NSC Calculator (National Savings Certificate)
Calculate the maturity value and interest on a National Savings Certificate (NSC) — a safe 5-year government scheme compounded annually, with an 80C tax benefit.
NSC Investment
Current NSC rate: 7.7%
Maturity Value
₹1,44,903
Invested ₹1,00,000 → interest ₹44,903 in 5 years
Amount Invested
₹1,00,000
Total Interest
₹44,903
Maturity Value
₹1,44,903
Effective Growth
44.9%
How It Works
The National Savings Certificate (NSC) is a fixed-income scheme from the Post Office, backed by the Government of India, with a fixed 5-year term. It currently earns 7.7% per year, compounded annually, and the entire interest is paid along with the principal at maturity. There is no maximum investment limit, and the amount you invest qualifies for a deduction under Section 80C (up to ₹1.5 lakh). A useful quirk: the interest that accrues each year (except the final year) is deemed to be reinvested, so it too qualifies for 80C in the year it accrues. NSC is a low-risk choice for conservative savers who want a guaranteed return and can lock money away for five years. This calculator compounds your investment annually at the chosen rate to show the maturity value, the total interest, and the effective growth.
Formula
Maturity = Investment × (1 + rate)^5, compounded annually. Interest = Maturity − Investment, paid entirely at maturity.
Frequently Asked Questions
What is the current NSC interest rate?
NSC currently earns 7.7% per year, compounded annually and paid at maturity. Small-savings rates are reviewed quarterly by the government, so the rate on new certificates can change.
What is the NSC tenure?
NSC has a fixed 5-year maturity. There is no premature withdrawal except in specific cases (death of holder, court order). The interest compounds annually and is paid in full at the end.
Is there a maximum investment in NSC?
No — there is no upper limit on how much you can invest in NSC. The minimum is ₹1,000, and the 80C tax deduction is capped at ₹1.5 lakh per year across all eligible investments.
How is NSC taxed?
The investment qualifies for 80C. The annually accrued interest is taxable but, except in the final year, is deemed reinvested and also eligible for 80C. The final-year interest is taxable without the reinvestment benefit.
Is NSC better than a bank FD?
NSC is government-backed and its 80C benefit can make it more tax-efficient than a regular FD. Rates are comparable; NSC suits conservative savers wanting a guaranteed 5-year return with a tax deduction.