How to make 1.5 lakhs more than 2 lakhs
The maturity period of Post Office NSC is 5 years and the current interest rate is 6.8% per annum. In such a situation, if you invest Rs 1.5 lakh in this, then after the completion of 5 years, the maturity amount you will get will be Rs 2,08,424. The interest on NSC is compounded on an annual basis but the interest amount is paid only on maturity. One can start investing in NSC with a minimum of Rs 1000. There is no maximum investment limit.
Who can invest
Any Indian citizen can take National Savings Certificate from any post office. NSC can be purchased singly or jointly, by a minor above the age of 10 years, by an adult in the name of the minor, by his guardian in the name of the mentally retarded person. It is issued in the form of a passbook. The current issue of National Savings Certificate is issue VIII. How many accounts can be opened under the scheme.
These people cannot invest in NSC
– Hindu Undivided Families (HUFs)
– Trusts
– Private and public limited companies
– Non Resident Indian
when is premature closure
Although NSC (National Savings Certificate) is not allowed to be encashed before the maturity period of 5 years, it can be done on the death of a single account holder, singly or all the account holders in case of a joint account. Apart from this, forfeiture by gazetted officer, premature encashment of NSC is allowed even if ordered by the court.
Tax exemption and other features
– NSC is available only from post office.
You can claim deduction under section 80C of the Income Tax Act on the money invested in NSC.
NSC can be transferred from one person to another in the name of one person once between its issue and maturity date.
While transferring NSC, the old certificate is not discharged, but the name of the new holder is written on the same certificate and on the purchase application (in case of non-CBS post office). During this, the date of that day is signed by the authorized postmaster, his stamp is affixed and the date stamp of the post office is affixed.
– NSC can be transferred from one person to another in these circumstances.
(i) In the name of the nominee/legal heir on the death of the account holder
(ii) in the name of the joint holder/s on the death of the account holder
(ii) on order by the court
(iii) Pledge/mortgage of accounts to the Designated Authority
These officers can also be mortgaged as security to NSC-
- President of India / Governor of a State
- RBI / Scheduled Bank / Cooperative Society / Cooperative Bank
- Corporation (Public/Private)/Govt. Company/Local Authority
- housing finance company
.