Want to turn Rs 10 lakh into Rs 14 lakh in 5 years? Here's how to do it

Any individual can invest in this plan, either in his or her own name or on behalf of minors.

New Delhi: The National Saving Certificate (NSC) is a popular post office savings programme that offers guaranteed returns as well as Section 80C tax benefits. Financial planners recommend this scheme to risk-averse investors because it maintains capital while providing a better-fixed return than other fixed-return savings schemes.

Personal finance gurus believe that NSC may be used by seniors to obtain a stable monthly income. Any individual can invest in this plan, either in his or her own name or on behalf of minors. NSCs can also be purchased jointly by two people, either jointly or survivor.

NSC: Interest rate

Every quarter, the government sets the interest rate on NSCs. The current quarter's rate on the National Saving Certificate is 6.8 percent. If you put Rs 1000 in NSCs now at the aforesaid interest rate, your money will grow to Rs 1389 in five years. Because there is no maximum investment limit, NSCs can be purchased for any sum. So, if you put Rs 10 lakh in NSCs today, it will grow to Rs 13.89 lakh in five years.

NSC Tax benefit