NSC interest rate 2026: Has National Savings Certificate interest rate changed for April-June quarter?

While many banks are offering less than 7% interest on their 5-year fixed deposits (FDs), the National Savings Certificate (NSC) scheme is offering as high an interest rate as 7.7%. NSC is a government-backed small savings scheme specifically designed for small-scale investors seeking a fixed income option.

"The rates of interest on various small savings schemes for the first quarter of FY 2026-27, starting from April 1, 2026, and ending on June 30, 2026, shall remain unchanged from those notified for the fourth quarter (January 1, 2026, to March 31, 2026) of FY 2025-26," the Finance Ministry has said in a notification.

Latest NSC interest rate

A 7.7% interest rate in NSC is applicable for the April-June 2026 quarter.


Also read: SCSS interest rate 2026: Has Senior Citizen Savings Scheme interest rate changed for April-June quarter?

Salient features of NSC

The minimum investment amount in NSC is Rs 1,000, and additional deposits can be made in multiples of Rs 100. There is no maximum investment limit, allowing investors to contribute any amount as per their financial capacity. Importantly, the amount invested in this scheme qualifies for tax deduction under the old tax regime, making it an attractive option for tax-saving purposes.

When does an NSC account mature?

An NSC account matures on completion of 5 years from the date of the deposit. The interest is deposited at the end of each year and the interest so accrued at the end of each year up to the end of the fourth year will be deemed to have been reinvested on behalf of the holder and aggregated with the amount of the face value of the certificate, as per the India Post website.

A certificate of annual interest accrual can be obtained from the post office on request or downloaded via DoP Internet Banking

Can an NSC account be closed prematurely?

An NSC account can not be closed before maturity except in the following cases, namely:
On the death of the account holder in a single account, or any or all the account holders in a joint account.
On forfeiture by a pledgee being a gazetted officer, when the pledge is in conformity with this scheme.
When ordered by a court.

Conditions when NSC account is closed prematurely

Where an NSC account is prematurely closed before the expiry of one year from the date of deposit, only the principal amount will be payable.

If an NSC account is prematurely closed after the expiry of one year but before the expiry of 3 years from the date of deposit, interest on the principal amount at the rate applicable to the Post Office Savings Account from time to time for complete months for which the account has been held, shall be payable.

NSC account closed after the expiry of three years.

If an NSC account is prematurely closed after the expiry of three years from the date of the opening, the amount payable, inclusive of interest accrued under for a deposit of Rs 1,000 and at a proportionate rate for other amounts of deposits, shall be as per Para 7(4).