Calculate maturity value of National Savings Certificate with yearly compounding.
Principal invested
₹0
Interest earned
₹0
Maturity amount
₹0
Year
Opening Balance (₹)
Interest (₹)
Closing Balance (₹)
*This NSC calculator is for illustration only. Actual NSC rates are notified by the Government of India and may change.
What is NSC
The National Savings Certificate (NSC) is a government-backed savings scheme introduced by the Government of India to encourage small and medium savings among citizens. It is available at post offices across India and is considered one of the safest investment options due to its sovereign guarantee. NSC offers a fixed rate of interest, compounded annually, and has a lock-in period of five years. The scheme is ideal for conservative investors looking for stable and assured returns. The invested amount is eligible for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. Interest earned is taxable, but it is deemed reinvested and also qualifies for deduction under the same section until maturity.
What is a NSC Calculator?
An NSC Calculator is an online financial tool that helps investors estimate the maturity amount and interest earned on their National Savings Certificate investment. By entering basic details such as the investment amount, tenure, and the current NSC interest rate, the calculator automatically computes the total amount you will receive at the end of the term. It eliminates manual calculations, provides instant results, and allows users to plan their savings more efficiently. The calculator is especially useful since NSC compounds interest annually and follows a fixed return structure announced by the government every quarter.
How can a NSC Calculator Help You?
A National Savings Certificate calculator simplifies investment planning and helps you make informed financial decisions. Here’s how it helps:
Accurate maturity estimation: It shows exactly how much you will receive after the investment period.
Time-saving: No need for manual or complex formula-based calculations.
Scenario comparison: You can easily compare different investment amounts or interest rates to see how they affect your total returns.
Financial planning: It helps align your savings strategy with future financial goals like education, retirement, or wealth preservation.
Transparency: You can clearly see the split between your principal investment and the interest earned
How Does a NSC Calculator Work?
An NSC calculator works using the compound interest formula, where the interest is calculated on both the principal and the accumulated interest each year.
Formula Used:
Symbol
Definition
Formula
FV
Future Value (Maturity Amount)
FV = P × (1 + r)n
P
Principal Amount
Initial Investment
r
Annual Interest Rate
Rate ÷ 100
n
Number of Years
Tenure (usually 5 years)
Example Calculation :
Parameter
Value
Investment Amount (P)
₹1,00,000
Interest Rate (r)
7.7% p.a.
Tenure (n)
5 years
Using the formula: FV = 1,00,000 × (1 + 0.077)<sup>5</sup> FV = 1,00,000 × 1.449 → ₹1,44,900 (approx.)
Calculation Type
Amount (₹)
Principal Invested
1,00,000
Interest Earned
44,900
Maturity Amount
1,44,900
Hence, investing ₹1 lakh in NSC for 5 years at 7.7% interest will yield approximately ₹1.45 lakh at maturity.
How to Use Business Day NSC Calculator?
The Business Day NSC Calculator is designed to provide accurate results instantly in a user-friendly interface. Here’s how to use it:
Enter your investment amount – The amount you plan to invest in NSC.
Set the interest rate – Input the current NSC rate (updated quarterly by the government).
Select the tenure – Usually 5 years, but you can test different durations for comparison.
Click “Calculate” – The tool instantly displays:
Total amount invested
Total interest earned
Maturity amount
Interactive charts for better understanding
The calculator works on live formulas and updates dynamically as you change any input, allowing you to compare various investment plans quickly.
Advantages of Using Business Day NSC Calculator
Instant and accurate results: Calculates maturity and returns instantly without manual effort.
Easy to use: Designed for simplicity — even first-time investors can use it effectively.
Helps tax planning: Shows how much investment under NSC qualifies for Section 80C benefits.
Reliable and updated: Based on the latest government-declared NSC interest rates and compounding methods.
No login or signup needed: 100% free tool accessible directly on the Business Day website.
The Business Day NSC Calculator empowers investors with clarity, accuracy, and transparency, helping them plan smarter and achieve their financial goals with government-backed security.
NSC Calculator – Frequently Asked Questions
What is the NSC scheme?
The National Savings Certificate (NSC) is a Government of India–backed fixed-income scheme sold at post offices. It offers a fixed interest rate (notified quarterly), compounded annually, with a typical lock-in of five years. It targets safe, disciplined saving and the principal qualifies for Section 80C tax deduction (up to ₹1.5 lakh per year).
Is NSC better than FD?
NSC and bank FDs are both low-risk. NSC is sovereign-backed, has a 5-year lock-in and Section 80C deduction on the invested amount; interest is taxable. FDs offer varied tenures and premature withdrawal (with penalty). “Better” depends on your need for liquidity, tenure, and tax planning.
Is NSC tax free?
The invested principal qualifies for Section 80C deduction (subject to the overall ₹1.5 lakh limit). Interest is taxable each year, but is deemed reinvested and usually also counts toward Section 80C until maturity. On maturity, any final year’s interest is taxable per your slab.
What is the current interest rate on NSC?
NSC’s rate is set by the Government of India and reviewed quarterly. Check India Post or the Finance Ministry’s latest circular for the prevailing rate. Our calculator lets you input the latest rate for accurate results.
Is it possible to break the NSC?
Premature encashment is highly restricted. It is typically allowed only on: (a) death of the holder, (b) court order/forfeiture, or (c) on production of the certificate in case of pledge enforcement by an approved authority. Routine early exits are not permitted.
What will be 1 lakh NSC after 5 years?
Illustration (not a quote): at an indicative rate of 7.7% p.a., ₹1,00,000 grows to approximately ₹1,44,900 in 5 years with annual compounding. Use the on-page NSC calculator and enter the latest government rate for a precise figure.
What are the disadvantages of NSC certificate?
Limited liquidity (strict lock-in), taxable interest, and no market-linked upside. Also, premature encashment is generally not allowed except in specific cases.
Can I withdraw an NSC after 1 year?
No, NSC has a fixed 5-year lock-in. Early withdrawal is only in exceptional cases (death of holder, court order, or pledge enforcement).
Does NSC double in 5 years?
No. At typical rates, the corpus does not double in five years. Doubling depends on the interest rate and time; a rule of 72 suggests you need roughly 72 ÷ rate (in %) years to double your money.
What is the lock period of NSC?
Five years from the date of issue (for the currently available NSC issue). Interest is compounded annually and paid at maturity.
What happens if I don’t withdraw NSC after maturity?
After maturity, NSC stops earning interest (or may earn a minimal post-maturity rate as per prevailing rules). You should encash it promptly at the post office to avoid delays and documentation issues.
How to encash NSC after maturity?
Visit the issuing/servicing post office with the original certificate/ID, fill the encashment form, and complete KYC if required. If pledged, you need a release letter from the pledgee. Proceeds are paid to your linked bank account or in the mode prescribed by the post office.
How can I avoid tax on NSC maturity?
You cannot avoid tax on interest; it is taxable per your slab. However, interest accrued each year (deemed reinvested) generally qualifies under Section 80C within the overall ₹1.5 lakh limit, which reduces taxable income to that extent.
Is the interest rate on NSC fixed?
The rate for a particular government-notified period is fixed for certificates issued in that period. New purchases can have a different rate if the government revises it in subsequent quarters.
Are premature withdrawals allowed in NSC?
Not as a general facility. Only in specific cases: death of holder, court order, or approved pledge enforcement. Otherwise, you must hold NSC to maturity.
एनएससी योजना क्या है?
नेशनल सेविंग्स सर्टिफिकेट (NSC) भारत सरकार की गारंटी वाला फिक्स्ड-इनकम निवेश है, जो पोस्ट ऑफिस में मिलता है। इसमें निश्चित ब्याज दर (त्रैमासिक अधिसूचित), वार्षिक चक्रवृद्धि और सामान्यतः 5 वर्ष का लॉक-इन होता है। मूल राशि धारा 80C के तहत कर कटौती के लिए पात्र है।
क्या एनएससी एफडी से बेहतर है?
दोनों सुरक्षित हैं। NSC में 5 वर्ष का लॉक-इन और 80C लाभ है; एफडी में अवधि और समयपूर्व निकासी की सुविधा (दंड सहित) मिलती है। कौन बेहतर है, यह आपकी तरलता, कर और अवधि की जरूरत पर निर्भर करता है।
क्या एनएससी 5 साल में डबल हो जाता है?
आम तौर पर नहीं। डबल होने के लिए ब्याज दर और समय पर निर्भर करता है। 72 का नियम बताता है कि राशि ~72 ÷ (ब्याज %) वर्षों में दोगुनी होती है।
एनएससी के लिए कौन पात्र नहीं है?
एनआरआई NSC नहीं खरीद सकते। सामान्यतः व्यक्तिगत निवासी (एकल/संयुक्त/अभिभावक के जरिए नाबालिग) पात्र होते हैं; HUFs और ट्रस्ट वर्तमान इश्यू में पात्र नहीं माने जाते।
एनएससी ब्याज की कितनी राशि कर मुक्त है?
ब्याज आय कर योग्य है, परंतु प्रत्येक वर्ष संचित (री-इन्वेस्ट) ब्याज सामान्यतः धारा 80C की ₹1.5 लाख सीमा के भीतर कटौती के लिए माना जाता है। परिपक्वता पर अंतिम वर्ष का ब्याज कर योग्य रहता है।
क्या एनएससी सावधि जमा से बेहतर है?
यह आपकी प्राथमिकताओं पर निर्भर करता है—NSC में 5 वर्ष लॉक-इन व 80C लाभ, जबकि एफडी में अवधि/तरलता विकल्प अधिक हैं। कर और तरलता की जरूरत के आधार पर चुनें।
क्या ब्याज आय 100% कर योग्य है?
ब्याज आय आपकी कर स्लैब के अनुसार कर योग्य है। हालांकि वार्षिक संचित ब्याज धारा 80C सीमा के भीतर कटौती के लिए योग्य माना जाता है, जिससे कर योग्य आय घट सकती है।
What are the disadvantages of NSC?
Same as above: limited liquidity due to 5-year lock-in, interest is taxable, and premature exit is largely not allowed.
Disclaimer: NSC rules and rates are notified by the Government of India and can change. Examples shown are illustrative only.