NSC Calculator (National Savings Certificate)
NSC compounds at 7.7% a year and pays out at the end of five years. Enter your investment to see the maturity value and interest earned.
Minimum ₹1,000
Current rate: 7.7%
Invested
₹1,00,000
Interest earned
₹44,903
Maturity value after 5 years
₹1,44,903
Interest compounds annually but is paid only at maturity. The interest reinvested in years one to four also counts as a fresh 80C deduction, so NSC gives you a deduction in each of the first four years.
Small-savings rates are reviewed by the Ministry of Finance every quarter. The rate is fixed for the whole tenure once you invest, so check the current rate before opening an account.
Frequently Asked Questions
What is the NSC interest rate?
7.7% per year, compounded annually but paid only at maturity. The rate is locked for your full five-year term on the day you invest.
Does NSC qualify for 80C?
Yes, up to ₹1.5 lakh a year. Better still, the interest reinvested each year in years one to four also counts as a fresh 80C investment, so a single NSC gives you a deduction in four consecutive years.
Is the interest taxable?
Yes, but with a twist. Interest for years one to four is deemed reinvested and can be claimed under 80C, which effectively neutralises it. Only the final year's interest is taxed without an offsetting deduction.
Can I withdraw NSC early?
Only in narrow cases — the death of the holder, forfeiture by a pledgee, or a court order. Otherwise the money is locked for the full five years, though NSC can be pledged as security for a loan.