National Saving Certificate: Invest money once in this government scheme, it will become 22 lakhs in 5 years, know what is the formula..

NSC is the fixed-income investment scheme of the post office
The National Savings Certificate is an initiative of the Government of India. This post office is a fixed-income investment scheme. Any Indian citizen can get NSC from any post office. By investing in a National Savings Certificate (NSC), you can get more returns than a bank FD. In these, you can save tax on investment up to Rs 1.5 lakh under 80C. If you invest in this scheme with planning, then you can create a big fund in 5 years.

Who can open an NSC account?

Accounts can also be opened in the name of children in this scheme. If the child is less than 10 years of age, then an account can be opened in his name by the parents. At the age of 10, the child can operate his account himself. At the same time, when he becomes an adult, he gets full responsibility for the account. Apart from this, a person of 18 years of age can invest in NSC on his own or behalf of a minor person. This account can also be opened as a joint account in the name of 3 adults. Hindu Undivided Families (HUFs), trusts, private and public limited companies, and non-resident Indians will not be able to open an account in NSC.

How much will have to be invested?

You can invest Rs 100, Rs 500, Rs 1000, Rs 5000, Rs 10000, or even more in the NSC scheme. If you are taking a loan from the bank, then you can keep NSC as security.

You can invest money in NSC in 3 ways.

You can invest in NSC in three ways - single, joint A type, and joint B type. You cannot transfer NSC before 1 year. But, if the court orders to transfer it in case of the death of the NSC holder, then it can be done. Apart from this, it also has to be kept in mind that the NSC that is being transferred is worth buying. If NSC is being transferred to a minor, then the parent's signature is required.

How many years is the locking period?

Lock-in period If you want to withdraw your investment, then you will have to wait for 5 years. It has a lock-in of 5 years. That is, you will not be able to withdraw your money before 5 years.

How much interest is available?
The National Savings Certificate scheme is currently getting 7.7% interest. In this post office scheme, you have to invest a minimum of Rs 1000. You can invest any amount in NSC. There is no maximum limit of investment in it.

How can you create a fund of Rs 22 lakh from NSC?

Invest Rs 15 lakh at a time in the NSC scheme. In this scheme, you are getting annual compounding interest at the rate of 7.7%. The tenure of the NSC is 5 years. That is, you cannot withdraw money before 5 years. After 5 years, you will get Rs 21,73,551. That means after 15 years, you will get interest of Rs 6,73,551.

Will there be tax exemption?

Whatever money you invest in a National Savings Certificate, you can claim tax exemption on it under section 80C of the Income Tax Act. You can avail tax exemption by investing a maximum of Rs 1.5 lakh in NSC.