Post Office National Savings Certificate (NSC) – 5 Year (VIII Issue)

The National Savings Certificate (NSC) is a government-backed fixed-income savings scheme that offers guaranteed returns with tax benefits under Section 80C. Ideal for low-risk investors, NSC is a popular choice for secure long-term savings.

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Key Highlights

✅ 7.7% interest compounded annually (but payable at maturity)
✅ Minimum deposit: ₹1000; No maximum limit
✅ Lock-in period of 5 years
✅ Tax benefits under Section 80C
✅ Safe and government-guaranteed investment

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Latest Interest Rate (From 01 Jan 2024)

• 7.7% per annum (compounded annually, payable on maturity)

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Salient Features

(a) Who Can Open:

• A single adult (resident Indian)
• Joint account (up to 3 adults)
• Guardian on behalf of a minor or a person of unsound mind
• A minor above 10 years in their own name

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(b) Deposits:

• Minimum deposit: ₹1000
• Subsequent deposits in multiples of ₹100
• No maximum investment limit
• Any number of accounts can be opened
• Investments qualify for deduction under Section 80C of the Income Tax Act

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(c) Maturity:

• The NSC matures after 5 years from the date of deposit
• Interest is compounded annually and paid as a lump sum at maturity

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(d) Pledging as Security:

NSC certificates can be pledged or transferred as security by submitting a prescribed application and acceptance letter from the pledgee.

Permitted institutions for pledging include:

• The President of India or State Governor
• RBI, Scheduled Banks, Co-operative Banks or Societies
• Public/Private Corporations, Government Companies, Local Authorities
• Housing Finance Companies

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(e) Premature Closure:

NSC cannot be closed before 5 years except under the following circumstances:

• Death of the sole account holder or any/all holders in a joint account
• Forfeiture by a pledgee (e.g. a Gazetted officer)
• On the order of a court

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(f) Transfer of Account:

The account/certificate can be transferred to another person in specific cases:

• Upon the death of the account holder, to the nominee or legal heirs
• From the deceased account holder to surviving joint holder(s)
• On court order
• When pledged to a qualifying authority

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Why Choose Post Office NSC?

✅ Safe and secure savings with fixed returns
✅ Ideal for conservative investors and tax-savers
✅ No risk of market fluctuations
✅ Eligible for loans and pledging as collateral
✅ Attractive interest compounded annually

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The Post Office National Savings Certificate (NSC) is a smart choice for building your savings over the medium term while enjoying tax-free interest earnings and capital security.

Open your NSC today and grow your money safely with assured returns. 👉 Check out our NSC Calculator

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