Can i withdraw nsc before maturity

Note: Interest will not be paid on the principal if the withdrawal happens within one year of the issue of the certificate. If the withdrawal happens after the completion of one year from issue date of the certificate, interest will be paid, and the encashment will happen at a discount.

Transfer of ownership from one person to another can be done only once form the date of issue to the date of maturity of the certificate. At the time of transfer, old certificates will not be discharged. To receive the maturity benefit, you need to submit the certificate to the post office from where the certificate was obtained. However, it causes much inconvenience if you have moved to another location or city and your old post office is not easily accessible. In such a case, you can apply for the transfer of NSC from the old post office to the post office of your choice by submitting an application for transfer in either of the post offices.

Listed below is the process for transfer:. Note: Nomination should be the same as the one mentioned at the time of purchase. Note: You can only apply for the transfer if the certificates are not matured. You can apply for the issue of the duplicate certificate in case of theft, loss, destruction, mutilation or defacement.

Below is the procedure to apply for the duplicate certificate:. If the application is submitted to the post office other than the original, it will be forwarded to the original branch.

However, the claim on the certificate can be made only at the original post office from the certificate was issued. You can pledge your NSC to avail loan from a bank.

You can avail such loan facility from any of the scheduled bank, cooperative bank or cooperative credit society. The postmaster will write on the certificate about the pledge. After the receiving the pledged certificate, the bank will process the loan. NSC is a saving scheme run by the government and is more suitable for the risk-averse customers due to its safety and fixed interest rate features.

In case, an NSC account is closed after the expiry of one year but before the expiry of 3 years from the date of deposit, the interest rate that will be paid is as applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held.

The government in a recent notification has mentioned details of the amount that will be paid in case an NSC account is closed after three years. If you have deposited Rs 1 lakh in an NSC account then you will get the following amount including interest for different tenure of investments.

Tenure Amount Three years or more, but less than three years and six months Rs 1,22, Three years and six months or more, but less than four years Rs 1,26, Four years or more, but less than four years and six months Rs 1,30, Four years and six months or more, but less than five years Rs 1, Get the latest investment tips at Times Now and also for more news on money saving tips , follow us on Google news. Stock Market.

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The National Savings Certificate NSC is a fixed income investment scheme that you can open with any post office branch. The scheme is a Government of India initiative. It is a savings bond that encourages subscribers — mainly small to mid-income investors — to invest while saving on income tax. You can buy it from the nearest post office in your name, for a minor or with another adult as a joint account.

NSC comes with a fixed maturity period of five years. There is no maximum limit on the purchase of NSCs, but only investments of up to Rs. The certificates earn a fixed interest, which is currently at a rate of 6.

The interest rate is revised on a regular basis by the government. Anyone looking for a safe investment avenue to earn a steady interest while saving on taxes can choose to invest in NSC. NSC offers guaranteed interest and complete capital protection. However, like most fixed income schemes, they cannot deliver inflation-beating returns like tax-saving mutual funds and the National Pension System. The government has made NSC easily accessible for prospective investors by making it available in post office branches spread across the country.

The government has promoted the National Savings Certificate as a savings scheme for individuals. The scheme is open only for individual Indian resident citizens. Investments of up to Rs 1.

Furthermore, the interest earned on the certificates is also added back to the initial investment and qualify for a tax break as well. For instance, if you purchase certificates worth Rs 1,, you are eligible for a tax rebate on that initial investment amount in the first year. But in the second year, you can claim a tax deduction on the NSC investment s that year as well as the interest earned in the first year. This is because the interest is added to the original investment and compounded annually.

The table below compares NSC with other tax-saving investments:. Now that you have some knowledge of NSC, is this scheme for you? If you are looking for capital protection and tax deductions under Section 80C, you can consider investing in NSC.

NSC, i. National Savings Certificate, is a fixed-income investment scheme backed by the government of India.