⌖ Utility / Investment & Rates
Rates of NSC Interest.
Quarter-wise NSC VIII issue interest rate — notified by 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.