alexa
 FREE Credit Score  Watch Our Videos

Download Financial Freedom App and Start your journey to become RICH

Search in Indianmoney's WealthPedia

National Savings Certificates

Growth with Safety.
Just Leave a Missed Call on 022 6181 6111,
Our Money Doctor will reach you shortly !

Get the best advice on
National Savings Certificates

I have read and I agree to the Privacy Policy
 
National Savings Certificates
FAQ's Articles News Videos Education Calculator

Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel

Rate us
  • ★
  • ★
  • ★
  • ★
  • ★
4.8 / 5 based on 155 User Reviews

What is a National Savings Certificates?

You can invest in the National Savings Certificate by walking into the nearest post office. It is a highly popular small savings scheme. The money you deposit is safe and you get interest on the money, you deposit in the National Savings Certificates.

How to apply

  • You can apply for the National Savings Certificates at the nearest post office.

  • You have to fill the application and submit it at the relevant counter. You will be issued a certificate.

  • You need to keep the certificate safe and submit it at the time of withdrawal.

  • You need to have identity and address proof as part of the KYC (Know Your Customer), procedure.

  • Ask Money Doctor

    Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.

  • Ask IndianMoney.com Money Doctor
Why invest in National Savings Certificates

Invest with no Limit

You can invest in the National Savings Certificates, with no upper limit. This is also a safe investment to make.

 

High Interest

Gives a higher rate of interest than a fixed deposit. Also gives a high rate of interest, when compared to other fixed income securities.

Tax Benefits

You get a tax deduction on the amount you invest and the reinvested interest, subject to a particular limit. There is no TDS.

Ease of Purchase

You can purchase the National Savings Certificate in the name of your minor child. You can also make a joint purchase with spouse.

Eligibility for National Savings Certificates

You have to be a citizen of India to open a National Savings Certificates. NRI's and HUF cannot invest in the National Savings Certificate. You can open a National Savings Certificates alone (single account), or even as a joint account. The account can be opened in the name of a minor by parents or legal guardian.

Types of National Savings Certificates

5 Year National Savings Certificates

  • You have to invest a minimum of INR 100 in the 5 Year National Savings Certificates. You can invest in denominations of INR 100, 500, 1000, 5000 and even 10000. There is no upper limit for investing in the 5 Year National Savings Certificates.

  • The 5 Year National Savings Certificates has a lock in period of 5 years.

  • You get interest of 8.5% per year.

  • You get a tax deduction up to INR 1.5 Lakhs per year under Section 80 C of the income tax act. Your taxable salary is calculated after accounting for this deduction.

10 Year National Savings Certificates

  • You have to invest a minimum of INR 100 in the 10 Year National Savings Certificates. You can invest in denominations of INR 100, 500, 1000, 5000 and even 10000. There is no upper limit for investing in the 10 Year National Savings Certificates.

  • The 10 Year National Savings Certificates has a lock in period of 10 years.

  • You get interest of 8.8% per year.

  • You get a tax deduction up to INR 1.5 Lakhs per year under Section 80 C of the income tax act. Your taxable salary is calculated after accounting for this deduction.

 

Concepts & FAQ's National Savings Certificates

What is a National Savings Certificate?

National savings certificates are certificates issued by Department of post, Government of India and are available at all post office counters in the country. This scheme is specially designed for Government employees, self employed and other salaried classes.

It is a long term safe savings option for the investor. National Savings Certificates have a high interest rate at 8.6% compounded half yearly. Post maturity interest will be paid for a maximum period of 24 months at the rate applicable to individual savings account.

Concept of National Savings Certificates : NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There is no prescribed upper limit on investment. Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to the Post Office through a representative or an agent.

The certificates are easily transferable from one person to another through the post office. There is a nominal fee for registering the transfer. They can also be transferred from one post office to another. One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master.

  • Ask Money Doctor

    Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.

  • Ask IndianMoney.com Money Doctor

Tax Benefits : Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88. Investment up to Rs. 1, 00,000 per annum qualifies for IT Rebate under section 80C of IT Act.

Thinking of buying a National Savings Certificate ?

To be absolutely sure of WHAT TO LOOK OUT, talk to IndianMoney.com on the phone for FREE financial consultation.

Expert Financial Advisors from IndianMoney.com would provide you unbiased, correct and up to date information so that you can make an informed financial decision.

Frequently Asked Questions

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 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.

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.

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

Is nomination facility available in NSC?

Yes, Nomination facility is available.

Can I Get Duplicate Certificate if my National Savings Certificate lost, stolen or destroyed?

Yes, You can get a duplicate NSC from the post-office if it is lost, stolen or destroyed. The Procedure will be much more easy if you have a XEROX Copy of the Original Certificate.

What are the advantages of National Savings Certificate?

National Saving Certificate is good for investment and is less risky as it is issued by government. The repayment is guaranteed by the Central Government. It gives interest at the rate of 8.6 per cent per annum. Tax benefits under section 80 C of Income Tax Act are applicable.

How can one know whether the NSC is matured or not?

You can approach the post office which issued the certificate.

What are the Advantages of National Savings Certificates?

Get the Best Financial Advice on National Savings Certificates Leave a Missed Call @ 022-6181-6111
 

National Savings Certificates Articles

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
Read Article

How to Use India Post Mobile App?

29 October 2019, Tuesday    

A new mobile app has been launched by India Post to facilitate easier transactions. You can download this app from Google Play Store. If you want to make deposits in the PPF account or any other post office scheme, you don’t have to visit the post office in person. Just use the India Post mobi ....

National Savings Certificate India Post Mobile App

What is India Post Mobile Banking Facility?

16 October 2019, Wednesday    

Opening post office savings account just got easy. The Department of Post has launched mobile banking for savings account customers. The mobile banking facility comes just a year after internet banking facility for savings account holders was launched. To avail mobile banking facility at Post off ....

NSC India Post Mobile Banking App

Latest Interest Rates on PPF, Sukanya Samriddhi and Post Office Savings Deposits

15 July 2019, Monday    

If you invest in PPF, National Savings Certificates and some other small saving schemes like post office deposit schemes, expect lower returns. The Government has lowered the interest rate on PPF and NSC by 10 basis points or 0.1%. The interest rates of small saving schemes depend on government b ....

National Savings Certificate Interest Rates On PPF Post Office Savings Deposits Post Office Deposit Schemes

LOAD MORE
 

National Savings Certificates News

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 
Home News
 

All 650 branches of IPPB to be launched by April: Sinha

Wednesday, January 3, 2018, 4:26 PM

The government expects to roll out all 650 branches of India Post Payments Bank (IPPB) by April 2018, Parliament was informed today. Minister of State for Communication Manoj Sinha said IPPB has launched 2 pilot branches on January 30, 2017, at Raipur (Chhattisgarh) and Ranchi (Jharkhand) in 2016-17. However, no branch was rolled out in the current financial year, Sinha said.
Union Government

3 pvt banks can sell more small savings schemes

Tuesday, October 17, 2017, 10:29 AM

To ensure that it meets its budgeted collections under the small savings schemes, the government has allowed three private sector banks — ICICI Bank, HDFC Bank and Axis Bank — along with all the public sector banks to accept deposits under schemes like the National Savings Certificate (NSC), Kisan Vikash Patra (KVP) and Monthly Income Scheme (MIS), among others.
Banks
 

National Savings Certificates Videos

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 

Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel

Home Videos
ಸಿ ಎಸ್ ಸುಧೀರ್ ರವರ 19ನೇ ಯಶಸ್ವಿ ಫೈನಾನ್ಶಿಯಲ್ ಫ್ರೀಡಂ ವರ್ಕ್ ಶಾಪ್ ಹೇಗಿತ್ತು?

ಸಿ ಎಸ್ ಸುಧೀರ್ ರವರ 19ನೇ ಯಶಸ್ವಿ ಫೈನಾನ್ಶಿಯಲ್ ಫ್ರೀಡಂ ವರ್ಕ್ ಶಾಪ್ ಹೇಗಿತ್ತು?

1 Year Ago

Start your Journey to Become Rich with IndianMoney's Financial Freedom App, Download here Android -  https://play.google.com/store/apps/details?id=com.wealthdoctor IOS - https://apps.apple.com/in/app/indianmoney-com/id1445018395   The Financial Freedom Workshop is an initiative by IndianMoney.com which aims at helping individuals build financial independence for them and their families. This workshop is conducted by Mr. C S Sudheer the founder and CEO of Indianmoney.com. People attending the workshop will identify money values to make wise financial decisions. Also, participants of the workshop will be eligible for a 1-year membership to the Financial Freedom Club of IndianMoney.com. Watch this video to hear the feedback by people who have attended the workshop.   
Savings Insurance Financial Planning Financial Advice Investment Loan Financial Freedom Workshop
 

National Savings Certificates Education

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 
Home Education
 

Step 3: Take up the matter with a higher authority

Tuesday, June 12, 2018, 7:39 PM

If the issue is not resolved even after calling customer care and visiting the bank branch, you must take this to the next-level. Inform the branch manager of the bank where you have an account. Banks will also have a grievance cell to resolve customers issues. You can lodge the complaint on the bank's website and grievance cell will take care of the matter.
Banks Form 15H Uttarakhand

Smart Savers: #5 National Savings Certificates

Thursday, April 6, 2017, 9:44 AM

National Savings Certificates is an Indian Government Savings Bond, primarily used for small savings and income tax saving investments in India. The maturity date for these certificates is set to 5 or 10 years from the date of purchase, but the interest is calculated on yearly basis. This interest will not be paid to the certificate holder till such time as the investment matures.
Savings

Smart Savers: #2 Post Office Monthly Income Scheme Account

Monday, April 3, 2017, 7:36 AM

It is a six-year savings scheme offered by designated post offices. It offers guaranteed monthly returns on deposits. The account can be opened singly or jointly, with a minimum investment of Rs 1,500. The maximum is capped at Rs 4.5 lakh if the account is held singly and at Rs 9 lakh, if jointly. One can open multiple accounts, but overall limits stay.
Savings

 

Calculator

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play

Related Articles

29 October 2019, Tuesday

How to Use India Post Mobile App?

  • A new mobile app has been launched by India Post to facilitate easier transactions. You can download this app from Google Play Store. If you want to make deposits in the PPF account or any other post office scheme, you don’t have to visit the post office in person. Just use the India Post mobi
16 October 2019, Wednesday

What is India Post Mobile Banking Facility?

  • Opening post office savings account just got easy. The Department of Post has launched mobile banking for savings account customers. The mobile banking facility comes just a year after internet banking facility for savings account holders was launched. To avail mobile banking facility at Post off
15 July 2019, Monday

Latest Interest Rates on PPF, Sukanya Samriddhi and Post Office Savings Deposits

  • If you invest in PPF, National Savings Certificates and some other small saving schemes like post office deposit schemes, expect lower returns. The Government has lowered the interest rate on PPF and NSC by 10 basis points or 0.1%. The interest rates of small saving schemes depend on government b

Most Read Articles

18 July 2012, Wednesday

How to Make Claim on a health Insurance Policy?

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...

14 March 2014, Friday

ELSS - Utilizing the power of compounding

As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...

07 January 2014, Tuesday

Why One Must Never Neglect Estate Planning?

One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...

CIBIL Meter

Get FREE Credit Score now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.