National Savings Certificate (NSC) 2026: 7.7% Interest & Tax Benefits
Looking for a safe, government-backed investment with tax benefits? The National Savings Certificate (NSC) is one of India's most trusted fixed-income instruments. As of 2026, it offers a competitive 7.7% annual interest rate with complete capital safety.
Current NSC Interest Rate (2026)
💰 Interest Rate: 7.7% per annum
For the quarter January to March 2026, the government has set the NSC interest rate at 7.7%, compounded annually. Interest is paid at maturity (not periodically).
Key Features of NSC
- Tenure: Fixed 5 years (No premature withdrawal)
- Minimum Investment: ₹1,000 (No maximum limit)
- Safety: 100% Government-backed (Zero risk)
- Compounding: Annual compounding, paid at maturity
- Availability: Any Post Office branch across India
NSC Maturity Calculator 2026
How much will your investment grow in 5 years at 7.7% p.a.?
| Investment Amount | Maturity Value (5 Years) | Total Interest Earned |
|---|---|---|
| ₹10,000 | ₹14,500 | ₹4,500 |
| ₹50,000 | ₹72,500 | ₹22,500 |
| ₹1,00,000 | ₹1,45,000 | ₹45,000 |
| ₹1,50,000 | ₹2,17,500 | ₹67,500 |
| ₹5,00,000 | ₹7,25,000 | ₹2,25,000 |
Tax Benefits Under Section 80C
NSC offers dual tax benefits:
- Principal Investment: Eligible for deduction under Section 80C (up to ₹1.5 Lakh per year).
- Deemed Reinvested Interest: The annual interest (though not paid out) is considered reinvested and also qualifies for 80C deduction for the first 4 years.
Note: Interest earned is taxable at maturity as per your income tax slab. No TDS is deducted.
How to Buy NSC in 2026?
- Visit your nearest Post Office branch.
- Fill the NSC Application Form.
- Submit KYC documents (Aadhaar, PAN).
- Pay the investment amount (Cash/Cheque/DD).
- Receive the NSC Certificate (Physical document).
Pro Tip: You can buy multiple NSC certificates in different denominations (₹1,000, ₹5,000, ₹10,000, etc.) for flexibility.
NSC vs PPF: Which is Better?
| Feature | NSC | PPF |
|---|---|---|
| Interest Rate | 7.7% | 7.1% |
| Tenure | 5 Years (Fixed) | 15 Years (Extendable) |
| Tax on Interest | Taxable | Tax-Free (EEE) |
| Liquidity | No premature withdrawal | Partial withdrawal after Year 7 |
| Best For | Short-term (5 years) | Long-term retirement |
Who Should Invest in NSC?
- Risk-averse investors seeking guaranteed returns.
- Tax savers looking to maximize Section 80C benefits.
- Medium-term planners (5-year goal like child's education).
- Senior citizens who want fixed income without market risk.
💡 Expert Verdict: NSC in 2026
NSC hits the "sweet spot" for many investors: High Safety + Higher Rate (7.7%) than Bank FDs + Tax Benefits. It is one of the few debt instruments that still offers a meaningful real return above inflation.
🧩 The "Laddering" Strategy
Instead of investing a lump sum, buy NSC certificates every year. After 5 years, one certificate will mature every year, creating a continuous cycle of liquidity and reinvestment!
Conclusion
With 7.7% interest and government backing, NSC remains a solid choice for conservative investors in 2026. While the interest is taxable, the dual 80C benefit (on principal + deemed interest) makes it attractive for tax planning.
Visit your nearest Post Office today to invest in NSC!