Post Office scheme: Earn Rs 1.94 lakh on Rs 5 lakh investment in 5 years, here’s how

While the Covid-19 pandemic may not be resulting in the horrifying setbacks of last year, markets and economies are still relatively volatile as we near halfway of 2022. The scenario has kept up the interest of people in investment options through mutual funds and schemes which are low-risk and offer great returns at the same time. One of the most popular such schemes for good gains in the short-term is offered by the Post Office.

While the Post Office has many schemes where people can put their savings in and earn good return over a certain time period. One a the low-risk investment options from the Post Office that offers good returns in just 5 years is the National Savings Certificate (NSC) scheme.

The NSC scheme is very popular among investors due to multiple reasons. The scheme has no upper limit of investment. Furthermore, one person can open multiple accounts for the scheme at the same time. Not just that, the NSC deposits also offers Income Tax deduction up to Rs 1.5 lakh available under section 80C of income tax.

Returns on investment of Rs 5 lakh in the Post Office NSC Scheme

The NSC scheme is offered currently with an interest rate fixed at 6.8 percent. As per the rules of this Post Office scheme, the interest is compounded on an annual basis. This is paid after the completion of maturity period, that is five years. As per the official webpage of the NSC scheme, an investment of Rs 1000 will grow to Rs 1389.49 ​after 5 years.

In line with this calculation, an investment of Rs 5 lakh in the scheme will amount to Rs 6,94,746 on maturity after 5 years. This means the National Savings Certificate scheme will give you an income of Rs 1,94,746 lakh over the course of the 5-year time period.

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Important details about the National Savings Certificate scheme

For persons interested in the scheme, it should be noted that you don’t have to invest lakhs necessarily as the scheme can be availed with a very small investment of minimum Rs 1,000. It has no upper limits and offers investors the option of making small deposits throughout the scheme. It is a minimum risk investment option which is not impacted by market fluctuations.

To open an account with the Post Office under the National Savings Certificate scheme, interested persons can visit the nearest branch and apply by filling up the form. All adults are eligible to open account in this scheme. Under NSC, joint accounts can also be opened. Children above the age of 10 years can open accounts on their own name. An account can be opened by a guardian on behalf of a minor or on behalf of person of unsound mind.

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