NSC Calculator
Calculate your National Savings Certificate maturity amount with annual compounding.
Investment Details
Enter your NSC investment details to calculate maturity amount
₹1,000 - ₹1,00,00,000
₹
Current: 7.7%
%
5 Years (Fixed)
Annual (Interest reinvested)
Calculation Results
Your estimated returns from NSC investment
Maturity Amount
₹1,44,903
Amount you'll receive after 5 years
Total Interest Earned
₹44,903
Principal Amount
₹1,00,000
Year-wise Growth
Year 1₹1,07,700
Year 2₹1,15,993
Year 3₹1,24,924
Year 4₹1,34,544
Year 5₹1,44,903
Tax Benefit under Section 80C
Investment up to ₹1,50,000 eligible for deduction
How NSC Works
1
Invest Lump Sum
Make a one-time investment starting from Rs. 1,000. There's no maximum limit,
so you can invest as much as you want.
2
Interest Compounds
Interest is calculated annually and reinvested automatically. This compound
interest grows your investment each year.
3
Receive at Maturity
After 5 years, receive your principal plus all accumulated compound interest
as a lump sum payment.
NSC Interest Calculation Formula
Maturity Amount = P × (1 + r)^5
Example: If you invest Rs. 1,00,000 at 7.7% interest rate:
Maturity Amount = 1,00,000 × (1 + 0.077)^5 = Rs. 1,44,903
Maturity Amount = 1,00,000 × (1 + 0.077)^5 = Rs. 1,44,903
Benefits of National Savings Certificate
Section 80C Tax Benefit
Investment up to Rs. 1.5 lakh qualifies for tax deduction under Section 80C.
Additionally, accrued interest is also eligible for 80C deduction.
No TDS
Unlike bank FDs, there's no Tax Deducted at Source on NSC interest.
You only pay tax when filing your annual return.
Government Backed
NSC is a Government of India savings bond with sovereign guarantee,
making it one of the safest investment options.
Compound Interest
Interest compounds annually and is reinvested, giving you better
returns than simple interest instruments.
No Maximum Limit
Unlike other small savings schemes, there's no upper limit on
NSC investment. Invest any amount you want.
Collateral for Loans
NSC certificates can be used as collateral security to obtain
loans from banks and other financial institutions.
Key Features of NSC
01
Current Interest Rate
7.7% per annum (compounded annually)
02
Lock-in Period
5 years (no premature withdrawal except special cases)
03
Minimum Investment
Rs. 1,000 (in multiples of Rs. 100)
04
Tax Treatment
80C deduction on investment; interest taxable but also eligible for 80C
Frequently Asked Questions
Can I withdraw NSC before 5 years?
Premature encashment is generally not allowed except in cases of death of the
holder, forfeiture by a pledgee, or court order. The 5-year lock-in is mandatory.
How does NSC tax benefit work?
Your initial investment qualifies for Section 80C deduction (up to Rs. 1.5 lakh).
Additionally, the interest accrued each year (which is reinvested) is also eligible
for 80C deduction, except in the final year when it's paid out.
Is NSC better than Bank FD?
NSC offers tax benefits under 80C that bank FDs (except 5-year tax-saver FD) don't.
NSC also has no TDS deduction. However, bank FDs offer more flexible tenures and
premature withdrawal options.
Can I buy NSC online?
Yes, NSC can be purchased online through authorized banks or at any post office.
E-mode NSC certificates are credited to your post office savings account.