NSC - National Savings Certificate - 2025

NSC Historical Interest Rates

NSC Eligibility

The eligibility criteria for investors to purchase the NSC are mentioned below:

1. The individual must be an Indian citizen.
2. There is no age limit for individuals in order to purchase a certificate.
3. Non-resident Indians cannot invest in NSC.
4. Investments can be made with another adult or individuals can buy an NSC on behalf of a minor.
5. Under NSC VIII Issue, HUFs and Trusts are not eligible to invest in the scheme.
   

Features of NSC

Advantages of NSC

Given below are the main advantages of investing in the NSC:

1. One of the main advantages of investing in the NSC is the tax benefits that individuals can avail on the investments they have made. The returns are also guaranteed under this scheme. Many individuals prefer the NSC scheme as it can provide a regular income once they retire.
2. Except for the interest that is earned in the final year, the remaining interest that is generated is tax-free.
3. In case individuals lose the original certificate, a duplicate certificate can be obtained.
4. Even after the maturity period, individuals have an option to continue investing in the scheme.
5. Transfer of the certificate is allowed from one individual to another. However, it is allowed only once during the lock-in period.
6. The interest that is generated is compounded on a yearly basis and reinvested towards the scheme. Therefore, the invested amount of the individual increases without purchasing certificates.
   

Documents Required to Apply for NSC

Given below are the documents that must be submitted in order to purchase an NSC:

1. Fill out the NSC application form from the post office with your details and signature.

1. Submit one ID proof like PAN card, Voter ID, Driving Licence, or Passport.

1. Provide one address proof such as Passport, electricity bill, telephone bill, or bank statement.

1. Attach a recent passport-size photograph.

1. Make the payment through cash, cheque, or demand draft to the postmaster.
2. A witness signature is required on the form.
3. If applying for a minor, submit the guardian’s ID proof and details.

Documents Required for Encashment (Withdrawal)

1. Submit the original NSC certificate at the post office.

1. Fill and submit the NSC encashment form.

1. Provide proof of identity like Driving License or Voter ID.

1. If bought for a minor, the guardian’s attestation is required.

1. If the holder has died and there is a nominee, submit Annexure 1 and Annexure 2.

1. If there is no nominee, the legal heir must submit Form SB84 and ID proof.

How to Invest in NSC 

Physical NSC certificates were previously distributed by banks or post offices. Since 2016, this has been stopped. Certificates can currently be purchased using Passbook mode or electronic method (e-mode). You can easily purchase an NSC program with a savings account at an authorized bank or post office, in contrast to the unpopular and relatively more laborious passbook approach.

Offline Investment (Via Post Office)

Follow these steps to invest in NSC offline:

🔹 Step 1: Collect the NSC Application Form

1. Download it online or visit any post office to get a physical copy.

🔹 Step 2: Fill Out the Form

1. Enter all required details accurately.

🔹 Step 3: Submit the Form with KYC Documents

1. Attach self-attested copies of:  

Aadhaar Card

PAN Card  

Passport-size photo

🔹 Step 4: Carry Original Documents for Verification

1. The post office may ask for original IDs for cross-checking.

🔹 Step 5: Make the Payment

1. Pay via cash, cheque, or demand draft.

🔹 Step 6: Receive Your NSC Certificate

1. Once approved, collect your NSC passbook/certificate.

Online Investment (Via DOP Internet Banking)

Follow these steps to invest in NSC online:

🔹 Step 1: Log in to DOP Internet Banking

1. Visit https://www.epostoffice.gov.in.

🔹 Step 2: Go to ‘Service Requests’

1. Under ‘General Services’, select ‘New Requests’.

🔹 Step 3: Choose ‘Open NSC Account’

1. Select ‘NSC Account – Open an NSC Account (For NSC)’.

🔹 Step 4: Enter Investment Details

1. Input the deposit amount and select the linked PO savings account.

🔹 Step 5: Accept Terms & Conditions

1. Click ‘Click Here’, read the terms, and accept them.

🔹 Step 6: Confirm Transaction

1. Enter your transaction password and click ‘Submit’.

🔹 Step 7: Download Deposit Receipt

1. The receipt will be available for viewing/downloading.

🔹 Step 8: Check NSC Account Details

1. Go to ‘Accounts’ to verify your NSC investment.

NSC Tax Benefits

1. Tax Deduction under Section 80C – You can claim a tax deduction of up to ₹1.5 lakh per year by investing in NSC.

1. Interest is Taxable but Reinvested – The interest earned each year is treated as new investment and also qualifies for deduction under Section 80C.

1. Interest Added to Income – You must show the interest earned each year as income under “Income from Other Sources.”

1. No TDS on Interest – There is no Tax Deducted at Source (TDS) on the interest earned from NSC.

1. Pay Tax as per Your Income Slab – Even though there’s no TDS, you must pay tax on the interest as per your income tax slab.

1. Compounded Interest – NSC interest is compounded annually but paid at maturity, helping you save more.

1. Dual Benefit of Reinvestment – Since interest is reinvested, you get tax benefits without receiving cash, which helps in long-term savings.

1. Applicable for All Taxpayers – Both salaried employees and business people can claim these tax benefits.

1. Safe Investment with Tax Perks – NSC is a government-backed scheme offering both safety and tax savings.

1. Five-Year Lock-In Period – The tax benefit applies for the full 5-year lock-in period of NSC investments.

Maturity Period and Premature Withdrawal under the NSC

Under most scenarios, the amount that has been invested towards the NSC cannot be withdrawn before the maturity period of five years. However, under certain cases, premature withdrawal is allowed. Given below are the cases where premature withdrawal is allowed under the NSC scheme:

1. In case the certificate holder passes away.
2. On the forfeiture of the certificate. However, the pledgee must be a Gazetted Government Officer.
3. If ordered by the court of law the invested amount can be withdrawn.

However, certain documents must be submitted by the certificate holder for the withdrawal of the funds.

Who Should Invest in NSC? 

NSC investments are a secure way for investors to receive a consistent return while reducing their tax burden. NSC provides total capital protection and interest guarantees. They are unable to provide returns that outpace inflation, like tax-saving mutual funds and the National Pension System, like the majority of fixed income plans. 

The National Savings Certificate is a personal savings program that the government has encouraged. As a result, neither trusts nor Hindu Undivided Families (HUFs) can invest in it. Additionally, NRIs (non-resident Indians) cannot buy NSC certificates. The program is exclusively available to independent Indian residents.

NSC for Senior Citizens – 2025

The National Savings Certificate (NSC) remains a secure, government-backed investment for senior citizens in 2025. It offers a fixed interest rate of 7.7% per annum, compounded annually and payable at maturity after five years.

Key Highlights:

1. Interest Rate: 7.7% (FY 2025–26 Q1)
2. Tenure: 5 years
3. Tax Benefit: Eligible under Section 80C (up to ₹1.5 lakh)
4. Risk: Low-risk, fixed return
5. Liquidity: Limited premature withdrawal

NSC does not offer additional interest for seniors but remains a stable option for conservative investors.

How to get a duplicate National Savings Certificate (NSC)  

In case your National Savings Certificate (NSC) is lost or damaged you can obtain a duplicate certificate. The Indian Post Office allows you to apply for a duplicate NSC.  

You can request a duplicate NSC in any of the following situations: 

1. The certificate is lost or stolen. 

1. The certificate is destroyed due to fire, water, or other mishaps. 

1. The certificate is damaged or mutilated and cannot be used as proof of investment. 

How to Apply for a Duplicate NSC 

To initiate the process, you must follow these steps: 

1. Step 1: Visit the post office where the NSC was issued  

1. Step 2: Collect the Duplicate Savings Certificates application form. 

1. Step 3: Fill in the Required Information - Provide accurate details in the form, including: 

• Serial numbers and denominations of the lost/damaged certificates. 
• Date of purchase of the original NSC. 
• The NSC issue (e.g., NSC VIII Issue or IX Issue). 
• The reason for applying for a duplicate certificate (e.g., theft, damage, or loss). 

1. Step 4: Depending on the reason for the duplicate request, you may need to submit an affidavit stating the loss of the certificate or a copy of the original (if damaged but still partially available). 

1. Step 5: Identification documents for verification. 

1. Step 6: Return the completed form to the post office where the original NSC was issued. 

1. Step 7: After submission, the post office will verify your details and the authenticity of your claim. If everything is in order, they will issue a duplicate certificate. This process may take some time, so it is advisable to follow up with the post office. 

Note:  

1. The duplicate NSC will bear the same details as the original, including the serial number and denominations. Once the duplicate certificate is issued, it will be legally treated as the original. 

1. Ensure that you keep the duplicate NSC in a safe and secure place to avoid any future inconvenience.