Understanding NSC Maturity & Premature Withdrawal Options

No, you cannot break an NSC (National Savings Certificate) before the maturity period. NSCs have a fixed maturity period of either 5 years or 10 years, and premature withdrawals are not allowed. Premature withdrawals from NSCs are subject to certain terms and conditions, and deductions in interest earnings.

Only a few specific cases are allowed for premature encashment of NSCs:

Death of the account holder: In case of the untimely demise of the account holder, the nominee or legal heir can prematurely encash the NSC at any time by submitting the required documents and proofs.

Medical emergencies: In cases of severe medical emergencies involving the account holder or a dependent family member, premature withdrawal may be permitted. The account holder needs to provide relevant medical documents and proofs to support the claim.

Change of residence abroad: If the account holder emigrates permanently from India and becomes a non-resident, they may be allowed to encash the NSC prematurely. The account holder must provide proof of change in residency status.

In all other cases, NSCs cannot be broken before the maturity period. If you need access to funds before the maturity of your NSC, you may consider other investment options that offer flexibility in terms of withdrawal or partial withdrawal.