NSC Calculator

The NSC is a fixed-income savings certificate offered by India Post (VIII Issue). You invest a lump sum once, it earns interest compounded annually for a fixed 5-year term, and the entire maturity amount — principal plus accumulated interest — is paid out in one go at the end of the term.

For the quarter from July to September 2026 the government has kept the NSC rate at 7.7% per annum, unchanged from the previous quarter. The rate is reset by the Ministry of Finance every quarter, so it can change for certificates purchased later — this calculator lets you enter any rate to model an older or newer purchase.

Interest compounds once a year but is not paid out annually — it accrues silently and is added to your principal only when the certificate matures after 5 years. The maturity value follows M = P × (1 + rate/100)^5, so ₹10,000 invested at 7.7% grows to ₹14,490 at maturity.

The minimum investment is ₹1,000, and after that you can invest in multiples of ₹100 with no upper limit. There is no cap on how much you can put into an NSC certificate, unlike PPF's ₹1.5 lakh yearly ceiling.

Yes. Your initial investment qualifies for a deduction of up to ₹1.5 lakh under Section 80C. Uniquely, the interest accrued in each of the first four years is treated as reinvested and also qualifies for a fresh 80C deduction in that year — only the fifth and final year's interest does not qualify, since it's paid out rather than reinvested.

Yes, the interest is taxable as "income from other sources" in the year it accrues, even though you don't receive it in cash until maturity. There is no TDS (tax deducted at source) on NSC, so you're responsible for declaring and paying tax on the accrued interest yourself each year.

Only resident Indian individuals can invest, either singly, jointly, or as a guardian on behalf of a minor. Non-resident Indians (NRIs), Hindu Undivided Families (HUFs), and Trusts are not eligible to purchase NSC.

Premature encashment is restricted, unlike a bank fixed deposit. It's generally allowed only in specific circumstances such as the death of the certificate holder, forfeiture by a pledgee (for example, a bank the certificate was pledged to), or under a court order — not simply on demand.

Both compound your principal, but NSC has a fixed 5-year term set by government rule with no choice of tenure or compounding frequency, is India-only and INR-denominated, and doubles as a Section 80C tax-saving instrument. A bank FD offers flexible tenures and compounding options, may allow premature withdrawal (often with a penalty), and its interest deduction depends on the bank and account type.

NSC is a single lump-sum investment that matures in 5 years with a fixed 80C-eligible deduction each year on reinvested interest. PPF is a 15-year scheme designed for recurring yearly deposits (up to ₹1.5 lakh/year) and is fully tax-free at maturity (EEE status), whereas NSC's final year of interest is taxable. Investors often use both — NSC for a shorter horizon, PPF for long-term retirement savings.

Yes, NSC certificates can be pledged as collateral for a loan from banks, NBFCs, and some government bodies, since the certificate itself represents a fixed, government-backed maturity value. Terms and interest rates depend on the lender.

NSC certificates are issued at India Post Office branches and can also be purchased online through India Post's internet banking or DOP e-banking portal, as well as at select authorised bank branches.