National Savings Certificates India (NSC) | Interest Rate 2023 | Online | Loan

National Savings Certificates India

National Savings Certificates India


The NSC 2023- National Savings Certificate India is a scheme of fixed-income savings that you can access through every post office. An initiative of the Central government, it is a savings plan that allows investors, firstly low to mid-income investors to save on income tax while investing.
You can purchase it on your behalf from your nearest post office or authorized bank, for a minor or as a joint account with another individual.
This scheme comes with 5 years fixed maturity period. There is no upper cap on the purchasing of NSCs, but u/s 80C of the IT Act 1961, only investments up to Rs 1.5 lakh will give you a tax break.
Here is the top information to know about National Savings Certificates India.



The following types of NSC accounts can be opened, namely:-

  1. Single Holder – Type Account may be opened through an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian or by a minor who has attained the age of 10 years.
  2. Joint A– Type Account may be opened jointly in the names of up to 3 adults payable to all the holders jointly or to the survivor(s).
  3. Joint B – Type Account may be opened jointly in the name of up to 3 adults payable to any of the account holders or to the survivor(s).

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NSC Features

  • Deposit Limit
    A minimum of Rs 1000/- and any sum in multiples of Rs 100/- may be deposited in an account.
    There shall be no maximum limit for deposits in an NSC account.
    An individual may open any number of NSC accounts.
  • Maturity tenure
    The deposit shall mature on completion of 5 years from the date of the deposit.
    The amount of maturity may be repaid to the account holder on an application in Form-2 (Closure of account) submitted to the accounts office.
    A certificate of annual accrual of interest shall be issued by the accounts PO office, on demand, to the account holder.
  • Tax Benefit
    Deposits qualify for deduction under section 80C of the Income Tax Act 1961.
  • Nomination Facility
    A nomination Facility is available for the same.
  • Loan Facility
    Yes – Term Loan or Overdraft option.

Premature withdrawals


This scheme may not be prematurely closed before Five years except for the following conditions.

  • On the death of a single account/any/all the account holders in a joint account.
  • On forfeiture through a pledgee being a Gazetted officer or On order by the court.
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Interest Rate


Interest rates are as follows:-

  • 7.70% compounded annually but payable at maturity.

Also Read Post Office Interest Rates

NSC for Senior Citizens


Post office NSC schemes do not offer any extra interest to senior citizens people.

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Loan against National Savings Certificates India


The NSC can be used as a security or collateral and can be provided to banks to avail loans. However, the respective Post office master must authorize the transfer of the certificate to the bank.
You can avail loan on your investment for any business or personal purpose, but not for speculative ones.

Nature of Loan

  • Demand / Term Loan
  • Overdraft

National Savings Certificates India Benefits

  • Under Section 80C of the IT Act, 1961, tax benefits of up-to Rs 1.5 lakh can be availed by investing towards the National Savings Certificate.
    Tax Deducted at Source (TDS) is not applicable under the NSC. but, as per the marginal income tax rates, the tax must be paid for the interest that is earned.
  • in a condition, individuals lose the original NSC certificate, a duplicate certificate can be obtained.
  • The NSC’s interest that is generated is compounded on a yearly basis and reinvested towards the scheme.
    Hence, the invested amount of the individual increases without purchasing new certificates.

Documents Required

Proof of IdentityAadhaar card, Voter’s ID card, Pan Card, etc.
Proof of AddressAadhaar card, Electricity bill, Water bill, Ration card, etc.
Photographs2 recent passport-sized photographs
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How to Open a National Savings Certificates India Account


To apply for NSC one has to follow the below steps:

Post Office

  • Download the application form (Form A) & fill required mandatory fields:
    1. The applicant’s name should be the same as on the identity proof.
    2. Name of the primary applicant & for a joint NSC account with a spouse, one needs to mention the name with address & the age of the spouse.
    3. One is required to provide cheque or demand draft or cash details along with the amount on NSC application form.
    4. Nominee detail like name, age, and address should be specified
      (If one wishes to have more than one nominee, ensure one should declare the individual share of each nominee).
  • Make sure that your simple KYC process is completed.
    If not, the staff at the post office will assist you to complete it.
  • In the last step, one should self-attest all the proofs and good to submit the form at the designated branch of the post office.

Download Form

Download NSC Form
Source – PostOffice


SBI is also providing the NSC scheme via offline mode and one can visit the branch office for opening an account. One can collect the application form from the SBI branch.

National Savings Certificate Online


The individual will have the choice between passbook mode and electronic mode (e-mode). However, one can change the mode at any point in your time by requesting an NSC account.

Kindly follow the following guidelines for the e-mode:

  • Firstly, you would like to possess a savings bank with the authorized bank or post office from which you would like to purchase the investment instrument.
  • Then access to internet banking/mobile banking is additionally a pre-requisite of an account.
  • Just in case you do not maintain the account you would like to both open the account also as getting the internet banking facility also activated.
  • Thereafter the NSC can be maintained in electronic mode (e-Mode).

A passbook mode facility is provided to those customers who are not able to choose the electronic mode.
Authorized banks or Post Offices will print the transaction of a plan shown in their account and issue a passbook.

There also can be an instance of switching from the passbook mode to electronic mode (e-Mode), therein case the previously issued passbook shall be canceled with all its leafs torn.