Archive · 14 Aug 2026
NRIs cannot purchase new NSC certificates but can hold existing
The National Savings Certificate is a savings scheme from the Indian government that gives a fixed interest rate.
People living in India can buy it to grow their savings and lower their taxes.
The certificate currently earns 7.7% interest every year for the July to September 2026 period.
The interest is added to the certificate each year, but you only get your money back at the very end.
You can start saving with just ₹1,000 and add more money in steps of ₹100.
There is no limit on how much you can put in.
If an Indian person moves to another country and becomes an NRI, they cannot buy a new certificate anymore.
But if they already have one, they can keep it until it finishes.
Closing the certificate early is only allowed in special cases, like when the owner passes away.
Once the certificate matures, you cannot extend it for more time.
NRIs cannot open a new NSC account or purchase a fresh certificate, as the scheme is meant exclusively for resident Indians.
Those who invested in NSC while resident and later became NRIs can continue to hold the certificate until it matures.
NSC currently offers an interest rate of 7.7% per annum for the July-September 2026 quarter, with interest compounded annually and paid at maturity.
The minimum NSC investment is ₹1,000 with additional investments in multiples of ₹100, and there is no maximum investment limit.
NSC qualifies for a Section 80C deduction under the old tax regime, and premature closure is allowed only in specific cases such as the death of the account holder.
- Who
- Non-Resident Indians (NRIs) who either want to invest in or already hold National Savings Certificates.
- What
- India's rules state that NRIs cannot open new NSC accounts or buy fresh certificates, though existing holdings can be kept until maturity and tax benefits apply under Section 80C.
- When
- Under current rules, including the 7.7% annual interest rate for the July-September 2026 quarter.
- Where
- India, where NSC is a government-backed small savings scheme available through post offices.
- Why
- NSC is designed exclusively for resident Indians, so NRI status changes eligibility for new investments and related tax deductions.
- Interest rate
- 7.7% per annum (July-September 2026 quarter)
- Minimum investment
- ₹1,000
- Additional investments
- Multiples of ₹100
- Maximum investment
- No limit
- Tax benefit
- Section 80C deduction under the old tax regime
- NRI purchase rule
- New NSC accounts or fresh certificates not allowed
- Existing NRI holdings
- Can be held until maturity
- Extension after maturity
- Not available, unlike PPF and SCSS