Exploring the Benefits of National Savings Certificate (NSC) 2025

Understanding National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a widely recognized and secure investment program managed by the Indian Department of Posts. This scheme is ideal for investors seeking fixed and guaranteed returns with minimal risk. For those interested, investing in NSC 2025 can yield substantial returns over a five-year period.

Advantages of Investing in NSC 2025

Investment Returns:

Investing ₹1,00,000 in NSC will yield ₹1,44,903 upon maturity at an annual interest rate of 7.7%. A ₹2,00,000 investment will grow to ₹2,89,807, while a ₹5,00,000 investment will mature to ₹7,24,517. This secure investment option is perfect for those looking to safeguard their funds while earning good returns.

Key Features of National Savings Certificate (NSC)

1. Interest Rate and Payment:

• Interest Rate: 7.7% per annum (compounded, payable at maturity)
• Payment: At the time of maturity

2. Minimum Investment:

• Minimum investment: ₹1000, in increments of ₹100
• No upper limit on investment

3. Eligibility to Open an Account:

• Individual adults
• Joint accounts (up to three adults)
• Parents can open accounts for minors or those with mental disabilities
• Minors aged 10 and above can open accounts in their name

4. Deposit Details:

• Minimum deposit: ₹1000, thereafter in multiples of ₹100
• No maximum limit on deposits
• Multiple accounts can be opened under this scheme
• Eligible for tax exemption under Section 80C of the Income Tax Act

5. Maturity Period:

• The account matures after five years, at which point the principal and interest are paid out

6. Premature Closure:

• Generally, NSC cannot be closed before five years
• However, it can be closed prematurely under specific circumstances:
• Upon the death of the account holder
• If pledged by a Gazetted Officer
• By court order

7. Account Transfer:

• Accounts can be transferred to another person under certain conditions:
• To a nominee or legal heir after the account holder's death
• For joint holders after the death of one holder
• By court order
• If pledged

Benefits of Investing in NSC

Investment Advantages:

• A secure and dependable investment option
• Guaranteed returns over a fixed five-year term
• Investment income up to ₹1.5 lakh is tax-exempt
• Easy and straightforward account setup

Conclusion

PC:Punjab Kesari