India Post office offering an interest rate of 7.9% on investment in the National Savings Certificates (NSC). The interest rates will be reviewed by the Ministry of Finance on a quarterly basis. The interest is compounded annually but paid at maturity. For example, an amount of ₹ 100 invested in the NSC grows to ₹146.25 in 5 years.
Minimum amount of investment is ₹1,000/-. There is no upper limit for investment in NSC. The deposits made in NSC is eligible for deduction under section 80C up to the limit of ₹1,50,000/-. Investment in the NSC is transferable under certain conditions. In case of transfer from one person to another, old certificates are not discharged but instead, the name of the old holder is rounded to put the name of the new holder.