If you are one of those investors who want security of investment and guaranteed returns, then National Saving Certificate, one of the small savings schemes of the Government of India, can prove to be a very attractive scheme for you. Since it is a savings scheme of the Centre, you get guaranteed returns in a fixed time and your invested money remains completely safe. Under the National Saving Certificate i.e. NSC, you can open as many accounts as you want in the post office or bank.

Who can open an NSC account

According to the official website of India Post, an adult can open an account. Also, three adults can open a joint account together. Apart from this, guardians can also invest in this scheme on behalf of a minor or a mentally ill person. If a minor is above 10 years of age, he can also invest in the National Savings Certificate Scheme in his own name. According to the official website of India Post, for example, if you invest Rs 10,000 in an NSC account, it becomes Rs 14,490 on maturity.

How much can you invest

You can deposit a minimum amount of Rs 1000 and in multiples of Rs 100 in the National Savings Certificate Account. There is no maximum limit on the investment amount. Any number of accounts can be opened under the scheme. An important thing is that the amount deposited in this account is eligible for tax deduction under Section 80C of the Income Tax Act. Another important thing to note is that the deposit amount will mature after completion of five years from the date of deposit. Currently, 7.7% annual compound interest is being received on the amount deposited in the National Savings Certificate Account, which is payable on maturity.

Account can be transferred from one person to another

An important thing about the National Savings Certificate Account is that under special circumstances, the account can be transferred from one person to another. This can be done to the nominee/legal heir on the death of the account holder, to the joint holder or holders on the death of the account holder and on the order of the court.

When can the account be closed prematurely

NSC cannot be closed prematurely before 5 years. Yes, the account can be closed only under three circumstances- on the death of the single account holder, or on the death of any or all the account holders in case of joint account holders, on mortgage by a gazetted officer and on the order of the court.