If you want a fixed return on your money along with a safe investment, National Savings Certificate (NSC) can be a good option. Money is deposited in it for a fixed period and gets interest from the government.
Notably, a person can open a joint account in NSC either alone or with a maximum of three adults including spouse. At such a time if husband and wife invest Rs 15 lakh each in NSC, how much money will be received after 5 years?
Suppose, husband invests Rs 15 lakh in NSC and wife also invests Rs 15 lakh. In this way the total investment of both became 30 lakh rupees. NSC is currently earning 7.7% annual interest. Its duration is 5 years. The interest is compounded at the end of every year but the first 4 years interest is considered as reinvestment. In short, the interest also continues to accrue and the entire amount is received at the end of 5 years.
Now, assuming 7.7% annual interest on an investment of Rs 30 lakh and compounding annually, after 5 years the amount comes to around Rs 43.47 lakh. That means, the husband and wife invested a total of Rs 30 lakh and earned around Rs 13.47 lakh as interest in 5 years. At the end of 5 years the total amount will be around Rs 43.47 lakhs.
If the investments of both are looked at separately, the husband’s 15 lakh rupees will become approximately 21.74 lakh rupees in 5 years. There will be interest of around Rs 6.74 lakh. Similarly, wife’s Rs 15 lakh will also increase to around Rs 21.74 lakh. The wife will also get an interest of around 6.74 lakh rupees. In this way both of them together will get about 13.47 lakh rupees interest and a total of about 43.47 lakh rupees.
Maturity of NSC is 5 years. Simply put, the date on which the certificate is purchased. So, it matures on completion of 5 years. The amount deposited in NSC can also be availed of tax exemption under Section 80C of Income Tax up to the prescribed limit. Apart from this, an official certificate (certificate) is issued by the government or post office on investing in NSC (National Savings Certificate).
The minimum amount to invest in NSC is Rs 1,000 and money can be deposited in multiples of Rs 100 thereafter. It has no maximum investment limit. Be aware that interest rates may change over time.
Note: The information provided here is for information only. TV9 Gujarati does not in any way advise investing or selling in shares, gold and silver, mutual funds and IPOs. Investing in the market involves potential risk. Always consult your financial advisor or market expert before investing.
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