National Savings Certificate (NSC) interest rate, maturity table, eligibility and how to buy — complete guide.
| Investment | Maturity (5 yrs) | Interest Earned | Effective Return |
|---|---|---|---|
| ₹10,000 | ₹14,490 | ₹4,490 | 44.9% |
| ₹25,000 | ₹36,226 | ₹11,226 | 44.9% |
| ₹50,000 | ₹72,452 | ₹22,452 | 44.9% |
| ₹1,00,000 | ₹1,44,903 | ₹44,903 | 44.9% |
| ₹1,50,000 | ₹2,17,354 | ₹67,354 | 44.9% + 80C |
| ₹2,00,000 | ₹2,89,805 | ₹89,805 | 44.9% |
| ₹5,00,000 | ₹7,24,513 | ₹2,24,513 | 44.9% |
| Period | NSC Rate | PPF Rate | SSY Rate |
|---|---|---|---|
| Q1 FY 2026-27 (Apr-Jun 2026) | 7.7% | 7.1% | 8.2% |
| Q4 FY 2025-26 (Jan-Mar 2026) | 7.7% | 7.1% | 8.2% |
| Q3 FY 2025-26 (Oct-Dec 2025) | 7.7% | 7.1% | 8.2% |
| Q2 FY 2025-26 (Jul-Sep 2025) | 7.7% | 7.1% | 8.2% |
| Q1 FY 2025-26 (Apr-Jun 2025) | 7.7% | 7.1% | 8.2% |
| Q4 FY 2024-25 (Jan-Mar 2025) | 7.7% | 7.1% | 8.2% |
NSC full form is National Savings Certificate. It is a government-backed fixed income savings scheme available at post offices and major banks across India. NSC was designed to encourage small savings and provide a safe, guaranteed return for conservative investors. The scheme is backed by the Government of India — there is zero credit risk.
NSC has a fixed 5-year tenure. Once you invest, you get a certificate (now electronic) and receive the full maturity amount after 5 years. Interest is compounded annually but there are no annual payouts — all interest is received at maturity along with the principal. The current rate of 7.7% p.a. makes it one of the highest-yielding government-backed savings instruments available.
NSC (7.7%) beats both PPF (7.1%) and 5-year tax-saving FD (7.0-7.4%) on interest rate. However, PPF interest is completely tax-free while NSC interest is taxable (except for 80C benefit in Years 1-4). For investors in the 30% tax bracket, PPF's effective return of 7.1% tax-free beats NSC's effective post-tax return of approximately 5.4%. For investors in 0-5% tax bracket, NSC wins clearly. SSY at 8.2% is the best government scheme but only for girl children below 10 years.
Offline: Visit any post office with Aadhaar, PAN card, and a passport-size photo. Fill the NSC application form, pay by cash/cheque/DD. You receive a physical or electronic certificate. Minimum investment: ₹1,000. No maximum limit. Offline process takes 30-60 minutes.
Online: Available through India Post Payments Bank (IPPB) internet banking and mobile app for existing IPPB customers. IPPB account holders can invest in NSC in minutes without visiting a post office. This digital facility was launched in 2023 and makes NSC investment much more convenient for tech-savvy investors.
The principal amount invested in NSC qualifies for Section 80C deduction up to ₹1.5 lakh per year under the old tax regime. Additionally, the interest accrued in Years 1, 2, 3, and 4 is deemed to be reinvested in NSC and also qualifies for 80C deduction — this is a unique dual benefit not available with most other 80C instruments. Only Year 5 interest is purely taxable. This makes NSC particularly tax-efficient for those in lower tax brackets.