Post Office Scheme: There are many schemes that offer higher interest than fixed deposits. One of these schemes is run by the Post Office, under which higher interest is given than fixed deposits.
If you are looking for some other scheme for higher interest than Fixed Deposit, then Post Office has a great scheme for you, in which you can earn more profits by investing. There is no risk on investment in this scheme of post office. Also, higher interest benefit will be given here as compared to 5 year FD.
We are talking about the National Savings Certificate (NSC) Scheme of the Post Office, this is also a savings certificate like FD in which investment is made for 5 years. Currently 7.7 percent interest is being given in this scheme. Let us know the special things related to this and how we can invest.
Where is one getting higher interest in tax saving FD?
Before investing in National Savings Certificate, let us know where the highest interest is being given in Tax Saving FD. 7.5 percent interest is being given in Post Office FD, 6.5 percent in State Bank FD, 6.5 percent in Punjab National Bank FD, 6.5 percent in BOI FD, 7 percent in HDFC Bank FD and 7% in ICICI Bank FD.
How much can you invest in National Savings Certificate?
If you want to invest in National Savings Certificate (NSC), then you can invest at least Rs 1000 and in multiples of 100. There is no limit on maximum investment. This scheme matures in 5 years. Interest is compounded on annual basis and guaranteed returns are available. Under this scheme, an account can also be opened in the name of the child.
You also get the benefit of tax exemption
Under this scheme, a child above 10 years of age can buy NSC in his/her name. Also, two or three people together can also invest in NSC. Any resident of India can invest in this scheme. You can invest in this scheme by visiting any post office branch near your home. Under the NSC scheme, Rs 1.5 lakh can be invested annually under Section 80C of the Income Tax Department.
Read also: New Tax Regime: There are exemptions in the new tax regime…..
