NSC is a post-office savings certificate with a fixed 5-year tenure. Interest is compounded annually and paid at maturity — interest in years 1–4 qualifies for 80C deduction too.
—
Interest is compounded annually. Interest accruing in years 1–4 is deemed re-invested and qualifies for Section 80C deduction each year.
NSC rate may be revised quarterly by the government. See our full disclaimer.