National Saving Certificate- How to Open a NSC Account Online and Offline?

An Indian Resident can purchase a National Savings Certificate (NSC) from any post office to save money on taxes. NSC is typically preferred by risk-averse investors or those seeking to diversify their portfolio through fixed return instruments because it is a fixed return and low risk investment backed by the Government of India. Here is how to open a NSC account online and offline.

Features-

• National Savings Certificates with a fixed maturity period of 5 years are easily available at any Indian Post Office.
• The interest rate is subject to periodic changes as announced by the Ministry of Finance.
• The minimum amount required for a National Savings Certificate investment is Rs. 1000 (and multiples of Rs. 100), with no maximum limit.
• The principal invested is tax-deductible under Section 80C of the Income Tax Act of 1961 up to Rs. 1.5 lakh per year.
• The interest is compounded annually but is only paid out at maturity, with no TDS deduction.
• The notes are available in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, and Rs. 10,000.
• All major banks and NBFCs accept National Savings Certificates as collateral or security against secured loans.
• In the event of the investor's untimely death, the investor can name any member of his family (minors are also eligible) to inherit his NSC investments.

Benefits-

• NSC investments are almost risk-free because they are backed by the Government of India.
• These investments have one of the highest rates of return among fixed income instruments.
• Because of the low minimum investment requirement of Rs. 1,000 and the lack of a maximum limit, NSC investments provide investors with flexibility.
• National Savings Certificates are available at all Indian Post Offices and can thus be obtained easily.
• These certificates can also be purchased in the name of a minor and provide a tax deduction benefit on investments of up to Rs. 1.5 lakh per year.
• In the event of the investor's death, NSC investments can also be transferred to another family member (nominated by the investor).

Eligibility-

• All Indian residents are eligible to invest in NSCs.
• Adults can invest in NSCs individually or jointly (up to three adults), guardians on behalf of a minor/person of unsound mind, or minors over the age of ten.
• Non-resident Indians are not permitted to purchase new NSCs. However, if a resident subscriber of an NSC becomes an NRI before the certificates mature, such NSCs can be held until maturity.
• Trusts and Hindu Undivided Families (HUFs) are not permitted to invest in NSCs.
• Karta of HUFs can only invest in NSC in his own name.

Documents Required-

• Recent passport size Photograph
• Aadhaar card, PAN, and other forms of identification are acceptable.
• Aadhaar card, Voter ID, and other forms of address proof are acceptable

These documents can be presented at any India Post Office to obtain NSC in the appropriate denominations.

How to open national savings certificates account offline?

• Fill out the NSC application form, which is available online at all Indian post offices.
• Self-attested copies of required KYC documents must be submitted. You must also bring the original documents for further verification.
• Make a cash or check payment for the amount to be invested.
• Following the completion of the certificate purchase, NSCs in the applicable amounts will be printed and available for collection at the post office.

How to open national savings certificates account online?

• Login to your internet banking account.
• Select service request under general services option
• Now select new requests
• Tap on nsc account
• Enter the NSC minimum deposit amount
• Select your debit account linked to the PO savings account.
• Then, click "Click Here" to read and accept the terms and conditions before submitting the application online.
• Enter the transaction password, then press the "Submit" button to view/download the deposit receipt.
• You can view the details of the NSC account you opened by logging in again and going to the "Accounts" section. In addition, the nominee specified in the linked Post Office savings account will be used to open the NSC in the DOP online banking user's name.

Premature Withdrawal

The NSC-VIII has a 5-year lock-in period, with early withdrawal permitted only in certain circumstances, such as

• On death of the NSC holder.
• On forfeiture by a Gazetted Government Officer pledgee.
• On the court's order for the premature withdrawal of NSC