Investment Details
₹
₹1K₹20L
%
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 |
|---|
NSC Maturity Formula
A = P × (1 + r)⁵
Where P is the amount invested, r is the annual interest rate, and the power 5 is the fixed tenure in years. Interest compounds yearly and is paid at maturity.
Why Choose NSC?
- →Government-backed — capital is completely safe.
- →80C deduction on investment up to ₹1.5 lakh.
- →Reinvested interest also qualifies for 80C (except final year).
- →No maximum limit — invest as much as you want.
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.