NSC Calculator
The National Savings Certificate (NSC) is a fixed-income, government-backed 5-year savings instrument available at post offices, popular for its guaranteed return and Section 80C tax benefit.
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Formula
Maturity Value = Principal × (1 + rate)5
Interest compounds annually but is not paid out — it is reinvested and paid in full only at maturity, along with the principal.
Worked Example
Investing ₹1,00,000 in NSC at 7.7% p.a. for 5 years:
Maturity = 100000 × (1.077)5 ≈ ₹1,44,900
How to Use
- Enter the amount you plan to invest.
- Confirm the current NSC interest rate.
- Read the maturity value and interest earned after the fixed 5-year term.
Frequently Asked Questions
Is NSC eligible for tax deduction?
Yes u2014 the amount invested qualifies for deduction under Section 80C, up to the overall 80C limit. Note that the interest earned in years 1-4 is deemed reinvested and also qualifies for 80C (except the final year's interest, which is taxable as income).
Can I withdraw NSC before 5 years?
Premature withdrawal is generally not allowed except in specific cases like the death of the holder or under court order.
Is NSC interest paid periodically?
No u2014 unlike SCSS or POMIS, NSC does not pay out interest periodically. All interest accumulates and is paid as a lump sum along with the principal at maturity.
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