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National Savings Certificate (NSC): Interest Rate, Eligibility & Investment

Home Saving Schemes List: Types, Interest Rates & Tenures National Savings Certificate (NSC): Interest Rate, Eligibility & Investment

National Savings Certificate (NSC) is a tax saving investment that can be purchased from any post office by an Indian Resident. Being a fixed return and low risk Government of India-backed investment, NSC is usually preferred by risk-averse investors or those seeking to diversify their portfolio through fixed return instrument. Read on to know more.

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I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :22/10/2021

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

CIBIL TERMS AND
CONDITIONS

To,
TransUnion CIBIL Limited
[Formerly known as Credit Information Bureau (India) Limited]
One Indiabulls building ,Unit No 1901 – 1905,
19th Floor, Tower 2A-2B, Jupiter Mill compound,
Senapati Bapat Marg, Lower Parel, Mumbai 400 013

Sub: Grant of Consent

Dear Sirs,

In connection with submission of the application for my credit information offered by CIBIL (“Consumer Credit Information”) through Paisabazaar (referred to as the “Company”) and delivery of the Consumer Credit Information to the Company, I hereby acknowledge and agree to the following:

A. The Company is my lawfully appointed agent and he / it has agreed to be my agent for the purposes, including, without limitation, to receive the Consumer Credit Information from TUCL on my behalf and use it in the manner consistent with the Agreement entered into between the Company and TUCL, and the Company has granted its consent for being appointed for the aforesaid purpose.

B. I grant my unconditional consent to the Company to receive the Consumer Credit Information from TUCL on my behalf and use it in the manner consistent with the Agreement entered into between the Company and TUCL, as the case may be, and the Company has granted its consent for being appointed for the aforesaid purpose. I hereby represent and acknowledge that: the Terms of Understanding in relation to the use of the Consumer Credit Information has been agreed between me and the Company.

C. I hereby expressly grant unconditional consent to, and direct, TUCL to deliver and / or transfer my Consumer Credit Information to the Company on my behalf.

D. I shall not hold TUCL responsible or liable for any loss, claim, liability, or damage of any kind resulting from, arising out of, or in any way related to: (a) delivery of my Consumer Credit Information to the Company ; (b) any use, modification or disclosure by the Company of the contents, in whole or in part, of my Consumer Credit Information , whether authorized or not; (c) any breach of confidentiality or privacy in relation to delivery of my Consumer Credit Information to the Company ; (d) for any use made by the Company which is contrary to the Agreement entered into between the Company and TUCL

E. I acknowledge and accept that: (a) TUCL has not made any promises or representations to me in order to induce me to provide my Consumer Credit Information or seek any consent or authorization in this regard; and (b) the implementation of the Agreement between TUCL and the Company is solely the responsibility of the Company.

F. I agree that I may be required to record my consent / provide instructions electronically and in all such cases I understand that by clicking on the "I Accept" button below, I am providing "written instructions" to Paisabazaar authorizing Paisabazaar to obtain my Consumer Credit Information from my personal credit profile from TransUnion CIBIL LIMITED, [formerly known as Credit Information Bureau (India) Limited]]. I further authorize Paisabazaar to obtain such information solely to confirm my identity and display my Consumer Credit Information to me. Further in all such cases “By checking this box and clicking on the ‘Authorize button, I agree to the terms and conditions, acknowledge receipt of TUCL privacy policy and agree to its terms, and confirm my authorization for Paisabazaar to obtain my Consumer Credit Information.

G. I understand that in order to deliver the product to me, I hereby authorize Paisabazaar, to obtain my Consumer Credit Information from TUCL.

H. By submitting this registration form, I understand that I am providing an express adhoc one-time written instructions for Paisabazaar to request and receive information about me from third parties, including but not limited to a copy of my consumer credit report and score from consumer reporting agencies, at any time for so long as I have an active Paisabazaar account. I further authorize Paisabazaar to retain a copy of my information for use in accordance with the terms of use of this service, Paisabazaar’s Terms of Use and Privacy Policy.

I. I UNDERSTAND THAT THE PRODUCT IS PROVIDED ON AN “AS-IS”, “AS AVAILABLE” BASIS AND TUCL EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

J. I shall not sue or otherwise make or present any demand or claim, and I irrevocably, unconditionally and entirely release, waive and forever discharge TUCL , its officers, directors, employees, agents, licensees, affiliates, successors and assigns, jointly and individually (hereinafter “Releasee”), from any and all manner of liabilities, claims, demands, losses, claims, suits, costs and expenses (including court costs and reasonable attorney fees) (“Losses”), whatsoever, in law or equity, whether known or unknown, which I ever had, now have, or in the future may have against the Releasee with respect to the submission of my Consumer Credit Information and / or my decision to provide TUCL L with the authority to deliver my Consumer Credit Information to the Company . I agree to defend, indemnify, and hold harmless the Releasee from and against any and all Losses resulting from claims made against TUCL L by third parties arising from and in connection with this letter.

K. I agree that the terms of this confirmation letter shall be governed by the laws of India and shall be subject to the exclusive jurisdiction of the courts located in Mumbai in regard to any dispute arising hereof. TUCL is entitled to assign its rights hereunder to any third person without taking my prior written consent.

Yours faithfully,
Name :

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :22/10/2021

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

EQUIFAX TERMS AND
CONDITIONS

I Mr./Ms. -------------------- ---------------------residing at ------------------------ ---------------------------------------- do hereby authorise Paisabazaar Team ,to do all acts on my behalf as may be necessary including to execute/sign application(s), make payment of applicable fees* and generally to all other acts as may be necessary to receive, on my behalf and at my request, my Credit Information Report (CIR) from Equifax Credit Information Services Private Limited("Equifax") at the following address/email id:

I hereby confirm that all the powers hereby conferred may be exercised by officer(s) or manager(s) / agent(s) / employees of the Paisabazaar who is duly authorized by the Paisabazaar.

I hereby confirm, agree, undertake and accept that I shall at all times be solely responsible for all the above actions and omissions of the Paisabazaar shall be binding on me as though such actions had been carried out by me directly. I further confirm that my CIR shall be used only for the purpose as mentioned in the attached standard terms and conditions and I shall be solely liable for, and indemnify and hold harmless Equifax for and against, any and all third party claims or damages or proceedings of any kind, arising from or in connection with (a) any misrepresentations, incorrect information or omission of any critical information in my application, or (b) furnishing my CIR based on this authorization letter, and shall not at any time hold Equifax or its affiliates and their respective officers, directors, employees or representatives liable in this respect.

I hereby also confirm that I have only appointed Paisabazaar to be my authorized agent/representative for collection of my CIR.

I undertake to keep Equifax intimated and informed at all times, of any renewals or termination of the authorization to Paisabazaar or any amendments, modifications or changes in the terms governing the obligations or my relationship with Paisabazaar.

I shall at all times co-operate with Equifax and execute and deliver to Equifax such instruments and documents and take such other actions as may be required by Equifax from time to time in connection with this authority letter.

By signing on this authorization letter, I hereby acknowledge and accept the Standard Terms and Conditions mentioned above.

Date : 22/10/2021

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :22/10/2021

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

EXPERIAN TERMS AND
CONDITIONS

YOU HEREBY APPOINT PAISABAZAAR AS YOUR AUTHORISED REPRESENTATIVE TO RECEIVE YOUR CREDIT INFORMATION FROM EXPERIAN.

YOU HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUCH CREDIT INFORMATION BEING PROVIDED BY EXPERIAN TO YOU AND PAISABAZAAR AND YOU HEREBY AGREE, ACKNOWLEDGE AND ACCEPT THE TERMS AND CONDITIONS SET FORTH HEREIN. YOU HEREBY ALSO AGREE AND ACKNOWLEDGE THAT FOR PAISABAZAAR TO SERVICE YOU AS A CUSTOMER, THE CREDIT INFORMATION SHALL BE SHARED BY EXPERIAN WITH YOU AND PAISABAZAAR ON A MONTHLY BASIS. YOU FURTHER ALSO AGREE AND CONSENT TO RECEIVE SUCH CREDIT INFORMATION DIRECTLY FROM EXPERIAN AND ALSO THROUGH YOUR PAISABAZAAR ACCOUNT AS PER YOUR INDEPENDENT REGISTRATION WITH PAISABAZAAR.

Please read the Terms and Conditions of this document carefully before accepting. By clicking on the "I ACCEPT" button below, you are expressly agreeing to access the Experian Credit Information Report and Credit Score (as defined in the Important Information Section below) (together referred as "Credit Information") and share a copy of the Credit Information with Paisabazaar in the "as is" format. Please click on the link below to read and understand the Important Information section below.

** This document is an electronic record in terms of the Information Technology Act, 2000 and Rules made there under, and the amended provisions pertaining to electronic records.

Information Collection, Use, Confidentiality, No-Disclosure and Data Purging

PAISABAZAAR/ We/ Us can only access your Credit Information as your authorized representative and we shall use the Credit Information for limited end use purpose consisting of and in relation to the services proposed to be availed by you from us on the Website. We shall not aggregate, retain, store, copy, reproduce, republish, upload, post, transmit, sell or rent the Credit Information to any other person and the same cannot be copied or reproduced other than as agreed herein.

We shall protect and keep confidential the Credit information both online and offline and use best in class security measures in line with applicable laws. The Credit Information shared by You, or received on your behalf shall be destroyed, purged, erased promptly upon the earlier of: (i) your written request to terminate this relationship with Paisabazaar (ii) the completion of provision of the Services by us to you.

Governing Law and Jurisdiction The relationship between you and the Parties shall be governed by laws of India and all claims or disputes arising there from shall be subject to the exclusive jurisdiction of the courts of [Mumbai].

Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
"Credit Information Report" means the credit information / scores / aggregates / variables or reports which shall be generated by Experian;
"Credit Score" means the score which shall be mentioned on the Credit Information Report which shall be computed by Experian.
"CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
PLEASE READ THE ABOVE MENTIONED IMPORTANT INFORMATION AND CLICK ON "ACCEPT" FOLLOWED BY THE LINK BELOW TO COMPLETE THE AUTHORISATION PROCESS FOR SHARING OF YOUR CREDIT INFORMATION BY EXPERIAN WITH YOU AND PAISABAZAAR, IN ITS CAPACITY AS YOUR AUTHORISED REPRESENTATIVE.
BY CLICKING "ACCEPT" YOU AGREE AND ACCEPT THE DISCLAIMERS AND TERMS AND CONDITIONS SET OUT HEREIN. THE TERMS AND CONDITIONS MENTIONED HEREIN MAY CHANGE IN ORDER TO COMPLY WITH GOVERNING LAWS OF THE COUNTRY AND THE CONSUMER SHALL BE BOUND TO ANY CHANGES TO THIS AGREEMENT

Name :
Date : 22/10/2021

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :22/10/2021

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

CRIF HIGH MARK TERMS
AND CONDITIONS

This End User Agreement (the "Agreement") is made between you (the "User" or "You") and Paisabazaar Marketing and Consulting Pvt Ltd ("PaisaBazaar"), a private limited company having its registered office at Plot No 119, Sector-44, Gurgaon-122001, Haryana ("PAISABAZAAR", "Us" or "We", which term shall include its successors and permitted assigns). The User and PAISABAZAAR shall be collectively referred to as the "Parties" and individually as a "Party".

YOU HEREBY APPOINT PAISABAZAAR AS YOUR AUTHORISED REPRESENTATIVE TO RECEIVE YOUR CREDIT INFORMATION FROM CRIF HIGH MARK. BY EXECUTING THIS AGREEMENT / CONSENT FORM, YOU ARE EXPRESSLY AGREEING TO ACCESS THE CRIF HIGH MARK CREDIT INFORMATION REPORT AND CREDIT SCORE, AGGREGATE SCORES, INFERENCES, REFERENCES AND DETAILS (AS DEFINED BELOW)(TOGETHER REFERRED AS "CREDIT INFORMATION"). YOU HEREBY ALSO IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUCH CREDIT INFORMATION BEING PROVIDED BY CRIF HIGH MARK TO YOU AND PAISABAZAAR BY USING CRIF HIGH MARK TOOLS, ALGORITHMS AND DEVICES AND YOU HEREBY AGREE, ACKNOWLEDGE AND ACCEPT THE TERMS AND CONDITIONS SET FORTH HEREIN. YOU ALSO ACKNOWLEDGE THAT YOU SHALL NOT RAISE ANY CLAIM OR HOLD LIABLE CRIF HIGH MARK CREDIT INFORMATION SERVICES PRIVATE LIMITED IN RELATION TO YOUR CREDIT INFORMATION REPORT AND CREDIT SCORE PROVIDED OR TO BE PROVIDED BY CRIF HIGH MARK TO PAISABAZAAR.

Terms and Conditions: Information Collection, Use, Confidentiality, No-Disclosure and Data Purging PAISABAZAAR shall access your Credit Information as your authorized representative and PAISABAZAAR shall use the Credit Information for limited end use purpose consisting of and in relation to the services proposed to be availed by you from PAISABAZAAR. PAISABAZAAR shall not aggregate, retain, store, copy, reproduce, republish, upload, post, transmit, sell or rent the Credit Information to any other person and the same cannot be copied or reproduced other than as agreed herein.

The Parties agree to protect and keep confidential the Credit Information both online and offline. The Credit Information shared by you, or received on by us on your behalf shall be destroyed, purged, erased promptly upon request from the consumer or the consumer withdrawing the consent to retain such credit information / reports by deleting/deactivating the consumers account with Paisabazaar.

Governing Law and Jurisdiction Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
" Business Day" means a day (other than a public holiday) on which banks are open for general business in Gurgaon and Mumbai.
" Credit Information Report" means the credit information / scores/ aggregates / variables / inferences or reports which shall be generated by CRIF High Mark;
" Credit Score" means the score which shall be mentioned on the Credit Information Report which shall be computed by CRIF High Mark.
" CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
IN CASE THERE IS ANY DISCREPANCY OR INABILITY IN COMPLETION OF ONLINE AUTHENTICATION, PLEASE SUBMIT YOUR SELF ATTESTED KYC DOCUMENTATION IN SCANNED COPIES FOR SHARING OF YOUR CREDIT INFORMATION BY CRIF HIGH MARK WITH YOU AND PAISABAZAAR (YOUR AUTHORISED REPRESENTATIVE).
ONLINE SUBMISSION - DOES NOT REQUIRE SIGNATURE AND EXECUTION"

Name :
Date :22/10/2021

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हिंदी में पढ़े
Updated: 02-09-2021 08:09:33 AM

We have plenty of options when it comes to investments. You can choose any as per your financial goals. National Savings Certificate or NSC, a post office savings product, is one such option. As a low-risk investment, it comes with a host of benefits. We will explore them in detail in this article.

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Interest Rate on National Savings Certificate

The National Savings Certificate interest rate is subject to periodic change as per the decisions communicated by the Finance Ministry. The applicable NSC interest rate for Q1 FY 2021-22 (April to June) is 6.8%. The NSC rate in the previous quarter (January to March 2020) was also 6.8%. The 10-basis point cut is in accordance with the interest rate cuts happening across the financial market. The NSC is compounded annually. The following are the historic rates of interest for the scheme* :

PeriodInterest Rate
Q1 FY 2021-226.8%
Q4 FY 2020-216.8%
Q4 FY 2019-207.9%
Q1 FY 2018-197.6%
Q2 FY 2018-197.6%
Q3 FY 2018-198.0%
Q4 FY 2018-198.0%
Q1 FY 2019-208.0%
Q2 FY 2019-207.9%
Q3 FY 2019-207.9%

*Interest earned from NSC is compounded annually but payable only at maturity. 

Key Features

Earlier NSCs were available with two tenures – 5 years (NSC VIII) and 10 years (NSC IX). With the discontinuation of NSC IX, only the 5 year NSC VIII is currently available for subscription. Key features of NSC VIII are as follows:

  • NSC can be easily purchased at any Indian Post Office at a fixed maturity period of 5 years.
  • Interest rate is subject to periodic change as per Ministry of Finance announcements.
  • Minimum amount required for an investment in National Savings Certificate is Rs. 100, while there is no maximum limit
  • Principal invested qualifies for tax savings under Section 80C of the Income Tax Act, 1961 up to Rs. 1.5        lakhs annually1
  • Interest is compounded annually but paid out only at maturity without any TDS deduction.
  • Issued in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000.   
  • National Savings Certificate is duly accepted by all the major banks and NBFCs as a collateral or security against the secured loans.
  • The investor himself can nominate any member of his family (minors are also eligible) to inherit his investments in NSC in case of sudden demise of the investor.

Modes of Holding of National Savings Certificate

The different modes of holding National Savings Certificate are as follows:

  1. Single Holder Type certificate: Single holder certificate can be purchased by an investor for self or on behalf of minor.
  2. Joint A Type certificate: In this case, the certificate is held by two investors with equal share of maturity proceeds.
  3. Joint B Type certificate: This is also a joint holding certificate however the maturity proceeds are paid out to only one of the holders.

Eligibility

The following are the key eligibility criteria for making National Savings Certificate investments:

  •         All resident Indians are eligible to invest in NSCs.
  •         Non-resident Indians cannot purchase new NSCs. However, in case of resident subscribers of NSC              becoming NRI prior to maturity of certificates, such NSCs can be held till maturity.
  •         Trusts and Hindu Undivided Family (HUFs) cannot make NSC investments.
  •         Karta of HUFs can make NSC investments only in his own name.

Benefits of National Savings Certificate Investments

The following are some of the key benefits of investing in NSCs:

  1. NSC investments are almost risk free since they are backed by the Government of India
  2. These investments offer one of the highest rates of return among the fixed income instruments
  3. NSC investments offer flexibility to its investors due to the low minimum investment requirement of Rs. 100 and no maximum limit
  4. National Savings Certificates are available at all the Indian Post Offices and hence, can be easily purchased
  5. These certificates can also be purchased in the name of a minor
  6. Provides tax deduction benefit on investments of up to Rs. 1.5 lakhs annually
  7. NSC investments can also be transferred to another family member (nominated by the investor) in case of the investor’s demise

Tax Implication of National Savings Certificate

Primarily, NSCs are tax saving investments as the principal amount invested allows tax deduction under Section 80C up to the Rs. 1.5 lakhs limit. However the interest earned on NSCs feature a different tax treatment. The interest earned annually from NSC (for the first four years) is deemed to be reinvested hence exempt from tax and also eligible as a further deduction under Section 80C (subject to the overall annual limit of Rs 1.5 lakhs). However, the interest earned in the 5th year is not re-invested hence taxable as per the investor’s applicable slab rate.

How to invest in National Savings Certificates

NSC can be bought from any Indian Post Office on submission of required KYC documents. Presently, NSCs cannot be bought online. Following are the key steps for making NSC investments:

  1. Fill out the NSC application Form, available online as well as at all Indian post offices
  2. Submit self-attested copies of required KYC documents. You must carry the original documents as well for further verification
  3. Make the payment of the amount to be invested by cash or through cheque
  4. Once the purchase of certificates is processed, NSCs of the applicable amounts will be printed and can be collected from the post office

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Documents Required

  1. Completely filled out NSC Application form
  2. Recent Photograph
  3. Identity proof – Aadhaar card, PAN, etc.
  4. Address proof – Aadhaar card, Voter ID, etc.
  5. Cash/cheque deposit of the amount to be invested

These documents can be submitted at any India Post Office to obtain NSC in applicable denominations.

Transfer of National Savings Certificate

NSCs can be transferred from one post office to another as well as from one person to another without impacting interest accrual/maturity of the original certificate. NSC allows the following transfer options to an investor :

  • Transfer from one post office to another can be made by filling out and submitting Form NC-32 at the post office which earlier issued the original certificate.
  • Transfer of National Savings Certificates can also be made from one holder to another by filling out Form NC-34 at the NSC issuing post office. This can be done only once till time of scheme maturity.

Loan Against National Savings Certificates

You may be eligible to obtain a loan against your National Savings Certificate investments subject to some key terms and conditions as follows:

  • Only resident Indians can apply for a loan against NSC
  • A few leading private and public-sector banks currently offer this facility
  • The margin applicable to loan against NSC depends on the time remaining until maturity
  • Interest rate offered on NSC investment varies based on individual loan applicant as well as the bank offering the loan
  • The loan tenure equals the residual maturity (time remaining until maturity) of the NSC used as collateral

The above are some of the generic features of loan against NSC; the specific features such as margin, interest rate, tenure etc. tend to vary from one lender to another.

Issue of Duplicate National Savings Certificates

If the original NSC certificate gets lost, stolen, destroyed, defaced or mutilated, you can get a duplicate certificate issued. All you need to do is fill out Form NC-29 and submit it at the post office which issued the NSC that needs replacing. Key fields in the form include:

  • Details of certificate(s) such as– serial numbers, denominations, NSC issue, etc.
  • Date on which the certificates were purchased

The reason for application of duplicate certificate also needs to be mentioned along with other details

Premature Withdrawal

NSC VIII has a lock in period of 5 years with premature withdrawal permitted only in specific cases such as:

  1. On the death of NSC holder.
  2. On forfeiture by a pledgee who is a Gazetted Government Officer.
  3. On the order of court for premature withdrawal of NSC

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FAQs

Q1. What are the NSC certificate denominations?

National Savings Certificates can be issued in denominations of Rs. 100, Rs.500, Rs. 1000, Rs. 5000 and Rs.10,000. An investor can purchase as many NSCs as he wishes to.

Q2. What are the income tax benefits of NSC?

Investments in NSC offer tax benefits of up to Rs. 1.5 lakh under the Section 80C of the Income Tax Act 1961. Additionally, the annual interest generated on NSC investments is considered as a new investment for tax benefits. TDS is not to be paid on NSC; however, tax must be paid on the interest earned.

Q3. How many years does it take for the NSC to double?

The time period that an NSC requires to double depends on the invested amount and the rate of interest.

Q4. What is the rate of interest on NSC in post office in 2021?

The rate of interest on NSC for FY 2021 is 6.8%.

Q5. Can NSC be encashed before its maturity?

NSCs have a maturity period of 5 years. One can encash an NSC before its maturity only in case of the investor’s sudden demise or if the court issues an order regarding the same.

Q6. How many NSCs can one buy?

There is no maximum limit to the number of NSCs that one can buy. The minimum amount required for an NSC investment, however, is Rs. 100.[/vc_column_text][/vc_column][/vc_row]

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