NSC Scheme: Eligibility, Application Process, Documents & More

12^th Jan 2026...

Published By : Team 811

NSC Scheme Latest News

The NSC interest rate has remained unchanged for the seventh consecutive quarter.

NSC Scheme Key Takeaways

The National Savings Certificates Scheme is a government-backed, secure savings tool that helps build long-term financial discipline.
Investment can start with as low as ₹1,000 with a tenure of 5 years.
The NSC certificates can be used as collateral for loans.

Introduction

The Department of Economic Affairs, Ministry of Finance, Government of India, launched the National Savings Certificates (VIII-Issue) Scheme to encourage long-term savings. The scheme allows people to invest securely with a minimum deposit of ₹1,000, followed by multiples of ₹100. It comes with a fixed 5-year maturity period. Individuals have access to flexible account options, including single and joint accounts. The scheme supports individuals, including minors and guardians, by providing a safe savings instrument that can also be pledged as collateral for loans through banks.

What is the NSC Scheme?

The NSC Scheme is a government-backed savings instrument, enabling long-term, safe financial habits among individuals. Under this scheme, investors can open their accounts in individual or joint names or even for minors. With flexible deposit options, a fixed maturity period of 5 years, and the ability to pledge the certificate for loans, the NSC serves as a reliable savings avenue for those seeking stable and risk-free returns.

Who Benefits from the NSC Scheme?

The NSC Scheme is ideal for individuals seeking a safe, long-term savings option with guaranteed returns. It benefits:

Individuals planning for future financial goals
Individuals needing loan-backed security
Individuals who prefer predictable, low-risk returns
Investors seeking flexible contribution options
Guardians saving for minors

Key Features & Benefits

Here are the key features and benefits of the National Saving Certificate:

Different Account Types: The scheme offers flexibility in choosing from different types of accounts:
- Single Holder Account: For an individual himself, on behalf of a minor/a person of unsound mind of whom he is the guardian, or a minor of the age of at least 10 years.
- Joint A-Type Account: Jointly opened by up to three individuals. Maturity payable to all the holders jointly or to the survivor(s).
- Joint B-Type Account: Jointly opened by up to three individuals. Maturity payable to one of the account holders or to the survivor(s).
Assured Returns with a Fixed Interest Rate: Backed by the government and offering an interest rate of 7.7%, compounded annually and paid out at maturity, the scheme ensures predictable and assured growth of savings.
5-Year Maturity Period: Every account will mature 5 years from the date of deposit. This makes the account suitable for long-term financial planning.
Low Minimum Deposit, No Maximum Limit:
- The minimum deposit amount for investors is ₹1,000. Further deposits must be in multiples of ₹100.
- There is no maximum deposit limit, allowing people to invest as much as they want.
Multiple Account Flexibility: An individual may open any number of NSC accounts, offering flexibility in planning and distributing investments over time.
Loan Facility Through Pledging: Investors can pledge National Savings Certificates as collateral to avail of loans from banks and other authorised institutions, offering liquidity without premature withdrawal.

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Eligibility Criteria of NSC Scheme

Here’s who can opt for the National Saving Certificate Scheme:

Any individual holding the status of a resident of India.
A guardian on behalf of a minor/a person of unsound mind.
A minor of a minimum age of 10 years.

Exclusions

NRIs
Foreigners
Minors below 10
Companies, firms, or other non-individual entities

Documents Required for NSC Scheme

Aadhaar Card
PAN Card
Age proof (like a birth certificate)
Identification and address proof (like Passport, Driving license, Voter’s ID card, Job card issued by NREGA, and signed by the State Government officer, letter issued by the National Population Register containing details of name and address)
Passport-size photo

Application Process of NSC Scheme

Individuals can apply for the NSC Scheme in Post Office or a bank. Here are the steps:

Step 1: Visit your nearest Post Office or any designated bank.
Step 2: Collect the applicant form. You can also download it from the official website.
Step 3: Fill out the application form with the required details. Attach all the required documents.
Step 4: Fill out the declaration and provide the nomination details.
Step 5: Submit the duly filled application form. Also, deposit the initial investment or deposit amount.
Step 6: You will receive an acknowledgement upon the initiation of your NSC account.

Check Status of NSC Scheme

You can check the status by visiting the post office or bank, or through the digital banking portal.

Benefit Disbursal

The NSC Certificate matures after 5 years, and upon maturity, it is repaid to the account holder.

Note:

The account holder must submit the specified form to the accounts office.
Any fraction in the repayable amount will be rounded off to the nearest rupee.
50 paisa or an amount above shall be considered as a rupee.

Conclusion

With the NSC Scheme, individuals have a secure and reliable channel to plan long-term savings. The 5-year maturity period, flexible deposit amount, and simple eligibility criteria make disciplined financial planning easier and more convenient.

FAQs on NSC Scheme

1. Is premature closure allowed under the NSC Scheme?

Premature closure is only allowed in case of the demise of one of the account holders, forfeiture by a pledgee who is a Gazetted Officer, or a court order.

2. Is the NSC account transferable?

NSC account transfer may be permitted in case one of the account holders has passed away, there is a court order, or it is being pledged.

3. Is there any age restriction under the NSC Scheme?

There is no age restriction. However, in the case of minors, the age should be at least 10 years.

4. What tenures are available for the NSC Scheme?

The tenure available is 5 years.

5. What interest rates does the NSC Scheme provide?

The current interest rate provided under the NSC Scheme is 7.7%.

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Disclaimer
This article is intended for general informational purposes only. The information provided is based on publicly available sources and government notifications as available at the time of writing. Government schemes, eligibility criteria, benefits, coverage limits, and implementation details are subject to change, modification, or discontinuation at the discretion of the respective government authorities without prior notice.
Kotak Mahindra Bank Ltd. (“Bank”) does not guarantee the accuracy, completeness, or current validity of the information contained herein and does not assume any responsibility for discrepancies arising due to subsequent policy updates or revisions. The views expressed in this article do not necessarily reflect the views of the Bank or its employees and should not be construed as legal, medical, financial, or professional advice.
Readers are advised to verify the latest details directly from official government portals or authorized sources before relying on or acting upon the information provided. Kotak Mahindra Bank Ltd., its directors, employees, or contributors shall not be liable for any loss or damage arising from the use of or reliance on the information contained in this article.