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NSC Calculator

Calculate the maturity value of your National Savings Certificate investment.

Effective Returns:

Total Investment₹30,000
Total Interest₹12,076
Maturity Value₹42,076

Input fields:

Total Investment
₹
Compounding Frequency
Current Interest Rate
%
Duration
Yrs

Explanation

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.

The formula to determine interest

A = P * (1 + r) ^ 5, where I = A - P
VariableDescription
AMaturity value
PPrincipal amount
rRate of interest per year
IInterest earned amount

How Our Calculator Can Help You?

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.
Total Investment
Total Interest

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FAQs

Starting your NSC journey requires a minimum of Rs.1,000. You can invest more in multiples of Rs.100 with no upper limit on how much you can invest in your NSC account.

If you invest Rs.1 lakh in NSC at 7.2%, each year the Rs.7,200 interest gets automatically reinvested. The interest is taxable, but it gets a deduction under Section 80C because it is reinvested. This cycle repeats for years 2, 3, and 4. When the 5-year tenure ends, the interest from year five is taxable without a deduction.

Just enter your investment amount, pick your savings timeline, input the interest rate, and the calculator reveals your maturity value instantly.

NSC currently offers a fixed interest rate of 7.7% per year. The government can change the rate every 6 months.

NSC has a 5-year lock-in period, which means it cannot be withdrawn before maturity except in cases of death or court order.

The online NSC interest calculator computes the maturity value of the NSC investment amount. It considers the interest to be compounded annually. The calculation takes into account the current NSC interest rate, investment amount, and 5 years of fixed duration.

No, all National Savings Certificate (NSC) accounts, regardless of where you purchase them (including post offices), offer the same fixed interest rate determined by the government.

To start an NSC account, you must have at least Rs.1,000. You can deposit more in multiples of Rs.100. However, NSC is a one-time investment. You cannot put money monthly into the same NSC. If you want to invest monthly, you will have to open a different NSC each month. There is no upper limit on the deposit amount.

There is no option to extend, but you can reinvest the maturity amount as per the NSC rules applicable at the time of reinvestment.