How the National Savings Certificate works
NSC (VIII issue) is a 5-year certificate sold at post offices. Interest is compounded every year and paid with the deposit at maturity: maturity value = amount × (1 + rate)^5, at the rate in force when you buy it. There is no upper limit; the minimum is ₹1,000.
The amount invested qualifies for section 80C in the old tax regime. The interest of the first four years is treated as reinvested, so it also counts towards 80C that year; the final year's interest is taxable. It can be pledged for a loan but not cashed early except on death or a court order.
Compare it with the PPF (tax-free, 15 years) and a bank FD.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .