5 years National Savings Certificate
the minimum Investment What should be made is Rs 1,000 and is in multiples of Rs 100. There is no maximum limit. The account will mature for five years from the date of deposit. An NSC investor can also avail loan facility by pledging his investment with the bank.
premature closure
According to National Savings Certificate VIII Issue Rules 2019, below are the instances where premature closure is allowed.
(1) The account shall not be closed before maturity except in the following cases, namely:-
(a) on the death of the account holder in the same account or of any or all the account holders in the joint account;
(b) on seizure by a pledgee being a gazetted officer, when the pledge is in conformity with this scheme;
(c) when ordered by a court.
(2) Where the account is prematurely closed before the expiry of one year from the date of deposit, only the principal amount shall be payable.
(3) If the account is closed prematurely after the expiry of one year but before the expiry of three years from the date of deposit, the premature closure shall be allowed and in case of premature closure of the account, the original Interest at the rate applicable on the amount shall be payable in the Post Office Savings Account from time to time for the full months for which the account is held.
(4) If an account is closed prematurely after the expiry of three years from the date of opening, the amount payable, together with accrued interest for deposits of rupees one thousand and at the rate proportionate to other deposits.
Transfer of account from one person to another
An account can be transferred from one person to another, in the following circumstances, provided the transferred person is eligible to create an account under the scheme as per NSC rules:
- In case of death of account holder in case of single account or death of all account holders in joint account, the amount will be transferred to legal heirs or nominees as the case may be.
- the account shall be transferred, on the order of the court, from the account holder to the court or any other person in accordance with the order of the court;
- On pledge, the account shall be transferred in accordance with paragraph 6; (iv) In the event of death of any of the account holders in the joint account, the account shall be transferred in the name of the surviving account holder or the account holders, as the case may be.