The Post Office's National Savings Certificate (NSC VIII Issue) scheme is a secure option for investors. Investing ₹4,00,000 will yield a guaranteed return of ₹1,79,613.52 over 5 years, calculated at a 7.7% interest rate. This scheme also offers tax savings, loan facilities, and complete government-backed security.
Post Office Savings Scheme: The Post Office National Savings Certificate (NSC VIII Issue) scheme offers investors a secure option with guaranteed returns. Under this plan, investing ₹4,00,000 for 5 years will provide a return of ₹1,79,613.52, based on the government-determined 7.7% interest rate. Additionally, the investment provides benefits such as tax savings under Section 80C, loan facilities, and full government security. An account can be opened at the nearest post office or online.
Investment Period and Interest Rate
The investment period for NSC VIII is five years. During this period, the interest rate determined by the government applies to the investment. Currently, this scheme offers an annual interest rate of 7.7 percent. This interest rate is calculated on a compounding basis annually.
The interest amount is paid to the investor upon maturity. However, during the investment period, this scheme provides benefits in the form of income tax exemption. Thus, investors also receive tax relief.
Calculated Return on ₹4,00,000 Investment
If an investor deposits 4 lakh rupees in this scheme, they will receive a total interest benefit of 1,79,613.52 rupees after five years. This means that after five years, the investor will have a total fund of 5,79,613.52 rupees. This amount is fully guaranteed.
Tax Benefits
The amount invested under the NSC VIII scheme is eligible for exemption under Section 80C of the Income Tax Act. This means that investors can benefit from a reduction in their income tax liability. This feature further attracts investors to invest in the scheme.
This Post Office scheme also provides a loan facility based on the investment amount. This allows investors to obtain a loan during an emergency without having to liquidate their investment.
Investment Process
Opening an account in this scheme is easy. Investors can open an account by visiting their nearest post office or through an online application. Once the account is open, investors can easily deposit their amount and avail all the benefits of the scheme.
This Post Office scheme is fully government-backed. This means that the invested amount remains completely secure. It offers investors an opportunity to grow their funds safely.
Interest Reinvestment Facility
The NSC VIII scheme also provides investors with the facility to reinvest the interest received. This allows investors to further increase their principal amount and earn greater benefits in the long term.
Benefits for Investors
Under this scheme, investors not only get an opportunity for secure investment but also receive tax relief. Additionally, investors get a guaranteed return over a five-year period. This scheme is particularly beneficial for those who wish to grow their funds for the long term and keep risks low.
