Post Office National Savings Certificates: Interest Rates, Tax Benefits, Other Details

India Post or Department of Posts, which runs the postal network of the country, offers a number of saving schemes with different interest rates. National savings certificates (NSCs), one such product offered by India Post, fetches an interest rate of 8 per cent per annum, as mentioned on the official website of India Post- indiapost.gov.in. This interest is compounded annually but payable at maturity. An NSC of Rs 100 will offer Rs 146.93 on maturity after five years. NSCs have a lock-in period of five years.

Here are 5 things to know about Post Office National savings certificates (NSCs):

1. The minimum amount required for opening NSC account is Rs 100 in multiples of Rs 100, according to India Post, which has a network of more than 1.5 lakh post offices across the country. There is no upper limit on NSC investments.

2. A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or by a minor, noted India Post.

3. Deposits in the National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act. Section 80C of the Income Tax Act provides for income tax deductions up to Rs 1.5 lakh in a financial year.

4. The National Savings Certificate is operated by the Department of Economic Affairs through the post office. 

5. At the time of transfer of certificates from one person to another, old certificates are not discharged. Name of old holder are rounded and name of new holder are written on the old certificate and on the purchase application under dated signatures of the authorized postmaster along with his designation stamp and date stamp of post office, noted India Post.