Post Office National Savings Certificates: Interest Rates, Tax Benefits Explained Here

India Post, which operates a network of more than 1.5 lakh branches across the country, offers nine savings schemes. The interest rates applicable to these post office saving schemes - also known as small savings schemes - are revised on a quarterly basis. One such savings scheme offered by the post office is National Savings Certificates (NSC). For the quarter ending September 30, investment in the NSC savings scheme fetches interest at the rate of 7.9 per cent, according to India Post's website - indiapost.gov.in.

Here are five things to know about the post office National Savings Certificates (NSC):

1. Eligibility: A single holder type certificate can be purchased by an adult for self or on behalf of a minor, according to the India Post website. 

2. Amount: The minimum amount required for opening an NSC account. Any amount in the multiple of Rs 100 an be chosen for purchasing the National Savings Certificates, and there is no maximum limit.

3. Interest rates: The scheme offers a return of 7.9 per cent, which is compounded annually but payable at maturity. An NSC of Rs. 100 grows to Rs. 146.93 on maturity after five years, according to the India Post website. 

4. Income tax benefit: Deposits in the post office National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act 1961. 

5. Transfer of certificates: The certificates are transferable. However, the name of old holder is rounded and that of the new holder is written on the same certificate, and the old certificates are not discharged.