NSC Calculator
Calculate National Savings Certificate returns.
Investment Amount
Interest Rate
Maturity Value
₹72,452
NSC Calculator – National Savings Certificate helper
National Savings Certificate (NSC) is a fixed-income investment scheme available at Post Offices. It encourages small savings and offers tax benefits.
The NSC Calculator helps you know the maturity value of your investment after the fixed 5-year lock-in.
What is a NSC Calculator?
It computes the interest earned on NSC. The interest is compounded annually but paid only at maturity.
Currently, NSC has a tenure of 5 years.
How does this NSC Calculator work?
The calculator uses the following formula:
A = P * (1 + r)^n
- A = Maturity Value
- P = Principal Investment Amount
- r = Annual Interest Rate (decimal)
- n = Number of years (fixed at 5 years)
- Interest is compounded annually but paid at maturity.
- The interest earned is deemed to be reinvested for the first 4 years.
How to use this NSC Calculator effectively
- Enter the amount you want to purchase NSC certificates for.
- Enter the prevailing interest rate.
- The calculator shows the total value you will receive after 5 years.
Commonly asked questions
What is NSC?
National Savings Certificate (NSC) is a fixed-income investment scheme that you can open with any Post Office in India. It is a popular tax-saving instrument.
What is the current interest rate of NSC?
The interest rate for NSC is determined by the government every quarter. Currently, it is around 7.7% p.a. compounded annually.
What is the maturity period of NSC?
The maturity period for the NSC VIII Issue is 5 years from the date of purchase.
Is there any tax benefit for NSC?
Yes, investments in NSC up to ₹1.5 Lakh per financial year qualify for tax deduction under Section 80C of the Income Tax Act.
Is the interest earned taxable?
The interest earned is taxable, but for the first 4 years, it is deemed to be reinvested and thus qualifies for deduction under Section 80C.
Can I withdraw NSC before maturity?
Premature withdrawal is generally not allowed except in specific circumstances like the death of the holder or a court order.
What is the minimum investment amount?
The minimum investment amount for NSC is ₹1,000. Investments can be made in multiples of ₹100.
Is there a maximum limit for investment?
No, there is no upper limit for investment in NSC, but tax benefit is limited to ₹1.5 Lakh under Section 80C.
Who can purchase NSC?
Any resident individual can purchase NSC. It can be held singly, jointly (up to 3 adults), or by a minor (through a guardian).
Can NRIs invest in NSC?
No, Non-Resident Indians (NRIs) are not eligible to purchase National Savings Certificates.
Can NSC be transferred?
Yes, transfer of NSC from one person to another is allowed only once during the lock-in period under specific conditions.
Can I take a loan against NSC?
Yes, NSC can be pledged as security or collateral to banks and financial institutions to avail loans.
How is interest calculated?
Interest is compounded annually but paid only at maturity along with the principal amount.
Is TDS deducted on NSC interest?
No, TDS is not deducted on NSC interest payouts. However, the interest is taxable in the hands of the investor.
Can I open NSC in the name of a minor?
Yes, NSC can be purchased on behalf of a minor by a parent or legal guardian, or by a minor above 10 years in their own name.
Where can I buy NSC?
NSC can be purchased at any Head Post Office or Sub-Post Office in India.
What happens if the certificate is lost?
A duplicate certificate can be issued by the Post Office if the original is lost, stolen, or destroyed, subject to certain conditions.
Can I hold NSC in demat form?
Currently, NSC is issued in the form of a passbook. The facility to hold it in demat form may vary.
Does the interest rate change during the tenure?
No, the interest rate remains fixed for the entire 5-year duration once the certificate is purchased.
Is Aadhaar mandatory for NSC?
Yes, providing Aadhaar and PAN numbers is mandatory for investing in small savings schemes like NSC.