Prime Minister Narendra Modi disclosed his investments while filing his electoral nomination on May 13, 2024, to contest from Uttar Pradesh’s Varanasi Lok Sabha seat. His investments included Rs 2.85 crore in fixed deposits (FDs) at the State Bank of India (SBI) and Rs 9,12,338 in the National Savings Certificate (NSC) scheme.
National Savings Certificate (NSC) Scheme
- Description: Government-run savings scheme administered through post offices.
- Interest Rate: Offers 7.7% interest per annum, compounded annually but payable at maturity.
- Stability: Interest rate is more stable compared to fluctuating bank FD rates.
- Tax Benefit: Allows deductions of up to Rs 1.5 lakh of tax liability under Section 80C of the Income Tax Act under the old tax regime.
- Investment Options: Minimum investment of Rs 1000, no upper limit. Single account, joint account (up to 3 adults), or guardian on behalf of a minor.
- Online Mode: Available through DOP internet banking.
- Lock-in Period: 5 years; premature withdrawals within the first year lead to forfeiture of interest.
Other Post Office Schemes
- Post Office Time Deposit Account:
- Description: Secure option with fixed tenures ranging from one to five years.
- Interest Rates: Ranging from 6.9% to 7.5%, highest for five-year tenure.
- Tax Benefit: Tax-saving TDs qualify for Rs 1.5 lakh exemption under Section 80C.
- Senior Citizen Savings Scheme:
- Description: Attractive scheme for senior citizens above 60 years.
- Interest Rate: 8.2% per annum, payable quarterly.
- Investment: Minimum Rs 1,000; maximum Rs 30 lakh.
- Post Office Monthly Income Scheme (MIS):
- Description: Offers monthly income to investors.
- Interest Rate: 7.4% per annum.
- Investment: Minimum Rs 1000; maximum Rs 9 lakh.
- Penalties: 2% deduction for premature closure within 1-3 years; no premature withdrawal before one year.
Multiple-Choice Questions (MCQs):
- What is the interest rate offered by the National Savings Certificate (NSC) scheme?
- A) 7.5%
- B) 7.7%
- C) 8.2%
- D) 6.9%
- Answer: B) 7.7%
- What is the minimum investment requirement for the Senior Citizen Savings Scheme?
- A) Rs 1000
- B) Rs 10,000
- C) Rs 30 lakh
- D) Rs 1.5 lakh
- Answer: A) Rs 1000
- Which Post Office scheme offers monthly income to investors?
- A) National Savings Certificate (NSC)
- B) Post Office Time Deposit Account
- C) Senior Citizen Savings Scheme
- D) Post Office Monthly Income Scheme (MIS)
- Answer: D) Post Office Monthly Income Scheme (MIS)