National Saving Certificate: How to Apply NSC in India

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National Savings Certificate

In India, there are many ways to invest your money, but National Savings Certificate (NSC) is a favorite for a lot of people. It offers a safe place to put your money, good interest rates, and tax deductions. 

This article provides information about the meaning of the National Savings Certificate, the documents required, benefits, and how to invest for their good fortune.

What Is the National Savings Certificate (NSC)?

The National Savings Certificate, or NSC, is a fixed-income investment instrument supported by the government, primarily available in India. It serves as a secure and low-risk investment option that encourages people to save money and offers tax benefits.

The NSC comes with a fixed term, usually five or ten years, and provides an assured interest rate. It is popular among risk-averse investors and those looking to save for the future plan. The interest earned will be added to your savings every year and is also eligible for tax deductions under Section 80C of the Income Tax Act.

However, you can purchase NSCs at post offices and transfer them from one person to another. Overall, NSCs are a solid option for long-term savings, with tax benefits returns.

Key Takeaways

  • The National Savings Certificate (NSC) is a secure, government-backed investment in India that offers competitive interest rates and tax benefits.
  • The National Savings Certificate can be purchased online and offline, offering flexibility for all types of investors.
  • The National Savings Certificate interest rate is compounded annually.

Features of the National Savings Certificate in India

In this part, we’ll explore in detail the features that make the NSC a good option for many people and how it fits well with different financial goals.

1. Interest Rates

The NSC interest rates are both appealing and competitive when compared to other types of savings like bonds. These interest rates are set by the Indian government and updated every three months. So, it’s a good idea to check the latest rates either at your local post office or online before you invest.

2. Maturity Period

The NSC has a set time frame for your investment, usually either five or ten years. This makes it easier to plan for long-term goals, whether you’re saving for retirement, your kids’ education, or other big life events.

3. Investment Limits

To start investing in the NSC, you can invest as little as 100 INR, with no maximum limit.  However, remember that you’ll only get tax breaks on investments up to 1.5 lakh INR per year under Section 80C. This makes NSC a good fit for people with different financial situations.

4. Eligibility Criteria

If you’re a resident of India, you can invest in NSC—even minors can through their guardians. However, if you’re a Non-Resident Indian (NRI), you can’t invest in NSC. These simple eligibility rules make it easy for a broad range of people to get involved financially.

Advantages of the National Savings Certificate (NSC)

There are several benefits of National Savings Certificate, which make NSC popular among investors.

1. Guaranteed Safety

Since NSC is supported by the government, it’s a really safe place to put your money. You can be confident that both your initial investment and the interest you earn are secure.

2. Attractive Interest Rates

The NSC offer good interest rates, especially when you compare them to other types of savings like bonds. The interest is added back to your investment every year, which means you’ll earn even more over time.

3. Tax Benefits

Putting money in NSC can also help you save on taxes. You can get tax deductions under Section 80C of the Income Tax Act, making NSC an appealing choice for those looking to lower their tax bills.

4. No Maximum Limit

There’s no minimum on how much you can invest in NSC, even though tax benefits have a certain limit. This flexibility allows you to invest as much as you’re comfortable with, based on your financial plans and how much risk you’re willing to take.

5. Ease of Access

You can buy the NSC at post offices all over the country, making it easy for many people to invest. This broad reach helps include more people in the financial system.

Documents Required to Apply for National Savings Certificate (NSC)

Before applying for National Savings Certificate, remember to prepare these documents below:

  • Passport or Voter ID: These two documents can serve as valid identification documents.
  • Aadhaar Card: This is another commonly accepted ID in India.
  • Utility Bills: Bills for services like electricity or water are acceptable.
  • Bank Statement: A recent statement that includes your address can also work.
  • PAN Card: Your Permanent Account Number (PAN) card is necessary for financial and tax-related activities.
  • Income Proof: Some post offices may require documents like salary slips or income tax returns.
  • Photographs: Remember to prepare recent photos of yourself for identification.
  • Application Form: A completed NSC application form is essential.

⚠️Tip: If you’re applying for a minor, you’ll need the minor’s birth certificate and a guardian’s ID proof.

How to Invest in the National Savings Certificate in India

If you’re looking to invest in the National Savings Certificate in India, we’ll provide you with a step-by-step guide through online and offline investment principles.

Online Process of Investing in National Savings Certificate

1. Visit India Post Website

Head to the official India Post website or go to banks that offer National Savings Certificates online.

2. Sign Up or Log In

Create an account when you’re new, or log in if you already have an account.

3. Choose NSC Option

Go to the section where you can invest money and choose the National Savings Certificate.

4. Fill in the Details

Fill out the form with all the needed details and decide how much you want to invest.

5. Upload  Documents

Upload digital versions of important papers like your ID and proof of address.

6. Pay Online

Make online payments through a bank account, credit card, or debit card.

7. Download the e-NSC Certificate

Download an electronic version of your National Savings Certificate after finishing payment.

Offline Process of Investing in National Savings Certificate

1. Go to a Post Office

Find the closest post office that sells National Savings Certificates.

2. Complete the Application Form

Pick up and fill out the NSC application form, known as Form NC-71.

3. Provide the Necessary documents.

Give them the required papers like your ID, proof of address, and some photos.

4. Choose Your Investment

Decide how much money you want to put into NSC.

5. Make the Payment

Make the payment by using cash, check, or a demand draft.

6. Collect the Certificate

Collect the certificate as proof of your investment after finishing payment.


The National Savings Certificate (NSC) is a big deal in India’s investment scene, offering safety, good returns, and tax benefits. It is important to follow common steps for investing in NSC, whether you prefer to do it online or at a National Savings Certificate post office.

However, you should consider the ease of getting returns and tax rules before making a decision. Make sure that the National Savings Certificate matches your financial goals and the risk you can take.


1. What is a National Savings Certificate?

NSC, or National Savings Certificate, is a government-backed investment option in India that offers a mix of safety, good returns, and tax benefits.

2. What is the National Savings Certificate interest rate?

The interest rate is set by the Government of India and is revised quarterly. It’s competitive compared to other fixed-income investments.

3. What is the maximum amount invested in the National Savings Certificate?

There is no maximum limit on the amount you can invest in NSC, although tax benefits under Section 80C are available only up to INR 1.5 lakh per year.

4. Who issues the National Savings Certificate?

It is issued by the Government of India and can be purchased through post offices across the country.

Related Articles:

Read more: Regulations

By FinxpdX Team
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