Find the maturity value of a National Savings Certificate after its fixed 5-year term.
NSC compounds annually over its fixed 5-year term, with the entire interest paid out as a lump sum alongside the original deposit at maturity — nothing is paid out along the way.
Maturity value: Deposit × (1 + rate)⁵
What is the current NSC interest rate?
7.7% per year for the Jan-Mar 2026 quarter, compounded annually and fixed for the full 5-year term once purchased.
Is NSC interest taxable?
Yes, the interest is taxable, though each year's accrued (but not yet received) interest is treated as reinvested and can itself be claimed under Section 80C, within the overall ₹1.5 lakh limit.