NSC Calculator
Enter your one-time NSC deposit to see the maturity value after 5 years — with yearly compounding.
Runs entirely in your browser — your numbers never leave this page.
How it works
The National Savings Certificate (NSC) is a 5-year post-office scheme at 7.7% p.a. compounded annually:
Maturity = Deposit × (1 + r)5
- Tax twist: the deposit gets 80C deduction. Interest is taxable each year — but it is deemed reinvested, so years 1–4 interest also claims 80C; only the 5th year's interest is effectively taxed.
- No TDS is deducted — you declare the interest in your return yourself.
- No premature exit except on the holder's death or court order. Pledgeable as loan collateral, though.
- Minimum Rs 1,000, no maximum — buy in multiples of Rs 100.
- Best for: conservative investors wanting a 5-year 80C option beyond PPF/ELSS, or a guaranteed slice in a goal-based plan.
Frequently asked questions
How is NSC maturity calculated?
Deposit × (1 + r)^5, compounded annually. Rs 1 lakh at 7.7% → ~Rs 1,44,903 after 5 years.
What is the current NSC interest rate?
7.7% per annum compounded annually (since January 2023). The government revises small-savings rates periodically.
Is NSC interest taxable?
Yes, but cleverly: interest is deemed reinvested each year, so years 1–4 interest qualifies for 80C deduction too. Only the final year's interest is effectively taxed.
Can I withdraw NSC before 5 years?
No — premature withdrawal is allowed only on the holder's death or by court order. Treat it as fully locked for 5 years.
NSC vs FD — which is better?
Rates are similar, but NSC gives 80C on the deposit (FDs don't, except 5-year tax-saver FDs) and the deemed-reinvestment benefit. FDs win on liquidity.
NSC vs PPF?
PPF (7.1%) is fully tax-free (EEE) with a 15-year horizon; NSC (7.7%) is partially taxable with 5 years. For 5-year goals NSC usually wins; for long horizons PPF's tax-free compounding dominates.
Is there TDS on NSC?
No TDS is deducted. You must declare the yearly accrued interest in your income tax return yourself.
Can I take a loan against NSC?
Yes — NSC can be pledged as collateral for loans from banks, a useful emergency feature the lock-in would otherwise deny.
Who can buy NSC?
Resident Indian individuals — singly or jointly, and minors through guardians. NRIs and HUFs cannot buy new NSCs.
Is there a maximum investment?
No maximum limit. Minimum is Rs 1,000, in multiples of Rs 100 thereafter.