⌖ Utility / Investment & Rates
Rates of NSC Interest.
Quarter-wise NSC VIII issue interest rate, as notified by the Department of Economic Affairs.
As of
Q1 FY 2025-26: DEA notification effective 1 April 2025
⌖ Context
National Savings Certificate (VIII Issue) is a five-year small savings instrument offered through India Post. The interest rate is reset quarterly by the Department of Economic Affairs, Ministry of Finance, typically in the last week of the preceding quarter. Interest is compounded annually but payable on maturity. The principal qualifies for deduction under Section 80C (old regime); interest reinvested (other than in the final year) is also eligible for 80C within the overall ₹1.5L cap.
⌖ Source
DEA, Ministry of Finance: quarterly notifications
Quarter-wise NSC VIII interest rate
| Quarter | Rate (annual, compounded annually) |
|---|---|
| Q1 FY 2025-26 (Apr–Jun 2025) | 7.7% |
| Q4 FY 2024-25 (Jan–Mar 2025) | 7.7% |
| Q3 FY 2024-25 (Oct–Dec 2024) | 7.7% |
| Q2 FY 2024-25 (Jul–Sep 2024) | 7.7% |
| Q1 FY 2024-25 (Apr–Jun 2024) | 7.7% |
| Q4 FY 2023-24 (Jan–Mar 2024) | 7.7% |
| Q3 FY 2023-24 (Oct–Dec 2023) | 7.7% |
| Q2 FY 2023-24 (Jul–Sep 2023) | 7.7% |
| Q1 FY 2023-24 (Apr–Jun 2023) | 7.7% |
| Q4 FY 2022-23 (Jan–Mar 2023) | 7.0% |
| Q3 FY 2022-23 (Oct–Dec 2022) | 6.8% |
| Q2 FY 2022-23 (Jul–Sep 2022) | 6.8% |
| Q1 FY 2022-23 (Apr–Jun 2022) | 6.8% |
| FY 2021-22 (all quarters) | 6.8% |
| FY 2020-21 (all quarters) | 6.8% |
| FY 2019-20 (Apr–Jun) | 8.0% |
Rate locked at the time of purchase remains fixed for the full 5-year tenor. Subsequent quarter revisions do not affect existing certificates.
Maturity value of ₹100 (NSC VIII at current 7.7% rate)
| End of Year | Cumulative Value (₹) |
|---|---|
| 1 | 107.70 |
| 2 | 116.00 |
| 3 | 124.93 |
| 4 | 134.55 |
| 5 (maturity) | 144.91 |
₹100 invested at 7.7% compounded annually matures to approximately ₹144.91 after 5 years.
Tax treatment
Principal: deductible under Section 80C up to ₹1.5L (old regime only).
Interest accrued in years 1–4: deemed to be reinvested, qualifies for Section 80C within the overall cap, but must be offered to tax under 'income from other sources' in the same year. Net effect: tax-neutral within 80C limit.
Interest in year 5 (final year): taxable in full; no 80C set-off available.
TDS: India Post does not deduct TDS on NSC interest, but the certificate-holder is liable to declare and pay tax.