02 December 2011

Details of 10 Years National Saving Scheme, NSC (IX-Issue) introduced with effect from 1-12-2011

  • 10Years NSC (IX) issue has been introduced with effect from 1-12-2011. The new certificate are being issued from this date onwards.
  • The Certificates will be in denomination of Rs.100, Rs.500, Rs.1,000/-, Rs.5,000/- & Rs.10,000/-.
  • The Certificate shall mature after period of 10 years and investment of Rs.100/- shall fetch Rs.234.35 on expiry of 10 years.
  • Interest is calculated @8.7% compounded half yearly
  • Interest accruing at the end of the year shall be as per table/chart given below
The year for which interest accrues Amount of Interest accruing On Certificate or Rs.100/-
First Year 8.89
Second Year 9.68
Third Year 10.54
Fourth Year 11.48
Fifth Year 12.50
Sixth Year 13.61
Seventh Year 14.82
Eighth Year 16.13
Ninth Year 17.57
Tenth Year 19.13
Total Interest 134.35
Maturity Value 234.35
  • The interest on certificate shall be liable to Income Tax on annual accrual on basis as per table above. No tax shall be deducted at the time of payment of discharge value
  • Certificate can be en-cashed any time. If certificate is en-cashed before one year from date of purchase, only Face Value will be received without any interest. If the certificate is en-cashed after one year but before 3 years, NSC will be en-cashed at discount, i.e. face value will be paid and interest will be paid simple interest at rate of interest applicable to post office saving account form time to time. In case of premature encashment/repayment after 3 year the amount will be paid as follows.
Period of Holding Amount receivable inclusive of interest  Rs.
3 Year to less than 3 Year 6 Months 123.14
3 Years 6 Months to less then 4 Years 127.49
4 Year to less than 4 Year 6 Months 131.99
4 Years 6 Months to less then 5 Years 136.65
5 Year to less than 5 Year 6 Months 143.81
5 Years 6 Months to less then 6 Years 149.13
6 Year to less than 6 Year 6 Months 154.65
6 Years 6 Months to less then 7 Years 160.37
7 Year to less than 7 Year 6 Months 166.3
7 Years 6 Months to less then 8 Years 172.46
8 Year to less than 8 Year 6 Months 178.84
8 Years 6 Months to less then 9 Years 185.46
9 Year to less than 9 Year 6 Months 192.32
9 Years 6 Months to less then 10 Years 199.43
on completion of Tenth Year 234.35
  • The certificate can be held in Single name of an adult or on behalf of a minor, jointly by two adults payable to both jointly or to the survivor (Joint ‘A’ Type Certificate)  or jointly by two adults, payable to either of the holders or survivor (Joint ‘B’ Type Certificate).
  • Non Resident Indians will not be eligible to purchase these NSC.
  • The NSC can be purchased from Post-office by payment in cash, or locally drawn cheque, or withdrawal from post officer saving account or  surrender of old certificate.
  • Certificate shall be issued immediately when payment is made in cash and where payment is made by cheque, the certificate shall be issued after realising proceeds of the cheque
  • The certificate can also be pledged to Government Authorities.
  • Nomination facilities are also available for certificate of value of Rs.500/- and above. Nomination  can be made at time of purchasing the certificate or any time thereafter. Variation and Cancellation of Nomination is also possible.
  • The certificate shall be liable to Income Tax on basis of annual accrual on basis of table above. No tax shall be deducted at the time of payment of discharge value.
  • Deduction u/s. 80C is not available as no notification has yet been issued under Income Tax Act

    NSC Interest Calculator
    Chart to calculate accrued NSC interest