How can I apply for NSC scheme?

You can apply for NSC by visiting any post office or though online banking platforms.

What is the interest rate for NSC in 2024?

The current rate of interested in 7.7% p.a.

Is there any lock-in period for NSC in 2024?

Yes, NSC has a fixed lock-in period of 5 years.

How can i check the status of my NSC investment?

You can check the status of your NSC investment by visiting the post office or through your online banking account.

Are NSC investments eligible for tax ebefits?

Yes, investments in NSC qualify for a deduction of Rs. 1.5 lakh under Section 80C of the Income Tax Act.

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National Saving Certificate Scheme - Apply, Check Status & Interest Rate Online

Samridhi

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Updated: 28-01-2025 at 6:56 AM

National Saving Certificate Scheme - Apply, Check Status & Interest Rate Online

National Savings Certificate (NSC) is one of the investments made available by the Government of India which is favoured by the small and mid-income-equity investor who is looking forward to safe returns. Such bonds are something issued by the Indian post office and come with income tax rebates as has been provided in section 80C and are thus preferred by the majority as they assure security and savings. The govt scheme pays out a good interest rate and so the investors also enjoy the advantage of total safety available from the government.

NSC Features	Details
Interest Rate	7.7% per annum
Minimum Investment	₹1,000 (multiples of ₹100)
Lock-in Period	5 years
Risk Profile	Low risk
Tax Benefit	Up to ₹1.5 lakh under Section 80C
Mode of Purchase	Post office, online (with a savings account)
Nomination Facility	Yes (including minors)
Premature Withdrawal	Not allowed except in exceptional circumstances
Collateral for Loans	Yes, NSC can be used as collateral for secured loans

What Is A National Saving Certificate?

National Savings Certificates are one of the post office schemes which are risk-free, as the holders are guaranteed interest on the principal too. Such a saving scheme was launched by the Government of India and is available in any post office in the country. The NSC is oriented towards economic classes having small and moderate incomes and aims to promote regular and disciplined investing while giving them tax breaks under section 80C.

Who Should Invest In NSC?

Conservative investors intent on investing in safe return products can also consider the NSC. It is especially recommended for

Taxpayers: Self-employed individuals wishing to claim income tax rebates under section 80C.
Small Investors: People who prefer constant growth without exposure to high-risk investment schemes.
Long-term Investors: Someone who would be open to putting in their funds for five years or so.

Features & Benefits Of National Saving Certificate

The National Saving Certificate (NSC) has some essential advantages for people, especially those who want to invest their money with fixed returns. The following are some of the key features and benefits of the NSC scheme:

Fixed Income: It usually provides an assured return of 7.7% per annum which is better than most fixed deposits.
Low Risk: It is completely safe as it is done by the Government of India therefore the investing amount is safe.
Tax Benefits: An investment in NSCs is deductible up to ₹1.5 lakh per year under section 80C.
Loan Collateral: NSC can be used as collateral for certain loans.
Compounded Interest: Interest is compounded every year, however, it is disbursed upon maturity helping people capitalise on compound interest.
Accessibility: The physical certificate of NSC is easily accessible from any post office or from the net.
Maturity: It comes with a minimum lock-in period of five years and there would be no early exits except in exceptional cases of life or court.

History Of NSC Interest Rate

Financial Year	April-June	July-September	October-December	January-March
2023-2024	7.70%	7.70%	7.70%	7.70%
2022-2023	6.80%	6.80%	6.80%	7.00%
2021-2022	6.80%	6.80%	6.80%	6.80%

What Are The Tax Benefits Under NSC Investments?

As an investor, you will find that the National Saving Certificates NSC offers more than just secure investment due to the presence of tax benefits associated with it. To start with, here are the common tax benefits:

Deductions under Section 80C: Section 80C offers income tax relief for a maximum tenure investment in NSC which is presently permissible for income tax deduction up to ₹1.5 lakhs per annum.
Annual Interest Amount is eligible for tax deduction (besides the maximum amount of 1.5 lakh under section 80C) for that year.
No TDS: There is no tax relief on interest payment by the taxpayer immediately; however, to the extent, that any interest payment made in the 5th year shall be taxable depending on the tax slab of the holder.

Who Are Eligible To Apply For NSC?

The following individuals are eligible to invest in a National Savings Certificate:

Indian Residents: This option is only open to Indian nationals purchase. Non-resident Indians (NRIs) can not make investments in the National Savings Certificate (NSC).
Minors: NSC accounts can also be opened by individuals for minors.
Individuals: Hindu Undivided Families (HUFs) and Trusts are not permitted to avail of this.

Documents Required To Apply For NSC

The list of documents required for NSC are mentioned below:

Identity Verification: An Aadhaar card can be presented in combination with a PAN card, passport, voter ID, or driving license.
Proof of Address: A utility bill (water, electricity), a Bank statement, or a ration Card.
Photograph: Current passport-size photo.

How To Invest in a National Saving Certificate?

Investors have two options when it comes to investing in NSC – online (via post office internet banking) or offline (by going to the post office).

Steps To Apply For NSC Online

For applying for an NSC online, the Department of Posts' net banking service is very quick and simple for customers. Here’s how you can do it:

Step 1: Log in to Department of Posts (DOP) net banking.
Step 2: Select Service Requests under 'General Services'.
Step 3: Click on New Request and choose NSC Account.
Step 4: Then Enter the amount to be deposited and select the debit account that has been linked.
Step 5: After that accept the terms and conditions and click on submit request.
Step 6: Now your NSC Account details will be shown which can be downloaded as well.

Steps To Apply For NSC Offline

Applying for an NSC (National Savings Certificate) offline is a simple process that involves a visit to your nearest post office. Here’s a step-by-step guide to help you through it:

Go to a post office to get the NSC application form.
The form consists of necessary basic information.
Attach the required documents to KYC and submit the application form.
Make the investment amount, and the concerned post office will hand over the NSC certificate.

Comparing NSC With Other Tax-saving Investments

Investment	Interest	Lock-in Period	Risk Profile
NSC	7.7% p.a.	5 years	Low risk
ELSS	12%-15% p.a.	3 years	Market-linked
PPF	7.1% p.a.	15 years	Low risk
NPS	8%-10% p.a.	Till retirement	Market-linked
Tax-saving FD	7%-8% p.a.	5 years	Low risk

How To Request For A Duplicate National Savings Certificate?

If your original NSC certificate is lost, stolen, or damaged, follow these steps to apply for a duplicate certificate:

Visit the issuing post office.
Submit a Duplicate Savings Certificate request form with details of the lost NSC (serial numbers, issue date).
State the reason for requesting the duplicate certificate.
Upon verification, a duplicate NSC certificate will be issued.

Conclusion

A National Savings Certificate (NSC) is a survey on an investment platform, especially for those who are adverse to risks as it has government backing and offers a return at a fixed rate with certain tax exemptions.

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Important Links

Official website: https://www.nsiindia.gov.in/(S(rxsk4oahdscub545a0nz0fbg))/InternalPage.aspx?Id_Pk=90

Contact Information: https://www.nsiindia.gov.in/(S(rxsk4oahdscub545a0nz0fbg))/InternalPage.aspx?Id_Pk=48

Frequently Asked Questions

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Add a comment here...

Chandu

26 September 2024

I’ve always found the National Saving Certificate (NSC) to be a reliable savings tool, especially for risk-averse investors. The fact that it’s backed by the government makes it even more trustworthy. Does anyone know if reinvesting the maturity amount into a new NSC is a good strategy for compounding returns?

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