NSC Calculator
Compute a National Savings Certificate's maturity value over its fixed 5-year term.
- Principal
- Value
- Principal
- ₹1.00L
- Interest earned
- ₹44.90K
Assumes a constant 7.7% annual rate, compounded annual.
Independent · No commissions · No fund-house data — how the numbers are computed
How it works
The National Savings Certificate (NSC) is a post-office small-savings instrument with a fixed 5-year term. You invest a lump sum (minimum ₹1,000, no upper limit), and it grows at the rate notified for the quarter in which you buy — that rate is then locked for your certificate's full five years. Interest compounds annually and is paid only at maturity.
This calculator computes the maturity value over the fixed 5-year term with annual compounding, exactly as the scheme pays. It defaults to 7.7% — the notified NSC rate as of the Apr–Jun 2026 quarter — and the rate is editable, since the government revises small-savings rates every quarter and your locked-in rate depends on when you bought.
NSC's tax treatment is distinctive: the investment qualifies for Section 80C, and because each year's interest is reinvested rather than paid out, the reinvested interest of the first four years also counts as a fresh 80C investment. The final year's interest, and the accumulated interest at maturity, are taxable.
M = P × (1+r)^5P is the amount invested, r the annual rate as a decimal locked at purchase, and 5 the fixed term in years. Interest compounds once a year and the whole amount — principal plus accumulated interest — is paid at maturity.
Frequently asked questions
Is NSC interest taxable?
Yes, NSC interest is taxable as income from other sources — there is no tax-free interest as with PPF. However, because the interest is reinvested into the certificate rather than paid out, the reinvested interest for each of the first four years is deemed a fresh investment and qualifies for Section 80C deduction. The fifth year's interest, received at maturity, is simply taxable. No TDS is deducted on NSC.
What is the current NSC interest rate?
The NSC rate is notified quarterly by the government; as of the Apr–Jun 2026 quarter it was 7.7% per year, compounded annually — the default this calculator uses, editable via the slider. Crucially, the rate in force in the quarter you purchase is locked for your certificate's entire 5-year term; later revisions affect only new purchases.
Can NSC be withdrawn before 5 years?
Generally no. Premature encashment of an NSC is permitted only in specific situations: the death of the certificate holder, forfeiture by a pledgee (such as a bank holding it as loan collateral), or under a court's order. Outside those cases the money stays locked for the full five years. NSC certificates can, however, be pledged as collateral for a loan without breaking them.
Is there a maximum investment in NSC?
No. NSC has a minimum of ₹1,000 (then multiples of ₹100) and no upper limit on how much you can invest. The Section 80C deduction, though, is capped at ₹1.5 lakh per financial year across all eligible investments, so amounts beyond that earn the locked rate but no additional tax benefit.
How is NSC different from a 5-year tax-saver FD?
Both have 5-year lock-ins and qualify for Section 80C. The differences: NSC's rate is set by the government quarterly and locked at purchase, while a tax-saver FD's rate is set by the bank; NSC compounds annually and pays everything at maturity, with no TDS, and its reinvested interest earns 80C benefit for four years; bank FD interest is subject to TDS above the threshold and earns no such reinvestment deduction.
Go further
Compare the bank-deposit route at your choice of compounding frequency.
The 80C menu NSC belongs to — and the 3-year market-linked alternative.
Screen the equity funds that share NSC's 80C benefit at a shorter lock-in.
The general annual-compounding math behind NSC's maturity value.