NSC Calculator
What a National Savings Certificate matures to after five years.
NSC pays 7.7% compounded annually over five years, with the rate locked in on the day you buy. Rs 1 lakh matures at Rs 1,44,903, and up to Rs 1.5 lakh qualifies under Section 80C, as does the deemed reinvested interest of the first four years.
How this is calculated
Year-by-year breakdown
Free NSC calculator with the current 7.7% rate
The National Savings Certificate is a five-year, government-backed certificate paying 7.7% compounded annually, sold at every post office. The rate is locked in on the day you buy, so a later cut never touches your certificate. This calculator gives the maturity value, the interest earned year by year, and the Section 80C deduction available.
Rs 1,000 invested today matures at Rs 1,449 in five years. Rs 1,00,000 becomes about Rs 1,44,903. There is no upper limit on how much you can buy, only on how much qualifies for 80C.
Worked example
| Investment | Rate | Maturity in 5 years | Interest earned |
|---|---|---|---|
| Rs 50,000 | 7.7% | Rs 72,452 | Rs 22,452 |
| Rs 1,00,000 | 7.7% | Rs 1,44,903 | Rs 44,903 |
| Rs 1,50,000 | 7.7% | Rs 2,17,355 | Rs 67,355 |
The 80C trick most people miss
Up to Rs 1.5 lakh invested in NSC qualifies under Section 80C. What people miss is that the interest for the first four years is deemed reinvested, so it also counts as a fresh 80C investment in each of those years. Only the fifth year's interest is taxable without an offsetting deduction. That makes NSC one of the more tax-efficient fixed-income options for someone on the old regime who has not filled their 80C limit.
NSC also works as loan collateral at most banks, and certificates can be transferred between people once during their term. It has no premature withdrawal except on death, court order, or forfeiture by a pledgee.
Compare with the PPF calculator, the FD calculator and the Sukanya Samriddhi calculator, then see the effect on your tax in the income tax calculator.
Key facts
| Interest rate | 7.7% a year, compounded annually, paid at maturity |
|---|---|
| Term | 5 years, no premature withdrawal in normal cases |
| Minimum investment | Rs 1,000, no maximum |
| Section 80C | Up to Rs 1.5 lakh, plus deemed reinvested interest in years 1 to 4 |
| Rs 1,000 grows to | Rs 1,449 in five years |
How to use the NSC Calculator
- Enter the amount you want to invest. The minimum is Rs 1,000 and there is no maximum.
- Leave the rate at 7.7% for the current quarter, or change it to test another rate.
- Keep the tenure at 5 years, which is the NSC VIII issue lock-in.
- Read the maturity value, the interest earned and the Section 80C deduction available.
- Open the breakdown to see the interest credited in each of the five years.
Sources
- India Post, small savings schemes
- National Savings Institute, Ministry of Finance
- Income Tax Department, Government of India
Last reviewed and updated: 23 August 2026. Estimates only, not financial or tax advice.
Frequently asked questions
What is the NSC interest rate for 2026?
7.7% a year, compounded annually and paid at maturity. The rate is reviewed quarterly by the Ministry of Finance, but the rate on the day you buy is locked in for the full five years.
How much will Rs 1 lakh become in NSC?
About Rs 1,44,903 after five years at 7.7%, so Rs 44,903 of interest. The official figure is that Rs 1,000 grows to Rs 1,449.
Is NSC interest taxable?
Yes, the interest is taxable, but the interest of the first four years is deemed reinvested and so also qualifies for Section 80C in those years. Only the fifth and final year's interest is taxed without an offsetting deduction. No TDS is deducted on NSC.
NSC or PPF, which is better?
NSC pays more (7.7% against 7.1%) and locks up for only five years instead of fifteen, but its interest is taxable. PPF is completely tax-free and better for long-term goals. NSC suits a five-year horizon and an unfilled 80C limit; PPF suits retirement.
Can I withdraw NSC before five years?
Only in narrow cases: the death of the holder, a court order, or forfeiture by a pledgee who is a Gazetted officer. Otherwise the certificate runs its full five-year term.
Is this NSC calculator free?
Yes, free, with no sign-up or ads.