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National Savings Certificate (NSC)

Government of India — small savings scheme · Government & Post Office Schemes

A five-year certificate that compounds interest annually and pays the whole amount at maturity.

7.70% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

National Savings Certificate (NSC) is a government schemes product from Government of India — small savings scheme, in the guaranteed category: fixed by contract. A five-year certificate that compounds interest annually and pays the whole amount at maturity.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • A five-year, tax-deductible commitment with a known end date
  • Collateral for a loan without selling the investment

Key facts

Provider
Government of India — small savings scheme
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
7.70% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹1,000 and in multiples of ₹100; no upper limit
Tenure
5 years
Payout
At maturity
Eligibility
Resident individuals, either alone or jointly. A guardian can invest for a minor.
Getting your money back
No premature encashment in normal circumstances. The certificate can be pledged as security for a loan.
Protection
A sovereign liability of the Government of India.
Tax
Qualifies for a deduction under Section 80C. Interest accrues each year and is taxable in that year even though it is paid at maturity — the accrued interest itself is treated as reinvested.

What can go wrong

  • Interest is taxed as it accrues, so you pay tax on money you have not received yet.
  • The five-year lock-in is rigid; exit is not normally possible.
  • The rate is fixed for the certificate, so later issues may offer more.

Before you decide anything

  • How the accrued interest is reported in your tax return
  • Whether the certificate is in single or joint names, and who it pays out to

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.