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Everyday Tools

NSC Calculator

The National Savings Certificate (NSC) is a fixed-income savings scheme from India Post with a 5-year term. Interest is compounded every year and paid together with your principal at maturity.

Last reviewed:

₹

Minimum ₹1,000, in multiples of ₹100. There is no maximum limit.

%

The government notifies the rate every quarter. Enter the rate on your purchase date.

Term5 years
Maturity value after 5 years
₹1,44,903
Amount invested
₹1,00,000
Interest earned
₹44,903
  • NSC interest is compounded yearly and paid at maturity. The rate is fixed for the full term from the date you buy. The interest is taxable, though the reinvested part of it may qualify for a deduction under old-regime provisions.
Year-wise growth
Value at the end of each year
YearValue
1₹1,07,700
2₹1,15,993
3₹1,24,924
4₹1,34,544
5₹1,44,903

Enter the amount and the interest rate in force on the day you buy the certificate. The rate is fixed for the whole term, even though the government may change the rate for new certificates every quarter.

How to use this calculator

  1. Enter the amount you want to invest.
  2. Enter the interest rate notified for your purchase date.
  3. Read the maturity value and the interest earned.
  4. See how the value grows in the year-wise table.

Formula and variables

Maturity value = P × (1 + r)^5

  • P - amount invested.
  • r - annual interest rate as a decimal (7.7% = 0.077).

The term is 5 years. Interest is compounded annually and paid at maturity.

Worked example

₹1,00,000 invested in an NSC at 7.7% a year for the 5-year term.

Inputs and results for the worked example
Amount₹1,00,000
Rate and term7.7% for 5 years
Maturity value₹1,44,903
Interest earned₹44,903
  1. Growth factor = 1.077⁵ = 1.4490.
  2. Maturity value = 1,00,000 × 1.4490 = ₹1,44,903.

What changes the result

  • Interest rate. The rate at the time of purchase is locked for the term.
  • Tax. Interest is taxable. Under old-regime rules, reinvested interest for the first four years may qualify as a deduction. Check the current rules.
  • Premature closure. Closure before maturity is allowed only in specific cases.

Benefits and practical uses

  • Know what you get at maturity before you invest.
  • Compare with fixed deposits and PPF.
  • Plan a 5-year safe investment.

Assumptions and limitations

  • Annual compounding with a constant rate for 5 years.
  • No tax is deducted.
  • The rate you enter is the one notified on your purchase date.

Frequently asked questions

What is NSC?

A government-backed savings certificate sold through post offices with a fixed 5-year term.

How is NSC interest paid?

It compounds yearly and is paid with the principal at maturity.

Is the NSC rate fixed?

The rate is fixed for the term of each certificate. The government reviews the rate for new purchases every quarter.

Is there a maximum limit?

No. There is no upper limit on investment. The minimum is ₹1,000.

Is NSC interest taxable?

Yes. It is taxable under income from other sources, though the accrued interest for the first four years may be reinvested and eligible for deduction in old-regime provisions. Confirm the current rules.

References

Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.