NSC Calculator

The National Savings Certificate (NSC) is a safe and government-backed savings scheme in India, encouraging people to save money. The scheme is open only for individual Indian residents and offers nomination facility as well. It offers a fixed interest rate of 7.7% per year currently, with a minimum investment requirement of Rs.1,000. The lock-in period is 5 years for the NSC scheme, and investors can get tax benefits up to Rs.1.5 lakh under Section 80C of the Income Tax Act. HUFs, trusts, NRIs, and companies are not eligible for NSC - it is for individuals only. NSC can be used as collateral for loans. While it offers a fixed income, it may not beat inflation. Tax benefits apply to the invested amount (up to Rs.1.5 lakh under Section 80C) and there is no TDS on interest. Since for the first 4 years, interest is reinvested into the NSC, it is not taxed (up to Rs.1.5 lakh). The interest earned in the fifth year however is taxable according to the investor's slab rate. You can invest in NSC electronically or through authorized banks and post offices. Documents necessary to invest in NSC include identity and address proofs with a photograph. In summary, NSC is a secure investment suitable for those who prefer stable returns and want to save on taxes. Although it may not offer high returns, its government support and guaranteed interest make it an appealing choice for risk-averse individuals.

A = P * (1 + r) ^ 5, where I = A - P

a) Calculates the maturity value and interest earned from your NSC investment. b) Helps tailor your investment strategy to achieve your financial goals. c) Compares NSC returns against other fixed-income options. d) Lets you estimate how much you need to invest to get a desired amount from NSC 5 years hence.