1. What is the National Savings Scheme?

The National Savings Scheme is a government-backed savings program in India that offers fixed returns with guaranteed principal protection. It provides a safe investment option with attractive interest rates for Indian citizens.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal amount (INR)
• \( r \) — Annual interest rate (%)
• \( t \) — Time period in years

Explanation: The formula calculates the total maturity amount by adding the principal to the simple interest earned over the investment period.

3. Importance of National Savings Scheme

Details: NSS provides risk-free returns, tax benefits under Section 80C, and helps in financial planning for long-term goals like retirement or children's education.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment amount?
A: The minimum investment varies by scheme but typically starts from ₹1,000 for most National Savings Schemes.

Q2: Are the returns taxable?
A: Interest is taxable except for schemes like PPF and Sukanya Samriddhi which have EEE (Exempt-Exempt-Exempt) status.

Q3: What is the lock-in period?
A: Lock-in periods vary by scheme - from 1 year for NSC to 15 years for PPF.

Q4: Can NRI invest in these schemes?
A: NRIs can invest in some schemes like NSC but not in others like PPF or SSY.

Q5: Where can I open these accounts?
A: At post offices or authorized banks across India.