NSC Calculator
Calculate your National Savings Certificate (5-year) maturity at 7.7%
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What is NSC (National Savings Certificate)?
The National Savings Certificate is a fixed-income, government-backed savings scheme available at any post office. It has a 5-year lock-in and currently pays 7.7% interest compounded annually, with the full maturity amount paid at the end. It's popular as a safe, guaranteed tax-saving instrument.
How NSC Interest Works
Interest is compounded annually but paid only at maturity. Each year's interest is added to your principal and itself earns interest the next year.
Maturity = P × (1 + r)^n
Where:
P = Amount Invested
r = Annual Interest Rate (e.g. 0.077)
n = Number of Years (5 for standard NSC)
Tax Benefits
- Investment up to ₹1.5 lakh qualifies for Section 80C deduction (Old Regime only).
- Interest earned each year is reinvested and also qualifies for 80C (except the final year's interest).
- The interest is taxable, but since it's reinvested, most of it gets the 80C benefit.
Frequently Asked Questions
Is NSC better than a tax-saving FD?
Both have a 5-year lock-in and 80C benefit. NSC often offers a slightly higher, government-guaranteed rate, and its yearly interest (except the last year) qualifies for fresh 80C deduction. Tax-saving FD rates vary by bank.
Can I withdraw NSC before 5 years?
Premature withdrawal is generally not allowed except in special cases such as the holder's death, forfeiture by a pledgee, or a court order.
Is there a maximum investment limit?
No. You can invest any amount (minimum ₹1,000, in multiples of ₹100), but the Section 80C deduction is capped at ₹1.5 lakh per year.
Can I use NSC as collateral for a loan?
Yes. NSC certificates can be pledged as security to banks and financial institutions for availing a loan.