NSC: Deposit Rs 15 Lakh for 5 years in this post office scheme to get Rs 21.73 lakh return

NSC: Deposit Rs 15 Lakh for 5 years in this post office scheme to get Rs 21.73 lakh return

Indian Post provides several investment schemes to meet the diversified demands of its investors. All post office savings plans guarantee returns since they are sponsored by the Government of India. Furthermore, the majority of post office investment programmes are tax-exempt under Section 80C.

One such popular schemes is National Savings Certificate (NSC). This is a fixed-income investment programme that may be opened at any post office branch. The Government of India launched this programme to encourage subscribers, primarily small to mid-income people, to invest.

More details on the NSC scheme:

Interest rate: 7.7 per cent
Minimum investment: Rs 1,000
Maximum investment: No limit
Lock-in-period: 5 years
Risk profile: Low
Tax benefit: Up to Rs 1.5 lakh under Section 80C
Eligibility: Only Indian citizens

What happens when you invest Rs 15 lakh in the NSC scheme?

The minimum amount to invest in this scheme is Rs 1,000 and there is no upper limit. 

And two to three people can also open a joint account to invest together in this scheme. 

For minors, their parents can invest on their behalf.

By investing Rs 15 lakh, one can get Rs 6,73,551 as interest at a 7.7 per cent interest rate — earning a total corpus of Rs 21,73,551 upon maturity.

What documents do you require to apply for NSC?

• The NSC application form should be filled out correctly and submitted.
• For that, investors need original identification proof such as a passport, permanent account number (PAN) Card, voter ID, driving license, senior citizen ID, or government ID for verification.
• They also need to submit a photograph.
• For address proof, the investor needs either of these documents: passport, telephone bill, electricity bill, and bank statement along with a cheque.

Maturity period and premature withdrawal

NSC investments cannot be withdrawn before the five-year maturity term. However, under specific circumstances, early withdrawal is permitted. 

The following are the instances where early withdrawal is permitted under the NSC scheme:

i) In case the certificate holder dies.
ii) On the forfeiture of the certificate. However, the pledgee has to be a Gazetted Government Officer.
iii) The invested cash may be withdrawn if a judge orders it.
iv) To withdraw the funds, the certificate holder must provide specific documentation.