About NSC
- A 5-year fixed-income savings certificate sold at post offices, backed by the Government of India.
- Interest is compounded yearly but paid only at maturity. The rate is fixed for the whole term at the rate on the day you invest (7.7% p.a. at the time of writing; rates are revised quarterly).
- Minimum ₹1,000, no maximum limit.
- Tax: the investment qualifies for section 80C (old regime). The yearly interest is treated as reinvested and also qualifies for 80C in years 1–4, but the interest is taxable income.
- Premature closure is allowed only in special cases such as the holder's death or a court order.
Compare with other post office schemes: KVP · SCSS · Monthly Income Scheme · PPF.