NSC Calculator India – National Savings Certificate Maturity

Investment Details

Investment Amount

₹

₹1K₹20L

Interest Rate (p.a.)

%

5%10%

NSC has a fixed 5-year tenure. Interest is compounded annually and paid out, along with the principal, as a lump sum at maturity.

Maturity Amount (after 5 years)

₹0

principal + compound interest

Invested

₹0

Interest Earned

₹0

Year-by-Year Interest Accrual

Year	Interest Accrued	Balance

What is the National Savings Certificate (NSC)?

The National Savings Certificate (NSC) is a fixed-income, small-savings scheme backed by the Government of India and sold through post offices (and a few authorised banks). You invest a lump sum once, and after a fixed 5-year tenure you receive your principal plus interest compounded annually.

Because it carries a sovereign guarantee, there is effectively zero risk of default — making NSC a popular choice for conservative savers who also want a Section 80C tax deduction. The current NSC (VIII Issue) rate is 7.7% per annum.

Who is NSC best for?

Risk-averse investors, salaried taxpayers wanting an 80C option safer than ELSS, and anyone parking money they won't need for 5 years.

NSC Maturity Formula

NSC uses annual compounding, so the maturity value is:

A = P × (1 + r)⁵

Where A = maturity amount, P = amount invested, r = annual interest rate (decimal), and the power 5 is the fixed tenure in years. Interest is added to the balance each year and paid out, with the principal, at maturity.

Example: ₹1,00,000 at 7.7% for 5 years

A = 1,00,000 × (1.077)⁵

A = 1,00,000 × 1.44903 = ₹1,44,903

Interest earned = ₹44,903 over 5 years.

NSC Interest Rate History

The government reviews small-savings rates every quarter. Your certificate locks in the rate prevailing on the date of purchase for the full 5 years.

FY 2025-26 (current) 7.7%

FY 2023-24 (Apr–Jun '23 on) 7.7%

FY 2023-24 (Jan–Mar '23) 7.0%

FY 2020–2022 6.8%

FY 2018-19 8.0%

* Indicative rates. Verify the current rate at your post office before investing.

NSC Example Calculations (5 yrs @ 7.7%)

Invest ₹50,000 ₹72,452

Interest ₹22,452 · Gain 44.9%

Invest ₹1,00,000 ₹1,44,903

Interest ₹44,903 · Gain 44.9%

Invest ₹5,00,000 ₹7,24,517

Interest ₹2,24,517 · Gain 44.9%

Invest ₹10,00,000

Matures to ₹14,49,034 — interest of ₹4,49,034. Only the first ₹1.5 lakh of the investment qualifies for 80C in the year you invest.

NSC vs Other 80C Options

NSC

5yr lock-in · interest taxable

7.7%

PPF

15yr · EEE tax-free

7.1%*

5-yr Tax-Saver FD

5yr · interest taxable

6.5–7.0%

ELSS Mutual Fund

3yr · market-linked, LTCG

10–12%*

* PPF is tax-free; ELSS returns are market-linked and not guaranteed.

Key Features & Rules

→Government-backed — capital is completely safe with a sovereign guarantee.
→80C deduction on investment up to ₹1.5 lakh per year.
→Reinvested interest for years 1–4 also qualifies for 80C in that year.
→No maximum limit — minimum ₹1,000, in multiples of ₹100.
→No TDS on NSC, unlike bank fixed deposits.
→Loan collateral — can be pledged with banks for a secured loan.

Frequently Asked Questions

Common questions about the National Savings Certificate

What is the current NSC interest rate?

NSC offers 7.7% per annum, compounded annually and paid at maturity. The rate is locked in for your certificate at the time of investment.

What is the NSC tenure?

A fixed 5 years. Interest is reinvested yearly and principal plus interest is paid as a lump sum at maturity.

Is NSC eligible for 80C deduction?

Yes — investment qualifies for 80C up to ₹1.5 lakh. Interest reinvested each year (except the last) also qualifies for 80C in that year.

How is NSC interest calculated?

It compounds annually: maturity = Principal × (1 + rate)⁵. For example, ₹1,00,000 at 7.7% for 5 years matures to about ₹1,44,903.

Is there a maximum investment limit?

No maximum limit. Minimum is ₹1,000, in multiples of ₹100. Only the 80C tax benefit is capped at ₹1.5 lakh per year.

Is NSC interest taxable?

Interest is taxable as income, but since it is reinvested it also qualifies for 80C (except the final year). The full maturity amount is paid without TDS, but you must declare the interest in your return.

Can I withdraw NSC before 5 years?

Premature withdrawal is generally not allowed. It is permitted only in special cases — the death of the holder, forfeiture by a pledgee (such as a bank), or on a court order. Otherwise your money stays locked for the full 5 years.

Where can I buy NSC and can it be pledged for a loan?

NSC is available at any post office (and some authorised banks) — you can buy it in your own name, jointly, or on behalf of a minor with valid KYC. It can also be pledged as collateral with banks and NBFCs to secure a loan.