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NSC Calculator

National Savings Certificate maturity at 7.7%, compounded yearly over five years, with the accrued interest for each year shown for tax.

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Quick answer

NSC compounds yearly for five years and pays everything at maturity: ₹1,000 at 7.7% becomes ₹1,449.03, so ₹1 lakh becomes ₹1,44,903. Each year’s accrued interest counts as reinvested, which matters for tax under the old regime.

Rates as of 1 October to 31 December 2026 (Q3 FY 2026-27), notified 30 September 2026. National Savings Certificate (VIII issue): 7.7% a year. The government resets small savings rates every quarter; a deposit keeps the rate it was opened at, except PPF and SSY, which follow each quarter’s rate.

Sources: Department of Posts, SB Order No. 12/2026 (30 September 2026), enclosing Ministry of Finance OM F.No.1/4/2019-NS; India Post, Post Office Savings Schemes (current rates).

Minimum ₹1,000, no upper limit.

Maturity value (5 years)
₹1,44,903.38
₹1.45 L
Interest earned
₹44,903.38

Interest compounds yearly and is paid with the principal at the end of five years. Each year’s accrued interest is treated as reinvested, so under the old tax regime it counts as a fresh deduction for the first four years and is taxable at your slab.

Accrued interest by year (5 rows)
YearInterestValue
1₹7,700.00₹1,07,700.00
2₹8,292.90₹1,15,992.90
3₹8,931.45₹1,24,924.35
4₹9,619.18₹1,34,543.53
5₹10,359.85₹1,44,903.38

Formulas last verified 2026-10-10. Results are estimates, not financial advice. How we calculate.

One formula, five years

Maturity = P × (1 + r)⁵

Interest is added once a year and the next year's interest is earned on the larger sum. At 7.7%, ₹1,000 grows to ₹1,077.00, ₹1,159.93, ₹1,249.24, ₹1,345.44 and finally ₹1,449.03.

InvestedMaturity at 7.7%Interest
₹10,000₹14,490₹4,490
₹1,00,000₹1,44,903₹44,903
₹1,50,000₹2,17,355₹67,355

NSC against the alternatives

  • 5-year bank or Post Office FD: quarterly compounding, but a lower headline rate; see the FD calculator.
  • PPF: lower rate but tax-free and 15 years long; see the PPF calculator.
  • Saving monthly instead of a lump sum? A recurring deposit does the same job in instalments.

Frequently asked questions

What is the NSC interest rate now?

7.7% a year, compounded yearly and paid at maturity, for certificates bought in 1 October to 31 December 2026 (Q3 FY 2026-27). The rate on the day you buy is fixed for all five years.

How much does ₹1 lakh in NSC give after 5 years?

₹1,44,903 at 7.7%: ₹1,00,000 × 1.077⁵. Each ₹1,000 becomes ₹1,449.03.

Is NSC interest taxable?

Yes, at your slab. Under the old regime there is a twist: the interest accrued in years 1 to 4 is treated as reinvested, so it can be claimed within the ₹1.5 lakh deduction for that year while also being declared as income, which largely cancels the tax. Year 5’s interest is simply taxable. Under the new regime there is no deduction, so all the interest is taxed.

Can I cash an NSC early?

Only in narrow cases: the holder’s death, forfeiture by a pledgee, or a court order. Otherwise the certificate is locked for five years, so buy only money you will not need before then. It can, however, be pledged as security for a loan.

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