Government Savings · India Post
National Savings
Certificate (NSC)
A government-backed, fixed-return savings certificate from India Post. Earn guaranteed interest over 5 years with potential tax benefits under Section 80C.
Government-Backed
Sovereign guarantee — your principal is safe.
5-Year Tenure
Fixed maturity; premature exit only in exceptional cases.
Annual Compounding
Interest compounded yearly; paid at maturity with principal.
Section 80C Deduction
Investment (and reinvested interest) may qualify under 80C.
Transferable
Can be transferred between post offices and nominated.
Overview
What is NSC?
The National Savings Certificate (NSC) is a government-backed small savings scheme offered through India Post. It provides a fixed interest rate, 5-year maturity, and annual compounding — suitable for investors seeking capital safety and predictable returns alongside Section 80C tax benefits.
Eligibility
Who Can Invest?
- Any eligible adult individual
- Two or three eligible adults jointly
- Guardian on behalf of a minor or person of unsound mind
- Minor aged 10+ (subject to applicable rules)
KYC
Documents Required
- Identity proof — Aadhaar, PAN, Passport, Voter ID
- Address proof as per KYC norms
- PAN card or Form 60 (where applicable)
- Passport-sized photographs (if required)
Where to Buy
How to Get an NSC
NSCs are available exclusively at designated post offices across India. Visit your nearest post office with your KYC documents to open an account. Accounts can also be transferred between post offices.
India Post Savings Schemes →Tax & Returns
Interest & Tax Treatment
How interest works
Interest is compounded annually at the rate locked in when you invest. The full accumulated amount — principal + interest — is paid out at the end of 5 years. No periodic payouts.
Tax treatment
The invested amount qualifies under Section 80C (up to ₹1.5L overall limit). Accrued interest deemed reinvested may also qualify. However, final interest received at maturity is taxable as per your slab. Verify with your tax advisor.
Things to Know
Before You Invest
- 5-year lock-in — premature exit only under specific conditions
- Interest earned is taxable; consult your tax advisor
- Interest rates are reviewed quarterly and may change for future investments
Want to know if NSC suits your goals?
Talk to a Wealth Doctor — free advice.