National Savings Certificate (NSC) interest rate October 2025: What was announced on Sep 30?

The NSC accounts can be opened in a post office.

The NSC scheme is offering 7.7% interest compounded annually, which is paid to investors on maturity. Earlier, the Ministry had kept the NSC interest rate unchanged for the July-September quarter.

Who is eligible to open NSC account?

According to the Post Office website, the NSC account can be opened by a single adult. It can also be opened as a joint account with up to three adults.

Further, a guardian on behalf of a minor or on behalf of a person of unsound mind can also invest in NSC.

NSC is one of the few savings schemes in India that allows minors above 10 years of age to have an account in their name.

The minimum deposit limit is ₹1000, and thereafter in multiples of ₹ 100. There is no limit on the maximum deposit an individual can make under NSC.

NSC deposits mature after 5 years. At the current interest rate, an investment of ₹1000 can grow to ₹1,449.00 on maturity. Investments under this scheme also qualify for deduction under Section 80C in the Old Tax Regime. However, the interest earned is not tax-free.

How is NSC interest rate decided?

The interest rates of small savings schemes like NSC, SCSS, PPF, and SSY are decided based on the secondary market yields of G-secs of comparable maturities plus 25 basis points. However, the Government often doesn't follow this formula strictly and decides based on its own requirements.