NSC Calculator
National Savings Certificate — calculate maturity for the 5-year fixed term.
Current NSC rate: 7.7% p.a. · Term: 5 years (compounded annually)
NSI / Min. of Finance · verified 2026-06-30
₹1,44,903
Invested
₹1,00,000
Interest
₹44,903
How the NSC Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
The National Savings Certificate (NSC) is a fixed-income savings scheme backed by the Government of India, with a fixed 5-year term. This calculator shows the maturity amount using annual compounding at the current NSC rate, so you can see exactly what a given investment grows to over the five years.
NSC currently carries an interest rate of 7.7% per annum, compounded annually but paid in full at maturity rather than each year. Because it is government-backed, the return is guaranteed for the whole term — there is no market risk, which makes NSC popular with conservative savers and for 80C tax planning.
A distinctive feature is how the interest interacts with Section 80C: the certificate purchase qualifies for deduction, and the interest that accrues each year (except the final year) is deemed reinvested and also counts as a fresh 80C-eligible investment.
NSC maturity
Maturity = P × (1 + r)⁵
P = amount invested, r = annual rate (7.7% ≈ 0.077), compounded yearly over the 5-year term.
How NSC interest is taxed
The interest NSC earns is fully taxable — it is added to your income under 'Income from Other Sources' and taxed at your slab. However, because the interest for years one to four is reinvested rather than paid out, you can claim it as a fresh 80C deduction in those years, which largely offsets the tax for many investors.
The catch is the final year: the fifth year's interest is paid out at maturity and is not reinvested, so it does not get the 80C benefit and is simply taxable. Declaring the accrued interest each year (rather than all at once at maturity) is the cleaner approach.
Who NSC suits
- Conservative savers who want a guaranteed, government-backed return with no market risk.
- Taxpayers looking to use their ₹1.5 lakh 80C limit with a safe instrument.
- People comfortable locking money for the full 5 years — premature withdrawal is allowed only in special cases such as the holder's death.
- Those who prefer certainty over the potentially higher but variable returns of equity-linked options.
| Feature | NSC | SCSS |
|---|---|---|
| Interest rate | 7.7% p.a. | 8.2% p.a. |
| Interest payout | At maturity (compounded) | Quarterly income |
| Who can invest | Any resident individual | Age 60+ (or 55+ in some cases) |
| Max investment | No upper limit | ₹30,00,000 |
| Term | 5 years | 5 years (extendable 3) |
₹1,00,000 in NSC for 5 years
At 7.7% compounded annually: 1,00,000 × 1.077^5 ≈ ₹1,44,900. So a ₹1,00,000 certificate matures to roughly ₹1,44,900, an interest of about ₹44,900 — all guaranteed by the government over the fixed 5-year term.
The 80C double-benefit
Invest ₹1,00,000. The first year's accrued interest (~₹7,700) is deemed reinvested, so next year you can claim that ₹7,700 under 80C on top of any fresh NSC you buy. Only the fifth (final) year's interest is not reinvested, because the certificate matures and pays out.
Common mistakes to avoid
- Forgetting to claim the reinvested interest under 80C each year — this is a genuine, and often missed, tax benefit for years one to four.
- Assuming interest is paid out yearly. NSC pays everything at maturity; it compounds internally but you receive nothing until year five.
- Overlooking that the interest is taxable. NSC is not tax-free like PPF — only the reinvestment 80C treatment softens the blow.
- Expecting liquidity. NSC has a hard 5-year lock-in with very limited premature-exit options.
Frequently asked questions
What is the NSC interest rate?+
NSC currently pays 7.7% per annum, compounded annually and paid at maturity. The rate is set by the government and reviewed quarterly, so the live figure and its verified date are shown on the calculator.
Does NSC give tax benefits?+
Yes. The amount you invest qualifies for deduction under Section 80C (within the ₹1.5 lakh limit). In addition, the interest accruing in years one to four is deemed reinvested and also counts as a fresh 80C investment; only the final year's interest does not.
Is NSC interest tax-free?+
No. Unlike PPF, NSC interest is taxable and added to your income under 'Income from Other Sources'. The reinvestment 80C benefit for the first four years offsets much of this for many investors, but the fifth year's interest is simply taxable.
Can I withdraw NSC early?+
Generally no. NSC has a 5-year lock-in, and premature encashment is allowed only in special circumstances such as the death of the holder, forfeiture by a pledgee, or a court order.
How much can I invest in NSC?+
There is no maximum limit on how much you can invest, though the 80C tax deduction is capped at ₹1.5 lakh per financial year. The minimum is ₹1,000, in multiples of ₹100.
Is NSC safe?+
Yes — NSC is backed by the Government of India, so both the principal and the stated interest are guaranteed for the full term. There is no market risk, which is its main appeal for conservative savers.
How is NSC maturity calculated?+
It compounds annually: maturity = principal × (1 + rate)^5. At 7.7%, ₹1,00,000 grows to about ₹1,44,900 over five years. The interest is not paid out yearly — it accumulates and is paid in a lump sum at maturity.