NSC – National Saving Certificate

National Saving Certificate is an investment option by which an individual can invest his disposable income with a purpose to attain development for his saving and also tempt people to have a habit of saving. It is deliberate attempt by government to raise funds required by government for its projects, through which one can indirectly contribute to the development of their own country. It is a economical and secured investment instrument for public.

Who can subscribe NSC

 It has been designed for any businessman, government employee or any salaried people who income are assessed to tax from the point of view of Income Tax Act.  The two most basic requirements are Indian residency and the assessee should either an individual or a trust, so Non-resident, HUF or companies or societies are not eligible for purchase of NSC.

Where to apply for NSC

Any post-office who are registered or approved by Government agency are authoritative to release NSC certificates, so anyone can purchase an redeemed NSC at any time when he is willing to have NSC certificate.

Subscription of NSC

 An individual can subscribe starting with a minimum contribution of Rs 100. There are other denominations through which one can invest his money such as Rs. 500 or Rs. 1000 and so on as per his investing capacity. One can even spend more than that as there is no limit of ceiling, i.e. no maximum limit for purchase of certificate. It depends upon the person who is willing to subscribe.

NSC Interest Rates

NSC interest charge has increased from 8% to 8.4% and even 8.6% (for NSC -IX issue) in the recent years and it is compounded on half-yearly basis it may further get increased. It is the most popular and wanted form of investment scheme presented to us by our government through post office. Generally all the saving or investments are considered as assets but this should not to be considered as assets and no tax is to be charge on it. So thus, it is tax-free according to Wealth Tax Act. But if there is any pre-closure then the actual amount realized is less than its actual amount you wished to earn according to NSC calculator.

Nomination NSC

NSC provides its various facilities of nomination to its owners. One of the facilities that an owner gets is that, he can transfer his NSC certificate from one person to another. Under certain specified conditions, with the transfer of certificate ownership is also transferred. Even transfer from one branch to another is possible.

NSC Maturity

The maturity period for NSC was 6 years but due to revision recently the period is now 5 years for NSC VIII issue. For general understanding, if the value of certificate is Rs. 100 then on its maturity the compounded amount which one gets is Rs. 160.10. The maturity amount can even be re-invested. Maturity value of any other value is charged under proportionate rate.

Loan on NSC

Amount of loan is depends on the bank from which you are going to apply. Once you have a NSC certificate you can come within reach of any nearest scheduled bank or any cooperative bank for loan. It is better to approach for any known bank from where you have a close relation because each and every bank has its own banking rules. To obtain loan or overdraft through this certificate is simple and flexible and it is neither expensive nor a complicated process compared to any other unsecured loan has like credit loans or credit cards used to have.

So being a government oriented instrument you have the security that the money will not die and would be used for good purpose with the fact that you get good return. So choose your NSC certificate with ingenuity and practically.


  1. i have NSC certificate year 2011 April = 100000, year sep 2012 = 50000,and year 2014 feb =100000,
    how to calculate interest rate …and what is the total value of NSC

  2. i invested in nsc face value 250000 now im settled in usa and the nsc are due in 2017 what do i do preclose or crdit it to mu nro account and after paying tax will i be able to repartiate the funds


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