NSC Calculator
Calculate National Savings Certificate maturity with 7.7% interest. 5-year fixed term with 80C tax benefits on principal and annual reinvested interest.
NSC Investment Details
₹
Min: ₹1,000, No maximum limit%
Current: 7.7% (FY 2024-25)years
Fixed 5-year maturity🏛️
Enter NSC investment amount
About NSC (National Savings Certificate)
NSC is a government-backed fixed-income investment scheme offering guaranteed returns. Popular for its safety, fixed tenure, and attractive tax benefits under Section 80C.
Key Features
- Tenure: 5 years (fixed, no premature withdrawal)
- Interest Rate: 7.7% p.a. (FY 2024-25, revised quarterly)
- Compounding: Annual compounding, paid at maturity
- Min Investment: ₹1,000 | Max: No limit
- Tax Benefit: 80C deduction on principal + reinvested interest (up to ₹1.5L)
- Safety: 100% government-backed, zero risk
Tax Benefits (80C)
- Initial Investment: Fully deductible under 80C
- Reinvested Interest: Interest earned in Years 1-4 is deemed reinvested and qualifies for 80C
- Example: ₹1L investment → Year 1 interest ₹7,700 also gets 80C in Year 1
- Total Benefit: Can exceed ₹1L in deductions over 5 years
- Year 5 Interest: Not deductible (paid at maturity, not reinvested)
Maturity Taxation
- Interest Income: Fully taxable as "Income from Other Sources"
- Taxed as per slab: Added to total income in maturity year
- TDS: No TDS deducted by post office
- Must declare: In ITR for maturity year
Types of NSC
- NSC VIII Issue (Current): Single holder
- NSC IX Issue: Joint holder (A or B type)
- Minor Account: Can be opened by guardian
Unique Features
- Transferable: Can transfer to another person/post office
- Nomination: Available
- Loan Collateral: Can be pledged for loans
- Premature Closure: Only on death or court order
- Joint Account: Allowed (max 3 adults)
NSC Calculation Example
Investment: ₹1,00,000 @ 7.7% for 5 years
| Year | Interest | 80C? | Balance |
|---|---|---|---|
| 1 | ₹7,700 | ✓ | ₹1,07,700 |
| 2 | ₹8,293 | ✓ | ₹1,15,993 |
| 3 | ₹8,931 | ✓ | ₹1,24,924 |
| 4 | ₹9,619 | ✓ | ₹1,34,543 |
| 5 | ₹10,360 | ✗ | ₹1,44,903 |
Maturity: ₹1,44,903 | Total 80C: ₹1,34,543
NSC vs Other Options
- NSC vs FD: NSC has 80C benefit, FD doesn't (except tax-saver FD)
- NSC vs PPF: PPF has higher rate (7.1% vs 7.7% — wait, NSC higher!), 15-year lock-in vs 5 years
- NSC vs Tax-Saver FD: NSC rate usually higher, both 80C, but NSC 5 years vs FD 5 years
- NSC vs Post Office TD: NSC has 80C + better rate
How to Invest
- Visit any post office with ID, address proof, and PAN
- Fill NSC application form
- Payment via cash/cheque/demand draft
- Certificate issued immediately (passbook style)
- Keep certificate safe (required at maturity)
Premature Encashment
- Not allowed except in special cases:
- Death of holder/joint holder
- Court order or pledge to government
- Forfeiture by law enforcement
Who Should Invest in NSC?
- Risk-averse investors wanting guaranteed returns
- Those exhausting ₹1.5L 80C limit (PPF + NSC)
- 5-year investment horizon acceptable
- Want government-backed safety
- Prefer post office over banks
Important Points
- Interest rate set by government, revised quarterly
- Certificate is physical (not dematerialized)
- Lost certificate can be reissued (with indemnity)
- Can buy in denomination of ₹1000, ₹5000, ₹10000, etc.
- No upper age limit