NSC-National Savings Certificates

What is National Savings Certificates ?

National Savings Certificates is a long-term investment medium. Through this, the investor gets a return at a fixed interest rate. The special thing is that, it is issued under the post office scheme of the government of India. You can buy NSC (National Savings Certificates) from your nearest post office. This plan is completely tax free, in which you get the benefit of secured investment and guaranteed returns with tax saving.

NSC is like a fixed deposit of a bank. This is a post office saving service, under which you do not need to pay tax on interest or the return. If you want to secure investment and guaranteed returns with tax saving investment so NSC (National Savings Certificates)  can be a better option for you.

How many percent returns are obtained on the NSC

Currently 8.0% Interest rates for Q4, FY 2018-(January – March 2019) provided on NSC this interest rate is also changed every three months as per the decisions by the Finance MinistryInterest is earned from NSC is compounded annually but payable only at the time of maturity.

Profit from investment in NSC

The person who invest in NSC can save his tax, this is a tax saving scheme. There is no maximum limit to investing NSCs bonds you can start investment minimum amount of Rs. 100, in which you can save taxes under Section 80C of the Income Tax Act 1961 on investment of up to Rs 1.5 Lakh.

Maturity period of NSC

The maturity of NSC is come with 2 fixed maturity periods 5 years and 10 years. The good thing is that if you meet certain conditions, you can withdraw the account balance after the maturity period of 1 year. Interest rates in NSC are changed or fixed every 3 months.

Amount of investment in NSC

There is no maximum limit to the amount of investment in NSC. In the NSC you can invest in a sum of Rs 100 and then in the coefficient of this amount up to Rs 100, Rs 500, Rs 5000, Rs 10 000.

Who can buy NSC ?

The special thing is that the benefits of this scheme can be availed by people who is below the age of 18 years. i.e., the scheme will also benefit minors. For this, their parents will have to buy NSC in the name of their children who is below the age of 18 years. They can also invest in joint schemes. Non-Resident Indians (NRI) and Hindu Undivided Families (HUFs) or trusts can not invest in it, you can say, they can not avail benefit of this scheme. This  scheme is only for Indian individual citizens.

You can transfer NSC from one post office to another post office as well as you can transfer from one person to another person but for this you will have to fill out and submitting Form NC-32 at the post office which earlier issued the original certificate.If your original NSC certificate has been lost, stolen, destroyed, defaced or mutilated so you can get duplicate copy of NSC certificate but for this you will have to just fill out Form NC-29 and submit it at the post office.

How to buy NSC

To purchase a NSC is a simple process, you can buy it from any nearest post office. You have to keep some necessary documents like Aadhaar, PAN, etc. with you to buy NSC. You have to give your necessary information through the form in which you will have to tell about your name and investment amount. You can purchase NSC through cheque or cash and demand draft also. In case of payment by cheque, the account will open only if the payment of cheque will be successful.

Companies and NRIs are not eligible for investing in NSC

No society or company can buy the NSC. NRI (Non-Resident Indians) is not the facility of buying NSC. However, if you were a citizen at the time of buying NSC, then the NSC purchased before your NRI will continue to work till its maturity.

There is also the facility of choosing nominee in the NSC so that your chosen person can get your NSC money if there is any untowardness with you.


  1. Earlier NSCs were available with two tenures – 5 years (NSC VIII) and 10 years (NSC IX). With the discontinuation of NSC IX, only the 5 year NSC VIII is currently available for subscription.

  2. Nice info. It's a good saving scheme. And the applicable NSC interest rate for Q4 FY 2018-19 (January – March 2019) is 8%.