PM Narendra Modi declared Rs 9.12 lakh investment in the National Savings Certificate (NSC) scheme in his nomination filing. Here are returns from all major Post office schemes.
Prime Minister Narendra Modi, while filing his electoral nomination on May 13, 2024, to contest from Uttar Pradesh's Varanasi Lok Sabha seat, disclosed his investments. After his biggest investment totalling around Rs 2.85 crore in fixed deposits (FDs) at the State Bank of India (SBI), his second biggest investment was in the National Savings Certificate (NSC) scheme. PM Modi declared that Rs 9,12,338 was lying in the National Savings Certificate (NSC) scheme, a post office investment scheme.
National Savings Certificate (NSC) scheme a government-run savings scheme administered through post offices, offers 7.7 per cent interest per annum, compounded annually but payable at maturity. Unlike fluctuating bank FD rates, the interest in NSC is more stable, however it may be revised quarterly. At 7.7 per cent interest annually, NSC will require 10 years and 4 months to double your principal investment.
One of NSC's key advantages is its tax-saving feature, allowing deductions of up to Rs 1.5 lakh of their tax liability under Section 80C of the Income Tax Act under the old tax regime. The minimum investment requirement is Rs 1000, with no upper limit. One can have a single account or a joint account (up to 3 adults), A guardian on behalf of a minor can also open an account. The online mode in addition to the offline mode via post office works through DOP internet banking. In your online banking account, go to 'General Services,' select 'Service Requests,' choose 'Open an NSC account' and specify the investment amount.
NSC comes with a lock-in period of 5 years, and premature withdrawals within the first year will lead to forfeiture of interest.
Beyond the National Savings Certificate (NSC), here are some other Post office schemes that give attractive rates of returns. From April 1, 2023, it is mandatory to provide PAN and Aadhaar details when investing in post office schemes. Any discrepancy between details may result in you not being able to invest.
Post Office Time Deposit Account
The Post Office Time Deposit Account is another secure option to park your funds for fixed tenures ranging from one to five years, with a five-year tenure offering the highest rate of return (7.5 per cent). With interest rates, ranging from 6.9 per cent for one-year accounts, to 7 and 7.1 per cent for two and three-year accounts, this scheme offers attractive returns. The 5-year TD also called tax saving TDs will only qualify for a Rs 1.5 lakh exemption under section 80C of the Income Tax Act, 1961. None of the other schemes have tax-saving advantages.
Senior Citizen Savings Scheme
For senior citizens aged above 60 years, who want stable incomes, the Senior Citizen Savings Scheme is an attractive scheme. The current interest rate of 8.2 per cent per annum is payable quarterly, on April, July, October and January. this scheme offers higher returns compared to traditional fixed deposits. Further, the minimum investment is Rs 1,000 and the maximum investment limit stands at Rs 30 lakh.
Post Office Monthly Income Scheme
Another scheme the Post Office Monthly Income Scheme (MIS), or National Savings Monthly Income Account offers monthly income to investors and starts with a minimum investment requirement of Rs 1000 and up to Rs 9 lakh can be invested. The current interest rate stands at 7.4 per cent, which will act like a regular cash flow to meet investor's monthly expenses. Rs 15 lakh can be parked in a joint account, which will provide the investors with Rs 9,250 to handle their monthly expenses. If the MIS account is closed from 1 year to 3 years from the date of account opening, a 2 per cent deduction from the principal will be charged. Any premature withdrawal before one year cannot be done.