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NSC Calculator

Calculate your National Savings Certificate maturity value and see year-by-year interest growth with 80C tax benefits.

₹1,00,000
₹1,000₹10L
7.7%
5%12%
Total₹1.4L
Invested69%
Returns31%

Principal

₹1,00,000

Total Interest

₹44,903

Maturity Value

₹1,44,903

Tax Deduction 80C

₹1,34,544

Interest Breakdown

₹1,44,903

Interest Breakdown data
YearInterest Earned
1₹7,700
2₹8,293
3₹8,931
4₹9,620
5₹10,359
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What is NSC?

National Savings Certificate (NSC) is a government-backed fixed income investment available at any India Post office. It has a fixed 5-year lock-in period with guaranteed returns, making it one of the safest investment options in India. NSC is especially popular among conservative investors looking for tax-saving instruments.

Current NSC Interest Rate

The current NSC interest rate is 7.7% per annum, compounded annually. The rate is reviewed quarterly by the Ministry of Finance. Unlike FDs where interest can be paid out periodically, NSC interest is reinvested automatically and paid along with the principal at maturity after 5 years.

NSC Tax Benefits

  • Principal: Investment amount qualifies for deduction under Section 80C (up to ₹1.5 lakh)
  • Accrued interest (years 1-4): Since interest is deemed reinvested, it also qualifies under 80C — effectively giving you a tax deduction every year
  • Year 5 interest: Taxable as income in the maturity year since it is actually received
  • No TDS is deducted on NSC — you self-report interest in your tax return

NSC vs FD

  • Returns: NSC (7.7%) generally offers higher rates than most bank FDs for the same tenure
  • Tax benefit: NSC principal qualifies under 80C; only tax-saving FDs (5-year lock-in) offer the same
  • Liquidity: FDs can be broken early with penalty; NSC cannot be encashed before maturity (except death or court order)
  • TDS: FD interest attracts TDS if above ₹40,000/year; NSC has no TDS
  • Safety: Both are very safe — NSC is sovereign guaranteed, FDs up to ₹5 lakh are DICGC insured

Frequently Asked Questions

What is NSC?
National Savings Certificate is a government-backed savings instrument available at India Post offices. It has a fixed 5-year tenure with guaranteed returns at 7.7% annually. There is no maximum investment limit, and the minimum investment is just ₹1,000.
What is the current NSC interest rate?
The current NSC interest rate is 7.7% per annum, compounded annually. The rate is set by the government and reviewed every quarter. Interest is not paid out periodically — it accumulates and is paid along with the principal at maturity.
Is NSC interest taxable?
NSC interest for years 1-4 is deemed reinvested and qualifies for 80C deduction, effectively making it tax-free. However, the year 5 interest (received at maturity) is taxable as income. No TDS is deducted on NSC, so you must declare it in your income tax return.
NSC vs PPF — which is better?
PPF offers EEE (fully tax-free) status and a longer 15-year tenure with 7.1% interest. NSC has a shorter 5-year lock-in with higher 7.7% interest but year 5 interest is taxable. For pure tax saving with shorter lock-in, NSC is better. For long-term tax-free wealth building, PPF wins.

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