Post Office Savings Schemes (RD, NSC, MIS, SCSS)-Premature closure rules

Since our father’s age we are fond of Post Office Savings Schemes. Whatever we say about equity or any newly launched alternative investments, but we have more faith in Post Office or Bank FDs. But when it comes to premature closure of these schemes, only few have idea about the rules. Let us learn those rules today.

India Post   Financial Services

Instead of going through product features, in this post I only concentrate on premature rules of each Post Office Savings Schemes.

1) 5 Yr Post Office Recurring Deposit

This is actually a five year product. Currently you are getting 8.4% compounding quarterly. But if you want to withdraw then you can do so only after 3 years. In case you try to liquidate it before maturity of 5 years the interest payable on such premature will be of Post Office Savings Account which is applicable from time to time.

But an extended account (Account which was extended after 5 years) can be closed at any time without any penalty.

One withdrawal of 50% of balance allowed only after one year completion.

2) National Savings Certificate-

Even though on Post Office site they claimed “If your certificate is issued on or after 1st November 2011 then no premature encashment will be possible.”, but when you check this link, it states that there is possibility of withdrawal only on special cases which are mentioned as below.

  • On death of holder or any holders in case of joint holding;
  • on forfeiture pledge by Gazetted Govt. Officer
  • When ordered by court of law.

In my view NSC is the only product which have less liquidity.

3) Post Office Monthly Income Scheme-

  • Before 3 years but after one year at the discount of 2% of the deposit.
  • After 3 years at the discount of 1% of deposit.

Here discount means deduction from the deposited amount.

4) Senior Citizen Savings Scheme-

  • After one year but before two years at discount of 1.5%.
  • After two years discount will be 1%.

Here discount means deduction from the deposited amount.

5) Post Office Time Deposits-

  • Withdrawal will be allowed only after 6 months.
  • If withdrawn after 6 months but before one year completion then simple interest applicable to post office savings account will be payable.
  • In case of deposit of 2,3 and 5 years of term deposit, if amount withdrawn after one year but before maturity then interest payable will be 1% lesser than the specified interest for the respective time deposits.

So there are the simple rules of premature withdrawal which you can use for liquidating any of your investments. Hope this information will be useful 🙂

315 Responses

  1. Can a post office recurring deposit of 5 years be collected on maturity by a parent of the depositor if the person is abroad with a consent letter of the depositor.

  2. Hi sir , my father n mother have joint MIS account of 900000. After staring mis in 10th month my mother pass away, but we didn’t close police, agent say only fathers sign required at time of maturity.
    But now my father is paralyzed so he can’t do sign.
    Now if we do KYC for thumb impression then it required both father and mother sign. Which is not possible.
    Now police period was completed.
    Then what to do. Plz guide.

  3. How settle RD death claim if only 6 months are deposited into account. Is it possible to close the account or wait for 3 years completion…

  4. Hi sir,
    I am postal assistant,
    I have one doubt regarding SCSS PMC closure,
    One SCSS PMC was done after 4 yrs before 5 yrs,
    While closing reason code was taken as AB2, but still it recovered all the interests which was given by us till now.

    Sol plz. I want to contact you sir, plz give a solution,
    Call me plz, and save me

  5. Dear sir,
    I deposited in MIS post office. every year i withdrawl interest but at the end of maturity i forgot to withdraw interest and principal for about Six months .can I get interest for Last one year? What about that six month interest

    1. Dear Viki,
      In the case of MIS, the interest is payable on a monthly basis. Hence, I think they might have transferred it to your savings account (if I am not wrong). In that case, you will not earn any additional interest on such interest part.

  6. If I prematurely withdraw my MIS scheme after 4 years of completion, May I have my interest benefits or not?
    How much amount will be deducted after 4 years of completion?

  7. Can we close our rd account after 3 years without any agent…I opened rd through a agent but now I wana close without agent can I do…or I have to close through agent only..plz reply

  8. Sir I have MIS in Bangalore post office branch now I moved to telangana I want to withdraw prematurely due to some emergency, do I need to go Bangalore or I can close it in telangana, now there is lockdown so what is next solution sir.

  9. Hi Concern, I closed my Recurring saving scheme 5 yrs before and not yet withdrew the amount due to some personal reasons.. Now planning to withdraw the same.. Please let me know if i ll face any difficulties in withdrawing the same.

  10. I have a MIS account in the post office and linked to postal SB account in my self. Wheares my sister, once a day came to my house and said the promises that some need to withdrawal money for your treatment. On faith I had signed on this form during my illness. Recently I came to know that was cheat with me. There is modify the account holder from Single account to join account. That was 10b form. Even my MIS passbook didn’t return to me. I hope, my sister any time wthdrwl the full amount. What shall I do?

  11. My father is a senior citizen and approached a agent to open scss but instead he opened mis now is it advisable to close the account after one year bearing the 2? percent loss and invest the amount in scss

  12. e opened a mis in po.But due to some urgent issue I want to withdraw it. It is only 6 months as of now.please advise how can I withdraw immediately.

  13. Hi I have a query actually scss scheme was opened in 2015 however my father age at that time was 60 years running however still not attained 60 now the problem is PO staff has opened the scheme with some golmaal I guess , all these years we got scss interest credited to my dad PO SB account now after 4.7 years now attaining maturity now PO is telling you cannot get interest as SCSS scheme was opened before attaining 60 years my dad recently passed away now PO is forcing to close my dad SCSS scheme and they are saying whatever interest we got all these years will be deducted from principal amount how to deal with this please suggest

  14. Mis account can be pre closed by the single customer whether the account is joint??
    If the second customer is dead, which document is needed to pre close the account??

  15. Sir,
    I buy a NSC in March,2015 from my local Post Office for 5 years terms which mature in present time(March,2020). My quarry is how can i claim my amount? should I have to open a SB in PO? for the said reason

  16. can you share a supported document link which shows premature closure of joint MIS closure required signature of all account holder s

  17. Dear sir,
    Could u tell me what are the security associated with our pf/mis account as any person who know our singature can get cheque from P.O in our name .kindly also tell can pf and mis account can directly linked with our bank account bcoz when money released it will directly come in our account.

  18. Hi mam r sir I have nsc band 5 years deposit but I won’t emarjency amount only complited to band 1years so sir how can I tack tha money i post office sir plise give me inform sir

  19. Sir, if I invest in post office MIS in name of my kids (12 and 15 yrs old), do I still have to pay tax on interest earned.

  20. Dear Sir, Which is better? An NSC or monthly income scheme where the monthly income is reinvested in a Post office RD.


    1. In case o f a PO MIS held jointly by two individuals, can one of the individuals close it prematurely by citing the other’s inability to sign due to medical condition, of course with supported document?.
      Thanks and regards.

  22. Dear Sir,
    From Eshwar Pal Negi Sides,
    i opened 2 RDs in February 2010 and till 2012 i deposit. The amount
    then i Went to out of india in 2012 and Rd Books misplaced my self.
    Now i found my Rd books,
    can post office refund me my deposit amount ,
    kindly suggest me how can i receive the deposit amount.

    Thanks and Regard

    Eshwar Pal Singh Negi


  23. Please confirm if it is necessary that witnesses can be close relatives for claim form for NSS 1987 closure by payment to nominee ( on death of account holder)

  24. SIR

  25. Dear sir
    Maine RD 8 month pay kiya
    Abhi thoda financial problem hai.isiliye ab main mera RD Premature karna chahata hoon….ab ab mera rd premature hoga ke nhi.

  26. hi basavaraj,
    i want to know premature rules of nsc certificate.if in case of death of account holder what rate of interest occur before or after completion of 1yrs from the date of issue.please help me.

  27. hi basavaraj, I have some nsc of oct/Dec 2016 opened in my father’Sri name and after 6 month he expires I approach the post office for closure on September but the office staff told me you would not get any interest only the face value.the certificates 2 of them completed 1yrs and 2 certificate completed 10 months. now if I close all of the certificates after the completion of 1yrs then I get the interest.please help me.

  28. I have opened a SCSS dep which is more than 2 years old. INTEREST is appiled on the discounted value. WHAT HAPPENS TO MY ORIGINAL DEPOSIT AMOUNT( BEFORE DISCOUNT) ?. My original deposit amount without discount which is lying in SCSS for 74 days is not considered.

  29. Dear sir ,
    I beg to state that I have deposited Rs. 40,000/- in 5TD in Post Office on dated 15.11.2013. I have withdraw yearly interest for last 3 years regularly . Now , I want to premature withdraw of that 5 TD . Kindly , inform me , What are the premature amount ?
    Thanking you .
    Regard ,
    Arup Kumar Barat .

  30. I have purchased NSC in my short. Now I want to incorporate full name, how can I incorporate my full name so that I can get cheque in favour of my full name at the time of maturity.

  31. Hi ,
    My wife MIS completed 5 years .we r on a visit abroad.I am coming back to India this month but my wife will stay for 6 months.she wants to withdraw entire amount & close MIS.
    Can u please guide me how I can wthdrw this amount or take cheque on her name and deposit in our joint account. What kind of documents she should sign so that I can do the job without she physically visiting POST OFFICE.

  32. Dear All

    I have 15 NSC Certificate Difference – Difference amount

    PURCHASE ON 11.03.2011 -Rs 5000 maturity time 01.08.2017
    purchase on 12.03.2012 Rs 6000 maturity time 12.04.2018
    purchase 13.04.2013 6000Rs maturity time 13.05.2019
    purchase 20.11.2014 7000 maturity 2020

    Total NSC Certificate Amount Rs 41200.00

    I want to sell without interest
    because i need some fund on priority


    1. As per the below details, the total is Rs. 24000/-
      But you say it as – Total NSC Certificate Amount Rs. 41200/-
      Please explain?

      purchase on 11.03.2011 -Rs 5000 maturity time 01.08.2017
      purchase on 12.03.2012 Rs 6000 maturity time 12.04.2018
      purchase on 13.04.2013 Rs 6000 maturity time 13.05.2019
      purchase on 20.11.2014 Rs 7000 maturity time 2020

      You may reach me @8660294721

  33. Sir,

    I had taken 5 yrs post office RD , and only 40 month installment paid , now 5 yrs completed of my RD , will i got full amount with full interest or only saving account interest will received on my deposit amount.

    please confirm.

  34. sir mera Rd account 8.4% me open krvaya hua h.. jisme ek saal baad mene half withdrawal krva Liya tha nd 3saal baad usko band krvana chahta hu . then deposit par to 4? int milega but half withdrawal jo kia tha uska kitna ? int. cut hoga…

  35. Sir m ye janna Chan RHA tha after 3 year completion, kya m rd account ka money withdrew kr Sakta hu or withdrawn me kitna time lagata h.kyoki muje ye 1mahaina ho gya h withdrawn ki request diye hua abhi tk money nahi mila.

      1. Sir Maine withdrawn ki request diye ek mahina ho gya post office and they said me that server ni chal RHA or it will be completed in some days something 2 .is really it takes more time to withdrawn? Week two week or month…?

  36. Hi ,

    I have opened RD account in Post office for tenure of 5 years.
    I have paid monthly installments of 1400 for 51 months. and now due to financial emergencies I would like to close my account.
    I informed same to the agent but he is telling to keep it in running status for 9 months else you will loss 13K as interest.
    And you will only get 3K as an interest amount.

    So can you please guide me, what to do next..

    Also can you please let me know what will be the final amount that I’ll get if I terminate the account right away.

    Thanks in advanced..!!

  37. Dear Sir,
    I have a rd a/c in post office for 5 year. But now my a/c age is 1.5 year and i want to my rd money immediately due to some emergency
    So sir please told me how to get my money befor 3 year

  38. Sir, I had opened an Rd in post office for an year. It was done through an agent. He had not informed me that that Rd cannot be closed before 3 years.i wish to close the Rd now due to some emergencies. Can I withdraw the Rd? And can u also please in from me what if I don’t pay the further amount as the agent has not informed me about the withdrawal.even If the account is inactive can I withdraw the amount after three years? I dnt wish to pay any more to this as I was misinformed

  39. dear sir
    I have completed 5 year RD with post office here last month and they insist that I must open a SB account with them in order to get the maturity amount. I already have bank account and is it manditory to open SB account with post office
    pls clarifity

  40. Sir, I have opened a Rd in 2011 in rajasthan and just after paying 4 installments, I was transferred to u.p. now after 3 years, I approach the same guy who opened it for the amount. He asked me for my kyc to open the bank account and signed few documents for the same. After that I came back to up as he told me that it will take a week time for the same. But even after a month he is saying the same thing like system not working and blah blah. So finally I send one of my friend to check and he told me that he has taken all the money, now what should I do?

      1. Sir, actually he has taken my signatures on withdrawal form by misguided me. Is there any possibility of going legal against him as I have all the conversation recordings with me. Guide me regarding it, how can I get my money back?

  41. Hi,

    I have RD with Post office. I have opened 1 year back and now due to other investment, I would like to withdraw. Is it possible to withdraw and what are penalty related to it?

  42. My father and mother has opened two joint MIS account. Now it has matured. After I approached the post office for renewal they took both the passbooks and said that they will combine both of the accounts to a single one and they will come to our house for collecting the required docs.

    I am worried that whether any harm could be done with the passbook or not? Please reply.

          1. Thanks for the info. I will go to his house tomorrow and collect the passbooks. Will also keep this in mind.
            Many thanks.

  43. Hi,

    My father and my brother had 5 joint B (EOS) post office Joint Accounts which are maturing next year. Father expired in Oct 2015. Can my brother who is a joing-B account holder continue the account till maturity? Total of all accounts is 6 lacs. if he closes 2 of them then it becomes 4,4 lacs.

    One of the account is single in my father’s name in which I’m a the nominee. Will the interest continue till I claim it or till maturity?

    For claiming, They are asking for 2 witnesses. Do the witnesses need to be from that branch of PO or any other branch? Do they need to come with me?

    Your help is appreciated.

  44. My mother had a post office RDaccount which matured in June2016. She expired in Mar 2016. I applied for payment of maturity amount in May 2016 as her nominee
    Till date the amount has not been paid and now I am told that the interest to be paid for the period after her death will also be s/f interest., although all the installments had been paid in advance and there were no pending installments.

      1. I informed them when I got the death certificate. Initially they said your nomination is not registered and has to be verified from head office. Then I was advised to submit the required forms etc. In May as it would take 4-6 weeks for the money to be released after various checks on maturity. All the instalments are paid till maturity and payment is to be made after maturity. Isn’t it absurd that the po uses the money but doesn’t give interest. Vinay
        Thanks for responding.

  45. Sir,mera mis acc 13aug ko matured ho gaya wo money majhe reinvest nai karna tha bt galti SE Meri mummy ne wo mis me invest Kar Diya Kuch way hai Kya jisse mai wo amount withdraw Kar Sakti hu

  46. Sir,

    I have Post office RD of 2000 (only 7 installment completed now) but when I know about MF , I want to invest it in MF , Is it the right decision .

  47. My parents had opened RD Account in July 2012. Mother passed away in Apr13 & Father passed away in Nov15. I’m their son and is Nominee. Accordingly, thru Agent; submitted withdrawal application with signature of 2 witnesses and their ID proof. Post Master-Athwalines Branch, Surat, Gujarat is insisting that I have to remain present along with both witnesses to process my application. One of the witness is from Vadodara (My office colleague). I can not ask him to come all the way to Surat for this. Now, Post Master is insisting that I should visit them with local witnesses. Is there any rule; whereby witness present is required?

      1. Thanks for prompt reply…..Is it under any of the rules? I want to contest this; as it was not informed that witnesses have to be local and they have to remain present in person.

        1. Gaurang-Meaning of witness itself clarify that they must present physically. Otherwise, what is the use of witness? But I will not say that they must be LOCAL. They may be putting this condition just to save their future job.

  48. Dear Sir,

    My father who was a loyal and bonafide customer of the Postal Department recently passed away.

    He had many TD, NSC and a few MIS, RD & KVP. All of the same are in joint name along with my mother as second holder. Almost all of them are without nomination and as such I want to include my name as second holder making my mother’s name as the first holder.

    So, in this situation may I ask for little guidance from your end regarding how to proceed? Please guide me in detail for each type of investment separately (if required). I could not find any information about this anywhere. It will be of much help to me and others also.

    Thank you,


      1. Thanks for the reply Basavaraj, but what you have suggested is logical steps that anyone can guess.

        I think my mother does not have to “claim” anything as she is 2nd holder of all the investments.

        I was expecting detail step by step approach.

          1. How can I make my mother 1st holder without deleting my father’s name ? It was written in the first post itself – “Almost all of them are without nomination and as such I want to include my name as second holder making my mother’s name as the first holder”.

  49. Dear Sir,

    I had an RD account with Post Office. I continued to pay the monthly premium for 14 month. Afterwards, I couldn’t continue from April’16.
    Would you please let me know:
    (1) Whether the amount deposited will be forfeited
    (2) Shall I get back the amount? If yes, when?

      1. Dear Sir,
        Thank you for your quick response. In fact, this overwhelming to know about your mission of enlightening people.

        Accept my sincerest regards


  50. Hi Basavaraj,
    I have an account for MIS and i want to withdraw the amount Prematurely and when my wife went there get the money withdrawal , officer asked for the physical presence of mine. Is there any rule in the Post’s rulebook for the physical presence of the account holder for premature withdrawal ? Please guide , your suggestions are really really helpful.

    If there is any official rulebook online , suggest.


  51. Dear Sir,

    On Saturday me and my mother i went to my post office , for MIS interest widhdrawn, my father and mother have a joint MIS account in the same PO,unfortunately my father is death in may 2016,but po agent told me no interest will be due after his death , my question is , what is rule after death ? if our money with PO why they have not pay interest on the same.

    1. Kailash-If it is in joint name, then your mother will continue as sole account holder. How can they deny the interest for that period. They are mileading you. Let them give everything in written.

  52. sir…….mere father ne 2013 me 1 nsc karvayi thi lekin mere father ki death 18-03-2016 ko ho gayi………………so please bataiye ki ab kya hoga

  53. main post office ka agent hun…meri rd kitabo ko 6 mahine pure ho chuke hai 7 mahina chal rha hai ….. koi tareeqa hai jisse meri kitabe jama ho sake

    1. No way at any cost.This a/c has bee discontinued and further you can not deposit installment .As a agent you should know about rd rules.

  54. I am senior citizen and cannot walk, Andheri PO has stopped presenting certificates NSC by agents even though it is to be credited to my savings account. Please advice All over India agents collect even cheques on being authorised by holder of account. I have complained to PMG but no action taken

  55. Sir, mera 20000 rs 12yr pehle fixed kiya tha. Lekin mer sab documents kho gaya. Abh main kya karoonga withdraw karne ke liye? Plz help sir…….

  56. My RD account will be mature on 7th June 2016.
    Now I am staying in different town.
    I have pass book. Can I withdraw from any post office or is it compulsory to go to the post office where I have the account.

    1. Sankar-In my view if the post office where you have RD is connected with CBS facility, then you can reach to your nearest CBS facilitated Post Office and can liquidate. Otherwise, you have to go the concerned post office.

      1. Thanks a lot for quick response and valuable information.

        Is there any way I can find the post office with CBS facility or not?

  57. DEAR SIR ;



  58. Dear Basavaraj

    I have Mis account and it is joint- B witch is all ready over due . me & my wife we are in abroad.
    so how can we get our money from post office?or how can redeposit this amount to MIS account
    please advise.

    for your information my father is in India

  59. Hi Basavaraj,

    I purchased NSC of 1 lac and planned to purchase till 5 year next. But to reduce tax liability do i need to show interest earned each year means accured interest of second year for first NSC purchase and on maturity how much tax i have to pay. Suppose 1 lac will become 1.5 lacs after 5 years..but how much tax i have to pay on 1.5 lacs if i don’t want to reinvest.

  60. Hii i am Tarun sharma i bought 1 lakh nsc papers in march 2014 can i encash my nsc on today

  61. hello sir,
    Maine 9-11-12 ko post office mai 5 year key liye RD a/co open kiya tha. mai monthly 1000/- deposit karta hu. March 2016 tak Mera 41000/-
    deposit hua hai.
    ab paise ki urgency hone se mai account close karna hai but post office wale only 3% hi interest de rate hai.kya ye intest rate sahi hai.
    please reply sir.

  62. how many times in a month investment can be made in SCSS, can more than 2 scss investments be made in the same month, or only 1 scss investment in 1 month ? pls reply urgently

  63. Dear Sir,

    My RD account matured on 10th Jan 2016.
    Approached the kandivali branch from where it was taken.
    now they say no cheques are available hence no payment for last 2 months.
    They want me to stand in queue at 5 am for getting the money as when the cheques come.
    please guide

      1. Dear Sir,
        thanks for prompt reply.
        is there any way out other than going to the post office. can i try through internet or online transfer or create online bank account.
        shouldn’t get my money the day i walk in and during the postal hours of 8 am to 4 pm
        please help

  64. Investing Money in POIMS and redirecting the Monthly income from this to PO Recurring deposit.
    Will it help in compounding or any other benefit of doing so ?
    Income tax benefit on the Monthly income as it is redirected to RD etc
    Kindly advice


      1. Sorry doesn’t make sense actually.
        I haven’t invested ,had a thought
        Kindly ignore

        Do you provide financial planning service with regular monitoring of the investment etc.
        Do you have office etc.

      2. Hi Basavaraj,

        Whats wrong in doing this. I am doing the exact same thing. I have put 4.5 lakh in the MIS scehem & there is fixed interest i.e Rs 3150 which i will be getting on per month basis. So i have opened a RD account of Rs3150.

        So after 5 years, i will get Rs 3150 * 60 months … and Will get the 8.5% interest on my Rs 3150 RD.

  65. Please advice on the following :
    Due to fault/misconception of the Post clerk, my RD which was maturing in the last days of January, 2016 was closed a week before. Due to this, I have lost a considerable amount of interest. The proceeds have been transferred to my savings bank account in the same post office.

    As I am having major savings in this post office, viz. MIS, RDs, Savings bank account etc., I leave forms and papers etc. with the clerk. Even in this particular case also I filled all the forms citing to be closed on maturity. I do not know how this happened.

    Please suggest, how I can claim this loss from the Postal authorities.

      1. Thanks, but just one submission

        On top of the form I had written on maturity. There is no word written withdrawal or pre-mature.

        Now where I stand.

  66. Sir,
    Mera namnam shyam jee h mai ek agent bnna chahta hu iske liye mujhe kya krna hoga. Aur mai phle ek private company me kam krta tha par mai usko chod diya aur isme kam krna chahta hu isme mujhe sare plans ki jankari de dijiye agr aap de sake aur daily monthly aur poora plan de do 1,2,3,4,5, sal ke khate kholna ityadi. Please do my help I want to do something.
    Thanking you.

  67. Dear sir,

    Indian post office mein Mera ek RD account hai. Us account ko open kiya hua 14 months ho gaya par maine sirf 6 installment hI diya aur baki ka installment nahi de paya, par ab main us account ko continue rakhna chata hu.
    to kaya yesa ho sakta hai, agr ho sakta ho to mujhe kaya karna parega.

  68. What is the new re-investment policy of MIS ? There is no clarity in information provided by the Postmasters of Dum Dum Road and Motijheel Post office and neither is any information available on the website.

    With much grief I have to say that the postmasters of the Dum Dum Road and Motijheel Post office are clueless and does not know anything about customer service.

    With we moving into the CBS Platform the inefficiency of the Postmasters are adding to the woes and worries of many aged people who have nothing left, but to pay extra money to the agents to get their work done.

    With digital India in pipeline I am not sure how my issue would be addressed but I assume this thread should be enough to address the challenges faced not only by me but by thousands of elderly people who are harassed and bullied everyday, 365 days a year.

    1. Narayan-It is not the case of any ONE post office. But across India, they still feel that we are for them but they are not for us. It is a simple process of re-investment of MIS. You just have to open an RD equal to the interest you receive from first MIS. Request for auto-debit option to your Post Office SB-Account.

      1. Sir,I would like to know that if any person takes loan from bank authority against kisanvikas patra ,then the bank authority can take prematurity payment against the said pledged certificate

  69. Dear Sir,
    I have opened an RD for 5 years with post office..of which I have completed 4 years….as I am in need of urgent money Can I get the whole money I have invested with interest….let me know the procedure too sir…
    & let me know procedure for premature withdraw & Payment in Cash & Cheque or in Hand Cash of Post Office .
    form submitt karne ke baad kitne din badd payment milega.

  70. I am new in this, I want to open a savings account but I want to know that is interest is payable before the maturity of savings account i.e 1 year after opening of the savings account

  71. I have a 5 year RD account in Post office and have paid all installments for first year i.e. till November,2015. Now I dont want to continue this account. Please tell how to close this and pre closure charges for this.

  72. Dear Mr. Basavaraj,

    I had purchased NSC’s in February 2012 for tax benefit as advised by my accounts dept. at office, Bangalore. But due to a present emergency I’m in need of funds and want to liquidate the NSC’s. I don’t mind selling or returning them for their base value, please advise the best and quickest way to do the same.

    Thanks in advance,

    1. Purnima-You can’t liquidate it. However, you can pledge the same in any bank and avail the cash. Usually loan amount depends on the age of NSC. Higher the age means higher the possibility of loan. You get around 100% of your invested amount as loan in case your NSC is more than 3-4 years old. Please contact your bank for the same.

  73. Dear Sir,

    My parents were having 2 joint a/c in POMIS each of Rs.300000/- from 28/08/2010. My mother expired on 22/09/2015. So our post office suggest my father to close one account because as a single a/c he was crossing the prescribe limit.
    In this case PO charged him 1% penalty as Premature closing. On the other hand PO processed this transaction as Death claim and prepared cheque worth Rs.315000/-. While paying to my father they are asking 18000/- in cash which is difference of (315000-(300000-1% penalty)).
    What is correct procedure to handle this situation?

    Thanks in Advance.

      1. Thank you very much sir for your prompt reply.

        Further to my mail, can you please explain me, what is the correct way of post office to handle this situation?
        Is excess withdrawal is possible? Was My father eligible to get bonus which is 5% in his case?

        Once again thanks
        Trupti Malekar

  74. Hi Basavaraj,

    You are doing great job of spreading such wonderful highly relevant financial knowledge and I appreciate for your efforts.

    Can I extended matured NSC for another 5/10 years, if so then what will tax liability in such case ?

    1. Raj-You can’t extend the same NSC. But can buy a new one. In such a situation, it is considered as fresh investment for taxation purpose and the maturity proceeds on old NSC interest will be taxed accordingly.

  75. hello sir, I have 6year NSC which was taken in Andhra Pradesh and it got matured recently. Could you please advise if I can encash in Bangalore head post office (or) I have to encash where I have received from?

    Also please list out the documents I need to carry for encashment?


  76. I had taken 6 Year NSC in Dec’ 2008 and the maturity date was Dec’ 2014. I haven’t encashed it due to I was at onsite. So could you please let me know if I can encash now? And also how soon I can encash, Is any grace period to encash after it got matured and will I get the Interest (or) only prinicipal amount. Please advise me here. Thanks.

    1. Roshini-You can still encash it as usual. But from December 2014 to till day you receive the savings interest rate of post office savings account. They provide the post office savings account interest rate on any such non-encashed NSC up to the period of 2 years. If you still not encash it after the 2 years of post maturity, then such NSC will not receive any interest. Hence, better you encash it immediately.

      1. hi,

        i have a similar situation. i am overseas and will return in December whereas my NSC certificate is maturing next month.

        kindly advice the procedures if i authorize someone to withdraw the amount on my behalf
        Also if i wait until Dec, will the post office savings interest be calculated only on the principal amount or would be on the entire amount upon maturity i.e principal +interest

        1. JS-I already commented the same and it applies to you also. You can’t authorize now for withdrawal. Post maturity the savings account interest on such NSC will be on total accrued principal and interest.

  77. My father bought some Nsc certificates …he died on 2013. All these certificates had the nominee in the name of my mother….but the certificates have already been matured in 2013……its now 2015…so can my mother get the amount of Nsc now…l

      1. My another question is ,all these certificates are in another post office which is not in our district. in claim form 2 garrenters are required. So can these 2 gurrenters may be from my place of living or the gurrenter should be from that concern post office from which nsc certificates belongs to.

  78. Sir,

    I can invest hardly around Rs.5K per month, so which is better scheme for my saving that I can invest. Also please correct me if i am wrong with the followings:

    1. PPF: Investment can be made monthly & Max is 1,00,000 per year for a person, One can not open more than one account in favor of him. pre-mature withdraw not allowed, Rate of Interest is 8.7%.

    2.NSC: Monthly Investment is not allowed, but can be purchased a fresh certificate & Multiple certificates can purchase. pre-mature withdraw allowed only on discount @2% & 1% before & after 3 year respectively. Rate of Interest is 8.8%

    3.KVP: One time Investment & Will be doubled after 100 months, pre-mature withdraw not allowed before 2 & 1/2 years. No interest will be given but Invested money will be doubled after maturity of Deposit.

    Please advice,

    Thanks in advance

    1. Shankar-Without knowing your goals and details of finance, how can I guide you?
      1) PPF can be invested in lump sum too. Current yearly limit per individual is Rs.1.5 lakh. You can avail loan or withdrawal on PPF (with certain conditions). Interest changes yearly.
      2) Why monthly investment not allowed? You can buy NSC on monthly base too. Please read above rules of NSC premature once again.
      3) Same applies to what I said in point 2.

  79. I have lost my NSC certificates (value around twenty thousand), I also do not have a zerox copy or the certificate numbers. This is matured last year. How can I claim the money or ask for duplicate certificates.

  80. Sir
    I have opened an RD for 5 years with post office..of which I have completed 2 years….as I am in need of urgent money Can I get the whole money I have invested with interest….let me know the procedure too sir…

      1. Hi Basavaraj Tonagatti,

        I want to know details on NSS tax benefit scheme. When I asked in Post office they said there is no such scheme and only NSC is available. Please let me know whether NSS is available in Post office. If so please tell the procedure and documents required to open NSS account in Post Office..


          1. Thanks Basu.. I want to save 4 to 5k every month… Is there any plans for this which will come under tax benefit.. And also pls tell whether Post Office RD scheme have tax benefit?

  81. Dear Sir,

    I have closed my N.S.S account on 7 August 2015 till now I have not received my amount, when inquired at the post office they tell me it will come in a day or two, does it usually take such a long time.

    Sir, i had taken few, 6 years NSCs of rs. 100/- value in 2005 which was to redeem in 2011, but it so happened till today i have not closed it. if i close it now, will i get the amount which is promised by the govt. ie for rs 100/- invested, they give rs. 160/ after 6 yrs.. now as i have not taken the money till now, will i get more, as the money is there with the post office for another 4 extra years. .. Likewise my fathers RS 1000/ 6 yrs NSC took in 1995, govt promised to give Rs 2015/- , how much will i get for parking 1000/ for 20 yrs instead of 6 yrs….

  83. Sir i took payment of my kvp issued on 27 jan 2010 which was worth rs 10k wat amount i shuld recieve as payment in aug 2015 .

      1. Bt sir they said that norms have changed before 2010 nd the amount would be doubled in 100 months . They paid me a cheque of rs 14k something….i want toh knw that when ws the norm was changed that the money will be doubled in 100 months instead of 66 months

  84. Dear sir,
    My self and my wife both are Senior Citizens, we can deposit seprate in MI S schem.and it will be taxable or not

  85. Sir
    My father bought 3 NSC CERTIFICATE WORTH 25000 IN 2005 FOR 5 years so they matured in 2010 but he died in 2011. So we don’t know whether they were encashed or not or wether he nominated anyone .

    1. Neeraj-You can approach the concerned post office with and say that you lost the original documents, also mention that your father died (produce the death certificate) and also if nominee not their then proof of relation.

  86. Dear Sir,

    I purchased an NSC worth 10k in Dec’06 (from Frazer Town, Bangalore Branch) which was up for maturity on Dec’12. During the course of time I have lost the original certificate. The procedure to get a duplicate and encash the same looks very lengthy and some of the documents demanded by the Post Office seems very challenging to get. Are there any agents whom I can approach to help me on this regard for a fee in Bangalore ?


    Arvind Vijayagopalan
    +91 9880462495

  87. Dear Sir,
    I have taken National Saving Certificate worth Rs 4000/- for 5 years on March 19 2015, now I’m in urgent need of money, can I withdraw this amount.

  88. can I check my rd through internet…as I have open my account via an agent which I thought is not loyal..pls suggest

  89. Sir, I had invested Rs. 4.5 Lakhs in POMIS in the joint name of myself and my mother in July 2010. My mother passed away in January 2015. Can I convert this joint Account to a Single Account. Will this have any effect on my maturity time or Maturity Value. Will I be eligible for bonus ? Please reply.

      1. Sir, Thanks for your prompt reply. I have one more question sir. I have this POMIS in my town in Haryana. While opening this account, I was issued with ONLY a Pass Book. But one of my friends who opened a similar account in Delhi was issued with the Pass Book and a CERTIFICATE also. I was not issued with any certificate. Kindly help.

  90. I am holding PF account in Post Office. I want to transfer PF account to other bank PF account.
    Please let me know the procedure, if possible.

    1. Rishika-You have to fill the transfer form (SB10-b) and along with that a written application is required mentioning from where to where you want to transfer. Submit both the letters to Post Office, where you have account.

  91. Dear Sir,
    There is confusion about AIR reporting of MF. One may invest some amount or switch from one scheme to another or reinvest dividend ditributed or do all of them. In switch it is not really fresh investment. Similarly div reinvestment is like growth schemes where amount is reinvested withour becoming one’s income. Could you please clarify what amount MFs consider while reporting. In many cases a person may cross Rs 200000 because of switch plus dividend reinvested.

  92. Dear Mr Basavaraj,
    Thanks for helping people. I like your attending to all queries with clear replies. I have following query wrt to budget for 15-16:
    Will TDS be applicable on RD of banks and PO and aslo on all schemes of PO like MIS and NSC etc. If yes, what would be the interest beyond which it will be applicable. Will senior citizens be able to give form 15H in PO also.
    Please also let us know whether TDS will be applicable to any other investments where it was not applicable earlier and any other provision affecting senior citizens adversely.

    1. Your comments cover RD under TDS. I also read elsewhere that RD of PO also will come under TDS, but there is no mention of schemes like MIS of PO. Is interest paid on PO MIS covered under sec 194A. If, yes then will the interest paid on it will also come under TDS? Please clarify.

  93. Dear Sir,

    I had taken NSC Six years ago & its Maturity date is 17.04 2015. But, i am in need of the amount very urgently as i have to go to abroad for job for around 2 years. I want to have the NSC’s pre-matured in this case so that i can use my funds for my further usage while going to abroad ?

    How can i get this amount before maturity which is just 2 months away from now.

    Vinod Makhecha, Ahmedabad.

  94. Hi Sir,

    I have a querry as the information I have collected so far is contradictory. I need to know in case of a premature closure of a National Savings Certificate say after one year, whether the deduction by Postal authorities will be from the Principal itself or only rate of interest will be reduced as happens in the banks? Are there separate rules when the premature withdrawal takes place after a short duration and when it happens after a longer duration. Kindly guide.


    Suraj Kamat

  95. Sir,
    I have a few questions on schemes offered by post offices.

    1. How do schemes like NSC, PPF manage to provide somewhat higher 10-year interest rates than nationalized banks? I am assuming NSC and PPF will invest only in government-guaranteed sovereign debt instruments, unlike banks which can get money by lending to private borrowers as well and also have bigger customer base. Don’t government bonds mostly offer lower rates than non-government debt instruments?

    2. Is there any initiative by postal department to provide online services to its customers, just like banks do? While one still does find queues in nationalized banks, the situation is better than over a decade ago. The same is not the case with post offices. Would postal interest rates drop if such additional services are provided, because it would mean addition cost to postal department?

    3. Do the initiatives of the current central govt to increase privatization and globalization pose a threat to the safety of deposits in nationalized banks? During the financial crisis of 2008, it was reported that it was Indian banking sector’s limited exposure to private markets was a factor in saving Indian economy. If there is an increased threat due to increased exposure to private/foreign investments, then it would be better for senior citizens to shift from bank FDs to postal schemes. But poor customer service from postal service is a reason why many senior citizens who have bank accounts prefer bank deposits over post office deposits.

    1. Sir,
      Another question. Are post office deposits safer than deposits in nationalized banks? I am told that deposits in banks are insured only up Rs. 100000. Do post-office deposits have a sovereign guarantee from government and so do not have the risk associated with banks?

    2. Amandeep- 1) There is something called political gimmick that very much play with post office savings and EPF. Banks run on business module and these schemes on social and political gimmick.
      2) As of now not such facility. But let us hope for the best 🙂 Service will not your interest but they need a mind to think about customer friendly.
      3) Not like that and no need to worry.

  96. Hi

    Can we withdraw Post Office Time Deposits before 6 months in case of urgent need. And what is the tax deduction rate for 50k for a duration of 1 year

  97. Hi Basavaraj,

    Your website gives us very good explanation on various fincial plans and terms, I am planning to RD though SBI for < 2 year for 15K (@ 9% PA). Since the finacial budget is with in couple of days, Is it good time to open now. please suggest me


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