Post Office small savings schemes are known for offering safe and reliable returns.
If you are looking for a risk-free investment with decent interest, the National Savings Certificate (NSC) can be a smart choice.
It is backed by the government and suits people who want stable returns without market risk.
Here is everything you need to know about the NSC scheme in simple terms.
What Is the National Savings Certificate (NSC)?
NSC is a small savings scheme offered by the Post Office.
It is especially popular among middle-class investors and people planning for long-term savings or retirement.
You can start investing in NSC with just ₹1,000.
The scheme has a fixed lock-in period of 5 years, and there is no maximum investment limit.
This makes it suitable for both small and large investors.
Who Can Invest and What Are the Tax Benefits?
Only Indian residents can invest in the NSC scheme.
NRIs, companies, trusts, and HUFs are not eligible.
You can open the account individually or jointly with two or three people.
Adults can also invest in the name of a minor.
NSC also offers tax benefits.
Investments made in this scheme qualify for a deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act.
This helps reduce your taxable income while your money grows safely.
How Much Return Can You Expect?
NSC currently offers an interest rate of 7.7 percent per year.
The interest is compounded annually and paid at maturity after 5 years.
If you invest ₹10 lakh in NSC, you will earn around ₹4.49 lakh as interest over five years.
This means your total maturity amount will be approximately ₹14.49 lakh.
Year-Wise Interest Growth Explained
The interest builds up steadily every year. On an investment of ₹10 lakh, the interest earned would be approximately:
₹77,000 after the first year
₹1,59,929 after the second year
₹2,49,044 after the third year
₹3,45,620 after the fourth year
₹4,49,034 after the fifth year
This shows how NSC rewards patience with steady and predictable growth.
Why NSC Is a Good Risk-Free Option
NSC is ideal for investors who want safety, fixed returns, and tax savings.
With government backing, guaranteed interest, and low entry cost, it remains one of the most trusted long-term investment options available today.
If you want stable growth without worrying about market ups and downs, NSC is worth considering.
