Maturity value of a National Savings Certificate after 5 years at the current 7.7% rate.
How NSC interest works
Maturity = Amount × (1 + rate ÷ 100)5The National Savings Certificate (VIII issue) is a 5-year post-office scheme. Interest (7.7% a year) is compounded annually but paid only at maturity, so ₹1,00,000 becomes ₹1,44,903 after 5 years. The rate is fixed for the life of the certificate on the day you buy it.
Key rules
- Minimum ₹1,000, in multiples of ₹100; no upper limit.
- Investment qualifies for Section 80C (up to ₹1.5 lakh) in the old tax regime; the yearly accrued interest is treated as reinvested and also qualifies, except in the fifth year.
- No TDS, but interest is taxable in your hands.
- Can be pledged as collateral for a loan; premature closure only in special cases.
Rates change. The default rate is the one announced for the current quarter. You can type a different rate any time — the result updates instantly.
Sources & last reviewed
Small-savings interest rates notified quarterly by the Ministry of Finance (Department of Economic Affairs); this page uses the rate for the October–December 2026 quarter. Scheme rules follow the Government Savings Promotion Act, 1873 and the 2019 scheme rules. National Savings Certificates (VIII Issue) Scheme, 2019: 5-year term, 7.7% compounded yearly, paid at maturity.
Official sources: India Post – savings schemes · National Savings Institute
Last reviewed: 17 October 2026. Rules and rates change — if you spot something outdated, tell us and we will fix it.
Frequently asked questions
What is the NSC interest rate now?
7.7% per annum, compounded yearly, for certificates bought in the October–December 2026 quarter. Rates are reviewed every quarter.
How much will ₹1 lakh in NSC give after 5 years?
₹1,44,903 at 7.7% — total interest of ₹44,903.
Is NSC better than a 5-year bank FD?
NSC pays 7.7% with 80C benefit on the investment and on accrued interest (first 4 years). Most bank 5-year tax-saver FDs pay 6.5–7.25%. NSC interest is not paid out until maturity, so FDs suit those who need regular income.