NSC interest rate: current rate, chart and history

5 year NSC interest rate chart in rupees

For any other amount, the NSC calculator gives the full table.

How the NSC rate has moved

NSC once paid 8% and more. When bond yields fell, its rate came down step by step and settled at 6.8%, where it stayed for close to three years. As yields climbed again, the government raised it to 7.0% and then to 7.7%. It has been held at 7.7% for many quarters since.

The point for a saver: the rate printed on your certificate is the one you get. Savers who bought at 6.8% still earn 6.8% until their five years are up.

NSC interest rate for 10 years and longer

NSC runs for five years only. People asking for an NSC interest rate for 10 years usually plan to reinvest at maturity. The rerun earns the rate of its own purchase day, up or down. At today's rate, ₹1 lakh reinvested for ten years in total would become about ₹2.1 lakh.

Why the NSC rate sits above the 5 year FD

NSC keeps your interest inside the certificate for five years and gives the government the money for the full term without yearly payouts. The 5 year time deposit pays interest every year, so the government gives up use of that interest sooner. That small difference in how long the money stays is reflected in a slightly higher NSC rate. For you, it means NSC grows a lump sum faster, while the TD suits those wanting a yearly payout.

NSC rate for senior citizens

No. NSC pays the same 7.7% to every holder. A senior citizen who wants a higher government rate should look at SCSS, which pays 8.2% but pays out every quarter instead of compounding. The SCSS guide compares the two.

Postal NSC interest rate vs bank options

Banks do not sell NSC, so a separate bank NSC interest rate, which people search for, does not exist; a bank can only hold an NSC as a pledge. Closest at a bank: the five year tax saving fixed deposit. Its rate varies by bank and is often a little below 7.7% for regular customers.

How the government sets the NSC rate

The Finance Ministry links each small savings rate to the yield on government bonds of a similar maturity, plus a small spread, and announces it quarterly. For NSC, the reference is five year government bonds. When those yields rise for a sustained period, the NSC rate tends to follow, but the ministry can also choose to hold it steady. The latest notice is listed with all schemes on post office interest rates.

Current NSC interest rate: quick facts

• Rate of interest on NSC: 7.7% a year.
• Rate type: fixed for the certificate's life.
• NSC interest rate in post office branches, big or small: identical.
• Where the rate is printed: on your passbook or e certificate.

For the scheme as a whole, see NSC post office.