National Savings Certificate (NSC): Interest Rate, Eligibility, Tax Benefit & Rules
National Savings Certificate (NSC) is a Government-backed small savings scheme available through Post Offices. The current NSC VIII Issue has a fixed five-year maturity and offers a government-notified rate of interest that is locked in for the investment at the time the account is opened.
Updated: 1 September 2026NSC Interest Rate for July-September 2026
The Government of India has kept the interest rates on Small Savings Schemes unchanged for the second quarter of FY 2026-27. Accordingly, the National Savings Certificate carries an interest rate of 7.7% per annum for accounts opened from 1 July 2026 to 30 September 2026.
Interest is compounded annually but is payable at maturity. The rate applicable when the NSC account is opened remains applicable to that account for its five-year term.
| Period | NSC Interest Rate | Compounding / Payment |
|---|---|---|
| 1 July 2026 to 30 September 2026 | 7.7% p.a. | Compounded annually; payable at maturity |
| 1 April 2026 to 30 June 2026 | 7.7% p.a. | Compounded annually; payable at maturity |
Features of National Savings Certificate
- Government-backed small savings product operated through eligible Post Offices.
- The current NSC VIII Issue matures after five years.
- Minimum opening deposit: ₹1,000; higher investment in multiples of ₹100.
- There is no statutory maximum investment limit, though the amount eligible for Section 80C deduction is subject to the overall tax-law limit.
- Any number of NSC accounts may be opened, subject to the applicable rules and KYC requirements.
- Single-holder and permitted joint accounts can be opened.
- An adult may open an account for a minor or a person under guardianship; a minor aged 10 years or above may open an account as permitted by the scheme.
- NSC may be pledged or transferred in circumstances permitted by the applicable Government Savings rules.
Who Can Invest in NSC?
NSC is an individual small-savings product under the National Savings Certificate (VIII Issue) Scheme, 2019. An eligible individual may open the prescribed account type for self, jointly with other eligible adults, or on behalf of a minor / person under guardianship as permitted by the rules.
Permitted account types
| Account type | Broad rule |
|---|---|
| Single Holder | An adult for self, an eligible guardian for a minor/person under guardianship, or a minor aged 10 years or above as permitted by the scheme. |
| Joint A | Up to three adults; payable jointly or to survivor(s). |
| Joint B | Up to three adults; payable to any holder or survivor(s), subject to the scheme rules. |
Tax Benefits and Taxation of NSC
Investment in National Savings Certificate is an eligible item under Section 80C of the Income-tax Act, 1961. The combined maximum deduction under Sections 80C, 80CCC and 80CCD(1) is generally ₹1,50,000, subject to the applicable conditions.
Interest accrued on NSC is taxable under the applicable income-tax provisions. Interest for the earlier years is generally treated as reinvested until the final year and may qualify under Section 80C within the overall limit where the taxpayer is otherwise entitled to claim that deduction. Final-year interest is not reinvested because the certificate matures.
How to Open a National Savings Certificate Account
An NSC account can be opened at a Post Office offering the NSC VIII Issue. India Post uses a common Application for Opening of Account / Purchase of Certificate (SB-AOF).
- Complete the prescribed account-opening / certificate-purchase application.
- Provide PAN, Aadhaar or other accepted KYC documents, photographs and any additional documents required under current KYC rules.
- Select the appropriate NSC VIII Issue account type.
- Deposit at least ₹1,000; higher amounts must follow the prescribed multiples.
- Retain the passbook / deposit record for tax and maturity purposes.
Documents commonly required
- Completed application form.
- PAN and Aadhaar / permitted identity and address documents.
- Recent photograph(s), where required.
- Proof of date of birth for a minor account, as applicable.
- Source-of-funds documents where required under KYC / anti-money-laundering rules for higher-value investments.
Premature Closure of NSC
NSC is ordinarily held for five years. Premature closure is permitted only in the limited circumstances specified by the scheme, including specified cases connected with the death of an account holder, forfeiture by an authorised pledgee and an order of a court.
Transfer of NSC
Transfer between Post Offices and transfer of ownership are governed by the Government Savings Promotion General Rules, 2018 and the NSC Scheme. Old standalone Form 32 / Form 34 references should not be treated as the current universal procedure; use the India Post form and process prescribed at the time of transfer.
Loan or Pledge Against NSC
NSC may be pledged as security in favour of an eligible pledgee under the applicable rules. Any loan amount, margin, interest rate and documentation are determined by the lender and are not fixed by the NSC scheme.
Official NSC Forms, Rules and Government Links
Use current official sources rather than old archived local form copies.
Frequently Asked Questions
What is the NSC interest rate now?
For accounts opened from 1 July 2026 to 30 September 2026, the notified NSC rate is 7.7% per annum. Check the latest Government notification for later quarters.
How long is the current NSC lock-in period?
The current NSC VIII Issue matures after five years. The old 10-year NSC IX Issue is not the current product for new investment.
What is the minimum amount for NSC?
The minimum opening deposit is ₹1,000. Higher amounts may be deposited in multiples of ₹100, with no statutory maximum investment ceiling.
Can NSC save income tax?
Qualifying investment is included under Section 80C within the combined ₹1.5 lakh limit, but Section 80C is generally unavailable under the new tax regime under Section 115BAC.
Can NSC be withdrawn before five years?
Normally no. Premature closure is allowed only in limited circumstances prescribed by the scheme.
Disclaimer: This page is for general information. Small-savings interest rates, tax provisions, forms and operating procedures may change through Government notifications. Verify the latest position from the Department of Economic Affairs, India Post and the Income Tax Department before investing or claiming a tax benefit.