The National Savings Certificate (NSC) is a fixed-income savings plan offered by India Post. It is a safe investment backed by the Government of India, ideal for low-risk investors. The scheme promotes small and mid-level savings and offers guaranteed returns and tax benefits.
Key Features of NSC 2025
- Interest rate: 7.7% per annum (compounded annually)
- Lock-in period: 5 years
- Minimum investment: ₹1,000 (no maximum limit)
- No TDS on maturity amount
- Tax benefits under Section 80C
- Digital certificate facility now available
- Safe, secure, and low-risk investment
New Updates in 2025
The scheme has been updated to provide better returns and user-friendly features:
- Maturity amount shown at the time of purchase
- Nomination and premature closure rules simplified
- Online certificate download and tracking via India Post portal
Interest and Returns Calculation
If you invest ₹1,00,000, your amount grows like this over 5 years:
- Year 1: ₹1,07,700
- Year 2: ₹1,15,988
- Year 3: ₹1,24,919
- Year 4: ₹1,34,538
- Year 5: ₹1,44,903
How to Reach ₹43.47 Lakh in 5 Years
Invest ₹50,000 per month (₹6 lakh annually) for 5 years. With the 7.7% interest rate and compounding, your investment of ₹30 lakh can grow to ₹43.47 lakh by maturity.
Tax Benefits of NSC
- Up to ₹1.5 lakh investment qualifies under Section 80C
- Interest earned for the first 4 years is also tax-deductible
- No TDS on maturity
- Interest of the 5th year is taxable
Who Should Invest in NSC?
- Salaried individuals seeking tax savings
- Retirees looking for fixed income
- Parents planning for future expenses
- Risk-averse investors
- Anyone wanting safe returns in 5 years
How to Buy NSC in 2025
- Visit the nearest post office
- Submit Aadhaar, PAN, and address proof
- Choose amount and nominee
- Pay via cash, cheque, or online
- Opt for digital or physical certificate
Conclusion
The updated NSC scheme in 2025 offers higher returns, easy access, and strong safety features. It’s a perfect choice for those looking for tax savings and guaranteed returns without market risks.
