What is the latest National Savings Certificate interest rate?

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The NSC interest rates are set up by the government and revised every three months (i.e., quarterly). The NSC interest rate for the quarter ending December 31, 2022 is 6.8%, compounded yearly.

5 Years National Savings Certificate

Minimum investment that should be made is Rs 1,000 and in multiples of Rs 100. There is no maximum limit. The account will mature five years from the deposit date. An NSC investor can also avail loan facility by pledging their investment with a bank.

Premature closure of account

According to National Savings Certificate VIII Issue Rules 2019, below are the instances where premature closure is allowed.

(1) The account shall not be closed before maturity except in the following cases, namely:-

(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;

(b) on forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme;

(c) when ordered by a court.

(2) Where an account is prematurely closed before the expiry of one year from the date of deposit, only principal amount shall be payable.

(3) If the account is prematurely closed after the expiry of one year but before the expiry of three years from the date of deposit, the premature closure shall be allowed and on such premature closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable.

(4) If an account is prematurely closed after the expiry of three years from the date of the opening, the amount payable, inclusive of interest accrued for a deposit of one thousand rupees and at a proportionate rate for other amounts of deposits.

Transfer of account from one individual to another

In the following circumstances, an account may be transferred from one person to another, provided that the transferee is qualified to create an account under this Scheme, according to the NSC rules:

  • On the death of account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees as the case may be.
  • On the order of the court, the account shall be transferred from the account holder to the court or to any other individual as per the orders of the court;
  • On pledging, account shall be transferred in accordance with paragraph 6; (iv) in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holders, as the case may be.

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