The government announced the small savings scheme interest rates for the January- March 2024 quarter. The government has raised the interest rates on certain small savings schemes for the fiscal quarter ending March 31, 2024.
Premature withdrawal rules of 10 post office schemes: PPF, NSC, Senior Citizens Savings Scheme, Mahila Samman Savings Certificate
Was NSC interest rate hiked for this January- March 2024 quarter?
NSC interest rate was not hiked for this January- March 2024 quarter. The rate is unchanged at 7.7% compounded annually but payable at maturity. The minimum amount to invest is Rs. 1000 and there is no maximum limit for deposit in an account or in accounts held by an account holder.
Payment on maturity
The deposit will mature after five years from the date of deposit.
Premature closure of account
The account shall not be closed before maturity except in the following cases, namely:-
(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;
(b) on forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme;
(c) when ordered by a court.According to the NSC notification dated December 12, 2019, “If the account is prematurely closed 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 on such premature closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable.”
“If an account is prematurely closed after the expiry of three years from the date of the opening, the amount payable, inclusive of interest accrued under paragraph 5 for a deposit of one thousand rupees and at a proportionate rate for other amounts of deposits.”
Can NSC be transferred of account from one individual to another
An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the following cases, namely:-
(i) Upon the death of an account holder in the event of a single account or the death of all account holders in the case of a joint account, the amount will be transferred to the legal heirs or nominees, as applicable.
(ii) the account will be transferred from the account holder to the court or to any other individual as the court may direct;
(iii) upon pledging, the account will be transferred in the event of the death of any of the account holders in a joint account, the account will be transferred in the name of the surviving account holder or account holders, as the case may be.