Latest NSC interest rate: Was National Savings Certificate rate hiked for July-Sept 2024 quarter?
National Savings Certificates, or NSC, are savings bonds offered under the India Post's small saving schemes. These certificates can be bought by an adult, a minor, or a trust. Further, two adults can jointly purchase NSCs from any post office in the country.
Deposits qualify for deduction under section 80C of Income Tax Act. The first four years' interest on NSC can also be claimed as an NSC investment deduction. This is because the interest is reinvested in the NSC.
The government sets the NSC interest rates, which are then updated every three months (i.e., quarterly). For the quarter ending September 30, 2024, the NSC interest rate is 7.7%, which is compounded annually. The account will mature on completion of five years from the date of the deposit.
NSC may not be prematurely closed before 5 years except the following conditions : -
On the death of a single account, or any or all the account holders in a joint account
On forfeiture by a pledgee being a Gazetted officer.
On order by court.
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.
Minimum investment amount is Rs. 1000 and in multiple of Rs. 100 , no maximum limit. Any number of accounts can be opened under the scheme. The deposit shall mature on completion of five years from the date of the deposit.
