NSC Calculator

Quick answer

National Savings Certificate (NSC) is a 5-year fixed-return savings scheme from India Post, currently paying 7.7% per annum compounded annually. The investment qualifies for 80C deduction up to ₹1.5 lakh, making it a popular tax-saving instrument with guaranteed returns.

What is NSC?

NSC has been around since the 1950s. You buy a certificate from any India Post office for any amount above ₹1,000 (no upper limit). After 5 years, you get back your principal plus compound interest.

The current rate (FY 2026 Q1) is 7.7% compounded annually. The interest is reinvested each year — so your effective annual return is the full 7.7%, not less. At maturity (5 years), you receive principal + 5 years of compounded interest.

Tax: NSC investment qualifies for ₹1.5 lakh deduction under Section 80C. The interest accrued each year (except the final year) is deemed reinvested and also qualifies for 80C — meaning only the last year's interest is fully taxable. Net tax benefit is significant for old-regime taxpayers.

Compound interest over 5 years

Formula

Maturity = Principal × (1 + r)⁵

Principal: Investment—amount paid at purchase
r: Annual rate—currently 7.7%

Worked example

Investment₹1,50,000

Rate7.7%

Maturity = 1,50,000 × (1.077)⁵

= 1,50,000 × 1.4495

➜ Maturity: ~₹2,17,427 (Interest: ₹67,427 over 5 years)

How to use this calculator

Two inputs: investment amount and rate.

Enter investment amount
Minimum ₹1,000, no upper limit. ₹1.5 lakh maximises 80C.
Set the rate
7.7% is FY 2026 Q1 rate. Locked at purchase — your rate doesn't change with subsequent rate revisions.

When NSC makes sense

5-year 80C lock-in

When you want a fixed, predictable return + tax deduction, with a shorter lock-in than PPF.

Senior citizen's FD alternative

NSC pays similar to senior citizen FD rates but with 80C benefit. Useful for those still in tax-paying years.

Risk-free fixed return

Government-backed, no market risk. Pair with equity SIPs for the riskier wealth-building part.

Glossary

NSC: National Savings Certificate — 5-year tax-saving Post Office scheme.
Section 80C: Tax deduction up to ₹1.5 lakh on specified investments. NSC qualifies.
Deemed reinvestment: Tax treatment where interest is treated as fresh investment for 80C purposes.

Frequently asked questions

Where can I buy NSC?

Any India Post office. Online purchase via Post Office Savings Bank account is also possible. Minimum investment: ₹1,000; no upper limit.

Is NSC interest tax-free?

No — NSC interest is taxable. However, the interest accrued each year (except the final year) is deemed reinvested and qualifies for 80C deduction. Net effect: only the final year's interest is taxed.

NSC vs Tax-saver FD vs PPF — which is best?

Returns: NSC ~7.7% (5y) > Tax-saver FD ~7% (5y) > PPF 7.1% (15y). Lock-in: PPF longest. Tax: PPF EEE (best); NSC and Tax-saver FD tax interest. Pick NSC if you want 5-year lock-in with 80C; PPF if you want long-term tax-free.

Disclaimer: Results are estimates based on the inputs you provide. They are not professional advice. For consequential decisions — financial, tax, medical, or legal — verify with a qualified professional.

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