Turn Rs 1 Lakh into Rs 1.46 Lakh with this scheme where PM Modi has invested Rs 5 lakh

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Published: October 4, 2019 10:57:31 AM

Post Office National Saving Certificate (NSC) Interest Rate 2019: Prime Minister Narendra Modi doesn't have much to show when it comes to making investments.

Post Office National Saving Certificate (NSC): Current interest rate is 7.9 per cent. Representational image/PiabayPost Office National Saving Certificate (NSC): Current interest rate is 7.9 per cent. Representational image/Piabay

Post Office National Saving Certificate (NSC) Interest Rate 2019: Prime Minister Narendra Modi doesn’t have much to show when it comes to investing in diverse instruments. But he does keep faith in bank fixed deposit and National Saving Certificate (NSC), which is one of the fixed investment schemes offered by Post Office. A voluntary disclosure by the Prime Minister’s Office in September last year had revealed that the PM held NSC worth Rs 5,18,235. The government this week decided not to change the interest rates of various small savings scheme. This means, in the October to December quarter, new National Saving Certificate buyers would continue to enjoy the same 7.9 per cent interest rate as the previous quarter.

If you buy the NSC for Rs 1 lakh today, it will grow to Rs 1.46 lakh after sixty months (five years). The future value of NSC worth Rs 2 lakh will be Rs 292,507 on maturity after five years.

Better than Bank Fixed Deposit?

In comparison to NSC, the interest rate offered on five-year fixed deposit schemes of banks are less. SBI is offering 5-year FD at 6.25 per cent, while the interest rate on the same term plan in HDFC Bank is 6.9 per cent. Rs 1 lakh in SBI Fixed Deposit for years would grow to just Rs 1.35 lakh in five years, while in HDFC Bank, this amount would grow to Rs 1.39 lakh.

PM Modi’s assets

Source: pmindiagov.in

Where to buy NSC?

You can buy NSC at Post Office. Rs 100 invested in NSC today will grow to Rs 146 after five years. The minimum amount that should be invested in NSC is Rs 100 and the maximum in multiples of Rs 100. There is no upper limit.

The interest rate on NSC is compounded annually but it is paid to the subscriber-only at maturity.

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NSC: Income Tax Benefit

Deposits in NSC qualifies for tax rebate under Section 80 C of the Income Tax Act. So if you are planning to invest for tax-saving, you can take a look at the NSC, which provides comparably better rates thank some of the top Bank FDs.

NSC can be purchased by an adult, for himself, or on behalf of a minor or by a minor, according to the official Post Office website.

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