National Savings Certificate (NSC) is a popular savings scheme, which is operated by the Government of India through the post office. The scheme is mainly made keeping in mind the middle and small income groups. It not only provides the option of safe investment, but also the benefit of tax savings. Investors investing in the NSC scheme get guaranteed returns at a fixed interest rate.
The biggest feature of this scheme is that the amount invested in it gives a discount of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act. Also, there is no TDS cut in it. In this article, we will know in detail about all important information related to NSC 2025 such as interest rate, eligibility, profit, and application process.
What is National Savings Certificate (NSC)?
The NSC is a fixed-incredible saving scheme that provides guaranteed returns to investors. It can be purchased from any post office and its maturity period is 5 years. This scheme is ideal for those who want to invest safe and long -term.
NSC Scheme Overview Table
| Description | Information |
| Name of the scheme | National Savings Certificate (NSC) |
| Maturity period | 5 years |
| Interest Rate (2025) | 7.7% per year |
| Minimum investment amount | ₹ 1000 |
| Maximum investment limit | No limit |
| tax benefit | Under Section 80C ₹ 1.5 lakh |
| TDS cut | No |
| Interest payment | at maturity |
Benefits of NSC Scheme
Investing in the National Savings Certificate Scheme gives many benefits. Let’s know its main benefits:
- Guaranteed Return: Investment in NSC is guaranteed by the government, making it a safe option.
- Tax exemption: Tax exemption of up to ₹ 1.5 lakh is received under Section 80C.
- No TDS: No TDS is deducted on the interest earned in this scheme.
- Reconstruction of interest: The earned interest is added to the principal every year, which gives the benefit of compounding.
- Loan Facility: NSC passbook can be used as security to take a loan from a bank.
- Easy application process: It can be easily purchased from any post office.
NSC Interest Rate 2025 (Latest NSC Interest Rate)
The NSC interest rate is fixed by the Finance Ministry every quarter. By January 2025, the interest rate on NSC has been fixed at 7.7% per year. This interest is an annual (compounded annual) and is paid at maturity.
Example:
If you invest an amount of ₹ 1,00,000 at 7.7% annual interest rate in NSC, then after 5 years you will get around ₹ 1,45,000.
Eligibility for NSC Scheme
The following eligibility conditions apply to invest in NSC scheme:
- It is mandatory to be an Indian citizen.
- There is no minimum age limit; Parents can open an account for minors.
- NRIs cannot invest in this scheme.
How to invest in NSC Scheme?
The process of purchasing the National Savings Certificate is very simple and straightforward. Follow the steps below:
- Go to your nearest post office.
- Fill the NSC application form and submit the required documents.
- Pay through cash or check.
- After payment, you will get the NSC certificate or passbook.
Necessary documents:
- Identification proof: Aadhaar card, PAN card, passport etc.
- Address proof: Voter ID, Driving License etc.
- Recently taken passport size photo.
Other important aspects of NSC Scheme
Transfer facility
The NSC can be transferred from one post office to another to another from one person to another. However, this transfer can only be done once.
Loan facility
If you need money, you can take a loan by pledging your NSC passbook in the bank.
Payment on maturity
When the maturity period is completed, you get the total sum of principal and earned interest.
NSC vs other savings schemes
| Speciality | NSC | Ppf | FD |
| Interest rate | 7.7% | 7.1% | 6-7% |
| Tax exemption | Yes | Yes | Partial |
| Loan facility | Yes | Yes | Yes |
| Lock-in period | 5 years | 15 years | flexible |
Disclaimer:
This article is written only for the purpose of giving information. National Savings Certificate (NSC) is a real government scheme that provides safe and guaranteed returns. Assess your financial condition before investing and seek expert advice.
