Question: Tell me about the National Savings Certificates (VIII-Issue) Scheme scheme.

Answer: **Benefits:** National Savings Certificates offer an attractive interest rate of 7.7% compounded annually but payable at maturity.No
maximum deposit limit.Account matures in 5 years.Loan facility available by pledging with the banks.EligibilityAny individual who is a
resident of India can avail of the benefits under the scheme.On behalf of a minor or a person of unsound mind, the guardian can apply
under the scheme.The minimum age of minors should be 10 years.Deposits:A minimum of â‚¹1000/- and any sum in multiples of
â‚¹100/- may be deposited in an account.There shall be no maximum limit for deposits in an account or in accounts held by an account
holder.An individual may open any number of accounts.Payment on Maturity:The deposit shall mature on completion of 5 years from the
date of the deposit. The amount of maturity may be repaid to the account holder after submitting the specified form to the accounts
office.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. In the calculation of maturity value, any amount in fraction of a rupee
shall be rounded off to the nearest rupee and for this purpose, any amount of fifty paisa or more shall be treated as one rupee, and any
amount less than fifty paisa shall be ignored.A certificate of annual accrual of interest shall be issued by the accounts office, on demand,
to the account holder.Application ProcessOfflineApplication process:Step 01: The applicant can visit the nearest Post Office Branch or a
designated bank.Step 02: Collect the applicant form or download it from the official website.Step 03: Fill out the application form and
attach all the required documents.Step 04: Fill out the declaration and nomination details.Step 05: Submit the application form with an
initial amount of investment/deposit.Step 06: Upon processing your application, an acknowledgment of the same will be provided
marking the initiation of your NSC account.Premature closure of account:1. The account shall not be closed before maturity except in the
following cases, namely: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.2. Where
an account is prematurely closed under sub-paragraph (1) before the expiry of one year from the date of deposit, only the principal
amount shall be payable.3. If the account is prematurely closed under sub-paragraph (1) 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.Transfer 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:-on the death of the account holder in case of a single account or on the death of all the account holders in a joint account, the
amount shall be transferred to the legal heirs or the nominees as the case may be.on the order of the court, the account shall be
transferred from the account holder to the court or to any other individual as per the orders of the court;on pledging, the account shall be
transferred in accordance;in the event of the death of any of the account holders in a joint account, the account shall be transferred in the
name of the surviving account holder or account holder, as the case may be.Payment on the death of the account holder:1. In the event of
the death of the depositor of a single account or of all the depositors in a joint account, the eligible balance in the account shall be
payable as specified in the scheme guideline.2. If a nomination is in force at the time of death of the depositor of a single account or all
the depositors of a joint account, the nominee may make a specified application to the accounts office for payment of the eligible balance
and the application shall be accompanied by the proof of death of the depositor, and where any other nominee has also died, the proof of
death of such nominee.3. If there are two or more surviving nominees, the eligible balance shall be paid in the proportion as specified by
the depositor while making the nomination, and if no such proportion or share is specified, then in equal proportion to all the surviving
nominees.4. If any nominee dies, his specified share in the eligible balance shall be distributed among the surviving nominees in the
same proportion as their specified shares.5. Where the surviving nominee is a minor, the payment shall be made to a person appointed by
the depositor to receive such payment and, if no such person has been appointed, to the guardian of the minor.6. If a depositor dies and
there is no nomination in force at the time of his death, and probate of his will or letters of administration of his estate or a succession
certificate as granted in the Indian Succession Act, 1925 (39 of 1925) is not produced within six months from the death of the depositor
to the authorized officer of the accounts office where the account stands, then,(i) If the eligible amount in the account does not exceed
â‚¹5 lacs, the authorized officer of the accounts office or the authority specified by the institution to which the accounts office belongs,
may pay the same to any person appearing to him as the rightful claimant and to his satisfaction to be entitled to receive the amount or to
administer the estate of the deceased, on a specified application Form accompanied by the following documents; namely:- (a) death
certificate; (b) passbook or deposit receipt/statement of account in original; (c) Affidavit; (d) letter of the disclaimer; (e) Bond of
Indemnity;(ii) if the eligible amount in the account of the deceased is above â‚¹5 lakh, the amount shall be paid by the accounts office to
the claimant on submission of a â€˜Succession Certificateâ€™ issued by the court along with the following documents; namely:-(a)
claim form;(b) passbook or deposit receipt or statement of account in original;(c) death certificate of the account holder.Documents
RequiredPassport size PhotoAadhaar CardPAN CardProof of age i.e. Birth CertificateThe following documents are accepted as valid
documents for the purpose of identification and address proof:PassportDriving licenseVoterâ€™s ID cardJob card issued by NREGA
signed by the State Government officerLetter issued by the National Population Register containing details of name and address;

**Eligibility:** Ministry Of FinanceNational Savings Certificates (VIII-Issue)
SchemeCertificateInvestmentSavingsDetailsBenefitsEligibilityApplication ProcessDocuments RequiredFrequently Asked QuestionsThe
scheme â€œNational Savings Certificates (VIII-Issue) Schemeâ€​ was launched by the Department of Economic Affairs, Ministry of
Finance, Government of India to promote a culture of long-term savings among individuals. Under the scheme, an individual can deposit
a minimum of â‚¹1000/- and thereafter in multiple of â‚¹100/- with no maximum deposit limit for 5 5-year maturity period. The following
type of accounts can be opened under the Scheme, namely:-Single Holder Type Account: This type of account may 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; or by a minor who has attained the
age of 10 years.Joint A- Type Account: This type of account may be opened jointly in the names of upto three adults payable to all the
holders jointly or to the survivor or survivors.Joint B- Type Account: This type of account may be opened jointly in the name of upto
three adults payable to any of the account holders or to the survivor or survivors. OkWas this helpful?ShareNews and UpdatesNo new
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Indiasupport-myscheme[at]digitalindia[dot]gov[dot]in(011) 24303714Last Updated On : 28/03/2024 | v-2.1.1