What is National Savings Certificate (NSC) interest rate for July-September 2026?

The ministry has decided to keep the NSC interest rate unchanged at 7.7%.

Interestingly, NSC interest rate has remained unchanged at 7.7% since April 1, 2025.

The NSC account can be opened only at a post office. While the 7.7% interest on the scheme is compounded annually, the accumulated interest is paid only at maturity after 5 years.

The NSC interest rate is expected to track the secondary market yields of G-secs of comparable maturities, topped by 25 basis points. However, the government often keeps rates unchanged even when there is a change in G-sec yields.

The NSC account can be opened by a single adult or jointly by up to three adults. A minor above 10 years of age can also open an NSC account, while a guardian can open it on behalf of a minor or on behalf of a person of unsound mind.

You can invest a minimum of ₹1000 under NPS. However, there is no limit on the maximum deposit limit under this scheme.

The savings certificates mature after 5 years. At 7.7% interest rate, the scheme will turn an initial investment of ₹1,00,000 into approx. ₹1,44,900 after five years.

Moreover, investments up to ₹1.5 lakh in the NSC account qualify for deduction under Section 123 of the Income-tax Act 2025 (Section 80C of the Income-tax Act, 1961). However, this benefit is available only under the old tax regime.

The interest earned from investments under NSC is taxable at applicable slab rates.