Published on Feb 24, 2025Updated on Aug 31, 2026
The National Savings Certificate (NSC) is a government-backed savings scheme that offers secure returns and tax-saving benefits. With a competitive interest rate and a low-risk nature, the NSC remains a popular choice among conservative investors.
This article provides National Savings Certificate scheme details, including its interest rate, tax benefits, investment process, and key features.
NSC is a fixed-income investment instrument that guarantees returns over a specified period. Backed by the government, it offers a secure way to grow your savings. The interest rate on the National Savings Certificate is compounded annually but paid only at maturity. Currently, the NSC is available with a five-year tenure, and the interest rate is subject to periodic revision by the government.
The NSC comes with several features and benefits:
The NSC is suitable for a wide range of investors:
To invest in NSCs, the investor must meet the following criteria:
Investing in NSC is straightforward and can be done online or offline. Below are the steps for both methods:
When applying for NSC, you’ll typically require the following documents:
Investing in NSC offers considerable tax benefits such as:
In case your NSC certificate is lost or damaged, you can apply for a duplicate certificate. The process generally involves:
The National Savings Certificate scheme remains one of India's most secure investment options, offering guaranteed returns, tax benefits, and government backing. It is an ideal choice for conservative investors looking for stable, long-term growth.
NSC withdrawals are generally allowed only at maturity (after five years), with premature withdrawal permitted only in exceptional cases, such as the investor's death or a court order.
If you need funds for immediate expenses, consider a personal loan of up to INR 10 Lakhs* from SMFG India Credit. Benefit from competitive interest rates starting at 12.5%* p.a. and a flexible tenure of up to 60 months*. Apply online today or contact us for more details.
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NSC stands for National Savings Certificate.
Yes, NSC interest is taxable. However, for the first four years, the accrued interest is automatically reinvested and qualifies for a deduction under Section 80C of the Income Tax Act. In the fifth year, the interest is taxable as income from other sources.
Visit the post office or the bank branch where you purchased the certificate, submit the maturity certificate along with the necessary identification, and receive the maturity amount.
Under Section 80C, your investment in NSCs can provide deductions up to INR 1.5 lakh per financial year. The accrued interest (for the first four years) is automatically reinvested and is also eligible for a Section 80C deduction.
There is no cap on the number of NSCs you can purchase. The only requirement is that each NSC investment must meet the minimum threshold of Rs. 1,000.
NSCs have a fixed maturity period of five years, and early encashment is generally not allowed. Exceptions are only made in cases such as the investor’s untimely death or when a court order directs early withdrawal.
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