National Savings Certificates scheme is considered to be one of the safest investment options that is provided by the Indian Post Office, and the recent interest rate hike has made it more attractive. The interest rate of National Savings Certificates (NSC) has been recently hiked by 70 basis points (bps). Earlier, the government was offering 7 per cent interest on NSC but now it has been increased to 7.7 per cent. 

National Savings Certificates interest rate, deposit and lock-in period

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The revised interest rate of 7.7 per cent is applicable from April 1 and investors can invest till June 30, 2023. Investors can invest a minimum amount of Rs 1000 and in multiples of Rs 100. NSC has no maximum limit for investment. The money invested in NSC is locked in for 5 years.

National Savings Certificates: Who can apply

-Only Indian residents are eligible to invest in NSC.

- Individual adult or joint (up to 3 adults), guardians on behalf of a minor/person of unsound mind or a minor above 10 years can invest in NSCs

-Non-resident Indians cannot purchase new NSCs. However, in the case of resident subscribers of NSC becoming NRI prior to the maturity of certificates, such NSCs can be held till maturity.

-Trusts and Hindu-Undivided-Family (HUFs) cannot make NSC investments.

-Karta of HUFs can make NSC investments only in his own name.

Also Read: GPF and other small savings interest rates announced for April-June – Check the revised rates

National Savings Certificates: Premature withdrawal 

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

​(i) On the death of a single account, or any or all the account holders in a joint account

(ii) On forfeiture by a pledgee being a Gazetted Officer.

(iii) On order by the Court.

National Savings Certificates: Transfer of account from one person to another person

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

​(i) On the death of the account holder to nominee/legal heirs.

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

(ii) On order by the court.

(iii) On pledging of account to the specified authority.

National Savings Certificates: Tax benefit 

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

National Savings Certificates: Forms 

Investors can apply for NSC by visiting the following link:

https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingCertificates

National Savings Certificates: Calculator 

If investors deposit Rs 1 lakh in the NSC they can get Rs 1,44,903 on maturity after 5 years.

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