National Savings Certificate Post Office

If you are looking to invest in a good savings scheme, then the National Savings Certificate Post Office scheme is perfect as it offers security and stable returns. The scheme offers an attractive fixed interest rate for a lock-in maturity period of 5 years. The Post Office NSC scheme offers you a risk-free investment opportunity that protects your savings while offering you guaranteed good returns.

You can start investing with a minimal deposit of ₹1000 making investing accessible to everyone. It also encourages long-term saving and financial planning among people in rural and urban areas.

Table of Contents:

• ⇾ National Savings Certificate Details
• ⇾ Types of National Savings Certificate Post Office Accounts
• ⇾ Eligibility Requirements for National Savings Certificate Post Office
• ⇾ Documents Needed For National Savings Certificate Post Office
• ⇾ Steps to Invest in National Savings Certificate Post Office
• ⇾ Features & Benefits of NSC Post Office
• ⇾ Tax Benefits of National Savings Certificate Post Office
• ⇾ Transfer of NSC Account
• ⇾ Loan Against National Savings Certificate Post Office
• ⇾ Premature Withdrawal of NSC in Post Office
• ⇾ Frequently Asked Questions

Post Office National Savings Certificate Details

The National Savings Certificate Post Office offers you a reliable and secure investment option to grow your savings significantly, here are the details of the NSC scheme:

Types of National Savings Certificate Post Office Accounts

The National Savings Certificate Post Office offers you different types of accounts; Individual or single holder accounts, Joint ‘A’ type deposit and Joint ‘B’ deposits.

• Single Holder Type Account: This account can be opened by a single adult either for themselves, or as a guardian on behalf of a minor or a person of unsound mind. A minor who is 10 years of age can also open the account on their own.
• Joint ‘A’ Type Account: This account can be opened jointly by any three adults with the maturity payments made to all account holders jointly or to the remaining survivor(s) in case of the demise of other holders.
• Joint ‘B’ Type Account: This account can be opened jointly by any three adult individuals with the payments made to any one holder or to the survivor(s) in case of the demise of other holders.

Eligibility Requirements for National Savings Certificate Post Office

You can open an NSC account in the Post Office if you fall under the categories below:

• An adult as a single holder of the account.
• Joint account that can include up to 3 adults.
• A guardian on behalf of a minor or a person of unsound mind.
• A minor who is 10 years of age.

Documents Needed For National Savings Certificate Post Office

There are several documents that are required when opening a National Savings Certificate Post Office account, these are:

• A duly filled NSC application form.
• Identity Proof: Voter ID, PAN card, Aadhaar card, etc.
• Address Proof: Electricity bill, Rental agreement, Utility bills, Passport, etc.
• Recent passport-size photograph

NSC Calculator

Calculate NSC returns with ease using a National Savings Certificate calculator. Add you NSC invested amount, interest rate to check your NSC maturity amount.

Steps to Invest in National Savings Certificate in Post Office

Opening an NSC account has been made easy by the Post Office, you can open an account digitally through an online platform and traditionally by visiting the Post Office. Given below are the steps to open an NSC account online and offline.

Open NSC Account in Post Office Online

• Step 1: You need to have an active savings account with a bank or Post Office that offers e-transactions of the National Savings Certificate.
• Step 2: Log in to your internet banking account and go to the ‘Investment’ section.
• Step 3: Select ‘NSC’ and proceed to open or purchase an NSC.
• Step 4: Fill in the application form with all the required information.
• Step 5: Upload all the required documents.
• Step 6: Review your application, then submit it and initiate the amount transfer.
• Step 7: The Post Office or bank will then verify your details. Once it is approved, your account will be opened.

Open NSC Account in Post Office Offline

• Step 1: Visit your nearest Post Office and get the NSC application form.
• Step 2: Carefully fill out the form with all the necessary details.
• Step 3: Provide all the necessary documents for identity and address verification.
• Step 4: Make a deposit of the investment amount.
• Step 5: Once the deposit has been received, your NSC account will be open and you will get a physical National Savings Certificate.

Features & Benefits of NSC in Post Office

There are several features and benefits that you can get from investing in the Post Office National Savings Certificate, these are:

• Government Backed: The NSC offers you a low-risk and secured investment as it is backed by the Indian Government. Making sure that get back your investment amount along with the interest rate
• Lock-in Period: The scheme has a lock-in period of 5 years, giving you a clear idea of the timeline growth of your investment.
• Attractive interest rates: The National Savings Certificate Post Office offers an attractive interest rate of 7.7%. Giving you good returns on your investment.
• Minimal investment amount: You can start investing in the NSC scheme by depositing a minimal amount of ₹1000.
• Tax benefits: With an NSC investment, you can enjoy tax deductions under Section 80C of the Income Tax Act, 1961.
• Account transfer: An NSC account can be transferred from one Post office to another and from one person to another under special circumstances.

Tax Benefits of National Savings Certificate Post Office

Investing in the NSC scheme comes with an attractive feature, which is tax benefits. The investment you make In the scheme will qualify under Section 80C of the Income Tax Act, 1961. Under the Act, the maximum deduction you can get is up to ₹1.5 lakhs in one financial year. The scheme is ideal for you if you are looking to combine your investment goals with your investment plans. As it helps you reduce your taxable income.

Transfer of NSC Account

The Post Office offers you the flexibility to transfer the account from one person to another and to transfer the account from one Post Office to another in case you relocate. The process is simple. You can submit Form NC-34 to transfer the account from one person to another and Form NC-32 to transfer the account from one Post Office to another.

You can also transfer your NSC account to an authorised person, in case you use the account as security for a loan.

Loan Against National Savings Certificate Post Office

If you are in need of financial assistance, you can pledge your National Savings Certificate Post Office account as collateral. For this, you will need to transfer your NSC account to the authority involved, and you will get a loan based on the value of your NSC scheme account.

This provides you with a flexible way to get the assistance you need without having to prematurely withdraw your funds.

Premature Withdrawal of National Savings Certificate Post Office

The National Savings Certificate cannot be withdrawn before the maturity period. Only under special circumstances will the account be allowed to be prematurely withdrawn. The conditions are as follows:

• In the event of the death of the single account holder or any or all joint account holders.
• If forfeited by a pledgee who is a Gazetted officer.
• Upon an order issued by a court.

Compare NSC with other investment options from below:

Besides National Savings Certificate Post Office you can also check other saving schemes. Check the table below with links for details: