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Savings Schemes

Post Office NSC Scheme Guide

A complete guide to the Post Office National Savings Certificate (NSC) — safe and tax-saving investment with guaranteed 7.7% returns over 5 years.

Published: 30 Jun 2025
Reading Time: 4 min read
Expert Analysis
#NSC#National Savings Certificate#Post Office#Savings#Tax Saving

Complete Investment Guide

Comprehensive analysis with actionable insights for smart investment decisions

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.


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


Latest Interest Rate (From 01 Jan 2024)

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

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

(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

(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

(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

(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

(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

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


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


This guide provides comprehensive information for educational purposes. Always consult with financial advisors before making investment decisions.

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