The National Savings Certificate (NSC) is a fixed-income investment option. In India, it is a popular savings product.. The NSC plan is a project of the Indian government. As a result, it guarantees profits. Investors with low and moderate incomes are encouraged to save with this savings bond. Most importantly, NSC also offers tax deductions.
NSC investments up to 1.5 lakhs are tax-free under Section 80C of the Income Tax Act. They are locked in for 5 years in case of NSC VIII issue and 10 years in case of IX issue. NSC certificates earn a fixed rate of interest. The current rate of interest is 6.8%. NSC, like other fixed-income vehicles like PPF and Post Office FDs, is a risk-free investment. A minimum deposit of Rs 1000 is required and the individual can choose to invest in multiples of 100 as per the need.