NSC Interest Rate 2024

Know the latest national savings certificates (NSC) interest rates for 2024. Explore NSC Eligibility, Application Procedure and Benefits.
NSC Interest Rate
4 mins
25 April 2024

The National Savings Certificates (NSC) is a popular government-backed savings instrument in India that offers individuals a secure and attractive way to grow your money. If you are considering investing in NSC, it is essential to understand the NSC interest rate and all the details associated with it. In this article, we will provide a comprehensive overview of NSC, including its interest rates, application procedure, eligibility criteria, benefits, and answers to frequently asked questions.

Details about NSC interest rates 2024

Rate of interest

7.7% p.a. (01.01.2024)

Minimum investment

Rs. 1,000

Maximum investment

No maximum limit

Lock-in period

5 years

Tax benefits

Under Section 80C of the Indian Income Tax Act

Interest Applicability on Premature Withdrawal of NSC

Premature Withdrawal Period

Interest Rate Deduction

Before 1 year

No interest paid

After completion of 1 year

Interest offered at the rate applicable then.

Premature closure of NSC is generally not allowed before 5 years, except under the following circumstances:

  1. In the event of the death of a single account holder or any or all account holders in a joint account.
  2. If forfeited by a pledgee who is a Gazetted officer.
  3. On court orders.

Also read: FD Vs NSC

Eligibility criteria for NSC

The eligibility criteria for investing in National Savings Certificate (NSC) typically include:

  • A single adult can open a NSC account.
  • Joint accounts allow up to three adults. They can collectively manage the account and benefit from the scheme.
  • Guardians can open accounts on behalf of minors or individuals of unsound mind. The guardian oversees the account until the minor reaches maturity or the individual’s condition improves.
  • Minors aged above 10 years can open their account on his or her name.
  • Hindu Undivided Families (HUFs), Trusts, Private and Public Limited Companies (PLCs) cannot open a NSC account.
  • Non-Resident Indians (NRIs) cannot open a NSC account.

Application Procedure for NSC

To invest in NSC, follow these simple steps

  1. Visit the nearest post office.
  2. Obtain an NSC application form.
  3. Fill in the required details, such as the nominee's name, amount to be invested, and personal information.
  4. Submit the completed form, along with the necessary documents and the investment amount.
  5. The post office will issue you an NSC certificate.

Document Requirements for NSC

To invest in NSC, you need to provide the necessary documents:

  • Identity proof (Aadhar card, passport, voter ID, etc.).
  • Address proof (electricity bill, passport, etc.).
  • Passport-sized photographs.

Benefits of NSC

Investing in NSC comes with several advantages, making it an attractive option for individuals looking to grow their savings:

  1. Attractive Interest Rate: NSC offers a competitive interest rate that is higher than many other savings schemes.
  2. Safety and Security: Being a government-backed scheme, NSC is one of the safest investment options.
  3. Tax Benefits: The invested amount qualifies for a deduction under Section 80C of the Income Tax Act, reducing your taxable income.
  4. No Maximum Investment Limit: You can invest any amount without any upper limit.
  5. Easy Liquidity: NSC certificates can be encashed at any post office.

How to Invest in NSC Online

  1. Log in to DOP internet banking.
  2. Navigate to "Service Requests" under "General Services" and select "New Requests."
  3. Choose "NSC Account – Open an NSC Account (For NSC)."
  4. Enter the minimum NSC deposit and enter your debit account that is linked with your Post Office saving account.
  5. Click on "Click Here" to see terms & condition, accept it, then submit the application online.
  6. Enter your transaction password, click "Submit”.

Tax Implications of National Savings Certificate

Here are the tax implications of investing in NSC:

  • NSCs serve as tax-saving investments, allowing a deduction under Section 80C for the invested principal, up to the Rs. 1.5 lakh limit.
  • The annual interest earned on NSCs is treated differently for tax purposes. Interest earned in the first four years is deemed reinvested, exempt from tax, and eligible for an deduction under Section 80C (within the Rs 1.5 lakh overall annual limit).
  • However, the interest earned in the 5th year is not reinvested and is taxable based on the investor's applicable slab rate.

History of National Savings Certificate Interest Rates


Quarter 1

Quarter 2

Quarter 3

Quarter 4

2023- 2024





2022 - 2023





2021- 2022





2020- 2021





2019 - 2020





2018 - 2019





2017- 2018





2016 - 2017







In conclusion, the National Savings Certificate offers a secure and rewarding investment avenue for those looking to grow their savings. By understanding the NSC interest rate, application procedure, eligibility criteria, and the associated benefits, you can make an informed decision about including NSC in your financial portfolio.

Calculate your expected investment returns with the help of our investment calculators

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Frequently asked questions

What is the current NSC interest rate?

The NSC interest rate is subject to change and is typically revised on a quarterly basis. It is essential to check the latest rates at your nearest post office or on the official website.

Can I prematurely withdraw my NSC investment?

Yes, you can withdraw your NSC investment prematurely, but the applicable interest rate deduction will vary depending on the duration of the investment.

Are NSC investments taxable?

The interest earned on NSC investments is taxable, but the initial investment amount is eligible for a deduction under Section 80C of the Income Tax Act.

Can I take a loan against my NSC certificate?

NSC certificates cannot be used as collateral for loans. However, they can be pledged to avail a loan under certain circumstances.

Is the NSC interest higher than PPF interest rate?

Yes, NSC interest is higher than PPF interest rate. NSC offer 7.7% p.a. where PPF offers 7.1% p.a.

How is the NSC interest rate compounded?

NSC interest rate are compounded on a yearly basis.

Is the NSC rate of interest fluctuating or fixed?

NSC interest rate are fixed.

Can I invest Rs. 5 lakh in NSC?

Yes, you can invest up to Rs. 5 lakh in NSC.

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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.