Union Budget 2026 | FAQs: What is National Savings Certificate?

NSCs is a part of the postal savings system of India Post, is mainly used for small savings and investments that save income taxes in India.

Finance Minister Nirmala Sitharaman will present the Union Budget on February 1.

The Union Budget is presented in Parliament for the upcoming financial year, highlighting the Indian government's annual financial statement with estimated receipts and and expenditure.

Ahead of the approaching Budget, here we are trying to brush you up on your knowledge of financial terms. In this context, let us have a look at what National Saving Certificates is.

The Indian government's savings bond, called National Savings Certificates, or NSCs, a part of the postal savings system of India Post, is mainly used for small savings and investments that save income taxes in India.

An adult (in his or her own name or on behalf of a minor), a trust, two adults jointly, or a minor may purchase these from any Post Office in India. Banks may accept these as collateral when granting loans, and they have a five-year maturity. According to Income Tax Act of 1961 Section 80C, the holder is entitled to a tax benefit.

Similar government savings schemes in India include the Public Provident Fund (PPF), Post Office Fixed Deposit, Post Office Recurring Deposit, and so on. In the 1950s, following India's independence, the government actively promoted the certificates in order to raise money for nation-building.

Financial institutions are no longer required to issue physical, pre-printed certificates, and as of April 2016, the Ministry of Finance made it possible to purchase and redeem these bonds electronically.