Know All About National Saving Certificate| NSC

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National Saving Certificate (NSC) is a Government Scheme, it is a fixed income investment scheme. As it is s government scheme there is a guaranteed return on its investment.

National Saving Certificates (NSC)|5 Years National Savings Certificate (VIII Issue)

Interest payable, Rates, Periodicity, etc. -> From 01.04.2020, interest rates are as follows:-

6.8 % compounded annually but payable at maturity.

INR 1000/- grows to INR 1389.49 ​after 5 years

Who Can Open

1. a single adult

2. Joint Account (up to 3 adults)

3. a guardian on behalf of minor or on behalf of person of unsound mind

4. a minor above 10 years in his own name.

Deposit Criteria – National Saving Certificate

1. Minimum Rs. 1000 and in multiple of Rs. 100 , no maximum limit.

2. Any number of accounts can be opened under the scheme.

3. Deposits qualify for deduction under section 80C of Income Tax Act.


 The deposit shall mature on completion of five years from the date of the deposit.

Pledging of account

1. NSC may be pledged or transferred as security, by submitting the prescribed application form at the concerned Post Office supported with an acceptance letter from the pledgee.

2. Transfer/pledging can be made to the following authorities

  •  The President of India/Governor of the State.
  •  RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
  • Corporation (public/private)/Govt. Company/Local Authority.
  •  Housing finance company.

Premature closure

 NSC may not be prematurely closed before 5 years except the following conditions:

  • On the death of a single account, or any or all the account holders in a joint account.
  • On forfeiture by a pledgee being a Gazetted officer.
  • On order by court.

Transfer of account from one person to another person:

NSC may be transferred from one person to another person on the following conditions only:

1. On the death of account holder to nominee/legal heirs.

2. On the death of account holder to joint holder(s).

3.  On order by the court.

4. On pledging of account to the specified authority.

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Source: India Post, ​ ​​National Savings Certificate VIII Issue Rules 2019 ​​

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