NSC investments get automatically closed on maturity

On Maturity, you need to take your NSC physical certificate to the post office to withdraw your investment

You will get the investment with the compounded returns added to it in the form of a cheque

You can collect the cheque from the post office where you opened the account by submitting the physical NSC certificate copy and acknowledging the receipt of the cheque

Premature closure of NSC is not allowed but might be permitted only under certain extreme cases

Premature closure of NSC is not allowed but might be permitted only under certain extreme cases.

These cases are as follows:

1. Death of the account holder in case of an individual account
2. Unable to pay the loan taken on NSC
3. Oder of the court under specific circumstances

A National Savings Certificate is a five years maturity low risk investment scheme.

It offers 6.8% of interest (as of May 2022), which is annually compounded and received along with the invested principal amount on maturity.

The deposits in NSC are tax-free as per Section 80C of the Income Tax Act.

You cannot withdraw NSC before its maturity.