Quick answer
NSC earns 7.7% a year, compounded yearly and paid at maturity after 5 years. ₹1 lakh becomes about ₹1,44,903. In the old regime, the accrued interest in years 1–4 counts as reinvested and qualifies for 80C.
Key takeaways
- Current rate: 7.7% p.a. for Oct–Dec 2026 (Q3 FY 2026-27). The government resets it every quarter.
- No upper limit on investment. Minimum is ₹1,000.
- Interest is taxable, but it is only paid out at maturity.
NSC formula
Maturity = P × (1 + r)5Frequently asked questions
Is NSC better than FD?
NSC's 7.7% is usually higher than bank FD rates for 5 years and is backed by the government. Both are taxable. An FD offers more flexibility, since NSC cannot be closed early except in special cases.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.