National Savings Certificate (NSC) Scheme 2019: Three types of accounts can be opened under NSC Scheme 2019: a) Single Holder Type Account; (b) Joint A- Type Account; and (c) Joint B - Type Account.
National Savings Certificate (NSC) Scheme 2019: The government recently notified National Savings Certificates (VIII Issue) Scheme, 2019 vide GSR 919 (E) dated December 12, 2019. Three types of accounts can be opened under NSC Scheme 2019: a) Single Holder Type Account; (b) Joint A- Type Account; and (c) Joint B – Type Account. The Single Holder Type Account can be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian. This account can also be opened by a minor who has attained the age of 10 years. The Joint A- Type Account can be opened jointly in the names of up to three adults payable to all the holders jointly or to the survivor or survivors. Joint B-Type Account can be opened jointly in the name of up to three adults payable to any of the account holders or to the survivor or survivors.
A subscriber can deposit minimum Rs 1000 and maximum any sum in multiples of Rs 100. There is no maximum limit for deposit in an NSC account. Also, an individual can open any number of NSC accounts.
The current interest rate offered on NSC deposits is 7.9 per cent, compounded annually. The deposit matures on completion of five years from the date of deposit. If you deposit Rs 1000 in NSC account, it will grow to Rs 1462.54 on maturity after five years. Depositing Rs 10,000 or Rs 50,000 will return Rs 14,625 and Rs 73,126 on maturity (Check following chart).
“The maturity value of an account opened with one thousand rupees shall be One thousand four hundred sixty two rupees and fifty four paisa and proportionate for deposits made with any other sum,” the notification said.
The NSC account can be pledged or transferred as a security. The NSC account cannot be closed before maturity, except in a few circumstances:
- on the death of the account holder in a single account, or any or all the account holders in a joint account;
- on forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme;
- when ordered by a court
The NSC account holders can get a certificate of annual accrual of interest from the account office.