National Savings Certificates (VIII-Issue) Scheme

Details

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The scheme “National Savings Certificates (VIII-Issue) Scheme” 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 ₹1000/- and thereafter in multiple of ₹100/- 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.

Benefits

  1. National Savings Certificates offer an attractive interest rate of 7.7% compounded annually but payable at maturity.
  2. No maximum deposit limit.
  3. Account matures in 5 years.
  4. Loan facility available by pledging with the banks.

Eligibility

  1. Any individual who is a resident of India can avail of the benefits under the scheme.
  2. On behalf of a minor or a person of unsound mind, the guardian can apply under the scheme.
  3. The minimum age of minors should be 10 years.

Deposits:

  • A minimum of ₹1000/- and any sum in multiples of ₹100/- 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.