National Savings Certificate: ₹1 lakh at 7.7% for 5 years = ₹1,44,903. Annual compounding. 80C deduction every year.
7.7% guaranteed return80C deduction every year5-year lock-in
🏛️ NSC Investment Details
₹1L
Minimum ₹1,000. No maximum. Multiples of ₹100 only.
7.7%
Current NSC rate: 7.7% p.a. (Q1 FY 2026-27). Set by government quarterly.
NSC has fixed 5-year tenure. Cannot be extended.
💰 NSC Maturity Results
Maturity Amount (after 5 years)
₹1,44,903
₹1,00,000 invested at 7.7% for 5 years
₹1,00,000
Amount Invested
₹44,903
Interest Earned
₹5,00,000
Total 80C Benefit
7.7%
Effective Return
Investment₹1,00,000
Interest rate7.7%
CompoundingAnnual
Maturity period5 years
Year 1 interest (80C eligible)—
Tax on maturity interest—
📊 Year-wise Growth of NSC Investment
Year
Opening Balance
Interest Earned
Closing Balance
80C Deduction
📊 NSC vs Other Post Office Schemes — April 2026
Scheme
Rate
Tenure
80C
Taxability
PPF
7.1%
15 years
Yes
EEE (fully tax-free)
NSC
7.7%
5 years
Yes
Interest taxable
SSY (Daughter)
8.2%
21 years
Yes
EEE (fully tax-free)
SCSS (Senior)
8.2%
5 years
Yes
Interest taxable
Post Office TD (5yr)
7.5%
5 years
Yes
Interest taxable
KVP
7.5%
115 months
No
Taxable
NSC 80C benefit trick: The interest earned on NSC in years 1-4 is deemed to be reinvested and qualifies for 80C deduction each year! So you get 80C deduction not just on your investment but also on interest earned in years 1-4. Only year 5 interest is fully taxable.