Post Office Saving Scheme: NSC Gives Better Interest Than Fixed Deposit; Check Details

Post office Schemes:  The post office is known for its variety of small saving schemes. All these schemes are backed by the union government as the government decides the interest rates and eligibility criteria for any particular scheme. Among all the saving schemes, the National Saving Certificate is one of the popular ones. This is a safe investment instrument with a fixed return and of course, it is backed by the union government.

Post Office National Savings Certificate

The interest rates for the Post Office National Savings Certificate are decided by the Finance Ministry for every quarter. At present the government is offering a 7.7% interest rate annually on investments in National Savings Certificate.

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NSC vs FD

Banks and Lending institutions are offering up to 7.50 per cent interest rate on tax-saving FDs, which is lower than the interest rate given in the National Saving Certificate.

Minimum investment needed?

You can start investing in the Post Office's National Savings Certificate Scheme (NSC) with Rs 1,000. The lock-in period in NSC has been kept for five years. Investing in NSC is an easy process. You can invest in the scheme via both online and offline modes.

NSC can be purchased from any post office branch across India. Fill out the NSC Application Form. The form will be available from the post office or online. Fill in your information and file the nominee. Provide your ID proof like an Aadhar PAN card and address proof. Deposit the amount  After completion of all the formalities, an NSC certificate will be issued to you.

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