NSC Calculator
Calculate NSC maturity over 5 years at the current government rate. Free, privacy-first — inputs never leave your browser.
Details
Result
Maturity Value
₹1,44,903
Invested
₹1,00,000
Interest
₹44,903
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
National Savings Certificate
NSC is a 5-year government-backed savings scheme. Current rate is 7.7% p.a. compounded annually but paid at maturity. Eligible for Section 80C deduction. Interest accrued is reinvested and also qualifies under 80C (except in the final year).
Common questions about NSC
What is the NSC interest rate?+
National Savings Certificate (NSC VIII Issue) offers 7.7% p.a. compounded annually (Q1 FY 2026-27 rate, reviewed quarterly by the government). Interest is not paid out — it accumulates and is paid along with principal at the end of the 5-year tenure. ₹1 lakh invested grows to approximately ₹1.4 lakh at maturity. No maximum investment limit, but only ₹1.5 lakh per year qualifies for 80C.
What are the NSC tax benefits?+
Investment up to ₹1.5 lakh per year qualifies for 80C deduction under the OLD regime. Additionally, interest earned each year (except the final year) is deemed reinvested and also qualifies for 80C — a small re-investment benefit worth claiming. Final-year interest and the entire principal at maturity are taxable at slab. Not available as a deduction under the new regime.
NSC vs tax-saving FD — which is better?+
NSC currently offers 7.7% vs tax-saving FDs at 6.5%-7.25% — NSC wins on returns. Both have 5-year lock-in and both qualify for 80C. NSC is backed by the Government of India (zero default risk) vs DICGC's ₹5L bank insurance. FD is slightly more flexible (premature withdrawal with penalty possible); NSC is strictly locked. For a pure 80C play with safety, NSC edges out FD.
Can NSC be used as collateral?+
Yes. Banks accept NSC as collateral for loans — typically lending 75%-85% of the NSC face value at competitive rates (usually 1%-2% above the NSC rate). This is useful if you need liquidity without breaking the NSC and losing interest. The certificate is pledged to the bank; you continue to earn interest on it during the pledge period.
Where can I buy NSC?+
Any India Post office. Minimum investment ₹1,000, in multiples of ₹100 thereafter. Can be bought in cash, cheque, or demand draft. Now also available in Demat form via NSDL/CDSL for easier tracking. Cannot be purchased online directly yet; need to visit a post office. Joint holdings allowed (up to 3 adults) with "either or survivor" basis.
Can I withdraw NSC before 5 years?+
Generally no — NSC is strictly 5-year locked. Premature encashment allowed only in exceptional cases: (1) death of holder; (2) court order; (3) forfeiture by a Gazetted officer pledgee. On premature encashment, you get only the principal back (no interest) if withdrawn within 1 year; interest at savings bank rate between 1-3 years; near-full interest after 3 years. Plan cashflow to avoid premature exit.