National Savings Certificate, or NSC, are savings bonds offered under the India Post’s small saving schemes. An adult, a minor, or a trust can buy these certificates. Further, two adults can jointly purchase NSCs from any post office in the country. The interest rate on the NSC, along with other small savings schemes, is revised every quarter by the government.
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What is the latest interest rate for NSC for the October- December 2024 quarter?
The government sets the NSC interest rates, updated every three months (i.e., quarterly). For the quarter ending December 31, 2024, the NSC interest rate is 7.7%, which is compounded annually. The account will mature on completion of five years from the date of the deposit.
NSC deposit details
The minimum amount to invest in NSC is Rs. 1000 and there is no maximum limit. Any number of accounts can be opened under the scheme. The deposit will mature on completion of five years from the date of the deposit.
NSC tax deduction
Deposits under NSC qualify for deduction under section 80C of Income Tax Act.
Transfer of account from one person to another person
NSC may be transferred from one person to another person on the following conditions only.
(i) On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.
When can you prematurely close NSC
NSC may not be prematurely closed before 5 years except the following conditions : –
- On the death of a single account, or any or all the account holders in a joint account
- On forfeiture by a pledgee being a Gazetted officer.
- On order by court.
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Payment on the death of account holder in case of nomination
- In the event of the death of a single depositor or all depositors in a joint account, the account’s qualifying balance.
- If a nomination is in effect at the time of the death of the depositor of a single account or all of the depositors of a joint account, the nominee may apply in Form-2 to the accounts office for payment of the eligible balance, and the application must be accompanied by proof of the depositor’s death and, if any other nominee has also died, proof of death of such nominee.
- If there are two or more surviving nominees, the eligible balance will be paid in the proportion as specified by the depositor while making the nomination, and if no such proportion or share is specified, then in equal proportion to all the surviving nominees.
- If any nominee dies, his specified share in the eligible balance will be distributed among the surviving nominees in the same proportion as their specified shares.
- Where the surviving nominee is a minor, the payment shall be made to a person appointed by the depositor to receive such payment and, if no such person has been appointed, to the guardian of the minor.
