National Savings Certificate (NSC) — Guide to Rate, Maturity, Tax & 80C Context
National Savings Certificate (NSC) is a fixed-income investment scheme backed by the Government of India, available at post offices across the country. It provides a notified small-savings rate under the applicable scheme terms, a 5-year maturity period and potential Section 80C treatment subject to the applicable tax rules and regime.
NSC Interest Rate and Compounding
The current NSC interest rate is 7.7% per annum for the July–September 2026 quarter (Q2 FY 2026-27). The Department of Economic Affairs confirmed that Q2 FY 2026-27 small-savings rates remained unchanged from Q1. Interest is compounded annually but paid out only at maturity (end of 5 years). This means your money grows through compounding but you don't receive periodic payouts. For ₹1,00,000 invested, maturity amount = ₹1,00,000 × (1.077)^5 = ₹1,44,903 approximately.
NSC Section 80C — Double Benefit
NSC investment can qualify for Section 80C subject to the applicable tax regime, conditions and combined limit. Interest accrued in years 1–4 is deemed reinvested under the scheme and may receive the corresponding tax treatment. We do not calculate personal tax savings here, because the result depends on your tax regime and other eligible deductions.
NSC vs PPF vs ELSS — Direct Comparison
NSC is a fixed-tenure government small-savings product with a 5-year maturity. PPF has a much longer horizon, while ELSS is market-linked and carries investment risk. Use the related calculators below to compare the numbers that matter for your own situation rather than assuming one product is universally better.
How to Buy NSC
NSC can be purchased at any post office branch in India with a minimum investment of ₹1,000 and no maximum limit. You need Aadhaar, PAN, and a passport photo. NSC can be held in single name, joint name (A or B type), or on behalf of a minor. The certificate can be pledged as collateral for bank loans. Premature closure is only allowed in specific cases like the death of the investor.
NSC Loan Facility
NSC certificates may be pledged as security in permitted circumstances. Loan availability, lender terms and eligible collateral value depend on the lender and applicable rules, so this calculator does not estimate a loan against NSC.