NSC Return & Maturity Calculator - National Savings Certificate

What is the NSC? The National Savings Certificate (NSC) is a highly secure, fixed-income investment scheme initiated by the Government of India and operated mainly through Post Offices. It is designed to encourage small to mid-sized savings while offering robust tax benefits under Section 80C.

Unlike schemes that pay out interest periodically, the NSC compounds your interest annually but only pays out the total accumulated sum at the absolute end of its 5-year lock-in term. Use our NSC Calculator to instantly forecast your wealth generation.

How Does the NSC Interest Calculation Work?

The NSC compounds interest on a yearly basis. A unique feature of the NSC is that the interest generated every year (except the final 5th year) is considered effectively reinvested into the scheme. Because it is 'reinvested', it qualifies for a fresh tax deduction under Section 80C for that specific year.

• Tax Advantage (80C): Your initial deposit qualifies for an ₹1.5L tax deduction under Section 80C. Further, the accrued interest from Years 1 to 4 is deemed reinvested and also qualifies for 80C.
• No Maximum Limit: While Section 80C deductions cap at ₹1.5L, there is absolutely no limit to how much capital you can place into an NSC account.
• Collateral Power: Due to its sovereign guarantee, Indian banks readily accept NSCs as primary collateral to issue secured loans or credit facilities.

Example: ₹1 Lakh Investment

Frequently Asked Questions