The stock market’s recent volatility has many investors seeking safer havens for their money. If you’re looking for an investment that guarantees security and significant returns, the National Savings Certificate (NSC) scheme is an excellent option. This government-backed program offers a compelling opportunity to grow your wealth with minimal risk. You can open an NSC account at any post office across India with a minimum deposit of ₹1,000. The scheme has a 5-year maturity period and currently offers an attractive annual interest rate of 7.7%, reviewed quarterly. Beyond its competitive returns, NSC also provides tax benefits under Section 80C of the Income Tax Act, making it a smart choice for tax-conscious investors.

While there’s no upper limit on the investment amount in NSC, the tax benefit under the old tax regime is capped at ₹1.5 lakh. However, the interest earned from NSC is taxable under the “income from other sources” category. Despite this, the dual advantage of investment growth and tax savings makes NSC a highly attractive option. To illustrate how you can accumulate ₹22 lakh, consider investing ₹15 lakh as a lump sum in an NSC. With the current annual compounding interest rate of 7.7%, your investment will grow significantly over five years. At maturity, you would receive approximately ₹21,73,551, which includes a substantial interest earning of ₹6,73,551 on your initial ₹15 lakh investment. This demonstrates the power of NSC in building a substantial corpus with a single, secure investment.