Glossary term

NSC

5-year Post Office savings instrument with annual compounding — currently 7.7%, 80C eligible, fully taxable at maturity.

National Savings Certificate (NSC) is a 5-year government savings instrument sold at Indian Post Offices. Current rate: 7.7%, compounded annually but reinvested (so you receive the full amount only at maturity).

The annual interest accrual is taxable, but counts as 'reinvested' for years 1–4 — so it effectively counts toward Section 80C for those years. Year 5 interest is taxable as regular income.