NSC Calculator (National Savings Certificate - VIII Issue)
Calculate 5-year maturity value, annual accrued compounding interest, and Section 80C reinvestment tax benefits on Post Office National Savings Certificates.
Guaranteed by Government of India at 7.7% annual compounding
*NSC interest compounds annually and is paid at maturity. Zero TDS at source.
Important Educational Disclaimer for Calculator Results:
Calculations are estimates based on your entered inputs and selected return or inflation assumptions. Results are illustrative, hypothetical, and not guaranteed. Actual market returns, interest rates, tax liabilities, and inflation rates will vary and may materially alter your final outcome. This calculator does not constitute financial, investment, or tax advice.
What will your NSC investment yield at maturity?
Investing ₹1,00,000 in a 5-Year NSC at the current sovereign rate of 7.7% p.a. compounded annually earns ₹44,903 in total interest, paying out a guaranteed maturity amount of ₹1,44,903 after 5 years.
- Annual Compounding: Interest compounds annually and is paid out along with the principal at maturity.
- Section 80C Reinvestment Loophole: Interest earned in years 1 through 4 is deemed reinvested and qualifies as a fresh Section 80C deduction!
- No TDS Deducted: Post office does not deduct TDS on NSC maturity, though interest must be shown in your annual ITR.
How This Calculator Works
NSC (VIII Issue) has a fixed 5-year tenure. Interest compounds annually at the sovereign rate fixed at the time of certificate purchase.
Maturity Amount = Principal × (1 + Interest Rate / 100)^5Variables in Formula:
Worked Step-by-Step Example
You purchase ₹1,00,000 worth of National Savings Certificates from India Post at 7.7% annual compounding.
Key takeaway: Your ₹1 Lakh grows to nearly ₹1.45 Lakhs with 100% sovereign safety, and you claim 80C deductions on the reinvested interest for the first 4 years.
Common Mistakes to Avoid
⚠ Forgetting to claim 80C on accrued interest
Most investors only claim 80C on the initial deposit. In years 1–4, the interest added to your account is also eligible for 80C deduction.
Frequently Asked Questions
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