NSC Calculator
National Savings Certificate · 7.7% p.a. · 5-year lock-in
₹
% p.a.
years
Maturity Amount (Year 5)
—
Principal
—
Total Interest
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80C Deduction
Up to ₹1.5L/yr
NSC interest is compounded annually but paid at maturity. Annual interest is deemed reinvested and qualifies for 80C deduction (years 1-4). Interest in year 5 is taxable.
What is NSC (National Savings Certificate)?
NSC is a government-backed fixed income instrument at post offices with a guaranteed 7.7% p.a. interest rate, 5-year tenure, and Section 80C deduction benefit. Interest compounds annually but is paid only at maturity.
Formula used
NSC Maturity = P × (1 + r)^5
Where:
P = Principal
r = 7.7% = 0.077
Tenure: fixed 5 years
Min investment: ₹1,000 | No maximum
Interest for years 1–4: deemed reinvested (qualifies for 80C)
Year 5 interest: taxable in year of maturity
How to use this calculator
- Enter investment amount
- Rate pre-filled at 7.7% — adjust if government changes it
- Tenure is fixed at 5 years
- Click Calculate — see year-by-year growth
Example
Example — ₹1 lakh in NSC:
| Year | Opening | Interest (7.7%) | Closing |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,700 | ₹1,07,700 |
| 3 | ₹1,15,993 | ₹8,932 | ₹1,24,925 |
| 5 (maturity) | ₹1,34,544 | ₹10,360 | ₹1,44,904 |
NSC vs PPF after-tax return (30% bracket):
NSC: 7.7% → after 30% tax ≈ 5.4% net | PPF: 7.1% → fully tax-free
PPF wins for high earners who have capacity for both.
Frequently asked questions
Yes — NSC certificates can be pledged as bank loan collateral. This makes them more liquid than their 5-year lock-in suggests.
PPF at 7.1% tax-free beats NSC at 7.7% taxable for those in the 20%+ tax bracket. NSC is useful once your PPF limit of ₹1.5L is exhausted.
At any post office, or online via India Post Payments Bank. NSC is now issued electronically — no paper certificates needed.