NSC Calculator
Calculate National Savings Certificate maturity amount, total interest and year-by-year accrued interest for the fixed 5-year term.
Year-by-year accrued interest
NSC interest is compounded annually and reinvested — it is paid out only at maturity. The interest accrued and reinvested in each of the first 4 years is itself treated as a fresh NSC investment and qualifies for a Section 80C deduction. The final (5th) year's interest does not qualify, as it is paid out at maturity.
| Year | Opening Balance | Interest Accrued | Closing Balance | 80C Eligible |
|---|
How NSC interest is calculated
A = 1,00,000 × (1.077)5
Maturity ≈ ₹1,44,903, so total interest ≈ ₹44,903.
The National Savings Certificate (NSC) is a fixed-income, Government of India backed small savings scheme available at post offices. The tenure is fixed at 5 years and the interest rate is set by the government each quarter (currently 7.7% per annum). Interest is compounded annually but is not paid out yearly — it accumulates and is paid in full along with the principal at maturity. There is no maximum investment limit, but the Section 80C tax benefit is capped at ₹1.5 lakh per financial year.
Tax treatment & key features
NSC maturity at a glance — ₹1 lakh at 7.7%
Approximate accrued value of a ₹1,00,000 NSC at the current 7.7% annual rate, compounded annually, at the end of each year of the 5-year term.
| End of Year | Rate | Accrued Value | Interest So Far |
|---|---|---|---|
| Year 1 | 7.70% | ₹1,07,700 | ₹7,700 |
| Year 2 | 7.70% | ₹1,15,993 | ₹15,993 |
| Year 3 | 7.70% | ₹1,24,924 | ₹24,924 |
| Year 4 | 7.70% | ₹1,34,544 | ₹34,544 |
| Year 5 | 7.70% | ₹1,44,903 | ₹44,903 |
Illustrative figures. Use the calculator above for your exact investment amount and rate.
Frequently asked questions
How is NSC maturity amount calculated?
NSC interest is compounded annually using the formula A = P × (1 + r)^5, where P is the amount invested, r is the annual interest rate as a decimal and the tenure is fixed at 5 years. For example, ₹1,00,000 invested at 7.7% matures to about ₹1,44,903, giving total interest of roughly ₹44,903. The interest is reinvested each year but paid out only at maturity.
Does NSC interest qualify for Section 80C?
Yes. The initial investment in NSC qualifies for a deduction under Section 80C, up to the overall limit of ₹1.5 lakh per financial year. In addition, the interest accrued and reinvested in the first 4 years is deemed to be a fresh NSC investment and also qualifies for 80C. The interest of the 5th (final) year is paid out at maturity and does not qualify.
What is the lock-in period for NSC?
NSC has a fixed 5-year lock-in. You cannot redeem it before maturity except in special situations such as the death of the certificate holder, forfeiture by a pledgee who is a Gazetted Officer, or under a court order.
Is NSC interest taxable?
Yes, NSC interest is taxable as income from other sources and is added to your total income at maturity. However, there is no TDS deducted on NSC interest. Since the first 4 years' interest is reinvested, you can claim it under Section 80C, effectively deferring tax until the final year.
What is the current NSC interest rate?
The NSC interest rate is set by the Government of India every quarter. The current rate is 7.7% per annum, compounded annually. You can edit the rate in the calculator above to match the prevailing rate at the time of your investment.
Is there a maximum limit on NSC investment?
There is no maximum limit on the amount you can invest in NSC, and the minimum is ₹1,000 (in multiples of ₹100). However, the tax benefit under Section 80C is capped at ₹1.5 lakh per financial year regardless of how much you invest.