Post Office National Savings Certificates (VIIIth Issue) (NSC) -Features, Benefits and Interest Rates

(a) Who can open :-

(i) a single adult
(ii) Joint Account (up to 3 adults)
(iii) a guardian on behalf of minor or on behalf of person of unsound mind
(iv) a minor above 10 years in his own name.

(b) Deposit:-

(i) Minimum Rs. 1000 and in multiple of Rs. 100 , no maximum limit.
(ii) Any number of accounts can be opened under the scheme.
(iii) Deposits qualify for deduction under section 80C of Income Tax Act.

(c) Maturity:-

(d) Pledging of account:-

(i) NSC may be pledged or transferred as security, by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee.
(ii) Transfer/pledging can be made to the following authorities.

(e) Premature closure:-

-> NSC may not be prematurely closed before 5 years except the following conditions : –

​(i) On the death of a single account, or any or all the account holders in a joint account
(ii) On forfeiture by a pledgee being a Gazetted officer.
(iii) On order by court.

(f) 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.