National Savings Certificates (VIII-Issue) Scheme
7.7% compounded interest, no deposit limit · long-term savings · India
The National Savings Certificate (NSC) is a government-backed 5-year savings instrument available at post offices, offering 7.7% interest compounded annually and paid at maturity. There's no maximum deposit limit, and you can open as many accounts as you want — making it ideal for larger savings. Visit your nearest post office or designated bank with a simple form and identity/address proof to apply.
About This Scheme
The National Savings Certificate (NSC) is a government-backed 5-year savings instrument available at post offices, offering 7.7% interest compounded annually and paid at maturity. There's no maximum deposit limit, and you can open as many accounts as you want — making it ideal for larger savings. Visit your nearest post office or designated bank with a simple form and identity/address proof to apply.
Full official description
The scheme “National Savings Certificates (VIII-Issue) Scheme” was launched by the Department of Economic Affairs, Ministry of Finance, Government of India to promote a culture of long-term savings among individuals. Under the scheme, an individual can deposit a minimum of ₹1000/- and thereafter in multiple of ₹100/- with no maximum deposit limit for 5 5-year maturity period. The following type of accounts can be opened under the Scheme, namely:-
- Single Holder Type Account: This type of account may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian; or by a minor who has attained the age of 10 years. - Joint A- Type Account: This type of account may be opened jointly in the names of upto three adults payable to all the holders jointly or to the survivor or survivors. - Joint B- Type Account: This type of account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors.
Benefits
- 7.7% interest per annum, compounded annually, paid at maturity after 5 years
- No maximum investment cap — invest as much as you want
- ₹1,000 invested grows to approximately ₹1,462.54 at maturity
- Loan facility available by pledging the certificate with a bank
- Can be used as collateral for bank loans
💡 Why Startups Should Care
For business owners wanting a secure, government-backed savings instrument to park profits, NSC's no-deposit-limit and pledge-for-loan feature make it useful both as an investment and as collateral for future borrowing.
Who Can Apply (Eligibility)
- Must be a resident of India
- Any individual adult can apply; no upper age limit
- Minimum deposit: ₹1,000 (and multiples of ₹100 thereafter)
- No maximum deposit limit — invest any amount
- Guardians can open accounts on behalf of minors aged 10 years and above
- Joint accounts (up to 3 adults) are also permitted
How to Apply
- Visit the nearest Post Office branch or designated bank.
- Collect and fill out the application form for NSC (VIII Issue).
- Submit passport photo, Aadhaar, PAN card, and age proof.
- Deposit your investment amount.
- The certificate matures in 5 years, with loan facility available by pledging.
Frequently Asked Questions
What is National Savings Certificate?
The scheme "National Savings Certificates (VIII-Issue) Scheme" was launched by the Department of Economic Affairs, Ministry of Finance, Government of India to promote a culture of long-term savings among individuals. Under the scheme, an individual can deposit a minimum of [?]1000/- and thereafter in multiple of [?]100/- with no maximum deposit limit for 5 years maturity period.
Who is eligible to invest in 'National Savings Certificates (NSCs)'?
Any individual who is a resident of India can avail the benefits under the scheme.
Can non-residents invest in NSCs?
No, NSCs are generally not available for non-residents. They are specifically designed for Indian residents.
Is there any age restriction for NSC investors?
No, NSCs are open to individuals of all age groups, from minors to senior citizens. The minimum age for minors should be 10 years.
What are the available tenures for the scheme?
NSCs typically come with fixed tenures, with common options being 5 years.
What is the current rate of interest offered on the scheme?
The interest rate on NSCs is determined by 7.7 % compounded annually but payable at maturity.
How can I apply for National Savings Certificates?
The applicant can visit nearest Post Office Branch or a designated bank.
Can NSCs be transferred to another individual?
Yes, NSCs are transferable, providing flexibility for investors to assign or transfer their certificates to another person.
What happens in case of the investor's demise?
NSCs allow for nomination, ensuring that in the event of the investor's demise, the designated nominee receives the proceeds.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Passport-size photo
- Aadhaar card
- PAN card
- Proof of age (birth certificate)