The National Savings Certificate, or NSC, is a fixed-income plan that may be opened at a post office. The NSC Scheme is offered at all NSC post offices, and the Indian Government actively promotes it. The program has gained a lot of traction in India because of the country’s large number of post offices and convenient access to them. The NSC scheme would only be open to Indian citizens. Read below to get detailed information related to the National Saving Certificate like highlights, objectives, features, benefits, NSC Interest Rates, eligibility criteria, documents required, and much more

What is a National Saving Certificate ?

The National Savings Certificate (NSC) is a tax-saving investment designed to support modest or medium-sized savings. All Post Offices offer the NSC program, which is pushed by the Indian government. The danger is regarded as being extremely minimal because the initiative is supported by the Indian Government. The program does not apply to Non-Resident Indians (NRIs) or HUFs and is exclusively available to Indian citizens. The national pension system is becoming more well-known because of the income tax advantages, low minimum investment requirements, and minimal risk.

Post Office Saving Scheme

NSC Certificate Details

Name National Saving Certificate
Tenure 5 Years
Interest Rate 7.0% p.a.
Investment Amount Minimum: Rs. 1,000 Maximum: No maximum limit
Tax Benefit Up to Rs.1.5 lakh according to Section 80C of the Income Tax Act

National Saving Certificate Objectives

The scheme’s primary goal is to encourage people to save modest to medium amounts of money, and it offers tax advantages for doing so. The dangers of investing in the scheme are low because it is promoted by the Indian government.

Features of National Saving Certificate

Some of the key features of the National Saving Certificate are as follows:

  • A certificate can be acquired for as little as Rs. 100. The certificate is available in values of Rs. 10,000, Rs. 5,000, Rs. 1,000, Rs. 500, and Rs. 100.
  • People can start by making tiny investments and then raise them as soon as it is practical.
  • The two maturity durations of the plan that people can select from are 5 years and 10 years.
  • At the moment, the interest rate has been increased from 6.8% to 7%. additionally, it is compounded annually. The interest, however, is only due at maturity.
  • The investor may add more nominations, including family members and minors. The nominee will be entitled to inherit the scheme if the investor dies while the scheme is still in effect.
  • When applying for a loan from a bank, the NSC can be used as security or collateral. The transfer of the certificate to the bank, however, requires permission from the relevant postmaster.
  • The program can be acquired at post offices after providing the necessary documentation.
  • The two types of certificates that were initially offered were the NSC IX Issue and the NSC VIII Issue. However, the NSC IX Issue was abandoned by the Indian government as of December 2015. Consequently, there is only the NSC VIII Issue available.

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Benefits of National Saving Certificate

Some of the key benefits of a National Saving Certificate are as follows:

  • The tax savings that people might receive on their investments in the NSC are one of the key benefits of doing so. Under this plan, the returns are likewise assured. The NSC program is popular because it can offer retirees a steady income.
  • A duplicate certificate can be ordered if the original is lost.
  • The remaining interest that is generated, except for the interest earned in the final year, is tax-free.
  • Individuals have the option to continue investing in the scheme even after the maturity period.
  • The certificate may be transferred from one person to another. Nevertheless, it is only permitted once over the lock-in time.

National Savings Certificate Interest Rate 2024

The interest rate on National Savings Certificates may fluctuate from time to time under decisions announced by the Finance Ministry. For Q4 of FY 2022–23 (January–March), the relevant NSC interest rate is 7.0% p.a. In the previous quarter (October to December 2022), the NSC rate was 6.8%. Every year, interest is compounded. The scheme’s historical interest rates are listed here.

Period Interest Rate
Q3 FY 2022-23 6.8%
Q2 FY 2022-23 6.8%
Q1 FY 2022-23 6.8%
Q4 FY 2021-22 6.8%
Q3 FY 2021-22 6.8%
Q2 FY 2021-22 6.8%
Q1 FY 2021-22 6.8%
Q4 FY 2020-21 6.8%
Q4 FY 2019-20 7.9%
Q1 FY 2018-19 7.6%
Q2 FY 2018-19 7.6%
Q3 FY 2018-19 8.0%
Q4 FY 2018-19 8.0%
Q1 FY 2019-20 8.0%
Q2 FY 2019-20 7.9%
Q3 FY 2019-20 7.9%

Holding NSC Certificate in Different Ways

The following are the several ways to hold National Savings Certificates:

  • Single Holder Type Certificate: An investor may buy a single holder certificate for themselves or on behalf of a minor.
  • Joint A Type Certificate: In this situation, the certificate is owned by two investors, each of whom will get an equal portion of the maturation earnings.
  • Joint B Type Certificate: Although this certificate is a joint holding one, only one of the holders will get the maturity proceeds.

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Eligibility Criteria for National Saving Certificate

The eligibility criteria for National Saving Certificate are as follows:

  • The person involved must be an Indian national.
  • There is no minimum or maximum age requirement to buy a certificate.
  • Indians who do not reside in India cannot invest in NSC.
  • A person can purchase an NSC on behalf of a minor or invest with another adult.
  • HUFs and Trusts are not eligible to invest in the scheme under NSC VIII Issue

Required Documents

Some of the important documents required for a National Savings Certificate are as follows:

  • Recent Photograph
  • Filled out NSC Application form
  • Identity proof like an Aadhaar card, PAN, etc.
  • Address proof like an Aadhaar card, Voter ID, etc.
  • Cash/cheque deposit of the amount to be invested

Steps for Offline National Savings Certificate Investment

Any Indian Post Office will provide NSC upon receipt of the necessary KYC documentation. The essential steps for investing in National Savings Certificates are as follows:

  • Complete the NSC application form, which is accessible both online and at all Indian post offices.
  • Self-attested copies of the necessary KYC documents must be submitted.
  • The original documents must be brought along as well for additional verification.
  • Make the payment of the investment amount in cash or by check.
  • NSCs of the appropriate amounts will be printed after the purchase of certificates is processed, and they may be picked up at the post office.

Steps for Online National Savings Certificate Investment

For online National Savings Certificate Investment, the user needs to follow the below-given steps:

  • Now, under the General Services section, click on the Service Requests
  • After that, click on the New Requests option
  • A new page will open on the screen
  • Now, select the NSC Account – Open an NSC Account (For NSC)
  • After that, enter the minimum deposit amount for NSC
  • Now, select your debit account linked to the PO savings account
  • After that, accept the terms and conditions and click on the submit button to submit the application
  • Now, enter the transaction password
  • Click on the view/download the deposit receipt to download the receipt

NSC Certificate Maturity Period and Premature Withdrawal

In the majority of cases, the money placed in the NSC cannot be withdrawn before the 5-year maturity period. However, premature withdrawal is permitted in several circumstances. The instances when premature withdrawal is permitted under the NSC plan are listed below:

  • In case the certificate holder dies
  • Regarding the loss of the certificate. The pledgee, however, must be a Government Officer with a Gazette.
  • The invested cash may be withdrawn only under court order.


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