Know All About National Savings Certificate

Outlook Money

What is NSC?

National Savings Certificate (NSC) is a flagship small savings scheme offered by the Indian government through post offices.


Interest Rate

Though the scheme's interest rate is considered for revision every quarter by the government, it is not necessarily revised. At the current interest rate of 7.7 per cent per year, NSC will take about 10 years and 4 months to double your investment.

interest rates


One of the key advantages of investing in NSC is the additional benefit of income tax exemption. Investors can avail themselves of up to Rs 1.5 lakh worth of tax deductions under Section 80C of the Income Tax Act.


How To Invest In NSC

Investment can be done only if one holds a post office account, and can be done either offline at the nearest post office or online via the DOP post office website.


National Savings Certificate vs Bank FDs

While NSC offers a lucrative interest rate of 7.7 per cent per annum, tax-saving bank FDs in large banks hover around 7 per cent to 7.2 per cent for similar 5-year lock-in.

Fixed Deposit

Credit Risk

One more difference between NSC and Bank FDs is the credit risk. The risk associated with FDs from small finance banks is higher, as they often have a smaller deposit base and thus higher default risks.

Compiled by Syed Muskan