The National Savings Certificate (NSC) is a popular Government of India savings bond. The government launched the National Savings Certificate (NSC) scheme to get ordinary people into the habit of saving and to put those savings to work for the country. You deposit the money at a post office, and the government uses it to fund the country's development.
Investment in the National Savings Certificate (NSC) qualifies for a tax deduction under Section 80C (section 123 of the Income-tax Act, 2025), up to Rs 1.5 lakh, if you use the old tax regime. Only the five-year NSC (VIII issue) is on sale now. The 10-year NSC (IX issue) was discontinued in December 2015. The government reviews the NSC interest rate every quarter, and for the October to December 2026 quarter it is 7.7%, compounded yearly and paid at maturity. The rate on the day you invest stays fixed for the full five years. The interest is taxable, but the interest for the first four years is treated as reinvested and counts as a fresh Section 80C investment, so NSC is still an attractive option.
Keep track of the interest you earn each year, and make sure your total investment, including that interest, stays within the Rs 1.5 lakh limit.
Denominations of the certificates
Paper certificates in fixed denominations (Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10000) are no longer issued. Since 2016, NSCs have been issued in electronic or passbook form. You can invest any amount from Rs. 1000 upwards, in multiples of Rs. 100, with no upper limit.
Types of certificates
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Single holder type certificate:
Issued to an adult for themselves, to an adult on behalf of a minor, or to a minor aged 10 or more.
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Joint 'A' type certificate:
Issued to up to three adults together, and paid to all the holders jointly or to the survivors.
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Joint 'B' type certificate:
Issued to up to three adults together, and paid to any one of the holders or to the survivors.
Note: Non-resident Indians can't buy National Savings Certificates.