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Five Things To Know About National Savings Certificates (NSC)

Post Office Small Savings Scheme: India Post offers nine such schemes at designated post office branches

India Post currently offers interest at the rate of 7.9 per cent on investment in the National Savings Certificates (NSC) at designated post office branches. The interest rates applicable to small savings schemes such as National Savings Certificates (NSC) are currently reviewed by the Ministry of Finance on a quarterly basis. For the quarter ending December 31 – the third quarter of the current financial year, the finance ministry retained the interest rates at existing levels in September 2019. The National Savings Certificates (NSC) are part of the nine government-run small savings schemes.

Here are five key things to know about the National Savings Certificates (NSC):

Rate Of Return

For the third quarter of current financial year, investment in the National Savings Certificates (NSC) fetches interest at the rate of 7.9 per cent. The interest is compounded annually but paid at maturity. For example, an amount of Rs 100 invested in the NSC grows to Rs 146.25​​ ​in five years.

Minimum Investment For Opening Account

For investing in the National Savings Certificates, one needs to invest a minimum of Rs 1,000, according to the India Post website –

Investment Limit

Any amount higher than Rs 1,000 but in the multiple of 100 can be used to put money in the NSCs. There is no upper limit for investment in the National Savings Certificates.


Investment in the NSC is transferable under certain conditions. In case of transfer from one person to another, old certificates are not discharged but instead, the name of the old holder is rounded to put the name of the new holder.

Income Tax

Deposits in the National Savings Certificates qualify for deduction of taxable income under Section 80C of the Income Tax Act.

Source: NDTV Profit