National Savings Certificate: Know the latest NSC interest rate for April-June 2024 quarter – Times of India

by The Technical Blogs


NSC interest rate: The National Savings Certificate (NSC) is a popular savings tool backed by the government. It offers guaranteed returns and tax benefits, making it attractive to conservative investors seeking low-risk options for steady income. As the latest interest rates for various small savings schemes like PPF, Senior Citizen Savings Scheme, and Sukanya Samriddhi, have been announced for the April-June quarter, many are curious about the NSC interest rate.
The government updates interest rates for all small savings schemes every quarter, including the National Savings Certificate (NSC). However, this quarter, the NSC rate remains unchanged at 7.7% compounded annually, payable at maturity.
ALSO READ | Not all post office savings schemes entail Section 80C tax benefits! Here’s what you need to know

Key features of National Savings Certificate

Who all can open an NSC account?

  • Single adults: Any individual can open an NSC account in their own name.
  • Joint accounts: Up to three adults can jointly open an NSC account.
  • Guardians: Guardians can open NSC accounts on behalf of minors or individuals deemed to be of unsound mind.
  • Minors: Minors above 10 years old can open NSC accounts in their own name.

Deposit requirements
Minimum deposit: The minimum deposit required to open an NSC account is Rs 1000, with subsequent deposits in multiples of Rs 100.
No maximum limit: There’s no maximum limit on the amount that can be deposited.
Tax benefits: Deposits made into NSC accounts qualify for deductions under Section 80C of the Income Tax Act.
Maturity period
NSC deposits mature after a period of five years from the date of deposit.
ALSO READ | Small Savings Scheme Interest Rates April-June 2024 announced: How much will you earn by investing in Sukanya Samriddhi, PPF, NSC, Kisan Vikas Patra etc?
Pledging of account
NSC accounts can be pledged or transferred as security under certain conditions. This requires submitting a prescribed application form at the concerned Post Office along with an acceptance letter from the pledgee.
The accounts can be pledged or transferred to various authorities including the President of India, RBI, Scheduled Banks, Co-operative Societies, Corporations (public/private), Government Companies, Local Authorities, and Housing Finance Companies.
Premature closure
NSC accounts cannot be prematurely closed before the completion of five years, except under specific circumstances:
On the death of a single account holder or all account holders in a joint account.
Forfeiture by a pledgee who is a Gazetted officer.
On the order of a court.
Transfer of account
NSC accounts can be transferred from one person to another under certain conditions:

  • On the death of the account holder to the nominee or legal heirs.
  • On the death of the account holder to joint holders.
  • On the order of the court.
  • By pledging the account to specified authorities.

Understanding the basics of NSC accounts can help individuals make informed decisions about their investments. With their attractive interest rates and tax benefits, NSCs remain a popular choice for many savers looking for a secure investment option.


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