NSC Calculator — National Savings Certificate
This NSC calculator works out the maturity value of a National Savings Certificate — a fixed 5-year, government-backed savings instrument with annual compounding. Enter your investment amount and the current NSC rate to see what your certificate will be worth at maturity and how much of that is interest.
The lump sum you invest in NSC. Minimum ₹1,000, no upper limit for investment (though 80C deduction is capped separately).
Set by the government every quarter — currently 7.7%. Check the latest published rate for new certificates before investing.
How to use this nsc calculator
- 1Investment amount: the lump sum you invest today, minimum ₹1,000 with no cap on total investment (though only ₹1,50,000 a year counts toward the 80C deduction).
- 2NSC interest rate: the government revises this every quarter for new certificates; the rate is locked in for the full 5-year term at whatever it was when you bought the certificate, so use the current published rate.
Understanding your results
Maturity value is the lump sum you receive at the end of the fixed 5-year term. Interest earned is the gain over your original investment — note this interest is taxable each year as it accrues, not tax-free like PPF or SSY, even though you don't actually receive it until maturity.
The formula
Maturity = P × (1 + r)⁵P is your investment amount and r the annual interest rate as a decimal. NSC is a single lump-sum investment (unlike PPF's recurring annual deposits) with a fixed 5-year term and annual compounding, so the standard compound-interest formula applies directly with the exponent fixed at 5.
A worked example
₹1,00,000 invested at the default 7.7% rate for 5 years matures to ₹1,44,903 — interest of ₹44,903 over the term.
Things to know
The NSC rate is set by the Ministry of Finance every quarter for certificates purchased in that quarter, and stays fixed for the full 5-year term once you buy — this calculator applies a single flat rate across the term, which is correct for a real NSC purchase (unlike PPF, where the rate can change mid-tenure). Always verify the current quarter's rate against official India Post guidance before investing. NSC certificates are available at post offices and some public-sector banks.
Frequently asked questions
Is NSC interest tax-free like PPF?+
No — NSC does not have EEE status. The interest earned each year is taxable as income at your slab rate, even though you don't receive it in cash until maturity (it's deemed reinvested). However, that deemed-reinvested interest itself qualifies for an 80C deduction in years 1 through 4 — only the final year's interest is taxable without a matching 80C claim, since there's no year 6 in which to reinvest it.
Is TDS deducted on NSC interest?+
No — unlike bank FDs, NSC interest is not subject to TDS. You're still required to declare and pay tax on the accrued interest each year yourself when filing your return; the absence of TDS doesn't mean the interest is tax-free.
Where can I buy an NSC certificate?+
NSC certificates are sold at post offices across India, and by some public-sector banks. You'll need KYC documents and can invest as an individual, jointly, or on behalf of a minor.