National Savings Certificate (NSC): What Is It & How to Invest

Explore NSC: Learn about NSC interest rates, eligibility, and how to apply for secure savings.
Grow your savings safely with Bajaj Finance FD
4 mins
29-August-2025

Looking for a stable and risk-free way to grow your savings? The National Savings Certificate (NSC) has been one of India’s most trusted investment avenues for decades. Backed by the Government of India, NSC offers guaranteed returns, fixed tenure, and tax-saving benefits under Section 80C, making it a preferred choice for conservative investors.

What is National Savings Certificate (NSC)?

The National Savings Certificate (NSC) is a fixed-income savings instrument designed to encourage small and medium investments among citizens. It provides a secure, low-risk investment option with a lock-in period of 5 years. The NSC interest rate is reviewed quarterly by the Government of India. For Q3 of FY 2023-24, the rate stands at 7.7% per annum.

NSC – Key information

Feature

Details

Interest rate

7.7% per annum

Minimum investment

Rs. 1,000

Lock-in Period

5 years

Risk profile

Low risk

Tax benefit

Up to Rs.1.5 lakh under Section 80C

While NSC guarantees fixed returns, a Bajaj Finance Fixed Deposit (FD) offers similar security with up to 7.30% p.a. interest, giving you flexibility in choosing tenures and payout options. Open FD account.

 

Who should invest in NSC?

  • Risk-averse investors: NSC is an excellent choice for individuals who prioritise the safety of their investments. Being a government-backed instrument, it carries minimal risk, making it suitable for risk-averse investors.

  • Diversification: National Savings Certificates (NSC) can be an option for portfolio diversification, as it offers a low-risk investment opportunity. It is essential to consider the individual's overall financial goals, risk tolerance, and investment horizon before making decisions.

  • Tax-saving investors: Individuals looking to avail tax benefits can consider NSC. You can claim up to Rs. 1.5 lakh p.a. tax deduction under Section 80C of the Income Tax Act, offering a tax-efficient way to grow savings.

If you are seeking flexibility beyond tax-saving schemes, a Bajaj Finance FD lets you invest Rs. 15,000 onwards and choose tenures from 12 to 60 months, helping you plan both short- and long-term goals. Check latest rates.

 

Benefits of NSC

  1. Safe and secure investment: The National Savings Certificate (NSC) is a secure investment option backed by the government, providing assurance to investors for both the invested amount and earned interest.

  2. Accessible to all: With a minimal entry requirement of just Rs. 100, NSC is accessible to a diverse range of individuals. This low entry barrier ensures that even small investors can actively participate in this savings scheme.

  3. Tax benefits: NSC investments qualify for tax benefits under Section 80C of the Income Tax Act. Investors can claim deductions for the principal amount invested, up to Rs. 1.5 lakh, helping in reducing their taxable income.

  4. Compounding growth: Interest on NSC compounds annually, fostering investment growth. The compounding effect allows investors to earn interest not only on the principal amount but also on previously earned interest.

  5. No limit on investment: NSC imposes no upper limit on investment amounts, making it suitable for those who are willing to invest large amounts.

For investors who prefer capped tenures with assured liquidity, Bajaj Finance FDs provide predictable earnings with monthly, quarterly, half-yearly or annual payouts. Book an FD.

Also Read: How to login on EPFO Portal

 

NSC interest rate history

The Ministry of Finance periodically reviews and adjusts the National Savings Certificate (NSC) interest rates each quarter. Interest on NSCs is compounded annually and paid out at maturity. Below is a chart showing the historical interest rates for NSCs from previous years:

Financial Year 

April-June

July-September

October-December

January-March

2023-2024

7.7%

7.7%

7.7%

7.7%

2022-2023

6.8%

6.8%

6.8%

7.0%

2021-2022

6.8%

6.8%

6.8%

6.8%

2020-2021

6.8%

6.8%

6.8%

6.8%

2019-2020

8.0%

7.9%

7.9%

7.9%

2018-2019

7.6%

7.6%

8.0%

8.0%

2017-2018

7.9%

7.8%

7.8%

7.6%

2016-2017

8.1%

8.1%

8.0%

8.0%

 

Eligibility Criteria for NSC

  • Indian citizens only: NRIs cannot invest.

  • Individuals only: HUFs, trusts, and companies are not eligible.

  • No age restrictions: Open to all individuals regardless of age.

 

Tax benefits of NSC investment

  • Investments up to Rs. 1.5 lakh annually qualify under Section 80C.

  • Interest earned is reinvested and also qualifies for deductions for the first 4 years.

  • Interest in the final year is taxable as per your income tax slab.

If you want tax-free maturity instead of partial taxation, consider diversifying into Bajaj Finance FDs, which offer clear post-tax earnings visibility. Invest now!

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

How to invest in NSC?

Steps to invest in NSC offline

  1. Get an NSC application form from your nearest post office or download it online.

  2. Fill in all required details on the application form.

  3. Self-attest copies of your KYC documents.

  4. Take the completed form, original documents for verification and pay the amount you want to invest.

  5. Once payment and verification are complete, you will receive your NSC

 

Steps to apply for NSC online

  1. Login to Department of Post's e-Banking website

  2. Go to the "General Services" section. Click on "Service Requests"

  3. Select "New Requests" and then "NSC Account – Open an NSC Account (For NSC)".

  4. Enter the amount you want to invest. Select the debit account linked to your Post Office savings account.

  5. Select "Click Here" link to read the terms and conditions. Accept them

  6. Enter your transaction password. Click "Submit."

  7. You can view and download the deposit receipt.

  8. Log back in and go to the "Accounts" section to see your new NSC account.

 

Documents required to apply for NSC

  • ID Proof: PAN card, Aadhaar, Voter ID, Passport, or Driving Licence.

  • Address Proof: Utility bills, Aadhaar, or bank statement.

  • Photograph: Passport-size photo for verification.

 

Comparing NSC with other tax-saving investments

Aspect

National Savings Certificate (NSC)

Public Provident Fund (PPF)

Risk level

Low

Low

Interest rate

7.7% p.a. as of March 2024

7.1% p.a. as of March 2024

Lock-in period

5 years

15 years

Maximum investment limit

None

Rs. 1.5 lakh per year

Tax benefit under “Section 80C”

Yes

Yes

 

Maturity period and premature withdrawal under NSC

  • Lock-in of 5 years applies strictly.

  • Premature withdrawals are only allowed:

    • On the death of the investor.

    • If pledged as collateral (to a government officer).

    • If ordered by a court of law.

For investors who value higher liquidity, Bajaj Finance FDs allow premature withdrawals (with some penalties) and even loan against FD facilities against deposits. Check eligibility.

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

How to request a duplicate NSC

Step 1: Fill Form NC-29, the application for duplicate certificates, available at any post office in India.
Step 2: Submit the filled-out form at the nearest post office branch. If the nearest branch is not the branch where the original certificate was issued, the application will be forwarded to the original branch by the new branch itself.
Step 3: The application should contain details of the NSC such as the amount, account number, date of issuance, and the reason for the duplicate NSC.
Step 4: If certificates are defaced or damaged, there is no need for an indemnity bond.
Step 5: However, there is a fee for reissuing the NSC in passbook form.

 

NSC vs Bajaj Finance Fixed Deposit

Feature

NSC

Bajaj Finance FD

Interest rate

7.7% p.a. as of March 2024

Up to 7.30% p.a.

Minimum investment

Rs. 1,000

Rs. 15,000

Maximum investment

No maximum limit

Rs. 3 crore

Maturity period

5 years

12 months to 60 months

 

Also Read: How to Download EPFO Passbook

 

Conclusion

The National Savings Certificate (NSC) is a time-tested investment option for individuals seeking safety, guaranteed returns, and tax savings. With government backing and compounding benefits, it helps build disciplined savings over 5 years.

However, if you want greater flexibility, higher investment limits, and multiple payout options, a Bajaj Finance FD is a strong alternative. Backed by AAA safety ratings and offering returns of up to 7.30% p.a., it’s one of the most reliable ways to grow your wealth. Open an FD account.

 

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FAQ

What is the minimum investment for Bajaj Finance FD?

You can start investing with just Rs. 15,000 and earn returns up to 7.30%., making it accessible for both first-time and seasoned investors. Open FD.

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.