When it comes to secure and high-yield investment options, the Post Office National Savings Certificate (NSC) remains one of the most trusted schemes for Indian investors. Backed by the Government of India, NSC is a low-risk, fixed-income savings plan that offers guaranteed returns over a 5-year tenure.
In 2025, this popular scheme continues to attract middle-class and salaried individuals due to its tax benefits, guaranteed returns, and easy availability. If you’ve heard that you can earn ₹14,49,034 in 5 years through NSC, this blog explains exactly how it works and how much you need to invest to reach that figure.
📌 What is the National Savings Certificate (NSC)?
The NSC is a fixed-income investment scheme offered by India Post, primarily for individual investors who want to invest a lump sum for 5 years and receive a guaranteed return at the end of the maturity period.
🔑 Key Features of NSC 2025:
- Interest Rate (2025): 7.7% per annum (compounded annually)
- Tenure: 5 years
- Minimum Investment: ₹1,000 (in multiples of ₹100)
- Maximum Limit: No upper cap
- Tax Benefit: Under Section 80C (up to ₹1.5 lakh)
- Maturity: Lump sum amount after 5 years
- Premature Withdrawal: Not allowed, except in special cases (e.g., death of investor, court order)
💰 How to Earn ₹14,49,034 in 5 Years with NSC?
To earn ₹14.49 lakh in 5 years, you need to invest a large lump sum amount due to the fixed and compounding nature of the scheme. Let’s break it down:
🧮 Example Calculation:
Let’s assume the interest rate is 7.7% compounded annually (as applicable in July 2025).
If you want a maturity amount of ₹14,49,034, here’s how much you need to invest:
Using the compound interest formula:
Maturity Amount = Principal × (1 + r)^n
Where,
- r = annual interest rate (7.7% or 0.077)
- n = number of years (5)
So,
Principal = ₹14,49,034 / (1 + 0.077)^5
Principal ≈ ₹10,00,000
✅ Therefore, if you invest ₹10 lakh in NSC in 2025, at 7.7% compounded annually, your maturity amount in 5 years will be around ₹14,49,034.
📊 NSC Returns Table (2025)
| Investment Amount | Maturity Amount After 5 Years |
|---|---|
| ₹1,00,000 | ₹1,44,903 |
| ₹2,00,000 | ₹2,89,806 |
| ₹5,00,000 | ₹7,24,517 |
| ₹10,00,000 | ₹14,49,034 |
| ₹15,00,000 | ₹21,73,551 |
These figures assume a constant interest rate of 7.7% p.a. for the next 5 years.
🎯 Benefits of Investing in NSC
✅ Guaranteed Returns
As it is a government-backed scheme, your investment is safe from market risks. You get a fixed return on your investment.
✅ Tax Savings
Investments up to ₹1.5 lakh per year are eligible for tax deduction under Section 80C of the Income Tax Act.
✅ Easy Accessibility
You can buy NSC certificates at any post office in India with minimal paperwork.
✅ Compounding Interest
Interest is compounded annually and reinvested, which boosts your returns significantly over 5 years.
✅ Nomination Facility
You can nominate a family member, spouse, or child in case of your untimely demise.
👴 Is NSC Suitable for Senior Citizens?
Absolutely! While NSC does not offer a special interest rate for senior citizens like some bank FDs do, it is still a safe and profitable option due to:
- Capital safety
- Compounded returns
- Short-term lock-in (5 years)
- Government guarantee
🧾 Taxation on NSC
- Section 80C Deduction: The principal amount you invest in NSC is eligible for tax deduction up to ₹1.5 lakh per year.
- Interest Accrual: The interest earned every year is added to your taxable income under “Income from Other Sources.”
- However, the interest earned in the first 4 years is considered reinvested, and qualifies again for Section 80C benefit.
📝 How to Buy NSC?
You can invest in NSC both offline and online:
🏤 Offline (Post Office):
- Visit the nearest post office.
- Fill NSC application form.
- Submit KYC documents (PAN, Aadhaar, address proof).
- Pay via cash, cheque, or demand draft.
- Collect the NSC certificate or e-certificate.
🌐 Online (India Post Internet Banking):
- Log in to India Post net banking.
- Go to “General Services” → “New Request” → “NSC.”
- Select account, amount, and nominee.
- Confirm payment.
🤔 Who Should Invest in NSC?
- Salaried individuals who want guaranteed tax-saving investments.
- Risk-averse investors looking for fixed returns.
- Parents investing for children’s short-term goals.
- Senior citizens looking for safe parking of retirement corpus.
⚠️ Things to Keep in Mind
- No premature withdrawal unless under specific circumstances.
- Interest is taxable, although the first 4 years’ interest qualifies under Section 80C.
- No monthly or quarterly payout – returns are paid only at maturity.
📌 Final Thoughts
The National Savings Certificate (NSC) is a time-tested, reliable savings option for those who seek safety, stability, and reasonable returns. In 2025, with an interest rate of 7.7%, NSC continues to outperform many traditional instruments in terms of low-risk wealth creation.
If you’re planning to invest a lump sum and want your money to grow without worrying about market fluctuations, NSC is an ideal pick. An investment of ₹10 lakh today can become ₹14.49 lakh in just 5 years — all under the safe umbrella of the Government of India.
