that the interest rates of various small savings schemes Including national savings certificate (NSC), Senior Citizens Savings Scheme and Public Provident Fund (PPF), will remain unchanged for the July-September 2022 quarter, even though the inflation rate in the country remains high. This is the ninth time in a row that small savings scheme interest rates have remained unchanged.
What is National Savings Certificate Scheme?
National Savings Certificate is a great option to save risk free in these small savings schemes. This scheme is best suited for those who want to invest for a short tenure of five years and also want to get tax benefits. While the five-year bank FD rate generally comes at 5.5 per cent interest rates, NSC gives a return of 6.8 per cent. NSC was started as a safe and low risk investment for small and middle income group investors. Interest rates on small savings schemes are reviewed on a quarterly basis. The revision is commensurate with the volatility in benchmark government bonds of similar maturity.
National Savings Certificate: Features, Benefits and Eligibility
This post office savings scheme only requires a lump sum amount and does not require paying monthly contributions. Deposits made through the NSC scheme are eligible for deduction under section 80C of the Income Tax Act.
A minimum investment of Rs 1,000 is required to open an account under the National Savings Certificate Scheme. Thereafter further investments can be made in multiples of Rs.100. There is no maximum limit for deposits under this scheme. However, the deposit should be made in a lump sum amount.
Here’s Who Can Open a National Savings Certificate Account
Single-holder type of account can be opened by an adult for himself or on behalf of a minor.
Single-holder type of account can also be opened by the minor on attaining the age of 10 years.
Joint ‘A’ type account can be opened by a maximum of three adults payable to both the holders jointly or to the survivor.
Joint ‘B’ type account can be opened by a maximum of three adults which is payable to any survivor.
Any number of accounts can be opened under this scheme.
maturity: The deposit will mature on completion of five years from the date of deposit.
loan facility: Under this scheme, loan facility is available by pledging with banks.
NSC calculator: Get interest of Rs 80,000 in 5 years
With an attractive interest rate of 6.8 per cent per annum, the deposit amount of Rs 1000 grows to Rs 1389.49 after 5 years. This means that if one makes a lump sum deposit of Rs 2 lakh after getting the retirement benefit, then the interest amount to be received after five years will be Rs 77,899, which is approximately equal to Rs 80 thousand. Therefore, by depositing his money in the National Savings Certificate Scheme, the person will get around 2.77 lakhs in just five years.
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