NSC Calculator
Key takeaways
- ₹1.00 L in NSC at 7.7% compounds to ₹1.45 L over 5 years — ₹44,903 of interest, paid only at maturity.
- Interest starts at ₹7,700 in year 1 and reaches ₹10,360 in year 5, as each year’s interest itself compounds.
- The rate is fixed for the certificate’s whole term when it is bought; bought at 8.2% instead, it would mature at ₹1.48 L — ₹3,395 more.
Yearly schedule
| Year | Invested | Interest | Balance |
|---|---|---|---|
| 1 | ₹1.00 L | ₹7,700 | ₹1.08 L |
| 2 | ₹0 | ₹8,293 | ₹1.16 L |
| 3 | ₹0 | ₹8,931 | ₹1.25 L |
| 4 | ₹0 | ₹9,619 | ₹1.35 L |
| 5 | ₹0 | ₹10,360 | ₹1.45 L |
About the NSC Calculator
The National Savings Certificate (NSC) is a government-backed, fixed-income scheme with a 5-year term. Interest compounds annually and is paid with the principal at maturity, so the maturity amount is known when the certificate is issued, and the investment qualifies for a Section 80C deduction.
Enter your investment and the NSC rate, and this calculator shows the maturity value and the interest earned over 5 years.
Frequently asked questions
How is NSC maturity calculated?
Maturity = Principal × (1 + rate ÷ 100) ^ years. NSC compounds annually for its 5-year term, and the whole amount — principal plus interest — is paid at maturity.
What tax benefit does NSC offer?
The investment qualifies for a Section 80C deduction up to ₹1.5 lakh a year. The annual interest is taxable, but because it is reinvested it also counts as a fresh 80C investment in each of the first four years.
What is the current NSC interest rate?
The government sets it each quarter; it has been around 7.7% recently and stays fixed for your certificate's full term once issued. Check the latest notified rate before investing.
Can I withdraw NSC before maturity?
Generally no. NSC has a 5-year lock-in and can be encashed early only in specific cases such as the holder's death or a court order.
NSC or tax-saver FD — which is better?
Both have a 5-year lock-in and a Section 80C benefit, and taxable interest. NSC is government-backed at a government-set rate; a tax-saver FD's rate depends on the bank. The choice often comes down to the rate on offer.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation. Interest rates on deposits and savings schemes are set by the bank or the Government and can change; where the calculator takes a rate, the figures hold it for the whole term. Tax on the interest, penalties and early-withdrawal rules are included only where the calculator shows them. The Government notifies small-savings rates every quarter; the rate in force on the day of deposit applies for the whole term. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.