NSC Calculator
| Year | Opening Value | Interest Earned | Closing Value | 80C Status |
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What This Tool Does
This calculator projects the maturity value of a National Savings Certificate (NSC) investment — a fixed 5-year, government-backed savings scheme — based on your investment amount and the current interest rate.
You can also use this Mileage Calculator
How It’s Calculated
NSC interest compounds annually but is paid out only at maturity, after the full 5-year term:
Maturity Value = Principal × (1 + Rate)⁵
As of the July–September 2026 quarter, the NSC interest rate is 7.7% per annum, a rate that’s held steady since April 2025. Once you invest, this rate is locked in for your full 5-year term, even if the rate changes for future quarters.
Worked example: ₹1,00,000 invested at 7.7% for 5 years.
- 1,00,000 × (1.077)^5 ≈ 1,00,000 × 1.449 = ₹1,44,904
- Interest earned: approximately ₹44,904
Edge Cases and Special Rules
- Rate is locked at purchase: Unlike a savings account, your NSC rate doesn’t change over the 5-year term, regardless of what happens to rates in later quarters.
- Minimum and maximum: Minimum investment is ₹1,000, with no upper limit.
- Reinvested interest and tax: Interest for the first four years is treated as reinvested and can be claimed under Section 80C (within the overall ₹1.5 lakh combined limit) each year. The final year’s interest, however, is paid out at maturity and becomes taxable income in that year, since it’s no longer reinvested.
- Premature withdrawal is very restricted: Unlike PPF or an RD, NSC generally cannot be withdrawn early except in the case of the investor’s death or under a specific court order.
- 80C benefit applies only under the old tax regime: If you’ve opted for the new tax regime, this deduction isn’t available.
NSC vs. PPF vs. Post Office RD
These are often compared since all three are government-backed, low-risk savings instruments. NSC is a one-time lump-sum investment with a 5-year lock-in, and its final-year interest is taxable. PPF has a much longer 15-year tenure, allows partial withdrawals after a few years, and its interest is entirely tax-free at maturity — generally the stronger long-term, tax-efficient choice, but with a longer commitment. Post Office RD involves smaller monthly deposits rather than a lump sum, with its own separate rate and structure. Choosing between them depends on your investment horizon, whether you want a lump sum or monthly contribution, and how much liquidity you need before maturity.
Who Uses This
- Risk-averse investors wanting guaranteed, government-backed returns
- Taxpayers under the old tax regime looking for additional Section 80C investment options
- Anyone wanting a simple, one-time 5-year investment without market risk
- Investors comparing NSC against PPF, FD, or RD as part of their fixed-income allocation
NSC Maturity Value vs. Interest Earned
The maturity value is your total payout at the end of 5 years — principal plus all compounded interest. Interest earned is just the growth portion, calculated as maturity value minus the original investment. The calculator above shows both, which is useful since the interest portion (specifically the final year’s) is what becomes taxable income at maturity, not the full payout.
FAQ
What is the current NSC interest rate?
7.7% per annum for the July–September 2026 quarter, unchanged since April 2025.
Can I withdraw my NSC before maturity?
Generally no — premature withdrawal is allowed only in the case of the investor’s death or under a court order.
Is NSC interest taxable?
The first four years’ interest is reinvested and can be claimed under Section 80C; the final year’s interest is paid out and taxable as income.
What is the minimum NSC investment?
₹1,000, with no maximum limit.
Is NSC better than PPF or a fixed deposit?
It depends on your goals — NSC suits a fixed 5-year horizon, while PPF suits longer-term, fully tax-free growth; compare based on your own timeline and liquidity needs.
Try It Above
Enter your investment amount in the calculator above to get an estimated maturity value at the current NSC interest rate. Figures are estimates only — confirm the exact current rate and terms with your post office before investing.