Post Office : Established by the central government, the National Savings Certificate (NSC) presents a pioneering venture enabling investors to yield favorable returns. As a fixed-income investment scheme, it guarantees steady returns. Any Indian citizen can acquire a National Savings Certificate from any post office branch.
NSC is distributed in the form of a passbook. It can be acquired either individually or jointly, by minors over the age of 10, by adults on behalf of minors, or by guardians in the name of mentally challenged individuals.
With a maturity term of 5 years, the NSC currently offers an annual interest rate of 6.8 percent for the April-June 2021 quarter. Interest accrues annually and is paid out upon maturity. Non-resident Indians (NRIs) are prohibited from purchasing NSCs.
Nevertheless, if they possess NSC prior to attaining NRI status, they can hold onto it until maturity. Investments in NSC are not permitted for trusts and Hindu Undivided Families (HUF). Only the head of the HUF can invest in NSC under their own name. These individuals are ineligible for NSC investments.
Under what circumstances can it be closed prematurely?
Although premature encashment of NSC before the completion of the 5-year maturity period is not allowed, it can be encashed prematurely in the event of the death of a single account holder or in joint accounts upon the death of any or all account holders. Furthermore, premature encashment of NSC is permitted in cases where the NSC is confiscated by government officials or under court orders.
How to invest in NSC
- NSC cannot be purchased online. You can get it from any Indian post office by submitting KYC documents.
- Fill the NSC application form.
- Submit self-attested copy of required KYC documents.
- Pay the amount to be invested through cash or cheque.
- When the amount is printed on the NSC you have purchased, you can collect your printed NSC from the post office.
National Savings Certificate can be transferred
The transfer of NSC can be facilitated either between post offices or between individuals. There are two avenues to accomplish this. Firstly, transferring from one post office to another requires filling out an application at the post office that originally issued the certificate.
Another option is to transfer NSC from one person to another by submitting an application and meeting certain conditions. However, this transfer can only be performed once until the maturity of the scheme.
