NSC Calculator (National Savings Certificate)
Maturity value of a National Savings Certificate at 7.7% compounded annually over 5 years, year-by-year accrued interest (taxable but re-invested and 80C-eligible for years 1–4).
How it works
Maturity = P × (1 + r)⁵; interest for years 1–4 is deemed re-invested and qualifies for Section 80C; year-5 interest is taxable without 80C
National Savings Certificates are five-year post-office deposits backed by the Government of India. Interest — 7.7% for the current quarter — compounds annually but is paid only at maturity, and there is no TDS. Each year’s accrued interest is taxable as “income from other sources”, but because years one to four are treated as re-invested they also count toward the ₹1.5 lakh Section 80C limit, largely neutralising the tax for people who have room under 80C. The final year’s interest is fully taxable. NSCs suit conservative investors in the old regime; under the new regime the 80C benefit is lost, which makes bank FDs or debt funds worth comparing.
Worked example
₹1,00,000 at 7.7%: ₹1,07,700 after year one, ₹1,15,993 after two … ₹1,44,903 at maturity — ₹44,903 of interest, of which about ₹34,544 accrued in years 1–4 and is 80C-eligible.
Frequently asked questions
Can I withdraw NSC early?
Only on the death of the holder, forfeiture by a pledgee (e.g. a bank) or court order. Otherwise it is locked for five years, though it can be pledged as loan collateral.
Is there a maximum investment?
No upper limit, but only ₹1.5 lakh a year (including the accrued interest) counts for Section 80C.
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Uses Indian income-tax rules for FY 2025-26 (AY 2026-27) as enacted in the Finance Act 2025, including 4% health and education cess. Scheme interest rates are those notified for the current quarter and change every quarter. Educational estimate, not tax advice.