National Savings Certificate (NSC): Overview

National Savings Certificate is an assured return scheme and provides for tax rebates under section 80C. It pays interest at 8 per cent for a duration of six years, which is relatively lower compared to other small saving schemes. You buy NSC for a specific value and the interest compounded and returned along with the principal amount on maturity. NSCs have low liquidity and premature withdrawals can be done only under specific circumstances, such as the death of the holder(s), forfeiture by the nominee, or under court's order.

NSC: Basics

Where can I purchase National Savings Certificates (NSC)?

NSCs can be purchased from all head post offices and authorized post offices. ......

Who is eligible for purchase of National Savings Certificates (NSC)?

Any adult individual can buy NSCs. NSCs can also be bought jointly or by an adult on behalf of a minor. ......

How do I purchase a National Saving Certificates (NSC)?

You can apply for an NSC in a prescribed form at any post office, in person or through an authorized agent. ......

NSC: Opinion

How do I pay for National Saving Certificates (NSC)?

You can pay by cash, locally executed cheque, order, demand draft drawn in favor of postmaster etc... ......

How can NSCs be encashed at maturity?

The certificate can be encashed at the post office registered or at any other post office if the concerned authority is satisfied with the identity proof of the individual presenting the certificate. ......

Is investment in National Savings Certificates (NSC) eligible for tax benefits?

Deposits up to Rs.1 lakh qualify under Section 80C of the Income Tax Act. ......

NSC: FAQs

What is rate of interest offered on National Saving Certificates (NSCs)?

A rate of interest of 8.16 per cent compounded half-yearly on NSCs. ......

What happens in case of premature encashment of National Saving Certificates (NSC)?

If the certificate is encashed within one year from the date of certificate, only the face value of the certificate will be payable. ......

What happens if the National Savings Certificate (NSC) is lost or destroyed?

If the certificate is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate copy to the post office where the certificate is registered. ......

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