National Savings Certificate (NSC) is a fixed income investment scheme. NSC interest rates 2022 are 6.8% per anum. National saving certificate interest rates are highest among most of the other govt. securities. NSC interest rates are fixed income for the tenor of the NSC which are mostly in 6.5 years and 10 years tenor.
Who can open
NSC is a single holder type account and may be opened by an any adult individual for himself or an individual on behalf of minor can open the account. Joint A type account may be opened jointly in the names of up to three adults payable to all of the account holders or the survivor or survivors. Joint B type of account may be opened jointly in the names of up to three adults payable to any of the account holders or the survivor or survivors.
NSC can be opened with Minimum Rs. 1000 and in multiple of Rs. 100 without any maximum limit. Any number of instrument can be purchased by a person. Compounding interest is on the annual basis in KVP
Lock in Period
NSC has a lock in period of 2 years and 6 months. premature closure before 2 years and 6 months is allowed only in case of following:-
- On the death of the holder or any of the holders in the case of Joint Holder.
- On forfeiture by a pledge being a Gazetted Government Officer.
- When ordered by court of law.can be opened with Minimum Rs. 1000 and in multiple of Rs. 100
Transfer of certificate
A certificate may be transferred from a Post Office at which it stands registered, to any other Post Office to the holder making an application in Form B either at Post Office . Every such application shall be signed by the holder or holders of the certificate provided that in the case of Joint “A” Certificate or Joint “B” certificate, the application may be signed by one of the joint holders if the other is dead. However, due diligence is done by the Post Office while transferring the certificate.
Certificate may be transferred from one individual to another, provided the transferee is eligible to open an account under this scheme. On the death of the account holder, in case of the single account holder 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.