National Savings Certificate (NSC) Calculator
Estimate maturity value and interest accrued for the 5-year National Savings Certificate (NSC) post office scheme.
Compounded Growth Curve
Yearly Interest Accrual Table
| Year | Interest Accrued | Closing Balance |
|---|---|---|
| Year 1 | ₹7,700 | ₹1,07,700 |
| Year 2 | ₹8,293 | ₹1,15,993 |
| Year 3 | ₹8,931 | ₹1,24,924 |
| Year 4 | ₹9,619 | ₹1,34,544 |
| Year 5 | ₹10,360 | ₹1,44,903 |
Frequently Asked Questions
What is the lock-in period for the National Savings Certificate (NSC)?
NSC investments have a fixed 5-year tenure. Premature withdrawal or certificate liquidation is prohibited by government rules, except under extreme circumstances such as the death of the certificate holder or court directives.
Are NSC interest earnings taxable?
Yes, interest earnings are taxable according to your income tax slab. However, the interest earned in years 1-4 is deemed to be reinvested under Section 80C (deductible up to ₹1.5 Lakhs). Only the interest accrued in the final year (year 5) is taxable directly as it is paid out.
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NSC: The Post Office Scheme That Quietly Outperforms Savings Accounts
The National Savings Certificate (NSC) is one of those government instruments that financial media rarely covers — because there's no commission to earn and nothing dramatic to report. But for a conservative investor looking for guaranteed, tax-efficient returns with 80C benefit, NSC is quietly excellent.
NSC is a 5-year fixed-income instrument offered through India Post. The current rate is 7.7% p.a., compounded annually. Unlike SCSS which pays out interest quarterly, NSC's interest is reinvested (compounded) within the scheme — which means the effective yield over 5 years is higher than a simple 7.7% p.a. FD.
The interest earned on NSC is technically taxable as income — but here's the twist: the reinvested interest itself qualifies as a fresh 80C investment each year (except the final year). So for a ₹1 lakh NSC, only the 5th-year interest is fully taxable. The previous 4 years of interest, being reinvested, are effectively sheltered under 80C.
NSC is ideal for: conservative investors who want sovereign-backed returns, those who want to maximise 80C beyond PPF, and those in the 0–20% tax bracket where the taxable interest is not a large concern. It's also useful as collateral for loans at nationalised banks.
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