This section covers where to buy a National Savings Certificate (NSC) and how the purchase works.
Where to buy a National Savings Certificate (NSC)
You can buy a National Savings Certificate (NSC) at any post office, and at banks authorised to sell it. The minimum is Rs 1,000, in multiples of Rs 100. There's no upper limit, so you can buy certificates for any amount.
How to buy a National Savings Certificate (NSC)
To invest in National Savings Certificate (NSC) bonds, hand in the account opening form (Form-1) at a post office, either yourself or through an authorised agent of the Small Savings Schemes. You'll need your Aadhaar (mandatory since 2023) and PAN.
You can pay the post office in any of these ways:
- Cash
- A local cheque, pay order or demand draft made out to the postmaster
- A signed withdrawal form, along with the passbook, to withdraw the money from your Post Office Savings Bank account
- Surrendering a matured old certificate, discharged with the words: "Received payment through issue of fresh certificate vide application attached"
How the National Savings Certificate (NSC) is issued
If you pay by any method other than cheque, pay order or demand draft, the certificate is normally issued straight away and is dated the day you pay. Since 2016, NSCs have been issued in electronic or passbook form rather than on paper.
If you pay by cheque, pay order or demand draft, the certificate is issued only after the money has been realised. It is dated the day the cheque, pay order or demand draft is cleared.
If the certificate can't be issued straight away for some reason, you get a provisional receipt, which you exchange for the certificate later.
A new certificate in exchange for an old National Savings Certificate (NSC)
If you hold an old certificate that is due for encashment, you can apply in Form 1 for a new certificate under these rules. The new certificate is dated the day you present the old, duly discharged certificate.