National Savings Certificate Calculator
Calculate NSC maturity amount with compounded interest and 80C tax benefits
About National Savings Certificate (NSC)
- NSC VIII Issue: 5-year tenure, interest compounded annually but payable at maturity
- Current interest rate: 7.7% p.a. (as of Q1 2024-25)
- Minimum deposit: ₹1,000; No maximum limit
- Section 80C benefit: Deposit qualifies for deduction up to ₹1.5 lakh
- Reinvestment benefit: Accrued interest (except last year) also qualifies for 80C deduction
- Premature closure: Not allowed except in case of death of holder or by court order
- Interest is taxable but not paid out annually — it accrues and compounds
- Can be pledged as collateral for bank loans
- No TDS on NSC interest; subscriber must declare and pay tax on accrued interest
About NSC Calculator
The NSC (National Savings Certificate) Calculator computes the maturity value of NSC investments, which currently offer 7.7% per annum (compounded annually) for the 5-year certificate. NSC is a fixed-income investment scheme backed by the Government of India, available at all post offices, with a minimum investment of ₹1,000 and no maximum limit. The investment qualifies for Section 80C deduction, and the accrued interest (except the final year) is also eligible for 80C, making it effectively tax-efficient.
NSC is particularly attractive for risk-averse investors seeking guaranteed returns with tax benefits. The interest is compounded annually but paid only at maturity along with the principal. The first 4 years' interest is deemed reinvested and qualifies for Section 80C deduction (subject to the overall ₹1.5 lakh limit). The 5th year's interest is taxable. NSC certificates can be pledged as collateral for loans. Our calculator provides the complete maturity value and year-wise interest accrual for FY 2026-27.
Key Features
- Maturity calculation with 7.7% annual compounding
- Year-wise interest accrual table
- Section 80C deduction on deposit and accrued interest
- Tax liability on maturity amount
- 5-year lock-in period tracking
Frequently Asked Questions
What is the NSC interest rate for FY 2026-27?
The National Savings Certificate (5-year) interest rate for Q1 FY 2026-27 is 7.7% per annum, compounded annually. The rate is set by the government and reviewed quarterly. Interest is compounded annually but paid only at maturity along with the principal. For a ₹1 lakh investment, the maturity amount after 5 years would be approximately ₹1,44,903.
Is NSC interest taxable?
Yes, NSC interest is taxable as "Income from Other Sources." However, the interest earned in the first 4 years is deemed reinvested and qualifies for Section 80C deduction (within the ₹1.5 lakh overall limit). Only the 5th year's interest is fully taxable without any 80C benefit. TDS is not deducted on NSC interest, so you must declare it in your ITR and pay tax accordingly.
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