NSC - National Savings Certificate - 2025

What is National Savings Certificate (NSC) ?

The National Savings Certificate (NSC) is a government-backed savings scheme in India that provides fixed interest rates and a secure investment option, with tenures ranging from 5 to 10 years. It is particularly suitable for conservative investors, offering tax deductions under Section 80C and allowing investments with no upper limit. Individuals can purchase NSCs in their own name, jointly, or on behalf of a minor by visiting their nearest post office.

The NSC scheme is available at all NSC post offices and the Indian Government promotes the NSC scheme. Due to the number of post offices present in India and the easy access to these post offices, the scheme has become very popular in India.

The main aim of the scheme is for individuals to make small or medium savings, and tax benefits are provided for these savings. Since the scheme is encouraged by the Indian Government, the risks of investing in the scheme are low.

The scheme was launched mainly for individuals, therefore, non-resident Indians (NRIs) and Hindu Undivided Families (HUF) are not eligible to opt for this scheme.

Only Indian citizens will be able to invest in the NSC scheme.

Tenure

5 years

Rate of Interest

7.7% p.a.

Minimum Amount

Rs.1,000

Tax Benefits

Under Section 80C of the Income Tax Act

NSC

NSC Historical Interest Rates

Year  

Quarter 1 

Quarter 2 

Quarter 3 

Quarter 4 

2025 - 2026 

7.7 

7.7 

2024 - 2025 

7.7 

7.7 

7.7 

7.7 

2023 - 2024 

7.7 

7.7 

7.7 

7.7 

2022 - 2023 

6.8 

6.8 

6.8 

2021 - 2022 

6.8 

6.8 

6.8 

6.8 

2020 - 2021

6.8 

6.8 

6.8 

6.8 

2019 –2020 

8.0 

7.9 

7.9 

7.9 

2018 - 2019 

7.6 

7.6 

8.0 

8.0 

2017 - 2018 

7.9 

7.8 

7.8 

7.6 

2016 - 2017 

8.1 

8.1 

8.0 

8.0 

NSC Eligibility

The eligibility criteria for investors to purchase the NSC are mentioned below:

  1. The individual must be an Indian citizen.
  2. There is no age limit for individuals in order to purchase a certificate.
  3. Non-resident Indians cannot invest in NSC.
  4. Investments can be made with another adult or individuals can buy an NSC on behalf of a minor.
  5. Under NSC VIII Issue, HUFs and Trusts are not eligible to invest in the scheme.

Features of NSC

Feature

Details

Minimum Investment

₹1,000 (in multiples of ₹100). 

Maximum Investment

No upper limit

Maturity Tenure

5 years (10-year option discontinued; only 5-year NSC VIII Issue is available as of 2025)

Interest Rate

7.7% per annum (Q1 FY 2025–26), compounded annually, payable at maturity.

Tax Benefits

Eligible for deduction under Section 80C (up to ₹1.5 lakh per financial year)

Interest Taxation

Interest is taxable, but reinvested interest for the first 4 years qualifies for Section 80C deduction

Nomination Facility

Available; nominees can include family members and minors

Loan Facility

NSC can be pledged as collateral for loans from banks and financial institutions with postmaster authorization

Transferability

Transferable between post offices and from one individual to another (with proper endorsement on the certificate)

Purchase Mode

Available at all post offices; requires KYC documents

Eligibility

Only Indian residents; NRIs and HUFs are not eligible

Types of NSC

Only NSC VIII Issue is available; NSC IX Issue was discontinued in December 2015

Advantages of NSC

Given below are the main advantages of investing in the NSC:

  1. One of the main advantages of investing in the NSC is the tax benefits that individuals can avail on the investments they have made. The returns are also guaranteed under this scheme. Many individuals prefer the NSC scheme as it can provide a regular income once they retire.
  2. Except for the interest that is earned in the final year, the remaining interest that is generated is tax-free.
  3. In case individuals lose the original certificate, a duplicate certificate can be obtained.
  4. Even after the maturity period, individuals have an option to continue investing in the scheme.
  5. Transfer of the certificate is allowed from one individual to another. However, it is allowed only once during the lock-in period.
  6. The interest that is generated is compounded on a yearly basis and reinvested towards the scheme. Therefore, the invested amount of the individual increases without purchasing certificates.

Documents Required to Apply for NSC

Given below are the documents that must be submitted in order to purchase an NSC:

  1. Fill out the NSC application form from the post office with your details and signature.
  1. Submit one ID proof like PAN card, Voter ID, Driving Licence, or Passport.
  1. Provide one address proof such as Passport, electricity bill, telephone bill, or bank statement.
  1. Attach a recent passport-size photograph.
  1. Make the payment through cash, cheque, or demand draft to the postmaster.
  2. A witness signature is required on the form.
  3. If applying for a minor, submit the guardian’s ID proof and details.

Documents Required for Encashment (Withdrawal)

  1. Submit the original NSC certificate at the post office.
  1. Fill and submit the NSC encashment form.
  1. Provide proof of identity like Driving License or Voter ID.
  1. If bought for a minor, the guardian’s attestation is required.
  1. If the holder has died and there is a nominee, submit Annexure 1 and Annexure 2.
  1. If there is no nominee, the legal heir must submit Form SB84 and ID proof.

How to Invest in NSC 

Physical NSC certificates were previously distributed by banks or post offices. Since 2016, this has been stopped. Certificates can currently be purchased using Passbook mode or electronic method (e-mode). You can easily purchase an NSC program with a savings account at an authorized bank or post office, in contrast to the unpopular and relatively more laborious passbook approach.

Offline Investment (Via Post Office)

Follow these steps to invest in NSC offline:

🔹 Step 1: Collect the NSC Application Form

  1. Download it online or visit any post office to get a physical copy.

🔹 Step 2: Fill Out the Form

  1. Enter all required details accurately.

🔹 Step 3: Submit the Form with KYC Documents

  1. Attach self-attested copies of:  

Aadhaar Card

PAN Card  

Passport-size photo

🔹 Step 4: Carry Original Documents for Verification

  1. The post office may ask for original IDs for cross-checking.

🔹 Step 5: Make the Payment

  1. Pay via cash, cheque, or demand draft.

🔹 Step 6: Receive Your NSC Certificate

  1. Once approved, collect your NSC passbook/certificate.

Online Investment (Via DOP Internet Banking)

Follow these steps to invest in NSC online:

🔹 Step 1: Log in to DOP Internet Banking

  1. Visit https://www.epostoffice.gov.in.

🔹 Step 2: Go to ‘Service Requests’

  1. Under ‘General Services’, select ‘New Requests’.

🔹 Step 3: Choose ‘Open NSC Account’

  1. Select ‘NSC Account – Open an NSC Account (For NSC)’.

🔹 Step 4: Enter Investment Details

  1. Input the deposit amount and select the linked PO savings account.

🔹 Step 5: Accept Terms & Conditions

  1. Click ‘Click Here’, read the terms, and accept them.

🔹 Step 6: Confirm Transaction

  1. Enter your transaction password and click ‘Submit’.

🔹 Step 7: Download Deposit Receipt

  1. The receipt will be available for viewing/downloading.

🔹 Step 8: Check NSC Account Details

  1. Go to ‘Accounts’ to verify your NSC investment.

NSC Tax Benefits

  1. Tax Deduction under Section 80C – You can claim a tax deduction of up to ₹1.5 lakh per year by investing in NSC.
  1. Interest is Taxable but Reinvested – The interest earned each year is treated as new investment and also qualifies for deduction under Section 80C.
  1. Interest Added to Income – You must show the interest earned each year as income under “Income from Other Sources.”
  1. No TDS on Interest – There is no Tax Deducted at Source (TDS) on the interest earned from NSC.
  1. Pay Tax as per Your Income Slab – Even though there’s no TDS, you must pay tax on the interest as per your income tax slab.
  1. Compounded Interest – NSC interest is compounded annually but paid at maturity, helping you save more.
  1. Dual Benefit of Reinvestment – Since interest is reinvested, you get tax benefits without receiving cash, which helps in long-term savings.
  1. Applicable for All Taxpayers – Both salaried employees and business people can claim these tax benefits.
  1. Safe Investment with Tax Perks – NSC is a government-backed scheme offering both safety and tax savings.
  1. Five-Year Lock-In Period – The tax benefit applies for the full 5-year lock-in period of NSC investments.

Maturity Period and Premature Withdrawal under the NSC

Under most scenarios, the amount that has been invested towards the NSC cannot be withdrawn before the maturity period of five years. However, under certain cases, premature withdrawal is allowed. Given below are the cases where premature withdrawal is allowed under the NSC scheme:

  1. In case the certificate holder passes away.
  2. On the forfeiture of the certificate. However, the pledgee must be a Gazetted Government Officer.
  3. If ordered by the court of law the invested amount can be withdrawn.

However, certain documents must be submitted by the certificate holder for the withdrawal of the funds.

Who Should Invest in NSC? 

NSC investments are a secure way for investors to receive a consistent return while reducing their tax burden. NSC provides total capital protection and interest guarantees. They are unable to provide returns that outpace inflation, like tax-saving mutual funds and the National Pension System, like the majority of fixed income plans. 

The National Savings Certificate is a personal savings program that the government has encouraged. As a result, neither trusts nor Hindu Undivided Families (HUFs) can invest in it. Additionally, NRIs (non-resident Indians) cannot buy NSC certificates. The program is exclusively available to independent Indian residents.

NSC for Senior Citizens – 2025

The National Savings Certificate (NSC) remains a secure, government-backed investment for senior citizens in 2025. It offers a fixed interest rate of 7.7% per annum, compounded annually and payable at maturity after five years.

Key Highlights:

  1. Interest Rate: 7.7% (FY 2025–26 Q1)
  2. Tenure: 5 years
  3. Tax Benefit: Eligible under Section 80C (up to ₹1.5 lakh)
  4. Risk: Low-risk, fixed return
  5. Liquidity: Limited premature withdrawal

NSC does not offer additional interest for seniors but remains a stable option for conservative investors.

How to get a duplicate National Savings Certificate (NSC)  

In case your National Savings Certificate (NSC) is lost or damaged you can obtain a duplicate certificate. The Indian Post Office allows you to apply for a duplicate NSC.  

You can request a duplicate NSC in any of the following situations: 

  1. The certificate is lost or stolen. 
  1. The certificate is destroyed due to fire, water, or other mishaps. 
  1. The certificate is damaged or mutilated and cannot be used as proof of investment. 

How to Apply for a Duplicate NSC 

To initiate the process, you must follow these steps: 

  1. Step 1: Visit the post office where the NSC was issued  
  1. Step 2: Collect the Duplicate Savings Certificates application form. 
  1. Step 3: Fill in the Required Information - Provide accurate details in the form, including: 
  • Serial numbers and denominations of the lost/damaged certificates. 
  • Date of purchase of the original NSC. 
  • The NSC issue (e.g., NSC VIII Issue or IX Issue). 
  • The reason for applying for a duplicate certificate (e.g., theft, damage, or loss). 
  1. Step 4: Depending on the reason for the duplicate request, you may need to submit an affidavit stating the loss of the certificate or a copy of the original (if damaged but still partially available). 
  1. Step 5: Identification documents for verification. 
  1. Step 6: Return the completed form to the post office where the original NSC was issued. 
  1. Step 7: After submission, the post office will verify your details and the authenticity of your claim. If everything is in order, they will issue a duplicate certificate. This process may take some time, so it is advisable to follow up with the post office. 

Note:  

  1. The duplicate NSC will bear the same details as the original, including the serial number and denominations. Once the duplicate certificate is issued, it will be legally treated as the original. 
  1. Ensure that you keep the duplicate NSC in a safe and secure place to avoid any future inconvenience. 

FAQs on NSC

  • What is the minimum limit for investing in NSC?

    The minimum investment possible in NSC is Rs.1,000.

  • What are the main features of NSC Issue IX?

    The main features of NSC Issue IX are that it comes in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000. There is no maximum investment limit and the interest rate is 7.7%. The maturity period for these certificates is ten years and is subject to the same NSC rules as Issue VIII. However, now it is not possible to invest in this type of NSC scheme as the Government of India took the decision to discontinue it.

  • What is the maturity period and interest rate for NSC Issue IX?

    As of 01-04-2013 the maturity period for Issue IX of NSC is 10 years and the interest rate on offer is 8.8% per annum.

  • Can a trust or an HUF invest in NSC?

    Under the rules of Issue VIII of NSC, trusts and HUFs cannot invest in NSC.

  • Can I take a loan based on my NSC investments?

    Yes. NSC investments can be provided as collateral to banks, and other government organisations, in order to secure any loans.

  • Is there a denomination smaller than Rs. 100?

    No. there is no denomination less than Rs. 100. This means that all your investments HAVE to be in multiples of 100.

  • Is the benefit for NSC under 80C Rs. 1 lakh or Rs.1.5 lakh?

    Under Section 80C of the Income Tax Act, up to Rs.1.5 lakh can be claimed in NSC.

  • What is the maturity period and interest rate for NSC Issue VIII?

    With effect from 01-04-2013 the maturity period for NSC Issue VIII is five years and the NSC interest rate being offered is 7.7% per annum.

  • Is there a lock in period with investment in NSC?

    Yes there is a lock-in period which is equal to the maturity period of the certificates. They can be redeemed early but only under specific conditions.

  • Can a nomination be canceled or changed?

    Yes, a nomination can be canceled or changed at any time using Form 3 and by paying a nominal fee of Rs. 5.

  • What are the main features of NSC Issue VIII?

    The main feature of NSC Issue VIII is that it has no limit on the maximum investment possible. It also comes with an interest rate of 7.7% per annum and no TDS. The investment can be used to secure loans and get tax benefits up to Rs. 1.5 lakh under Section 80C of the IT Act. It has a maturity period of five years, and is not available to trusts and HUFs, and comes in the minimum denomination of Rs. 100.

  • How do I purchase NSC online?

    You cannot now subscribe to NSC online. To open an NSC account, you must complete the NSC application form and deliver it to the executive at the nearby Post Office. 

  • Will tax on NSC Interest earned be deducted at source?

    No, there is no TDS on the interest earned on investments in NSC. The tax payable is only calculated on the interest earned in the last year and it is up to the holder of the certificate to declare the income and pay the taxes.

  • Which part of the IT Act does NSC come under?

    Investments made in NSC Issue VIII and Issue IX come under the purview of section 80C of the IT Act.

  • Who can take a single holder type certificate?

    Such a certificate can be purchased by an adult for themselves or on behalf of a minor.

  • I am an Indian but not a resident of the country, can I invest in NSC?

    No, non-resident Indians cannot invest in National savings certificates.

  • Can I taken an NSC certificate under a joint holding option?

    If you are not a trust or the Karta of an HUF taking an NSC on their behalf, then yes you can take an NSC under the joint holding option.

  • Can armed forces personnel invest in NSC?

    Yes, personnel of the armed forces can invest in NSC. In their case, should they pass away or desert, the postmaster can be directed by the forces to pay the nominee or the legal heir the entire amount that was due under the investment.

  • NSC is included in which section?

    Under Section 80C of the Income Tax Act of 1961, the money you contribute to NSC is eligible for income tax deductions. 

  • How is NSC interest calculated?

    You need to be aware that the interest on NSC is compounded annually. In order to determine the principal amount for the second year, the interest you calculate on the main amount invested in NSC should be added to the principal amount. 

  • How can I obtain an NSC certification?

    You will be required to pay for the NSC account when you submit the application form and KYC paperwork to start one. The Post Office branch will give you the NSC certificate once this has been done.

  • How can I online verify my NSC certificate?

    You must advise the Post Office branch that you want to use the online passbook service for your NSC account. The executives will provide you with the necessary internet banking credentials. Once logged in, you may examine all the transaction information for your NSC account. Only a few Post Office locations have access to this feature. 

Disclaimer
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.