How to invest in NSC online- A to Z Guide for NSC Investment.

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National Savings Certificate – Key Highlights
Scheme	5 Years National Savings Certificate (VIII Issue)
Interest payable, Rates, Periodicity etc.	7.7 % compounded annually but payable at maturity.
Min. Amount for opening of account and max. balance that can be retained	Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum L
Tax Benefit	Up to Rs.1.5 lakh in  80C of the Income Tax Act
Investment mode	Online and offline

Opening of NSC Account :

(a) Eligibility for NSC in Post Office:

(i) An individual who has reached the age of maturity can open an account on their own.

(ii) A Joint Account can be established, accommodating up to three adults.

(iii) A guardian can open an account on behalf of a minor or an individual with impaired mental
faculties.

(iv) Minors aged 10 years and above can open an account in their own name.

 

Deposits in NSC in Post Office:

(b) Key Points:

(i) The minimum deposit requirement is Rs. 1000, with subsequent deposits in multiples of Rs.
100. There is no upper limit.

(ii) Multiple accounts can be initiated under this scheme.

(iii) Deposits are eligible for deduction under section 80C of the Income Tax Act.

 Maturity of NSC in Post Office :

(c) Account Duration:

-> The deposit will reach maturity after a five-year period from the date of initiation.

 Pledging of  NSC Account:

(d) Security and Transfer Options:

(i) The National Savings Certificate (NSC) can be pledged or transferred by completing the prescribed application form at the respective Post Office. The form must be supported by an acceptance letter from the pledgee.

(ii) Transfer or pledging of the NSC can be made to the following entities:

-> Reserve Bank of India (RBI), Scheduled Bank, Co-operative Society, or Co-operative Bank.

-> Public or private corporations, government companies, or local authorities.

-> Housing finance companies.

 Premature  of Closure of NSC in Post Office :

(e)  What is the Conditions for Early Closure of NSC in the Post Office :

-> Premature:-  closure of the NSC is not permitted within five years, except under the
following circumstances:

​(i) In the unfortunate event of the demise of a single account holder or any or all of the account holders in the case of the joint account.

(ii) Forfeiture by a pledgee who holds the position of a Gazetted officer.

(iii) As ordered by a court of law.

 Transfer of  NSC Account:

(f) Conditions for Transfer of NSC :

-> The NSC can only be transferred to another individual under the following conditions:

​(i) In the event of the account holder’s demise, the account can be transferred to the nominee or legal heirs.

(ii) In the event of the account holder’s demise, the account can be transferred to joint holder(s).

(ii) Based on a court order.

(iii) By pledging the account to the specified authority.

 Documents Required for Purchas of National Savings Certificate (NSC) in Post Office:- 

     Ø     NSC Purchase Application form – Available in India post Website

Ø   Photograph of the account holder, in case joint account, both photos

Ø  Identity proof –  like an Aadhaar card, PAN Card, etc.

Ø  Address proof of Account holder –  like Aadhaar card, Voter ID, etc.

Ø  cheque deposit of the amount to be invested in case account opened through Cheque

Ø  If invested through an agent cash limit is up to 20,000/- for each investment.

Ø  If the existing Post Office investor-CIF number 

Mandatory Documents for Investment in NSC:-

 Ø   Pan and Aadhar is now mandatory provisions for investment in NSC Opening. 

Ø  If you haven’t an Aadhaar, you need to provide proof of application or enrollment ID for an Aadhaar at the time of opening the account.

Ø  Aadhaar number must be submitted within 6 months from the date of opening the account.

Ø  If already have a Post office Investment, and have not submitted your Aadhaar number, it is now necessary to do so within 6 months from 1st April 2023.

Ø   Further if you haven’t provided your PAN  during the  opening of your NSC account, you must submit it within 2 months from the date of any of the following actions, whichever occurs first:

 -The balance in the NSC account exceeds Rs. 50,000 at any given time.

-The total amount credits in the account in the financial year exceed Rs. 1 lakh.

– or the total withdrawals and transfers from the NSC  account in a month exceed Rs. 10,000.

Ø  Submit your Aadhaar within 6 months or your PAN within the specified 2 months, otherwise in your NSC account will be operational unless you provide the Aadhaar number and/or PAN. 

Ø  Valid mobile number is also mandatory for investment in Post Office saving schemes. 

How to make investment in National Savings Certificates (NSC) in Post Office, Detail process: –

 NSC Offline Investment Process in Post Office: –

If you wish to make an offline investment in National Savings Certificates (NSC), you can conveniently purchase them from any Indian Post Office. To facilitate the investment process, please follow the steps outlined below:

 Ø  Fill out the NSC application form: The NSC application form is available both online and at all Indian post offices. Ensure that you complete the form accurately, providing all the required information. If you have any doubts or require assistance, you can approach the post office staff for guidance.

 Ø  Submit self-attested copies of required KYC documents: Along with the filled-out application form, you will need to provide self-attested copies of the necessary KYC (Know Your Customer) documents. These documents help establish your identity and address. It is important to carry the original documents as well for further verification if required.

 Ø  Make the payment: Once you have completed the application form and submitted the necessary documents, proceed to make the payment for the desired investment amount. You can choose to make the payment in cash or through a cheque, as per your preference and the options are available at the post office. 

Ø  Collect the NSCs: After the purchase of the certificates is processed, the applicable NSCs will be printed in the form of a Passbook. You can collect the NSCs from the post office where the investment was made. It is advisable to carry the receipt or acknowledgment provided during the investment process for smooth and efficient collection. 

By following these steps, you can successfully invest in National Savings Certificates offline.
NSCs provide a secure investment option, and their attractive interest rates make them a popular choice among individuals looking for low-risk savings instruments.

 Please note that the information provided here is a general guide to the offline NSC investment process. It is always recommended to refer to the official guidelines, contact the Indian Post Office, or seek professional advice for specific details and any updates regarding NSC investments.

 Also Read:-

 

1. Post Office Latest Interest Rate

 

2. Post Office Net Banking 

 

3. Post office RD Calculator.

How to Invest in NSC Online through Post Office Net Banking:-

If you wish to open an NSC (National Savings Certificate) account in the Post office online through DOP
Net banking  online, you can follow these step-by-step instructions:

 Login to DOP Internet banking: Visit the official website of DOP (Department of Posts) and log in to your DOP Internet banking account using your credentials.

 Access the Service Requests section: Once logged in, navigate to the “General Services” section on the website. Check the “Service Requests” option and click on it.

 

Choose New Requests: Within the Service Requests section, you will find various options. Select “New Requests” to proceed with opening a new NSC account.

 Select the NSC Account option: Among the available options, locate “NSC Account – Open an NSC Account (For NSC)” and click on it. This will initiate the process of opening an NSC account online.

 Enter the deposit amount and choose debit account: On the following screen, you will be asked to enter the minimum deposit amount for the NSC account. Provide the desired amount and choose the debit account linked to your PO (Post Office) savings account from which the amount  will be debited.

 Read and accept terms and conditions: Click on “Click Here” to read the terms and conditions associated with opening an NSC account online. Once you have gone through the terms and conditions, You can now accept them by checking the appropriate box.

 Submit the application: After accepting the terms and conditions, submit the application online by clicking on the relevant button.  Now your application for opening an NSC account for processing.

 Enter transaction password and submit: Enter your transaction password in the designated field and click on the “Submit” button to finalize the application. This will complete the process of opening
an NSC account online.

 View/download the deposit receipt: If your application is successfully submitted, then you will be able to view and download the deposit receipt. 

 View NSC account details: If you wish to view the details of the NSC account you have opened, you can log in to your DOP Internet banking account again. Navigate to the “Accounts” section to access the information related to your NSC account. Additionally, it’s important to note that the nominee specified in your linked Post Office savings account will also be used for opening the NSC account in your name through DOP online banking.

 You may visit to the concerned post office for collection of the Passbook.

 By following these steps, you can conveniently open an NSC account online through the DOP internet
banking platform. Online account opening offers ease and convenience, allowing you to manage your NSC investments efficiently.

 Please note that the specific steps and processes may vary slightly depending on the DOP Internet
banking portal and any updates made by the Department of Posts. For the most accurate and up-to-date information, it is recommended to refer to the official DOP website or contact customer support.

Tax Implications of National Savings Certificate on investment-Interest earned and Maturity amount:

Is NSC income tax-free?| Is interest in NSS taxable?

 

National Savings Certificates (NSCs) serve as tax-saving investments, offering benefits under Section 80C of the Income Tax Act. The principal amount invested in NSCs is now eligible for a tax rebate of up to Rs. 1.5 lakh for the Financial year of investment.

However, it is important to understand the tax treatment of the interest earned on NSCs, as it differs from the treatment of the principal amount. Here you need to understand how to avoid tax on NSC and
how is NSC income tax calculated? 

Ø  The interest earned annually from NSCs during the first four years is deemed to be reinvested. This means that the interest amount is not paid out to the investor but is instead reinvested along with the principal amount. As a result, the interest earned during these four years is exempt from tax.  Additionally, it is eligible for a deduction under Income Tax Act Section 80C, subject to the overall annual limit of Rs. 1.5 lakh.

 

Ø  However, it is crucial to note that the interest earned in the fifth year of the NSC investment is not reinvested. Consequently, the interest accrued during this period is considered taxable as per the investor’s applicable income tax slab rate. It is important for investors to include this interest income in their annual income tax return and pay tax accordingly.

 

Ø  By understanding the tax treatment of NSC investments, investors can effectively plan their tax liabilities. NSCs provide a combination of tax-saving benefits and secure returns, making them a popular choice for individuals seeking tax-efficient investment options.

 

Ø  Please keep in mind that tax regulations and rates are subject to change. 

 

No Tax on Interest OF NSC/How to Save Tax in ITR/NSC-
Watch This.

  

NSC Interest Accrued and Maturity Value Calculator: –  

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How Can I Transfer of National Savings Certificate: –

  National Savings Certificates (NSCs) offer flexibility in terms of transferability, allowing investors to
transfer certificates from one post office to another or from one person to another without affecting the interest accrual or maturity of the original certificate. The transfer options available for NSCs are as follows:

 Ø  Transfer from one post office to another: To transfer an NSC from one post office to another, the investor needs to complete the Application for Transfer of Savings Certificates form. This form should be submitted at the post office that initially issued the original NSC certificate/Passbook. By filling out this form and following the transfer process, the NSC can be moved to a different post office without any impact on the interest accrual or maturity of the certificate. However, the prescribed fee for transfer of NSC needs to be deposited in the Post Office.

 Ø  Transfer from one holder to another: NSCs can also be transferred from one holder to
another under specified conditions. To initiate this transfer, the investor must complete the Application for Transfer of Savings Certificate from Person to Person Under Specified Conditions form. This form needs to be submitted at the post office where the NSC was originally issued. It is important to note that this transfer can only be done once until the maturity of the NSC scheme. However, the transfer does not affect the interest accrual or maturity of the original certificate.

  How can I Avail Loan Against National Savings Certificates:-

 If you have National Savings Certificates (NSCs), you may be eligible to obtain a loan against your NSC investments from any nationalized bank.. However, there are certain key terms and conditions to consider, which are as follows: 

Eligibility for loan against NSC: Only resident Indians are eligible to apply for a loan against NSCs.
Non-resident Indians (NRIs) and foreign individuals are generally not eligible for this facility.

 Banks offering loans against NSC: Currently, several leading private and public-sector banks provide the option to avail loans against NSC investments. These banks have specific loan products designed for this purpose.

 Margin requirements: The margin applicable to a loan against NSC depends on the remaining time until maturity of the NSC being used as collateral. The bank offering the loan will consider factors market value of the NSC and the applicable margin percentage to determine the loan amount.

 Interest rate on loan on NSC: The interest rate offered on the loan against NSC investments can vary based on several factors, including the individual loan applicant’s creditworthiness, the bank’s lending policies, and prevailing market conditions. It is advisable to compare interest rates offered by different banks before choosing a loan option.

 Loan tenure: The loan tenure for a loan against NSC investments is generally determined by the residual maturity of the NSC being pledged as collateral. The remaining time until the NSC’s maturity will determine the repayment period for the loan.

 When considering a loan against NSC investments, it is important to carefully review the terms and
conditions offered by different banks. Compare interest rates, loan tenures, and other terms to choose a loan option that best suits your requirements.

 Please note that the availability of loan facilities against NSCs may vary among banks, and specific
terms and conditions may apply. It is recommended to contact the banks directly or visit their official websites to obtain accurate and up-to-date information regarding loan options against NSC investments.

 

Issue of Duplicate National Savings Certificates/Passbook in the Post Office: –
 

In the event that the original National Savings Certificate (NSC) certificate is lost, stolen, destroyed, defaced, or mutilated, you have the option to obtain a duplicate certificate. To do so, you need to follow the process outlined below:

 Fill out the Duplicate Savings Certificates form: Obtain the Duplicate Savings Certificates form(NC-29) from the post office where the original NSC certificate was issued. This form is specifically designed for requesting a duplicate certificate. Make sure to complete all the required fields accurately and provide the necessary details.

 Provide details of the original certificate(s): In the form, you will need to enter specific details regarding the original certificate(s). These details may include serial numbers, denominations, NSC issues, and any other relevant information related to the certificates. It is crucial to provide accurate information to facilitate the issuance of the duplicate certificate.

 Mention the purchase date: Along with the details of the original certificate(s), you must also specify the date on which the certificates were purchased. This information helps in verifying the authenticity of the original purchase.

 Specify the reason for the duplicate certificate: In the form, you will be required to state the reason for applying for a duplicate certificate. Whether the original certificate was lost, stolen, destroyed,
defaced, or mutilated, clearly mention the reason in the designated field.

 Submit the form at the issuing post office: After completing the form and ensuring that all the necessary details are provided, submit the Duplicate Savings Certificates form at the post office where the original NSC certificate was issued. The post office will process your request and initiate the issuance of the duplicate certificate.

 By following these steps and submitting the required form, you can obtain a duplicate NSC certificate in case the original one is lost, stolen, destroyed, defaced, or mutilated. It is important to act promptly and provide accurate information to facilitate the process.

 Please note that additional requirements or procedures may apply depending on the post office and specific circumstances. It is advisable to visit the relevant post office or consult with the authorities for precise instructions and any updates regarding the issuance of duplicate NSC certificates.

 

Clarification on duplicate KVP/NSC, according to the SB Order No. 30/2020:

 Pre-printed certificates issued before 01.07.2016:-

For issuance of duplicate certificates (NSC/KVP), the procedure prescribed in  POSB (CBS) Manual under Rule 160  &  Rule 43 and 44 of POSB Manual Volume II should be followed after obtaining the indemnity bond & after receipt of payment of the fee prescribed for duplicate Passbook/certificate in “GSPR-2018 Schedule II” for issue of Passbook in lieu of lost or mutilated certificates as per DOP order. 

Duplication NSC  Passbook Fee (Excluding GST 18%) for Post Office:-

 

Ø  Issue of duplicate passbook – Rs. 50+ GST

 

Ø  ​Issue of Duplicate passbook in lieu of lost or mutilated certificate –Rs. 10 per
registration.

 

Ø  Transfer of account – Rs. 100+GST

 

Ø  Pledging of account – Rs. 100+GST

 

Premature Withdrawal/Closure of NSC in Post Office: –

 Can the post office NSC be closed prematurely?

 The government encourages small and marginal investors to develop the habit of compulsory savings through the National Savings Certificate (NSC). The attractive tax benefits associated with NSC also serve the same purpose. However, the NSC has a lock-in period for the entire tenor, and premature withdrawal is only possible under exceptional circumstances, as listed below:

 

The demise of the NSC holder (single or joint): In the unfortunate event of the death of the NSC holder, premature withdrawal is allowed. The legal heirs or nominees can initiate the closure process with the relevant documentation.

 

Order from an Indian court of law: Premature withdrawal can be permitted based on an order issued by an Indian court of law. The court order must specifically authorize the premature closure of the NSC.

 

Forfeiture by a government-gazetted officer: In compliance with the NSC rules, a government-gazetted officer can pledge forfeiture, leading to premature closure of the NSC. The terms and conditions for forfeiture would be governed by the rules and regulations
applicable at the time.

 

When an NSC is prematurely closed, certain points come into effect immediately:

 

If the NSC is closed within one year from the opening date, no interest is payable. However, the investor will receive a refund covering the total investment amount.

 

If the NSC is closed after one year from the opening date, the investor will receive the investment amount and the accrued interest up to the premature closure date.

 

It is important to note that premature closure of NSC should only be considered in exceptional circumstances, as it may impact the overall benefits and returns of the investment. The lock-in period is designed to promote long-term savings and maximize the benefits of NSC.

 

For specific guidance and detailed information on the premature closure of the NSC, it is advisable to consult with the post office where the NSC was issued or refer to the official guidelines provided by the Department of Posts.

 

Can I withdraw money from the Post office NSC online? |Can I close NSC online?

If you already have a Post Office Net banking facility, and you have purchased an NSC after 01.07.2016, you can close your NSC on maturity online and no need to visit to post office by following these simple steps:-

 Step 1: Login into DOP Internet banking.

 Step 2: Under ‘General Services’, click on ‘Service Requests’ > ‘New Requests’.

 Step 3: Click on the closure of the NSC Account for NSC.

 Step 4: Select the NSC account to be closed and the account to be credited that is linked to PO Saving
Account.

 Step 5: Submit online

 Step 6: Enter the transaction password and submit.

 Step-7: The maturity amount instantly will be credited to your linked POSB account.

  

Can we close NSC on the maturity online? 

1. To access details about closed NSC (National Savings Certificate) accounts, please log out and log in again.

 

2. NSCs purchased after July 1, 2016 (in the form of a passbook) can be closed using this option.

 

3. NSCs issued before July 1, 2016, in the form of savings certificates, must be closed at the respective post office. This requires the submission of the original certificate and a closure application form.

 

4. Customers need to have DOP (Department of Post) net banking facilities to utilize the online NSC closure feature.

 

5. Internet banking users should verify the maturity date and maturity amount on the closure screen before submitting the closure request. In the case of KVP (Kisan Vikas Patra), if the closure date is before the maturity date, it will be considered premature, and closure proceeds will follow the Scheme Rule.

 

6. The maturity amount will be instantly credited to the linked POSB (Post Office Savings Bank) account, eliminating the need to visit the post office.

 

NSC  Interest Rates Since 1989