NSC Calculator
Calculate maturity value of a 5‑year National Savings Certificate. Interest is compounded annually and also qualifies for 80C.
| Year | Opening Balance | Interest (80C eligible) | Closing Balance |
|---|
How to Use NSC Calculator
- Enter your investment amount. Type the principal you plan to invest in a 5‑year National Savings Certificate. There is no maximum limit.
- Set the interest rate. The default is 7.7%, the current NSC rate, compounded annually. Update it if the government revises the rate.
- Click Calculate. The tool compounds the principal yearly for 5 years and displays the maturity value and total interest earned.
- Read the year‑wise table. Each row shows the opening balance, interest accrued that year, and the closing balance. The first four years’ interest is eligible for Section 80C deduction; the 5th year is not.
Benefits of NSC Calculator
- Shows year‑wise accrued interest, clearly marking which years qualify for Section 80C deduction — important for tax planning.
- Uses annual compounding exactly as NSC does, giving an accurate maturity value that matches the post office certificate.
- The editable interest rate ensures the calculator remains useful even after future rate changes.
- Instant, private, and requires no account — your investment details never leave your browser.
Frequently Asked Questions
How is NSC interest treated for income tax?
The accrued interest for the first four years is eligible for deduction under Section 80C (within the ₹1.5 lakh overall limit). The interest of the fifth year is taxable and must be added to your income.
Can I use NSC as collateral for a loan?
Yes, banks and post offices accept NSC as collateral for loans. The certificate can be transferred and pledged, which is one reason it is popular with small business owners and farmers.
What happens if I encash NSC before 5 years?
Premature encashment is generally not allowed except in specific cases like the death of the holder or a court order. NSC is meant to be held for the full 5‑year term.
Is NSC Calculator free and private?
Yes — it is 100% free, needs no sign‑up, and everything runs in your browser; your data never leaves your device.
Interest for the first 4 years can be claimed as a deduction under Section 80C (subject to overall limit). 5th year interest is taxable.
Disclaimer: NSC rate is set by the government. Verify current rate with the post office. Tax rules may change.