How much will ₹5 lakh in NSC become after 5 years?
₹5 lakh invested in the National Savings Certificate at 7.7% becomes ₹7.25 L after 5 years, so you earn ₹2.25 L in interest before tax.
- Maturity value
- ₹7.25 L (good)
- After 5 years
- Interest earned
- ₹2.25 L (good)
- 31% of maturity
- Money multiple
- 1.45×
- Doubles in about 9.3 years
- Interest kept at 30% slab
- ₹1,57,162 (caution)
- Tax ₹67,355
- Worth in today's money
- ₹5.41 L
- At 6% inflation
Open the NSC Calculator with these numbers filled in
The numbers in charts
Your investment versus interest
- Amount you invest₹5 L · 69%
- Interest earned₹2.25 L · 31%
Show the numbers
| Part | Value | Share |
|---|---|---|
| Amount you invest | ₹5 L | 69% |
| Interest earned | ₹2.25 L | 31% |
NSC value by year
- Amount you invest
- Interest earned so far
Show the numbers
| Year | Amount you invest | Interest earned so far | Total |
|---|---|---|---|
| 0 | ₹0 | ₹0 | ₹0 |
| 1 | ₹5 L | ₹38,500 | ₹5.38 L |
| 2 | ₹5 L | ₹79,964 | ₹5.8 L |
| 3 | ₹5 L | ₹1.25 L | ₹6.25 L |
| 4 | ₹5 L | ₹1.73 L | ₹6.73 L |
| 5 | ₹5 L | ₹2.25 L | ₹7.25 L |
NSC value year by year on ₹5 lakh
Interest is added to the certificate's value every year and paid only at maturity, so each year's interest is bigger than the one before.
| Year | Interest for the year | Value at year end | Interest as share of year-end value |
|---|---|---|---|
| 1 | ₹38,500 | ₹5,38,500 | 7.1% |
| 2 | ₹41,464 | ₹5,79,965 | 7.1% |
| 3 | ₹44,657 | ₹6,24,622 | 7.1% |
| 4 | ₹48,096 | ₹6,72,718 | 7.1% |
| 5 | ₹51,799 | ₹7,24,517 | 7.1% |
NSC interest on ₹5 lakh after income tax
NSC interest is taxed at your slab rate; this shows what is left at each slab, ignoring any deduction you may claim on the investment.
| Tax slab | Tax on interest | Interest you keep | Maturity after tax |
|---|---|---|---|
| 0% | ₹0 | ₹2,24,517 | ₹7,24,517 |
| 10% | ₹22,452 | ₹2,02,065 | ₹7,02,065 |
| 20% | ₹44,903 | ₹1,79,614 | ₹6,79,614 |
| 30% | ₹67,355 | ₹1,57,162 | ₹6,57,162 |
₹5 lakh for 5 years: NSC against other options
Compares today's notified NSC rate with a post-office 5-year deposit and a bank FD at an assumed rate; bank rates differ. The post-office deposit pays interest out every year, so its figure is the deposit back plus the interest received.
| Option | Rate | Maturity value | Interest earned |
|---|---|---|---|
| NSC | 7.7% | ₹7.25 L | ₹2.25 L |
| Post-office 5-year time deposit | 7.5% | ₹6.93 L | ₹1.93 L |
| Bank FD (assumed rate) | 7% | ₹7.07 L | ₹2.07 L |
Questions about this scenario
How much will ₹5 lakh in NSC become after 5 years?
About ₹7.25 L at the notified 7.7%, compounded yearly and paid at maturity. Your ₹5 lakh earns ₹2.25 L in interest, a money multiple of 1.45. A certificate bought in a different quarter may carry a different rate, and the interest is taxable in the hands of the holder, so the amount you keep depends on your slab.
How much of the NSC interest on ₹5 lakh do I keep after tax?
It depends on your slab. At 30% you keep ₹1,57,162 of the ₹2,24,517 interest, an after-tax maturity of ₹6,57,162. At 10% you would keep ₹2,02,065. Check the current rules for any deduction or exemption, since they change, and keep the certificate's tax statement for your return.
Is NSC better than a ₹5 lakh bank FD for 5 years?
On rates alone, NSC at 7.7% gives ₹7.25 L against ₹7.07 L for an FD at an assumed 7%. Bank FD rates vary by bank, tenure and day, and the interest on both is taxed as income, so compare the actual FD rate you are offered before choosing.
Compare nearby scenarios
Try your own numbers
Change the return, the inflation rate or any other assumption in the NSC Calculator with this scenario pre-filled, or browse every PPF, SSY, NSC and FD maturity scenario.
What the numbers say about ₹5 lakh in NSC
₹5 lakh invested once in NSC at 7.7% grows to ₹7.25 L after 5 years. Interest is ₹2.25 L, which is 31% of the maturity value, and the money multiple is 1.45.
Because interest compounds yearly and is paid at the end, the first year earns ₹38,500 and the fifth year earns ₹51,799, 35% more. At this rate money doubles in about 9.3 years, so a five-year certificate is a little over half way to doubling.
Tax changes the picture. At the 30% slab you would pay ₹67,355 on the interest and keep ₹1,57,162, an after-tax yield of about 5.62% a year. Against 6% inflation, ₹7.25 L received in 5 years buys what ₹5.41 L buys today.
Set beside a 7.5% post-office deposit, NSC earns ₹31,677 more on this amount; against a bank FD at an assumed 7% it earns ₹17,128 more. Government schemes also carry no bank-credit risk.
The NSC rate is notified quarterly and applies to the certificate you buy for its full term; these figures use the rate for Q3 FY2026-27 (1 Oct 2026 – 31 Dec 2026). Check the current rules on tax and deductions before relying on the after-tax figures.