Financial Calculators
NSC Calculator
Five years, annual compounding, sovereign backing and an 80C deduction. The classic certificate, computed.
- Investment
- ₹1,00,000
- Interest earned
- ₹44,903
- Maturity value after 5 years
- ₹1,44,903
National Savings Certificates run 5 years with annual compounding, paid at maturity. The investment qualifies under 80C, and accrued interest (except the final year) is deemed reinvested for tax purposes.
The certificate that compounds quietly
The National Savings Certificate locks your money for five years at a notified rate, compounds it annually, and pays everything at maturity, with the investment qualifying for deduction under Section 80C. Sold through post offices with sovereign backing, it remains a staple for conservative tax-savers.
A tax quirk worth knowing: the interest accruing each year (except the final one) is deemed reinvested and can itself be claimed under 80C, while being taxable as income; the net effect depends on your slab and regime.
The formula
Maturity = P x (1 + rate)^5\nAnnual compounding over the fixed 5-year termWorked example: Rs 1,00,000 at 7.7% matures to about Rs 1,44,903 after five years, earning about Rs 44,903 of interest.
Frequently asked questions
Is NSC interest taxable?
Yes, though yearly accrued interest (except the final year) is deemed reinvested and eligible under 80C, softening the effective tax. It suits the old regime best.
Can I withdraw before five years?
Only in limited circumstances such as the holder's death or on court orders; treat NSC money as locked for the term.
NSC or ELSS for 80C?
NSC gives certainty at a notified rate; ELSS offers equity growth potential with a shorter 3-year lock and market risk. The right mix depends on your risk comfort; many hold both.
Where do I buy NSC?
At post offices, in physical or electronic form, with no upper investment limit, though the 80C benefit caps at the overall section limit.
Tax saving with a plan, not a panic.
We map your 80C across NSC, ELSS, PPF and more, in April rather than March.