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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:
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.
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.
One of the most powerful and unique features of NSC is its tax treatment under the Old Tax Regime of the Income Tax Act:
Interest in the nsc interest rate calculator is calculated using the annual compound interest formula:
Maturity Amount = Principal × ( 1 + Rate ÷ 100 )5
| 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 |
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 |
| 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 |
NSC is widely accepted as acceptable collateral security by commercial banks, cooperative banks, housing finance companies, and government institutions.
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.
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.
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.
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'.
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.
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.
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.
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.