Principal Invested
₹ 1,00,000
Total Compound Interest
₹ 44,903
Tenure Applied
5.0 Years (60 Months)
Total Maturity Value
₹ 1,44,903
About the National Savings Certificate (NSC) Calculator
Our free National Savings Certificate (NSC) Calculator helps individuals determine the maturity payout and cumulative compound interest earned on investments made in the NSC small savings scheme backed by the Government of India.
How National Savings Certificate Works
NSC is a fixed-income investment scheme that can be opened with any post office in India. It offers guaranteed returns with complete capital protection and tax benefits:
- Lock-in Period: NSC carries a standard lock-in period of 5 years (though shorter or custom tenures can be simulated using our tool).
- Compounding Formula: Interest is compounded annually and automatically reinvested, compounding your returns:
$$A = P \times (1 + r)^t$$
How to Use the Calculator
Simply enter your investment parameters or adjust the range slider:
- Investment Amount: The principal amount you wish to invest (minimum ₹1,000 with no upper ceiling).
- Interest Rate: The prevailing annual interest rate notified by the Ministry of Finance.
- Tenure: Switch between Years and Months to analyze different investment horizons.
Click the Calculate Returns button to instantly view your principal, total compound interest earned, applied tenure, and final maturity amount.
Frequently Asked Questions (FAQs)
What are the tax benefits of investing in NSC?
Investments up to ₹1.5 Lakhs per financial year in NSC qualify for tax deductions under Section 80C of the Income Tax Act.
Is the interest earned on NSC taxable?
Yes, the interest accrued each year is treated as reinvested and taxable according to your income tax slab, though the interest for the final year is deemed reinvested and qualifies for 80C deduction.
Can NSC certificates be used as collateral for loans?
Yes, NSC certificates can be transferred or pledged as security to obtain secured loans from banks and non-banking financial companies (NBFCs).
