What does ₹1 lakh in NSC give after 5 years?

At 7.7% a year, ₹1,44,903: ₹44,903 of interest, added once a year and paid at maturity.

Does NSC pay interest every year?

No. Interest is added to the certificate every year and paid with the amount invested after 5 years.

Can I cash an NSC early?

Only on the holder’s death, by a court order, or when a pledge on it is enforced.

Is NSC interest taxable?

Yes. Under the old tax regime, the interest added in each of the first four years counts as reinvested and qualifies for the ₹1.5 lakh deduction.

NSC Calculator: National Savings Certificate Maturity Value

Type the amount you invest. See what the National Savings Certificate pays after 5 years and the interest added each year, at the rate for this quarter.

Rate for October to December 2026, from the Ministry of Finance office memorandum F. No. 1/4/2019-NS of 30 September 2026; checked 11 October 2026. All small savings rates

How to use it

Type the amount: at least ₹1,000, in multiples of ₹100. There is no upper limit.
The rate opens on the NSC rate for this quarter. Change it to test another.

You get the maturity amount after 5 years, the interest, and the value at the end of each year.

How NSC interest works

A National Savings Certificate pays nothing until it matures. Interest is added once a year and earns interest itself, and the whole amount is paid after 5 years, at the rate fixed on the day you buy the certificate.

Maturity = amount × (1 + yearly rate)^5

Worked example

₹1,00,000 at 7.7% a year:

Year	Interest added	Value at year end
1	₹7,700	₹1,07,700
2	₹8,293	₹1,15,993
3	₹8,931	₹1,24,924
4	₹9,619	₹1,34,544
5	₹10,360	₹1,44,903

The certificate pays ₹1,44,903 after 5 years, of which ₹44,903 is interest. Each year’s interest is larger than the last because it is earned on the interest already added.

Rules

The certificate cannot be cashed before 5 years except on the holder’s death, by a court order, or when a pledge on it is enforced.
It can be pledged as security for a loan.

Tax

NSC interest is taxable. Under the old tax regime the amount invested counts towards the ₹1.5 lakh a year deduction, and so does the interest added in each of the first four years, because it is treated as reinvested; the fifth year’s interest is taxed when the certificate matures. The new tax regime gives no deduction.

Questions people ask

What does ₹1 lakh in NSC give after 5 years?: At 7.7% a year, ₹1,44,903: ₹44,903 of interest, added once a year and paid at maturity.
Does NSC pay interest every year?: No. Interest is added to the certificate every year and paid with the amount invested after 5 years.
Can I cash an NSC early?: Only on the holder’s death, by a court order, or when a pledge on it is enforced.
Is NSC interest taxable?: Yes. Under the old tax regime, the interest added in each of the first four years counts as reinvested and qualifies for the ₹1.5 lakh deduction.

NSC calculator