Interest compounds yearly and is paid at maturity. Deposits qualify for 80C (old regime); accrued interest of the first four years is treated as reinvested.
FAQ
What does ₹1 lakh in NSC become?
About ₹1,44,903 after 5 years at 7.7%.
Sources (checked 6 Nov 2026): Ministry of Finance small savings rates (Oct–Dec 2026).