Earn 7.7% interest rate on NSC: Tax benefits, lock-in, how to invest in National Savings Certificate

Under Section 80C, the amount invested in NSC is deductible from taxes. Currently, up to Rs. 1.5 lakh can be deducted under this clause in a financial year.

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The deposit will mature on completion of five years from the date of the deposit. There is no way to liquidate your NSC account prematurely, unless the depositor dies, it is forfeited by a pledge from a Gazette official, or a court order.

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Resident Indians can invest in NSC. You can jointly invest with up to two adults. NSC can be bought in the name of a minor as well. You can invest in NSC online through the Department of Post internet banking. You can also visit your nearest post office branch to buy National Savings Certificate through other payment modes including cash, cheque, and bank demand draft.

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NSC may be transferred from one person to another person on the following conditions only.

On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.

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Step 1: Login into DOP internet banking .
Step 2: Under ‘General Services’ >’Service Requests’ > ‘New Requests’ .
Step 3: Click on NSC Account – Open a NSC account and KVP Account to open a KVP account.
Step 4: Enter Amount for which NSC to be opened minimum is Rs 1000 and in multiple of < 100) .
Step 5: Select the Debit Account linked PO Saving Account
Step 6: Click on ‘Click Here’ to read terms and conditions and accept terms and conditions .
Step 7: Submit online
Step 8: Enter transaction password and submit.
Log in again to view the details of NSC opened under ‘Accounts’.

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