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.

Final value: ₹1.45 L
Your money becomes: 1.4×; of what you put in over 5 years.

Invested vs Interest

Total invested: ₹1.00 L
Interest earned: ₹44,903

Interest is 31.0% of final value

Year-by-year breakdown

Show as

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

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.

The formula, with your numbers

Standard Formula

A = P × (1 + i)^N, where i = r ÷ n and N = n × t

Live Calculation (Plugging Your Values)

Investment Amount (P):₹1,00,000

Interest rate (r):7.7%

Compounded (n):yearly (once a year)

Time (t):5 years

Rate per period (i):0.077

Number of periods (N):5

Total you will have invested (C):₹1,00,000

Interest earned (I):₹44,903

Substituted Equation:

₹1,00,000 × (1 + 0.077)^5 = ₹1,44,903

Maturity value:₹1,44,903

One deposit compounds for the whole term. Each compounding period adds interest on the interest already credited, which is why the final figure is more than simple interest would give.

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.

Tax Benefits & Deemed Reinvestment

Initial investment up to ₹1,50,000 qualifies for tax deduction under Section 80C (Old Regime only; nothing under the New Regime, the default). Crucially, interest accrued during Years 1 to 4 is deemed reinvested and also qualifies for fresh 80C deduction in respective years. The interest itself is not tax-free: it is taxable at your slab rate.

References

How these numbers are checked →

National Savings Certificate (NSC) 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 a Section 80C deduction?

Yes, under the Old Regime only; the New Regime, the default, allows no 80C deduction. 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.

Can NSC be pledged as security for a bank loan?

Yes. NSC is accepted as collateral by banks and NBFCs, and lenders typically advance 80% to 90% of the certificate value at a rate well below an unsecured personal loan. The pledge is registered by submitting Form NC-41 at the issuing post office along with the lender's letter, and the post office endorses the transfer of the certificate to the pledgee. The certificate keeps earning interest for you while it is pledged.

Is TDS deducted on NSC interest?

No. The post office does not deduct TDS on NSC interest at any stage, which is a real advantage over bank FDs where TDS starts above Rs 50,000 of interest a year. But no TDS does not mean no tax — the interest is fully taxable at your slab rate and you must declare it yourself under Income from Other Sources. Leaving it out of the return is a common cause of a mismatch notice at maturity.

Should I declare NSC interest every year or only at maturity?

Declaring it every year is the better practice. Interest accrues annually but is paid only at maturity, so if you report all five years' interest in the final year, the whole lump lands in one year and can push you into a higher slab. Report the accrued interest each year under Income from Other Sources, and for years one to four claim the matching Section 80C deduction on the reinvested interest, which is available only under the Old Regime.

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