Post Office NSC Scheme : A
Secure Investment for Indian Citizens
National Savings Certificate (NSC) is a small savings scheme of the Government of India presented through the India Post (Post Office). It is deemed as a safe, low risk investment, and is suitable to conservative investors who want to save on taxes, and get guaranteed returns.
Key Features Of NSC Scheme
Type Of Investment : Bond, savings bond guaranteed by the government.
Minimum Investment : ₹1000 ( In Multiples Of ₹100) , no maximum limited-time
Eligibility : individual must have indian president
Tenure : 5 year fixed maturity.
Interest Rate : As of april - june 2025, the Interest rate is 7.7% per annum and compounded annually
Tax Benefits: Investment will get Feather section 80C deduction of the Income Tax Act, to the extent of 1.5 lakh per year.
Post Office NSC Scheme : A
Secure Investment for Indian Citizens
Benefits of Investing in NSC
Capital Security: being a government project, the capital and the interest are secured entirely.
Fixed Returns: The rate is declared four times in a year and it stays constant throughout the tenure.
Tax Savings: Investment of up to 1.5 lakh every year is eligible to be deducted in terms of tax.
compounding Power: The power of interest compounds your money growth after one year.
Loan Facility: NSC certificates can be mortgage to obtain a loan facility either with a bank or NBFC.
Easier Open Process: Can be opened at any indian post Office
How to Buy an NSC
To obtain an NSC certificate, you need to go to your closest post office with the following:
PAN card and Aadhaar card (if KYC is to be done)
Passport-size photos
NSC application form
Deposit the money in cash, cheque or electronic transfer
It is also possible to open NSC account online at India Post Internet Banking Portal in case you are already registered.
Example of Interest and Maturity
Suppose you invest 10,000 in NSC at 7.7 per cent interest:
In 5 years, you will get 14,483 (approximately).
Interest :₹4483
Interest is taxable however reinvested interest within the first 4 years fall under Section 80C as well.
Who ought to Invest in NSC?
Those who want to invest without risks.
Parent's are Saving for children future
Points to Remember
NSC can not be cashed in early unless in the occurrence of:
The holder of the certificate died.
Such forfeiture by a pledgee (in event of default of loan).
Remember court order
At the time of opening the account, you may suggest a name of an individual.
NSC certificates are currently electronic-only and issued under a passbook system.