The nsc scheme in post office is a government of India backed scheme with prescribed limit up to 5 years and was introduced to incorporate the habit of saving for its smaller and mid income based citizens as the minimum deposit limit Is ₹1000. It is government of India backed so you get a guaranteed return. Availing this scheme will also provide you tax benefit up to ₹1.5 lakh for any citizen availing this scheme. For availing in the national saving certificate post office scheme just visit your nearest post office branch after submitting the necessary documents and can also be transferred from one post office to another. Below we have provided detailed requirements if you wish to get your nsc certificate along with concerned interest rates provided in the scheme.

Eligibility criteria

  • Single adults
  • Joint account may not contain more than 3 nominee
  • Any minor who is above 10 years of age
  • A guardian on behalf of a minor or on behalf any person of unsound mind can avail this scheme.

Deposit limit

  • A minimum amount of ₹1000 may be required to open the national saving certificate post office
  • There’s no maximum limit but the deposit amount exceeding 1000 should be in a multiple of 100, example 1100, 1200, 1300, etc…
  • The tax deduction in this scheme comes under 80c of the income tax act and should not exceed 1.5 lakh per annum.

Interest rate

  • The national saving certificate interest rate are compounded annually and are payable at the maturity period.
  • The interest rates from 01.04.2020 was known to be 6.8% p.a. which is generally more as compared to FD schemes.
  • So, if you had invested 1000 than it would grow as 1389.9.

Maturity Period.

The maturity time period is 5 years starting from the date on which your account was opened.

Premature account closures.

NSC cannot be closed once it is opened for a total of 5 years term but can only be closed due to some exceptions like:

  • On the death of a single or any of the joint account holders
  • By the orders of honourable courts
  • On penalty by a pledgee being any Gazetted officer under Government of India

Account transfers

NSC schemes cannot be transferred to any other person unless the below criteria is fulfilled

  • Death of a nominee or any person in a joint account
  • By the orders of honourable court

Required documents

Original identity proofs should be needed if you wish to invest in national saving certificate post office scheme.

  • NSC application form can be procured from your nearest post office
  • It can be purchased with cash/cheque/or DD in favour of your Post office.
  • Signature of nominee
  • Identity proofs like voter id card or driving license
  • Proof of your residence