NSC which stands for national savings certificate is a type of tax saving investment which can be purchased by an Indian resident from any of the post offices. This scheme is good for people who don’t want to take a lot of risks, this low-risk investment gives you fixed returns.

People often search for savings option which includes features like income tax benefit, safety returns, attractive interest rate, plus a chance to increase the income that you have invested. One of the safest way to invest in National Savings Scheme. Through this scheme, you get a chance to increase the amount that you will invest and avail NSC tax benefits as well. The beginning of NSC started in 1950 when the Government was trying to gather funds to make India a developed nation.

Highlight of NSC

Here are some of the features to invest in National Savings Certificates:

• You can take these certificates as an Individual and start doing individual investment or can be taken to make joint investment too.
• There is a limitation to the number of people who can invest in NSC, but fortunately, there is no limit on how much you want to invest.
• NSC is limited to individuals only and hence trust, companies or Hindu Unified families are not allowed to invest in NSC scheme.
• If you want to take NSC for a minor then there is a possibility for the same as well.
• You can make a minimum investment of Rs. 100
• Premature withdrawal facility for SC is not allowed unless the primary account holder is dead.
• You can also include nominees according to issue VIII and IX.
• You are allowed to encash the certificate only from the post office from where you issued the certificate, but if you provide sufficient proof and evidence then you can encash it from any post office.
• For opening a Post office savings account, individual has to visit the nearest post office as online account opening service has not yet started.

How to apply online for NSC?

Unfortunately, the national saving certificate apply online service is not in function, you will have to visit your nearest post office to apply for NSC. However, you can visit their official website- https://www.indiapost.gov.in/sites/Search/Pages/results.aspx?k=NSC to download the forms, enter all the details and submit it to the post office. Here are the things that you will have to have to submit your NSC form.

Important documentation

• You will have to submit an original identity proof to open the post office savings account
• Download the NSC application form from their site or get it from a post office, fill it properly and submit it.
• You can purchase NSC through cash, cheque or demand draft.
• A witness has to sign an NSC form.
• Address proof/ valid identity proof – Though there are number of options for identity card like Aadhaar card, Driving License , Passport or Pan card . Pan card is the most demanded identity proof in cases of any financial schemes or in banks . But people living in rural areas have no idea of How and where to apply for a Pan card .
• Passport size photographs

Application form

• Name of the person who will open the account
• Cheque number drawn in favour of the post office or amount of cash paid
• Type of NSC account that you will open
• If applicable, name of the guardian has to be mentioned
• Full name of nominees, their address date of birth of minor nominee
• The application form has to be signed by the investor
• The application has to be signed by the authorised agent too
• Issue price
• Signature of the postmaster
• Number of certificates
• Postmaster’s initial
• Date of encashment

Eligibility criteria of NSC Post Office Bank Account

Following are the NSC eligibility requirements:

• Every Indian resident is eligible to invest in NSC post office schemes.
• If you have purchased NSC before you became NRI then those certificates will be held until maturity, but after that, you will be counted as NRI and will not be issued any certificates.
• NSC schemes are available for individuals only and no HUFs (Hindu Undivided Family) are allowed to make investments in NSCs.
• If the Main member of HUFs wants to make an investment, he has to do it on his own name.

Benefits of NSC scheme

Following are some of the benefits of post office NSC schemes:

• The interest that you earn during maturity is tax-free other than the interest earned in the previous year.
• You can invest as much amount as you want to. There is no limitation on NSC deposit regarding the amount of money an individual wishes to invest on NSC scheme.
• You can easily get a duplicate certificate in case you have lost the original one.
• The amount invested is increased
• When the certificate matures, you can purchase the same amount certificates again and start investing
• Without purchasing any additional certificates, you can increase the amount that you have invested. It is because the interest that is earned is compounded as well as reinvested by default.
• Get tax rebate on NSC certificates
• You can purchase NSC in the name of a minor by submitting their birth certificate
• You can purchase NSC easily from any Indian post office.

Nominating a Beneficiary

Although it is not mandatory to add a nominee, you can still nominate someone to hand over the benefits earned after your death. If you have decided to add a nominee then you need to keep a few things in mind which are as follows.

• If you want to add a nominee then buy the certificate using Form 1
• You can also add the nominee after purchasing the certificate using Form 2
• In case you wish to change the nominee then use Form 3
• In case the account holder is illiterate then you will have to submit a thumb impression and a witness has to be present which should be known to the post office
• You can add a minor as a nominee but an adult’s name has to be mentioned to whom the benefits will be transferred after the account holder’s death
• In the event of the death of the account holder, the amount will be hand over to the legal heirs.
• If you have purchased a certificate on behalf of a minor then nominations will not be allowed
• You will have to submit different nomination forms for separate certificates if the nomination is changed on the NSC purchased on varied dates.
• The change in nomination will take influence the day it is enlisted at the post office and not previously.

About NSC maturity

There is no TDS deducted by post office during the time of NSC certificate maturity.The investor will have to declare it as a taxable income either during the maturity period or every year.

In case if you don’t withdraw your NSC then you will earn interest for a maximum of 2 years period and it will incur 4% interest per annum.

If you wish to transfer the NSC from your post office to a different post office, then it can be done by submitting the proper application form.

Investing in NSC for 5 years

• There is no limit for investing, however, you have to invest a minimum of Rs. 100 within the 5 years of national savings certificate scheme.
• The NSC current interest rate for this scheme is 8.5 % per annum.
• Get tax deduction of up to Rs. 1.5 lakhs per annum. The tax deduction will be calculated after the deduction.

 Investing in NSC for 10 years

•  There is no limit for investing, however, you have to invest a minimum of Rs. 100 within the 10 years of national savings certificate scheme.
• The lock-in period is 10 years.
• The NSC current interest rate for this scheme is 8.8 % per annum.
• Get tax deduction of up to Rs. 1.5 lakhs per annum. The tax deduction will be calculated after the deduction.

NSC Interest Calculator

You can easily calculate the NSC interest rate that you will receive using an NSC interest calculator. Submit the following details:

• The applicable rate of interest
• The total amount of investment that you have made
• The tenure you have chosen for the scheme

Thus, the NSC interest calculator helps you to calculate the interest amount that you will receive after the maturity of this scheme.

Post Office Senior Citizen scheme :

Eligibility  – If you are above 60 years of age then you can open an SCSS account. If your age is more than 55 years but lesser than 60 years then under Voluntary Retirement Scheme you can still open SCSS account.

Post office Interest Rates for senior citizen – Under the SCSS scheme, an individual will earn 8.7 % interest rate per annum.

Tax deduction  – If the interest earned is more than Rs. 10,000 per annum then there will be some deduction as tax as per Section 80C of the Income Tax Act.

NSC helpline – In case if you have any doubts or wish to know about the National Savings scheme, call 1800-11-4000.