What Are The Withdrawal Rules For NSC (National Saving Certificate)

NSC, National Saving Certificate comes with 5 years of maturity. Investors have the option to withdraw the total amount or can invest once it is matured. Here we are going to tell you about the rules of NSC Withdrawal.

NSC can only be encashed or withdrawn from the post office where it was registered or transferred.

There Are Can Be Two Kind Of Withdraw

  • On Maturity: Which is 5 years of period
  • Premature: If you willing to withdraw the money before maturity

Withdrawal On Maturity

If you are withdrawing on the maturity, then there is no extra condition, except you can only withdraw from the Post Office, where you registered or transferred the NSC.

Premature Withdrawal

Premature Withdrawal is not allowed for NSC, except in 3 Circumstances.

  • When the NSC holder is dead
  • If Court order
  • If a Gazetted Government Officer pledges to be forfeited

Interest On Premature Withdrawal

If NSC Is Under One Year Old: In this case, the investor will get no interest over the invested money.

If NSC Is More Than 1 Year Old: In this case, investors can get Interested over there investment for the time period it has been invested. There may also be chances that you get Interest on the discounted rates.

Documents Needed During Withdrawal

  • Encashment form
  • Original NSC certificate
  • Any ID Proof such as driving Licence, voter ID
  • The signature of the nominee on the certificate

Note:

  • If NSC has Purchased On Behalf Of Minor: Attestation by a guardian is required
  • If there Are No Nominees: The legal heir can encash with the help of form SB84.
If NSC Holder Is Dead: The nominee can encash after submitting the forms listed below:

  1. Annexure 1: Claim settlement application (registered at a post office)
  2. Annexure 2: Claim settlement application (legal evidence)

FAQ’s

1. What Is NSC Maturity Time?

5 Years

2. What Interest will I Get On Premature NSC Withdrawal?

First, NSC does not allow premature Withdrawal, except the certificate holder is dead, or court order. And If NSC is below one year old, then it will get no interest; if the certificate is more than one year old, then it will get Interest at a discounted rate.

3. What Documents Are Required During NSC Withdrawal?

  • Encashment form
  • Original NSC certificate
  • Any ID Proof such as driving Licence, voter ID
  • The signature of the nominee on the certificate is required.

4. Is Premature Withdrawal Possible In NSC?

No NSC does not allow for the premature Withdrawal, except 3 cases.

  • When the NSC holder is dead
  • If Court order
  • If a Gazetted Government Officer pledges to be forfeited

5. How To Withdraw NSC If Holder Is Dead?

The nominee can encash after submitting the forms, Annexure 1: Claim settlement application and Annexure 2

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