Post Office Scheme: Invest Rs 25,000 and earn up to Rs 21 lakh; know how

National Savings Certificate: While investing money, an investor has only two things in mind - security and good returns. Post Office has many saving plans which assure both of these.

One such scheme that India Post offers is the National Saving Certificate (NSC). You can get more interest than Fixed Deposit (FD) rates at many banks. The post office's NSC scheme is currently offering a 6.8% interest rate. Keep in mind that the money you invest in the NSC will continue to add interest annually, but you will be paid on maturity at the same time.

The maturity period of the NSC plan is 5 years. You can increase your investment for another 5 years after maturity if you wish. You will have to invest at least Rs 100 in NSC - which is the cheapest NSC. However, there is no maximum investment limit.

NSC is a tax-saving option. Under Section 80C of the Income Tax Act, 1961, NSC investors get tax exemption on investments up to Rs 1.5 lakh per annum. AT this point in time, you can get NSC worth Rs 100, Rs 500, Rs 1000, Rs 5000 and Rs 10,000. You can invest in NSC by purchasing as many certificates as you want at different prices.

Interest of Rs 6 lakh in 5 years

If an investor invests Rs 15 lakh in NSC, the investor will be Rs 20.85 lakh in 5 years at an interest rate of 6.8%, which is an interest of about Rs 6 lakh in 5 years.