Investment in National Savings Certificate of India Post

India Post is well-known to Indian citizens since childhood. It was millions of people’s only means of communication, and now it is a popular financial service provider in the country. The IPPB, or India Post Payments Bank, has been managed by India Post all over the country since September 1, 2018. This bank, which is owned entirely by the government, has allowed nearly 17 crore IPPB accounts for postal savings. Account services, QR code payment services, UPI (Unified Payment Interface), NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service), real-time gross settlement, Bharat Bill pay, DBT (Direct Benefit Transfer), and other financial services are offered to Indian citizens by this bank. through its extensive post office and e-banking network. Right now, everything revolves around IPPB’s spread and reach. Start banking with IPPB if you’re thinking about making a safe investment. There are a lot of ways to save money at the post office that will help you earn money while you invest it. NSC (National Savings Certificate) is a popular investment choice for income tax payers. Let’s learn more about the India Post’s description of this investment plan.

Certificate of National Savings (NSC):

This plan is very well liked by people who pay income taxes, as was mentioned earlier. It’s possible that a lot of people are unaware of a scheme that gives them a safe and easy way to invest their hard-earned money.

Timing of investments:

According to the eighth issue, the NSC has a set time period—five years.

Interest rate:

From July 1, 2019, investors in NSC will receive annual returns of 7.9%, compounded annually. Nevertheless, it is due upon maturity.

Minimum and maximum balance restrictions:

Rs. a minimum 1000/- and multiples of 1,000/- You can put 100 rupees into NSC. There is no maximum investment amount. Prior to July 1, 2016, the NSC account was issued with a passbook rather than a certificate.

Who can create an NSC account?

NSC accounts can be opened in IPPBs and post offices by the following individuals: One adult can open an account on behalf of a minor 2. One account can be opened by minors over the age of 10 3. With the assistance of a guardian, an unsound mind can also open a single account. An account can be opened by a single adult 5. It is possible to open a joint “A” type account with no more than three adults. In this case, the money goes to both of them. The maximum number of adults who can open a joint “B” type account is three. In this case, the money goes to either of the adults. The income tax rebate’s scope:

If you pay income taxes, you might be looking for places where you can invest while also getting a tax break. The NSC is here to help. It is covered by IT Act section 80C. You can get a tax break for your NSC deposits, but you should also figure out how much your 80C investments will cost in total. You can only put in Rs., according to 80C. 1,50,000/-.

NSC transfer from one individual to another:

This is doable, yes. The NSC can only be given to another person once between the opening date and maturity date. The old name will be rounded up by the post office in this scenario, and the new holder’s name will be written on the passbook in accordance with other formalities and procedures.

How does this investment increase wealth?

Even though the NSC pays interest at a rate of 7.9%, you might be looking for a real calculation that shows how your money is growing and how much you are getting back on your investment after five years from this scheme. Let’s do a value calculation using Rs. NSC calculation: 70,000/-

The initial investment is Rs. 70,000/- Based on the information provided above, let’s figure out how much you will receive after five years based on the interest provided by IPPB, which is 7.9% per year and is compounded annually.

Year—–Interest for the year—–Total interest —–Total balance for the year 1st——————————————————————————————————————————————————————————————————————————————————————— Rs. becomes 70,000. 102,377.68/-. It indicates a total of Rs. Your profit from investing seventy thousand rupees is 32,377.68. In addition, the first-year tax deduction is greater than the base investment amount. Isn’t it a good strategy for investing? I hope this article will be of assistance to Indians planning long-term investments with high returns over five years. India Post is safe and 100% secure because it is a government agency.