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With the Reserve Bank recently slashing the repo rate, several banks have begun reducing interest rates on fixed deposits (FDs) as well. If you're looking to invest your money long-term with better returns and tax benefits, the Post Office's National Savings Certificate (NSC) could be a smarter alternative to traditional bank FDs. Here's how much return you can expect when you invest between ₹1 lakh and ₹5 lakh in this scheme.

The National Savings Certificate (NSC) is a five-year fixed-income investment scheme offered by the Post Office. As of now, the interest rate is 7.7% per annum, compounded annually but payable at maturity.

If you invest ₹5,00,000 in NSC, you’ll earn approximately ₹2,24,517 in interest over 5 years.

• Total Maturity Amount: ₹7,24,517

Investing ₹4,00,000 will earn you about ₹1,79,614 as interest.

• Total Maturity Amount: ₹5,79,614

A ₹3,00,000 investment will yield around ₹1,34,710 in interest.

• Total Maturity Amount: ₹4,34,710

If you invest ₹2,00,000, you'll receive roughly ₹89,807 in interest.

• Total Maturity Amount: ₹2,89,807

For an investment of ₹1,00,000, you’ll earn approximately ₹44,903 in interest.

• Total Maturity Amount: ₹1,44,903

Investments in NSC qualify for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh annually. You can start investing with a minimum of ₹1,000. There is no maximum limit on investment.

Any Indian citizen can open an NSC account.

• Joint accounts are allowed.

• Guardians can invest on behalf of minors or mentally unsound individuals.

• Minors above 10 years can invest in their own name.

• NSC certificates can be transferred to another person once during the tenure.

NSC matures in 5 years and cannot be withdrawn prematurely, except under specific circumstances:

• Death of the account holder

• Court order

• For joint accounts, the death of both account holders

Once the NSC is issued, the interest rate remains locked for the entire tenure, regardless of future changes.