Indian citizens have been quite familiar with the India Post since childhood. It was the only means of communication for millions and has now become a popular financial service provider in the country. As of September 1, 2018, India Post operates IPPB (India Post Payments Bank) throughout the country. This is a 100% state-owned bank that has authorized nearly 17 crore postal savings bank accounts in the IPPB. This bank provides a range of financial services to Indian citizens, including account services, QR code payment services, UPI (Unified Payment Interface), NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service), Gross Settlement real-time, Bharat Bill Payment, DBT (Direct Benefit Transfer) and more. Through its extensive network of post offices and electronic banking. That’s all about the spread and scope of IPPB now. If you are thinking of a safe investment, start banking with IPPB. Mail has many savings schemes that will help you save money and earn while investing. For income taxpayers, the NSC (National Savings Certificate) is a popular investment option. Let’s learn more about this investment scheme as described by India Post.
National Savings Certificate (NSC):
As discussed earlier, this scheme is very popular among taxpayers. Many people may not be aware of such a scheme, which offers a safe and convenient way to invest their hard-earned money.
NSC has a certain period, ie. 5 years according to the eighth issue.
If you invest in the NSC, you will receive 7.9% (from July 1, 2019) per year and it will be aggravated annually. However, it is paid after the due date.
Minimum and maximum balance limit:
Minimum Rs. 1000 / – and in multiples of Rs. 100 / – can be invested in NSC. There is no maximum investment limit. Earlier, a certificate was issued, and now (after July 1, 2016) a booklet is issued for the NSC account.
Who can open an NSC account?
The following people can open an NSC account at IPPB and post offices
1. An adult may open an account on behalf of a minor
2. Minors over the age of 10 may open an account
3. An unconscious person can also open an account with the help of a guardian
4. A single adult can open an account
5. A joint “A” account can be opened with a maximum of 3 adults (In this case the amount is paid to both)
6. A joint type “B” account can be opened with a maximum of 3 adults (In this case the amount is paid to both)
Scope of the income tax rebate:
If you are an income tax payer, you can look for sources where you can invest and get a tax rebate at the same time. NSC is here for you. It falls under section 80C of the Information Technology Act. Your NSC deposits qualify for a tax rebate, but be sure to calculate the total amount of your 80C investment. According to 80C you can invest a maximum of Rs. 1.50 000 / -.
Transfer of NSC from one person to another:
Yes, it is possible. After opening, the NSC may be transferred to another person only once from the opening date to the due date. In this case, the old name will be rounded off in the mail and the new name of the account holder will be recorded in the booklet, while other procedures and formalities are followed.
How does money grow through this investment?
Although there is an interest rate of 7.9% paid for the NSC, you can look for a real calculation that shows that your money is growing and after 5 years you get so much against your investment from this scheme. Let us calculate the value of Rs. 70 000 / –
Basic investment amount – Rs. 70 000 / –
Interest provided by IPPB – 7.9% per annum, which is combined annually
Investment period – 5 years
Based on the above details, let’s calculate and see how much you will get in 5 years.
Year ——- Interest for the year —– Total interest —– Total balance for the year
1st ————- 5 530.00 —————- 5 530.00 ———- ——- 75,530.00
2nd ———— 5,966.87 —————- 11,496.87 ———– —– 81,496.87
3rd ———— 6,438.25 —————- 17,935.12 ———– —– 87,935.12
4th ———— 6,946.87 —————- 24,882.00 ———– —– 94,882.00
5th ———— 7 495.68 —————- 32 377.68 ———– —– 102,377.68
At maturity the amount Rs. 70 000 / – becomes Rs. 102,377.68 / -. This means the total amount of Rs. 32,377.68 is your return on investment of seventy thousand rupees. In addition, you have a tax deduction on the principal amount of the investment for the first year. Isn’t it a good investment plan? I hope this article will help Indians who are planning a long-term investment and a good return for a period of five years. As India Post is a state entity, it is safe and 100% secure.