The National Savings Certificate (NSC) is one of India’s trusted, long-term, government-backed savings schemes. Here’s a clear and simple overview, including current interest rates:
Current NSC Interest Rate
- From July to September 2025, the interest rate remains steady at 7.7% per annum, compounded annually and paid on maturity.
- The government chose not to change NSC rates despite an RBI repo rate cut, keeping returns stable for investors.
Quarterly Rate Stability
- NSC’s rate has been unchanged for three consecutive quarters: Jan–Mar, Apr–Jun, and now Jul–Sep 2025.
- Reflects government efforts to provide consistent returns for conservative investors.
Why NSC is Popular
- Guaranteed returns at 7.7%, higher than most regular FDs (key for risk-averse investors) .
- Tax deduction under Section 80C (up to ₹1.5 lakh yearly).
- Low risk—fully backed by the Government of India.
How the Returns Work
- Minimum investment: ₹1,000, with no upper limit.
- Lock-in: 5 years, compounded annually and paid at maturity.
- Example: ₹10,000 becomes about ₹14,450 after 5 years at 7.7% interest.
Quick Facts Table
| Feature | Detail |
|---|---|
| Interest Rate | 7.7% p.a. (Jul–Sep 2025) |
| Compounding | Annual, paid at maturity |
| Tenure | 5 years |
| Investment Limits | ₹1,000 minimum; no maximum |
| Tax Benefits | Under Section 80C |
| Where to Buy | Post offices (and some banks) |
Should You Invest?
Pros:
- Safe and guaranteed returns
- Tax benefits under 80C
- No upper limit on investment
- Simple and transparent
Cons:
- 5-year lock-in, no premature withdrawal
- Interest is taxable in the year it is credited
- Might give lower return than market-linked options
Bottom Line
NSC remains a reliable, tax-efficient, and secure investment for those seeking steady returns over a 5-year term. With 7.7% interest, no rate change for three quarters, and tax benefits, it’s ideal for risk-averse investors.
