There are some savings schemes run by the Government of India that give guaranteed returns. These schemes are good for people who do not want to take risks, even if the returns are lower than market-linked investments. One such scheme is the National Savings Certificate (NSC) offered by the Post Office.

In this scheme, you get good returns and your money stays completely safe. You can open an NSC account easily by visiting your nearest post office. After that, you can start investing without any problem. Let us now understand this savings scheme in a simple way.

Who Can Open an NSC Account?

According to the official website of India Post, a single person can open an NSC account. Also, three adults together can open a joint account. A guardian can open an account for a minor, and if the minor is 10 years or older, they can open the account in their own name. Guardians can also open an account on behalf of a mentally ill person.

This account is also called an authorized account. The special thing is that you can open as many NSC accounts as you want. Investment can start with a minimum of ₹1,000, and after that, you can invest in multiples of ₹100.

How Much Return Will You Get?

Right now, the interest rate on the National Savings Certificate (NSC) is 7.7% per year. This is a fixed and guaranteed return.
For example, if you invest ₹10,000, then on maturity, you will get around ₹14,490. That means your profit will be ₹4,490.

Can You Withdraw Money Before Maturity?

As per India Post rules, the NSC account cannot be closed before maturity in normal cases.
If you close the account within one year of investment, you will get only the amount you invested, without any interest.
If you close the account after one year but before three years, you will get interest at the rate of the post office savings account, for the full number of months the account was active.

In What Situations Can the Account Be Closed Early?

The NSC account can be closed early in special cases, such as:

  • In case of the death of the account holder in a single account
  • In case of the death of any account holder in a joint account
  • If the account is seized by order of a gazetted officer, for example, by a court or legal authority