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What is National Savings Certificates – NSC

National Savings Certificates – NSC is a Government of India backed saving scheme targeted small savings and tax benefits. The investment can be done at India Post Offices.

What is the interest rate on NSC

• Interest rate is 6.8% per annum (compounded yearly) wef 01.04.2020
• INR 1000/- grows to INR 1389.49 ​after 5 years

Tax benefit of investing in NSC

• Amount invested in NSC is allowed as deduction under section 80C upto Rs 1.5 Lacs per annum.
• Interest is taxble.
• The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
• The proceeds or redemption amount at maturity is exempt from tax.

NSC Investment amount

• Minimum amount Rs 1000/- in a financial year and in multiples of Rs 100/-
• No maximum or upper limit for investment

Salient features of NSC

Certificate may be purchased by

• (i) a single adult
• (ii) Joint A Account (Maximum 3 adults)
• (ii) Joint B Account (Maximum 3 adults)
• (iv) Minor above 10 years of age
• (iv) An adult on behalf of a minor.
• (v) A guardian on behalf of a person of unsound mind

NSC will be issued in the shape of Passbook

Download EPF passbook

Also read about Post Office Schemes:

• PPF | SSY| SCSS |
• RD | MIS | PO TD | KVP |