Becoming a Non-Resident Indian (NRI) changes the eligibility for investing in several small savings schemes, including the National Savings Certificate (NSC). The National Saving Certificate (NSC) is one of the popular small savings schemes among Indians investors with a low-risk appetite as the scheme is backed by the government and offers an attractive interest rate.Can NRIs invest in National Savings Certificate (NSC) and avail tax benefits?While NRIs can invest in several investment schemes in India, such as stocks, mutual funds, fixed deposits (FD) and real estate, there are certain investment avenues that are not open to them. The eligibility rules vary depending on the type of investment and the regulations applicable to NRIs.The NSC scheme is available only to resident citizens of India. Therefore, an NRI cannot make a new investment in the NSC. However, if they already have an NSC account, they can continue holding or managing it till the maturity date.NSC interest rateThe NSC offers an interest rate of 7.7% per annum for the July-September 2026 quarter. The government reviews interest rates of small savings schemes, include that of the NSC, every quarter.The interest on the NSC is compounded annually but paid along with the principal at maturity.Features of NSCThe minimum investment amount in an NSC account is Rs 1,000, and additional deposits can be made in multiples of Rs 100. There is no maximum investment limit, allowing investors to contribute any amount as per their investment capacity. Importantly, the amount invested in this scheme qualifies for tax deductions under the old tax regime, making it an attractive option for tax-saving purposes for resident IndiansCan an NSC account be closed prematurely?An NSC account cannot be closed before maturity except in the following cases, namely:On the death of the account holder in a single account, or any or all the account holders in a joint account.On forfeiture by a pledge being a gazetted officer, when the pledge is in conformity with this scheme.When ordered by a court.Conditions when NSC account can be closed prematurelyIf an NSC account is prematurely closed before the expiry of one year from the date of deposit, only the principal amount will be payable.If an NSC account is prematurely closed after the expiry of one year but before the expiry of three years from the date of deposit, interest on the principal amount at the rate applicable to the Post Office Savings Account from time to time for complete months for which the account has been held, shall be payable.Can an NSC account be extended?Unlike many other post office small savings schemes such as the Public Provident Fund and the Senior Citizen Savings Scheme (SCSS), an NSC account can’t be extended.