National Savings Certificates (VIII-Issue) Scheme

National Savings Certificates (VIII-Issue) Scheme is a secure government-backed investment plan managed by Ministry of Finance to encourage long-term savings among Indian citizens. This scheme offers guaranteed returns and tax benefits, making it an ideal choice for individuals seeking safe wealth creation with a flexible 5-year investment horizon.

For the first quarter of FY 2026-27, the scheme is offering an interest rate of 7.7% per annum, which is compounded annually and paid at maturity. The rate is fixed at the time of purchase for the full five years, so a certificate bought today continues to earn 7.7% even if the government revises small savings rates in later quarters.

National Savings Certificates (VIII-Issue) Scheme - Introduction

National Savings Certificates (VIII-Issue) Scheme serves as a reliable government-backed financial avenue launched by Department of Economic Affairs, Ministry of Finance, to foster a habit of disciplined long-term saving. The scheme is open to all Indian residents, allowing an investment to start with a minimum deposit of ₹1000 and subsequent multiples of ₹100. There is no maximum limit on how much can be invested, and the account matures over a fixed period of 5 years. Certificates are now issued in electronic form (e-mode) and held within the post office savings account, which makes tracking, transfer and encashment easier while keeping the same underlying rules.

Accounts can be opened under the following categories:

• Single Holder Type Account: An adult can open this account for oneself, on behalf of a minor, or for a person of unsound mind. Minors aged 10 years or older can also open this account in their own name.
• Joint A-Type Account: Up to three adults can open this account jointly, where payments are made to all holders jointly or to the survivor(s).
• Joint B-Type Account: This joint account for up to three adults allows any one of the holders or the survivor(s) to receive payments.

Key Information

Benefits

Investing in National Savings Certificates (VIII-Issue) Scheme provides several advantages for financial health:

• Earn a competitive interest rate of 7.7% for Q1 FY 2026-27, which is compounded annually and paid at maturity. The rate is locked for the full five-year term at the time of purchase.
• Benefit from no maximum limit on deposits, allowing for scalable savings. Investment amount qualifies for a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act, and the interest reinvested in the first four years is treated as a fresh 80C-eligible investment.
• Enjoy a predictable 5-year maturity period for the funds. A ₹1 lakh certificate grows to roughly ₹1.44 lakh at the current rate.
• Access a loan facility by pledging certificates with banks or approved lenders if there is an urgent need for liquidity, without breaking the investment.

Eligibility

To participate in this scheme, the following criteria must be met:

• The applicant must be a resident of India. Non-resident Indians (NRIs) cannot purchase National Savings Certificates.
• Guardians may apply on behalf of a minor or a person of unsound mind, provided both are residents.
• Minors who have reached the age of 10 years are eligible to hold an account in their own name.
• The scheme is only for individuals, and Hindu Undivided Families (HUFs) and trusts cannot invest in it.

Investment Guidelines:

• Start the investment with a minimum of ₹1000, and add any amount in multiples of ₹100.
• There is no upper ceiling on total deposits in one or multiple accounts.
• Accounts can be opened as many times as required.

Application Process

Follow these steps to start the investment through the offline process:

STEP 1 - Visit the nearest Post Office branch or a designated bank branch and collect the application form at the counter.

STEP 2 - Fill out the form with accurate personal details and attach the required KYC documents, including a passport-size photograph and identity and address proof.

STEP 3 - Provide nomination and declaration details clearly on the form.

STEP 4 - Submit the form along with the initial investment amount, paid by cash or cheque.

STEP 5 - Collect the acknowledgment receipt, which confirms the opening of the NSC account. The certificate is issued in electronic form in the post office account.

Online Application Process

NSC can now also be purchased online through the Department of Posts (DOP) internet banking facility:

STEP 1 - Log in to the DOP internet banking portal with the credentials linked to the post office savings account.

STEP 2 - Under the 'General Services' menu, open 'Service Requests' and click on 'New Requests'.

STEP 3 - Select the 'NSC Account - Open an NSC Account' option and enter the deposit amount, choosing the debit account linked to the post office savings account.

STEP 4 - Accept the terms and conditions, enter the transaction password and submit the request.

STEP 5 - The deposit receipt can be viewed and downloaded, and the NSC account details can be checked later under the 'Accounts' section.

Documents

Keep these documents ready for the application:

• Recent passport-size photograph.
• Aadhaar Card.
• PAN Card.
• Birth certificate for proof of age, where required.
• Valid address and identity proof such as a Passport, Driving License, Voter's ID, NREGA job card, or a letter from the National Population Register.

References

For further information and official updates, these links can be checked:

India Post Savings Schemes | National Savings Institute NSC Page | NSC Application and Nomination Forms

FAQ's

What is National Savings Certificates (VIII-Issue) Scheme?

It is a government-backed saving scheme designed to promote long-term financial security for Indian residents, with a fixed interest rate and a 5-year lock-in period. The rate for Q1 FY 2026-27 is 7.7% per annum.

Who is eligible to invest?

Any Indian resident individual, including guardians applying on behalf of minors or individuals with mental health conditions, can invest. Minors aged 10 years and above can hold an account in their own name.

Can non-residents apply?

No, this scheme is strictly for Indian residents. Non-resident Indians (NRIs) cannot purchase National Savings Certificates.

Are there age limits?

No upper age limit exists, and minors aged 10 and above can manage their own accounts.

What is the current interest rate?

The scheme currently offers an interest rate of 7.7% per annum for Q1 FY 2026-27, compounded annually and paid at maturity. The rate is fixed for the full five-year term at the time of purchase.

How can the application be made?

The application can be made in person by visiting a Post Office or a designated bank branch, or online through the Department of Posts internet banking facility.

Is the certificate transferable?

Yes, the scheme allows transfer of account ownership under specific conditions like death of the holder or court orders, and the certificate can also be transferred between post office branches.

What happens if the primary holder passes away?

The scheme allows designation of a nominee who will receive the balance. If no nomination exists, the process follows standard legal succession protocols as defined by the scheme rules.