According to the Ministry of Communications notification dated January 30, 2023, “The maturity value of an account opened on or after the 1st day of January, 2023 with one thousand rupees shall be one thousand four hundred two rupees and fifty five paisa and proportionate for deposits made with any other sum as per sub-paragraph (1) of paragraph 4. In calculation of maturity value, any amount in fraction of a rupee shall be rounded off to the nearest rupee and for this purpose, any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.”
The lock in period of the National Savings Certificate is five years and for this quarter it earns an interest of 7%. Deposits under NSC qualify for deduction under section 80C of Income Tax Act up to Rs 1.5 lakh. The minimum amount that can be invested is Rs. 1000, while there is no limit on maximum limit to invest.
What will be interest on certificates purchased on or after 1st day of January, 2023
Say for example, if you have invested Rs 1000, below are interest accruing on certificate of Rs 1000 denomination.
The year for which interest accrues amount of interest (rupees) accruing on certificated of Rs.1000 denomination. Interest accrued will be Rs 70 in the first year, Rs 74.90 in the second year, Rs 80.14 in the third year, Rs 85.75 in the fourth year, and Rs 91.76 in the fifth year.
| The year for which interest accrues | Amount of interest (rupees) accruing on certificated of Rs.1000 denomination |
| First Year | 70 |
| Second Year | 74.9 |
| Third Year | 80.14 |
| Fourth Year | 85.75 |
| Fifth Year | 91.76 |
Premature closure value of account opened on or after the 1st day of January, 2023
| Period from the date of the account to the date of its pre-mature closure | Amount payable inclusive of interest (rupees) |
| Three years or more, but less than three years and six months | 1191.02 |
| Three years and six months or more, but less than four years | 1226.23 |
| Four years or more, but less than four years and six months | 1262.48 |
| Four years and six months or more, but less than five years | 1299.8 |
How to open NSC online in through Post Office internet banking
Step 1: Login into DOP internet banking .
Step 2: Under ‘General Services’ >’Service Requests’ > ‘New Requests’ .
Step 3: Click on NSC Account – Open a NSC account and KVP Account to open a KVP account.
Step 4: Enter Amount for which NSC to be opened minimum is Rs 1000 and in multiple of Step 5: Select the Debit Account linked PO Saving Account
Step 6: Click on ‘Click Here’ to read terms and conditions and accept terms and conditions .
Step 7: Submit online
Step 8: Enter transaction password and submit.
Log in again to view the details of NSC opened under ‘Accounts’.