NSC Calculator — National Savings Certificate
Calculate NSC maturity value at 7.7% p.a. over 5 years with year-by-year interest breakdown.
Last updated: April 2026
Current govt. rate: 7.7% (2024-25)
NSC has a fixed 5-year maturity period
Investment
₹1,00,000
Maturity Value
₹1,44,903
Total Interest
₹44,903
Extra 80C Deductions (Yrs 1–4)
₹34,543
| Year | Opening Balance | Interest Earned | Closing Balance | 80C Eligible? |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,700 | ₹1,07,700 | Yes |
| 2 | ₹1,07,700 | ₹8,293 | ₹1,15,993 | Yes |
| 3 | ₹1,15,993 | ₹8,931 | ₹1,24,924 | Yes |
| 4 | ₹1,24,924 | ₹9,619 | ₹1,34,543 | Yes |
| 5 | ₹1,34,543 | ₹10,360 | ₹1,44,903 | No (taxable) |
What is NSC?
National Savings Certificate (NSC) is a fixed-income investment scheme backed by the Government of India, available at all post offices. It offers guaranteed returns with Section 80C tax benefits.
NSC is ideal for conservative investors who want a safe, post-office-backed instrument with predictable returns and tax deduction benefits. The interest is compounded annually but paid only at maturity.
How to use this calculator
- 1Enter investment amount — The amount you want to invest in NSC (minimum ₹1,000).
- 2View maturity breakdown — See year-by-year interest accrual and the final maturity value at the end of 5 years.
- 3Check 80C benefit — NSC qualifies for 80C deduction in the year of investment. Years 1-4 reinvested interest also qualifies.
Formula & example
Maturity = P × (1 + 7.7/100)^5
Investment: ₹1,00,000
Year 1 interest: ₹7,700 → Balance ₹1,07,700
Year 5 maturity: ₹1,00,000 × (1.077)^5 = ₹1,44,903
Total interest: ₹44,903
Benefits
Government guaranteed
Backed by Government of India — sovereign guarantee on both principal and interest.
Section 80C benefit
Investment qualifies for 80C deduction up to ₹1.5L limit.
No TDS on interest
No TDS is deducted on NSC interest — you declare it in your ITR.
Loan collateral
NSC can be pledged as collateral for loans at most banks and post offices.
Use cases
Conservative tax saving
For those who want 80C benefit without market risk — guaranteed 7.7% return.
5-year goal savings
Plan for a specific goal 5 years away with known, guaranteed maturity value.
Senior citizen savings
Safe instrument for retirees who want predictable fixed income.
Rural/semi-urban investors
Available at all post offices across India — accessible even without a bank.
Frequently asked questions
What is the current NSC interest rate?+
The current National Savings Certificate (NSC) interest rate is 7.7% per annum, compounded annually but payable at maturity. The government revises this rate quarterly.
What is the tenure of NSC?+
NSC has a fixed tenure of 5 years. There is no option to extend or close it prematurely (except in case of death or court order).
Is NSC interest taxable?+
Yes. NSC interest is taxable as 'Income from Other Sources'. However, since interest is reinvested (not paid out), it qualifies as a fresh 80C investment each year for years 1-4. Only the 5th year interest is fully taxable.
What is the minimum investment in NSC?+
The minimum investment is ₹1,000 with no maximum limit. You can invest in multiples of ₹100.
Can NSC be used as collateral for a loan?+
Yes. NSC certificates can be pledged as collateral security for bank loans. Many banks accept NSC as security for personal and business loans.
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