National Savings Certificate (NSC) is a popular fixed income investment scheme in India that you can buy at any post office. The Indian Government promotes this NSC scheme to encourage people to save money safely. It is especially convenient because of the wide network of post offices across the country. NSC is available only for Indian citizens, not for Non-Resident Indians (NRIs) or Hindu Undivided Families (HUFs). Here, you will find a simple and complete guide about National Savings Certificate including its features, benefits, interest rates, eligibility, and how to invest in NSC in 2025.
Overview of National Savings Certificate (NSC)
NSC is a government-backed savings plan that helps you save small to medium amounts of money with assured returns and tax benefits. This makes it a very safe investment choice. The scheme can be bought at any post office in India. It is mainly meant for Indian residents and is especially helpful for people who want to save while getting income tax benefits.
Details of National Savings Certificate
| Name | National Savings Certificate (NSC) |
| Tenure | 5 Years |
| Interest Rate | 7.0% per annum (compounded annually) |
| Investment Amount | Minimum Rs. 1,000, No maximum limit |
| Tax Benefit | Tax deduction up to Rs. 1.5 lakh under Section 80C of Income Tax Act |
Main Purpose of National Savings Certificate
The NSC scheme encourages Indians to save regularly with low risk and get tax benefits. Since it is government-backed, it carries minimal risk, making it attractive and suitable for many savers, including retirees.
Main Features of NSC
- You can buy an NSC certificate for as low as Rs. 100. Certificates come in denominations of Rs. 100, 500, 1,000, 5,000 and 10,000.
- Both 5-year and 10-year maturity options are available, though 5 years is most common.
- Interest rate is currently 7.0% per annum, compounded annually but paid only at maturity.
- You can nominate family members or minors to benefit from your NSC in case of your passing.
- The NSC certificate can be pledged as security to get a bank loan with the postmaster’s approval.
- You need to submit required documents and certificates at the post office to buy NSC.
- Earlier, there were NSC VIII and IX issues but currently only NSC VIII Issue is available since NSC IX was withdrawn in 2015.
Main Benefits of NSC Scheme
- Tax benefit – You can claim investment under Section 80C, reducing your taxable income.
- Guaranteed returns promised by the government.
- If your original certificate is lost, you can get a duplicate issued.
- Interest earned (except final year interest) is tax-free.
- Certificate can be transferred once during lock-in period.
- You may continue investing even after maturity.
NSC Interest Rates in 2025
The interest rate on NSC is revised every quarter by the Ministry of Finance. For the current period, the interest rate is 7.0% per annum. Interest is compounded annually and paid at maturity.
| Period | Interest Rate |
|---|---|
| Q4 FY 2024-25 | 7.0% |
| Q3 FY 2024-25 | 6.8% |
| Q2 FY 2024-25 | 6.8% |
| Q1 FY 2024-25 | 6.8% |
Ways You Can Hold NSC Certificate
- Single Holder: Bought by an individual for themselves or a minor.
- Joint A Type: Two owners share equal maturity proceeds.
- Joint B Type: Jointly held but maturity proceeds go to only one.
Who Can Invest? Eligibility for NSC
- Must be an Indian citizen.
- No minimum or maximum age limit.
- NRIs cannot buy NSC.
- You may buy NSC for a minor or jointly with another adult.
- HUFs and trusts cannot invest under NSC VIII Issue.
Documents Needed to Buy NSC
- Recent photograph
- Filled NSC application form
- Identity proof like Aadhaar card or PAN card
- Address proof like Aadhaar card or Voter ID
- Investment amount via cash or cheque
How to Buy NSC Offline
You can easily visit any Indian post office with your KYC documents and investment money. Follow these steps:
- Fill out the NSC application form (available at the post office or online).
- Submit self-attested photocopies of KYC documents and carry original documents for verification.
- Pay the investment amount using cash or cheque.
- Collect your printed NSC certificate once it is processed.
How to Buy NSC Online
- Log in to the India Post internet banking portal.
- Go to General Services > Service Requests > New Requests.
- Select “NSC Account – Open an NSC Account”.
- Enter your deposit amount (minimum Rs. 1,000).
- Choose debit account linked with your Post Office savings account.
- Agree to terms and submit your application.
- Enter transaction password.
- Download or print your deposit receipt.
Maturity and Premature Withdrawal Rules
Normally, you cannot withdraw money before the 5-year maturity period ends. But there are exceptions in certain cases:
- If the certificate holder dies.
- If the certificate is lost – withdrawal allowed only to a pledgee who is a government gazetted officer.
- Withdrawal allowed only through a court order.
NSC is a good option if you want a safe, simple, and tax-saving investment. It helps you grow your savings steadily with government-backed security. If you want hassle-free investment and easy accessibility, consider NSC as part of your 2025 savings plan.