Latest NSC Interest Rate
the government sets NSC Interest Rates, which are then updated every three months (ie, quarterly). For the quarter ended September 30, 2022, the interest rate of NSC is 6.8%, which is compounded annually. The account will mature on completion of five years from the date of deposit.
NSC Tax Benefits
The amount deposited under NSC is eligible for deduction under section 80C of the Income Tax Act.
NSC Pledge
According to India Post, below are the points where you can pledge your NSC account
(i) The NSC can be pledged or transferred as security, supported with a letter of acceptance from the pledgee by submitting the prescribed application form at the post office concerned.
(ii) may be transferred / mortgaged to the following authorities.
-> President of India / Governor of the State.
-> RBI / Scheduled Bank / Co-operative Society / Co-operative Bank.
-> Corporation (Public/Private)/Govt. Company/Local Authority.
-> Housing Finance Company.
Note that unless the guardian of the minor or the person of unsound mind, as the case may be, certifies in writing that the minor or the person of unsound mind is alive and that the transfer is for the benefit of the minor or the child. Transfer of account opened on behalf of a person of unsound mind, minor or person of unsound mind shall not be permitted under this rule.
Is premature closure allowed
NSC cannot be closed before 5 years unless the following conditions are satisfied:
?(i) in a joint account in a single account, or on the death of any or all the account holders
(ii) on seizure by the pledgee being a gazetted officer.
(iii) on the orders of the court.
When can NSC be transferred from one person to another
-NSC can be transferred from person to person only on the following conditions.
, On the death of the account holder in case of single account or death of all the account holders in case of joint account, the amount will be transferred to the legal heirs or nominees.
The account should be transferred from the account holder to the court or any other person in accordance with the order of the court; Upon pledge, the account must be transferred.
In the event of the death of one of the account holders, the balance will be transferred to a joint account in the name of the account holder or the account holders, as applicable.
maturity interest payment
The maturity value of the account created with one thousand rupees is one thousand four hundred sixty two and fifty four paise. While determining the maturity value, any fraction of a rupee which is not exactly a rupee should be rounded off to the nearest rupee. For this calculation, any amount which is fifty paise or more is counted as one rupee, but any quantity which is less than fifty paise is ignored.