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Home / Saving Schemes

National Saving Certificates (VIII)

National Savings Certificates can be purchased by cash, cheque, pay order or demand draft, POSB withdrawal form and old matured certificates. This scheme is being maintained by the government and the certificates are being sold by post offices.

A few key features of National Savings Certificates (VIII) are that they possess a lock-in period of 6 years, bearing an interest rate of 11 percent that is compounded twice a year. They can be purchased from any local post office. The amount paid towards the purchase of National Savings Certificates (VIII) is entitled to tax rebates under Section 88 while the interest earned qualifies for deduction under Section 80 (L) as well as Section 88.

Certificates are issued to a single holder or jointly to two adult holders, the latter which is payable to either both or the survivor. They can also be purchased on behalf of a minor by an adult. But any contribution made out of the chargeable income of the guardian is not eligible for the rebate. NSC certificates are available in the denominations of Rs.100, Rs.500, Rs.1,000, Rs.5,000 and Rs.10,000.

Usually contractors who need to provide security find it convenient to purchase NSCs and pledge them to the appropriate authority. The double benefit they avail of is that their investment earns interest while providing security.

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