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NSC Calculator — National Savings Certificate Maturity Value

₹1,00,000 invested in NSC at 7.7% grows to ₹1,44,903 after 5 years, earning ₹44,903 in interest. Enter the amount to see the maturity value, total interest and a year-by-year schedule.

Understanding the Concept

The National Savings Certificate (NSC VIII Issue) is a 5-year savings scheme sold by India Post and backed by the Government of India. You can buy it at any post office with a minimum of ₹1,000, in multiples of ₹100, with no upper limit. Interest is compounded once a year but paid only at maturity. The rate is set by the government each quarter; it is 7.7% a year for October–December 2026. The rate on the day you buy stays fixed for the full 5 years, even if later rates change. Under the old tax regime, the amount you invest qualifies for a Section 80C deduction of up to ₹1.5 lakh a year. The interest for years 1 to 4 is treated as reinvested, so it also qualifies for 80C in those years, while the interest is taxable as income from other sources. The new tax regime gives no 80C deduction. No TDS is deducted on NSC interest. NSC cannot normally be withdrawn before 5 years; early closure is allowed only on the holder's death, by court order, or on forfeiture by a pledgee. It can be pledged as security for a bank loan.
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How to Use the NSC Calculator

  • 1
    Enter the investment amountMinimum ₹1,000, in multiples of ₹100.
  • 2
    Check the interest rateThe current rate is filled in. If you bought earlier, enter the rate on your certificate.
  • 3
    Read the resultsSee the maturity value, total interest and the 80C deduction on the investment.
  • 4
    Review the scheduleThe table shows the interest added each year, which helps with yearly tax filing.

Calculation Formula & Mathematical Definition

Maturity value = P × (1 + r/100)⁵

Interest compounds once a year for 5 years. Each year's interest = opening balance × r ÷ 100, and is added to the balance. Total interest = maturity value − P.

Variable Definitions

  • P=Principal: Amount invested
  • r=Rate: Annual interest rate in percent (7.7% for Oct–Dec 2026)

Step-by-Step Worked Example

₹1,00,000 at 7.7%

Input Parameters:
Amount: ₹1,00,000Rate: 7.7%
Calculation Steps:
  1. Year 1 interest = ₹7,700; balance ₹1,07,700.
  2. Year 2 interest = ₹8,293; year 3 = ₹8,931; year 4 = ₹9,619; year 5 = ₹10,360.
  3. Maturity = 1,00,000 × 1.077⁵ = ₹1,44,903.
Final Result:Maturity value ₹1,44,903; interest ₹44,903.

₹1,50,000 to use the full 80C limit

Input Parameters:
Amount: ₹1,50,000Rate: 7.7%
Calculation Steps:
  1. Maturity = 1,50,000 × 1.077⁵ = ₹2,17,355.
  2. The ₹1.5 lakh investment uses the full 80C limit in the year you buy (old regime).
Final Result:Maturity value ₹2,17,355; interest ₹67,355.

Practical Scenarios & Nuances

Tax saving under the old regime: invest up to ₹1.5 lakh for an 80C deduction with a guaranteed return.

Comparing safe options: compare NSC with a 5-year tax-saving FD or PPF.

Loan collateral: banks accept NSC as security for loans.

Common Mistakes to Avoid

Assuming the interest is tax-free; it is taxable, only the 80C deduction offsets it in years 1–4.

Using today's rate for a certificate bought in an earlier quarter.

Forgetting to declare the yearly accrued interest in your income tax return.

Frequently Asked Questions

What is the current NSC interest rate?

7.7% a year, compounded yearly, for October–December 2026. The government reviews the rate every quarter.

How much will ₹1 lakh in NSC give after 5 years?

At 7.7%, ₹1,00,000 grows to about ₹1,44,903, which is ₹44,903 of interest.

Is NSC interest taxable?

Yes. The interest is taxable as income from other sources. Under the old regime, the interest for years 1 to 4 is treated as reinvested and qualifies for the 80C deduction.

Can I withdraw NSC before 5 years?

Only in special cases: the death of the holder, a court order, or forfeiture by a pledgee such as a bank.

What is the minimum and maximum investment in NSC?

The minimum is ₹1,000, in multiples of ₹100. There is no maximum, but the 80C deduction is capped at ₹1.5 lakh a year.

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