NSC Calculator
Calculate your National Savings Certificate maturity value and interest at 7.7% over the fixed 5-year term — with a year-wise interest table for your Section 80C claim.
Maturity value after 5 years
Section 80C eligible₹0
Invested
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Total interest
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Maturity value
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Per ₹1,000
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Balance over time
Invested vs interest
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Year-wise interest & Section 80C
Interest of years 1–4 is deemed reinvested and qualifies for 80C. The final year’s interest is paid out and is taxable.
| Year | Interest | 80C eligible | Balance |
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How NSC interest is calculated
The National Savings Certificate (NSC) is a fixed-income, government-backed savings scheme sold at post offices. It has a fixed 5-year term and interest is compounded annually. Unlike a monthly-income scheme, NSC does not pay interest every year — it is accumulated and paid in full at maturity. The maturity formula is:
- Maturity value = P × (1 + r)5
where P is your investment and r is the annual rate. At the current 7.7%, every ₹1,000 invested grows to about ₹1,449 after 5 years. The chart and the year-wise table above show exactly how the balance builds up each year.
NSC and the Section 80C tax benefit
NSC is a popular Section 80C investment, and it has a useful quirk. Your initial deposit qualifies for 80C in the year of purchase. On top of that, the interest for years 1 to 4 is deemed to be reinvested in NSC, so that interest also qualifies for 80C in the year it accrues (within the overall ₹1.5 lakh limit). Only the fifth year’s interest is not reinvested — it is paid out with the maturity amount and is fully taxable. The year-wise table marks which portion is 80C-eligible so you can claim it correctly in your return.
NSC key rules at a glance
- Tenure: fixed 5 years (lock-in).
- Minimum: ₹1,000, then in multiples of ₹100; no maximum limit.
- Interest: compounded annually, paid at maturity; currently 7.7%.
- Tax: deposit + reinvested interest (years 1–4) eligible under 80C; no TDS.
- Safety: sovereign-backed, so effectively risk-free.
NSC vs FD and other options
NSC works well as the safe, tax-saving part of your portfolio. Compare its fixed return with a bank fixed deposit or the tax-free, 15-year PPF, and pair it with a market-linked SIP for long-term growth. NSC’s edge is the combination of a government-guaranteed rate, no TDS, and the 80C benefit on reinvested interest.
Frequently asked questions
What is the current NSC interest rate?
The National Savings Certificate (NSC) interest rate is set by the Government of India every quarter. As of the current quarter it is 7.7% per annum, compounded annually. This calculator uses 7.7% by default, but you can change it to model a different rate.
How is NSC interest calculated?
NSC interest is compounded annually and paid in full at maturity, not every year. Each year’s interest is added to your balance and itself earns interest the next year. So for a deposit P at rate r for 5 years, the maturity value is P × (1 + r)^5. At 7.7%, an investment of Rs 1,000 grows to about Rs 1,449 in 5 years.
What is the lock-in period for NSC?
NSC has a fixed lock-in of 5 years. The certificate cannot normally be encashed before maturity except in specific cases such as the death of the holder or a court order. This is why the calculator uses a fixed 5-year term.
Is NSC eligible for Section 80C tax benefit?
Yes. Your initial NSC investment (up to Rs 1.5 lakh) qualifies for a deduction under Section 80C. In addition, the interest accrued each year is deemed to be reinvested, so the interest of the first four years also qualifies for 80C in the year it accrues. Only the fifth (final) year’s interest is paid out and is not reinvested, so it is taxable and not eligible for 80C.
Is NSC interest taxable?
The interest is taxable as “Income from Other Sources”, but because the first four years’ interest is deemed reinvested, you can claim it under Section 80C (within the overall Rs 1.5 lakh limit) to offset the tax. The final year’s interest is fully taxable. There is no TDS on NSC. The year-wise table above shows exactly which portion is 80C-eligible.
How much will Rs 1 lakh become in NSC?
At the current 7.7% rate, Rs 1,00,000 invested in NSC grows to about Rs 1,44,900 after 5 years — roughly Rs 44,900 of interest. Enter your own amount above to see the exact maturity value and year-by-year breakdown.
NSC vs 5-year FD — which is better?
Both have a 5-year term. NSC offers a fixed government rate with no TDS and an added 80C benefit on reinvested interest, while a 5-year tax-saver FD rate depends on the bank and has TDS above Rs 40,000 interest. NSC is often better for the 80C + no-TDS combination; a high-rate FD may win on headline return. Compare your exact numbers with our FD calculator.