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By Ashutosh Joshi, PGDM (Finance), B.Com · Page last reviewed:
NSC pays 7.7% a year, compounded yearly and fixed for 5 years, on certificates bought 1 Oct – 31 Dec 2026. ₹10,000 becomes about ₹14,490 at maturity.
Key Highlights
- NSC (VIII issue) pays 7.7% a year, compounded yearly and paid at maturity, for certificates bought 1 Oct – 31 Dec 2026.
- 7.7% has applied since April–June 2023, up from 7.0%.
- ₹10,000 grows to about ₹14,490 in 5 years.
- Deposits qualify for section 123 (old 80C) in the old regime.
NSC is a 5-year certificate sold at post offices. The rate on the day you buy it is fixed for the full five years. Read: section 123 (80C) options
Calculate with today’s rate
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Your next questions, answered
Is NSC better than an FD after tax?
NSC at 7.7% gives 5.30% after tax in the 30% slab, against 4.82% for a 7% FD. Both are taxable. NSC also counts for the old-regime deduction under section 123.
Does NSC beat inflation?
After tax in the 30% slab, the real return at 6% inflation is -0.66%. In the 20% slab it is 0.09%.
Diving Finance view: expert take by Ashutosh Joshi
- NSC suits a fixed 5-year goal if you want certainty. For growth over the same period, consider a debt-fund SIP if you can take some risk.
This is general guidance, not personal advice. Check your own goals, tax slab and risk appetite.
How it compares after tax and inflation
| Option | Pre-tax | Post-tax (30% slab) | Post-tax (20% slab) | Real return after 6% inflation (30% slab) |
|---|---|---|---|---|
| NSC | 7.7% | 5.30% | 6.10% | -0.66% |
| PO TD 5-yr | 7.5% | 5.16% | 5.94% | -0.79% |
| Bank FD (illustrative) | 7.0% | 4.82% | 5.54% | -1.12% |
| PPF | 7.1% | 7.10% | 7.10% | 1.04% |
Assumptions in the comparisons: income-tax slabs of 30% and 20% plus 4% cess (31.2% and 20.8%), an illustrative bank FD at 7%, long-run inflation of 6% and equity SIP returns of 10–12%, as used by our author. These are planning assumptions, not forecasts.
Worked example
₹10,000 at 7.7% compounded yearly becomes ₹14,490 after 5 years (₹10,000 × 1.077⁵). ₹1 lakh becomes about ₹1,44,903. The yearly interest is taxable at your slab rate.
Quarterly rate history (Apr 2016 – Dec 2026)
| Quarter | Rate (p.a.) |
|---|---|
| 2026-27 · Oct–Dec * | 7.7% |
| 2026-27 · Jul–Sep | 7.7% |
| 2026-27 · Apr–Jun | 7.7% |
| 2025-26 · Jan–Mar | 7.7% |
| 2025-26 · Oct–Dec | 7.7% |
| 2025-26 · Jul–Sep | 7.7% |
| 2025-26 · Apr–Jun | 7.7% |
| 2024-25 · Jan–Mar | 7.7% |
| 2024-25 · Oct–Dec | 7.7% |
| 2024-25 · Jul–Sep | 7.7% |
| 2024-25 · Apr–Jun | 7.7% |
| 2023-24 · Jan–Mar | 7.7% |
| 2023-24 · Oct–Dec | 7.7% |
| 2023-24 · Jul–Sep | 7.7% |
| 2023-24 · Apr–Jun | 7.7% |
| 2022-23 · Jan–Mar | 7.0% |
| 2022-23 · Oct–Dec | 6.8% |
| 2022-23 · Jul–Sep | 6.8% |
| 2022-23 · Apr–Jun | 6.8% |
| 2021-22 · Jan–Mar | 6.8% |
| 2021-22 · Oct–Dec | 6.8% |
| 2021-22 · Jul–Sep | 6.8% |
| 2021-22 · Apr–Jun | 6.8% |
| 2020-21 · Jan–Mar | 6.8% |
| 2020-21 · Oct–Dec | 6.8% |
| 2020-21 · Jul–Sep | 6.8% |
| 2020-21 · Apr–Jun | 6.8% |
| 2019-20 · Jan–Mar | 7.9% |
| 2019-20 · Oct–Dec | 7.9% |
| 2019-20 · Jul–Sep | 7.9% |
| 2019-20 · Apr–Jun | 8.0% |
| 2018-19 · Jan–Mar | 8.0% |
| 2018-19 · Oct–Dec | 8.0% |
| 2018-19 · Jul–Sep | 7.6% |
| 2018-19 · Apr–Jun | 7.6% |
| 2017-18 · Jan–Mar | 7.6% |
| 2017-18 · Oct–Dec | 7.8% |
| 2017-18 · Jul–Sep | 7.8% |
| 2017-18 · Apr–Jun | 7.9% |
| 2016-17 · Jan–Mar | 8.0% |
| 2016-17 · Oct–Dec | 8.0% |
| 2016-17 · Jul–Sep | 8.1% |
| 2016-17 · Apr–Jun | 8.1% |
Yearly rates, 2011-12 to 2015-16
| Year | Rate |
|---|---|
| 2015-16 | 8.5% |
| 2014-15 | 8.5% |
| 2013-14 | 8.5% |
| 2012-13 | 8.6% |
| 2011-12 (from 1 Dec 2011) | 8.4% |
Before 2011-12
Not published by source in a usable form: the NSI table for 1990-91 to 2010-11 does not line up values with years for this scheme, and RBI Handbook Table 111 only gives rates from 1 April 2016. We will add earlier years only from a clean official table.
Rate chart
Key rules
- Minimum ₹1,000, no maximum; tenure 5 years.
- Interest compounds yearly and is paid at maturity.
- Qualifies for section 123 (old 80C) in the old regime, per RBI Handbook Table 111.
Source: DivingFinance, National Savings Certificate (NSC) Interest Rate (Oct–Dec 2026) & History, https://divingfinance.com/rates/nsc-interest-rate/ (data: National Savings Institute & Ministry of Finance; updated 21 Oct 2026)FAQs
What is the NSC interest rate now?
7.7% a year for October–December 2026.
What is the maturity value of ₹10,000 NSC?
About ₹14,490 after 5 years at 7.7%.
Does the NSC rate change during the term?
No. It is fixed from the purchase date for all 5 years.
Is NSC interest taxable?
Yes, at your slab rate, though the investment qualifies under section 123 in the old regime.
Is NSC better than an FD after tax?
NSC at 7.7% gives 5.30% after tax in the 30% slab, against 4.82% for a 7% FD. Both are taxable. NSC also counts for the old-regime deduction under section 123.
Does NSC beat inflation?
After tax in the 30% slab, the real return at 6% inflation is -0.66%. In the 20% slab it is 0.09%.
Related rates
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Repo, small savings, EPF, CPI and tax slabs, each with its source and date.
Change log
- 21 Oct 2026 – Page created. Quarterly history from NSI (Apr 2016 – Sep 2026); Oct–Dec 2026 from the DEA order of 30 Sep 2026.
How we collect this data
Rates come from the National Savings Institute (Ministry of Finance) and the Department of Economic Affairs quarterly orders. Scheme rules come from the official scheme notifications on the NSI site and RBI Handbook Table 111. Examples are our own calculations. Read our editorial policy and how we calculate. For information only, not investment advice.