National Savings Certificate (NSC) Calculator 2026

Calculate 5-year post office 7.7% p.a. compounded returns and Section 80C tax deduction

Investment Amount

₹

Quick Presets:

₹1,000₹50.00 L

NSC Interest Rate (Govt Fixed 7.7% p.a.)

1%30%

Rate is fixed by the scheme. Update if it changes.

Time Period

Yrs

5 Yr5 Yrs

Tenure is fixed at 5 years by the scheme.

Your money becomes

1.4×

of what you put in over 5 years.

Final value₹1.45 L

Invested vs Interest

Total invested

₹1.00 L

Interest earned

₹44,903

Interest is 31.0% of final value

Year-by-year breakdown

Year	Total contributed	Interest earned	Value
1	₹1.00 L	₹7,700	₹1.08 L
2	₹1.00 L	₹8,293	₹1.16 L
3	₹1.00 L	₹8,931	₹1.25 L
4	₹1.00 L	₹9,619	₹1.35 L
5	₹1.00 L	₹10,360	₹1.45 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

National Savings Certificate (NSC VIII Issue) — Complete Rules & Benefits

The National Savings Certificate (NSC VIII Issue) is a premier sovereign-backed post office small savings scheme designed for risk-averse investors seeking capital security, guaranteed compounding returns, and Section 80C income tax deductions.

1. Compounding Formula

A = P × (1 + r / 100)^t

Where P is the principal amount, r is the annual interest rate (7.7%), and t is 5 years. Interest compounds annually and matures along with principal at year 5.

2. Tax Benefits & Deemed Reinvestment

Initial investment up to ₹1,50,000 qualifies for tax deduction under Section 80C (Old Regime). Crucially, interest accrued during Years 1 to 4 is deemed reinvested and also qualifies for fresh 80C deduction in respective years.

Authoritative Government References

• India Post — National Savings Certificate (NSC VIII Issue) Portal • Department of Economic Affairs — Small Savings Interest Rate Notifications

Power of Compounding FAQs

What is the current NSC interest rate in India?

The National Savings Certificate (VIII Issue) rate is notified quarterly by the Ministry of Finance and is currently 7.7% per annum, compounded annually but paid only at maturity. The rate is locked at purchase for the full 5-year term.

Is NSC eligible for Section 80C tax exemption?

Yes. The initial investment qualifies under Section 80C up to ₹1,50,000 a year. Interest accrued in years 1 to 4 is deemed reinvested and also qualifies for a fresh 80C deduction — only the fifth year's interest is taxable without an offsetting deduction.

What is the tenure and maturity period of NSC?

NSC VIII Issue runs for a fixed 5 years. There is no premature withdrawal except on the holder's death, forfeiture by a pledgee who is a Gazetted officer, or a court order.

Is NSC better than a tax-saver FD?

Usually yes at higher slabs. Both have a 5-year lock-in and both are taxed at slab rate, but NSC's reinvested interest earns you a fresh 80C deduction for four years, which a tax-saver FD does not offer. NSC's rate is also typically above most bank 5-year rates.

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