The National Savings Certificate (NSC VIII Issue) is a popular Central Government savings scheme offered through post offices. It suits people who want to invest a lump sum, forget about it for 5 years, and receive the principal with interest together at maturity. For the October to December 2026 quarter, NSC pays interest at 7.7% a year, compounded annually and paid at maturity.
Interest rate and maturity value
NSC pays interest at 7.7% a year, compounded annually, but the interest is paid only at maturity. The rate in force when you buy the certificate stays fixed for the full 5 years — later rate changes do not affect a certificate already bought. If someone buys an NSC of ₹1 lakh, they receive about ₹1,44,903 after 5 years — this figure is calculated at the 7.7% rate. The interest keeps adding to the balance every year, so the amount grows steadily until maturity.
How much can you invest
The minimum investment in NSC is ₹1,000, and further amounts must be in multiples of ₹100. There is no maximum limit — a person can buy certificates of any amount. NSC is available in denominations of ₹100, ₹500, ₹1,000, ₹5,000 and ₹10,000, so both small and large investments are possible. One person can hold several NSC accounts, and a joint account can also be opened.
How the tax deduction works
The amount invested in NSC qualifies for a deduction under Section 80C in the old tax regime — the overall deduction limit is ₹1.5 lakh a year. NSC has a special feature: the interest earned each year is treated as reinvested, so it also qualifies for a Section 80C deduction — only the final year’s interest is outside this benefit, because that is the year of maturity. Note that the Section 80C deduction is generally not available in the new tax regime, so the benefit depends on which regime you choose.
How to buy and early encashment
NSC can be bought at any post office — fill the form with an Aadhaar card, PAN card and photograph. Any resident Indian adult can buy NSC, and an account can also be opened in the name of a minor. The term of NSC is 5 years, and it can be encashed before maturity only in special circumstances — such as the death of the holder, a court order, or forfeiture under the prescribed rules. So invest in NSC only money you will not need for 5 years.
Frequently Asked Questions
Q1: What is the NSC interest rate for October–December 2026?
A: 7.7% a year, compounded annually and paid at maturity. This rate applies from 1 October to 31 December 2026.
Q2: What is the minimum investment in NSC?
A: ₹1,000 — further amounts must be in multiples of ₹100, and there is no maximum limit.
Q3: Does NSC give a tax deduction?
A: Yes, in the old tax regime the investment qualifies under Section 80C up to ₹1.5 lakh, and each year’s interest is also treated as reinvested.
Q4: When does NSC mature?
A: After 5 years — principal and full interest are paid together at maturity. Early encashment is allowed only in special circumstances.
Useful links
- Post Office Savings Schemes (India Post): https://www.indiapost.gov.in/banking-services/savings
- National Savings Certificate on MyScheme: https://www.myscheme.gov.in/schemes/nscs
- Next Action: see all 726 Central Government schemes — /english/kendra-sarkar-ki-yojnayen-2/
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