NSC Calculator


Deposit amount should be atleast ₹ 1,000 in multiples of ₹ 100.
Interest Earned

₹ 0

Maturity Amount

₹ 0

How to calculate NSC Interest with our NSC Calculator?


Our free nsc calculator (also known as the national savings certificate calculator) calculates your exact 5-year returns and compounded interest instantly. Follow these simple steps:

  • Enter Investment Amount: Enter your deposit amount (minimum ₹1,000, in multiples of ₹100). There is no maximum cap.
  • Review Auto-Populated Tenure & Rate: The calculator automatically sets the fixed tenure of 5 years and the latest government-notified interest rate of 7.7% per annum.
  • Instant Real-Time Results: The tool immediately calculates your Total Interest Earned and the guaranteed Final Maturity Amount you will receive at the end of the 5-year term.

What is National Savings Certificate (NSC) & How Does It Work?


The National Savings Certificate (NSC VIII Issue) is a premier government-backed savings scheme offered by India Post and authorized public sector banks. Backed by a 100% sovereign guarantee from the Government of India, NSC provides an attractive fixed interest rate of 7.7% per annum with complete capital safety and predictable wealth accumulation.

How Does NSC Compounding Work?

NSC functions on an annual compounding interest mechanism with a fixed maturity period of 5 years (60 months). While interest is calculated and compounded at the end of each financial year, it is not paid out annually; instead, the entire accumulated interest along with the initial principal is paid as a lump sum upon completion of the 5-year tenure.

The Unique Section 80C "Deemed Re-investment" Tax Advantage

One of the most powerful and unique features of NSC is its tax treatment under the Old Tax Regime of the Income Tax Act:

  • Initial Deposit Tax Deduction: The initial investment in NSC qualifies for a tax deduction under Section 80C up to ₹1.5 Lakh per financial year.
  • Deemed Re-investment Benefit (Years 1 to 4): The interest accrued at the end of Year 1, Year 2, Year 3, and Year 4 is legally considered as re-invested into NSC. Therefore, you can claim this accrued interest as a fresh Section 80C deduction in each of those years (within the overall ₹1.5 Lakh limit).
  • Year 5 Interest: Only the interest accrued in the final (5th) year cannot be re-invested and is taxed as per your income tax slab under 'Income from Other Sources'.
  • Zero TDS: India Post does not deduct Tax Deducted at Source (TDS) on NSC maturity proceeds.

How is NSC Interest Calculated? (Formula & Growth Schedule)


Interest in the nsc interest rate calculator is calculated using the annual compound interest formula:

Maturity Amount = Principal × ( 1 + Rate ÷ 100 )5

  • Principal (P) = Initial Deposit Amount
  • Rate (r) = Annual Interest Rate (7.7%)
  • Tenure (n) = Fixed 5 Years (60 Months)

5-Year Growth Schedule for ₹1,00,000 Investment in NSC

Year Opening Balance (₹) Annual Interest Earned (7.7%) Closing Balance (₹) Section 80C Re-investment Status
Year 1 ₹1,00,000 ₹7,700 ₹1,07,700 Eligible for 80C (Re-invested)
Year 2 ₹1,07,700 ₹8,293 ₹1,15,993 Eligible for 80C (Re-invested)
Year 3 ₹1,15,993 ₹8,931 ₹1,24,924 Eligible for 80C (Re-invested)
Year 4 ₹1,24,924 ₹9,619 ₹1,34,543 Eligible for 80C (Re-invested)
Year 5 (Maturity) ₹1,34,543 ₹10,360 ₹1,44,903 Taxable at slab rate
Total 5-Year Interest Earned on ₹1,00,000: ₹44,903 | Final Maturity Payout: ₹1,44,903

National Savings Certificate (NSC) Returns Reference Table


Below is a quick reference table showing the total interest earned and guaranteed maturity payout across various investment brackets in the post office nsc calculator:

Deposit Amount (₹) Interest Rate (p.a.) Tenure Total Interest Earned (₹) Final Maturity Amount (₹)
₹10,000 7.7% 5 Years ₹4,490 ₹14,490
₹25,000 7.7% 5 Years ₹11,226 ₹36,226
₹50,000 7.7% 5 Years ₹22,452 ₹72,452
₹1,00,000 7.7% 5 Years ₹44,903 ₹1,44,903
₹1,50,000 (80C Limit) 7.7% 5 Years ₹67,355 ₹2,17,355
₹2,50,000 7.7% 5 Years ₹1,12,258 ₹3,62,258
₹5,00,000 7.7% 5 Years ₹2,24,517 ₹7,24,517
₹10,00,000 7.7% 5 Years ₹4,49,034 ₹14,49,034

NSC vs KVP vs Post Office 5-Year Time Deposit vs Bank Tax-Saver FD


Feature National Savings Certificate (NSC) Kisan Vikas Patra (KVP) Post Office 5-Yr TD 5-Year Tax Saver Bank FD
Interest Rate (p.a.) 7.7% 7.5% 7.5% 6.5% – 7.25%
Tenure 5 Years (60 Months) 115 Months (9.58 Yrs) 5 Years 5 Years
Sec 80C Tax Benefit Yes (Deposit + Re-invested Interest) No Yes (Initial Deposit Only) Yes (Initial Deposit Only)
Compounding Frequency Annually Annually Quarterly Quarterly
Loan Pledging Facility Yes (Easily Pledged) Yes No No
Premature Withdrawal Restricted (Death/Court only) Allowed after 2.5 Years Allowed after 6 Months Not Allowed

Pledging NSC for Bank Loans & Eligibility Criteria


Pledging for Secured Bank Loans

NSC is widely accepted as acceptable collateral security by commercial banks, cooperative banks, housing finance companies, and government institutions.

  • Submit Form-5 at your post office along with the loan sanction letter from the lending institution.
  • The postmaster endorses the pledge on the certificate.
  • Once the loan is fully repaid, the pledgee issues a release letter to restore full ownership.

Eligibility & Ownership Types

  • Single Adult: Any resident Indian individual aged 18 years or above.
  • Joint Account: Opened jointly by up to 3 adults (Joint A or Joint B).
  • Minors: Guardian on behalf of a minor or a minor aged 10+ years in their own name.
  • Ineligible: NRIs and Hindu Undivided Families (HUFs) cannot purchase NSC.

Frequently Asked Questions


What is the current interest rate for National Savings Certificate (NSC)?

The current interest rate for National Savings Certificate (NSC VIII Issue) is 7.7% per annum. The interest is compounded annually and paid along with the principal at maturity after 5 years.

What is the tenure and lock-in period for NSC?

National Savings Certificate has a fixed maturity period of 5 years (60 months). Premature withdrawal before 5 years is strictly restricted except in exceptional cases such as the death of the certificate holder or by court order.

How does the Section 80C tax deduction work on NSC interest?

Your initial deposit in NSC qualifies for tax deduction under Section 80C up to ₹1.5 lakh per financial year. Additionally, the interest accrued in Years 1, 2, 3, and 4 is legally deemed as re-invested into NSC, making it eligible for a fresh Section 80C deduction in each respective year. Only the 5th-year interest is fully taxable.

Is TDS deducted on NSC maturity proceeds by the Post Office?

No, Tax Deducted at Source (TDS) is not deducted on NSC interest or maturity payouts by India Post. However, the interest earned must be declared in your annual Income Tax Return (ITR) under 'Income from Other Sources'.

What is the minimum and maximum investment limit in NSC?

The minimum investment amount in NSC is ₹1,000 and in multiples of ₹100 thereafter. There is no maximum investment limit on the total amount you can invest in NSC.

Can National Savings Certificates be pledged as collateral for bank loans?

Yes, NSC certificates can be pledged or transferred as security to scheduled commercial banks, cooperative banks, RBI, and government corporations by submitting Form-5 along with an endorsement letter at the post office.

Who is eligible to invest in National Savings Certificates?

Any resident Indian adult (singly or jointly up to 3 adults), a guardian on behalf of a minor, or a minor aged 10 years and above in their own name can invest in NSC. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible.

How much will ₹1,00,000 grow in NSC after 5 years?

At the current 7.7% annual compounding interest rate, an investment of ₹1,00,000 in NSC grows to a guaranteed maturity payout of ₹1,44,903 after 5 years, earning a total interest of ₹44,903.