National Saving Certificate(NSC)

 1-What is a post office post office NSC scheme?

The National Savings Certificate is a fixed deposit investment scheme that you can open at any post office. The government of India established this scheme. It is a savings bond that encourages mainly small-to mid-income group investors to invest in the NSC scheme. The NSC scheme gives a fixed return on investment at the time of maturity and also benefits from tax savings.

2-Who can open an NSC account?

The below mentioned person can open an NSC scheme at any post office.

A-single adult

B-Joint Account (up to 3 adults)

C-A guardian/parents on behalf of a minor girl or boy or on behalf of a person of unsound mind.

D-Any minor above 10 years old in his own name.

3-What documents are required for account opening?

The NSC application form

• An investor needs to provide identification proof, such as a passport,PAN card, Aadhar card, or voter ID. driving licence etc.

• Photographs (two of each type)

• Address proof such as Aadhar card,electricity bill, passport, telephone bill, bank statement etc.

4-What is the minimum and maximum amount for opening an account?

One can invest a minimum of Rs. 1000/-and in multiples of Rs. 100/-and there is no maximum limit for investment.

5-Can we open an account with a cash amount?

Yes,we can deposit up to Rs.20,000 in cash and thereafter we can pay by cheque.

6-Can a minor open an account with NSC?

a guardian on behalf of a minor or on behalf of a person of unsound mind.

(iv) a minor under the age of ten acting in his or her own name.

7-Can we close the NSC account prematurely?

The NSC may not be closed prematurely before 5 years except under the following conditions :

​(i) on the death of a single account or both joint account holders.

(ii) on forfeiture by a pledgee who is a gazetted officer.

(iii) on order by the court.

If the NSC is closed before one year of account opening, no interest is paid on the interest. However, if the NSC is prematurely closed after one year, the deposited amount as well as interest are paid for the invested period.

8-Is there any tax benefit for NSC investment?

Interest earned on NSC is taxable. However, deposits of up to 1.50 lakh in NSC qualify for a deduction under Section 80C of the Income Tax Act. Also, TDS is not applicable on the interest amount.

9-What is the duration of the NSC certificate?

The NSC certificate's maturity period is fixed at five years.

10-Can we transfer ownership of NSC?

NSC ownership may be transferred from one person to another person on the following conditions only.

​(i) If the account holder passes away, ownership gets transferred to the nominee/legal heirs.

(ii) If one of the joint account holders dies, ownership is transferred to the second holder(s).

(ii) by order of the court.

(iii) Account pledge to the designated authority

11-What will the NSC interest rate be in 2022?

The NSC rate of interest is 6.8% per annum, compounded half-yearly but payable at maturity.

12-Do we need a PAN card to open an NSC account?

Ans-yes

13-Can we extend the NSC after the maturity period?

No, we can extend the NSCP after it reaches maturity.

14-What if we lost an NSC certificate?

If a National Savings Certificate (NSC) is lost, stolen, destroyed, mutilated, or damaged, the person who is entitled to it may apply to the post office where the certificate is registered or to any other post office, in which case the application will be transmitted to the post office.

15-Is there a nomination available for the NSC?

Yes, the nomination is available. A nominal fee of Rs.5 is required to change or cancel a nomination at any time.

16-Can the NRI and HUF invest in the NSC scheme?

No, NRI and HUF are not permitted to invest in the NSC scheme.

17-Can we get a loan on the NSC certificate?

Yes, we can produce it to the bank or any other organization for loan purposes.