Social Security

NSC Calculator

National Savings Certificate maturity calculator

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InstantInstant report

EstimateEducational estimate

Maturity value₹1,44,903

Total interest₹44,903

Inputs

Investment Amount

₹1,00,000

Interest Rate

7.7%

Rate for accounts opened 1 Oct–31 Dec 2026: 7.7%

Tenure: 5 years (NSC VIII). The 10-year NSC was discontinued in 2015.

NSC interest compounds annually and is paid only at maturity. Years 1–4 interest is deemed reinvested, so old-regime taxpayers can claim it under Section 123 (formerly 80C). Year-5 interest is taxable. No deduction applies in the new regime.

Results

Maturity value

₹1,44,903

Paid at maturity, after 5 years at 7.7% a year

Maturity₹1.45 L

Share of the maturity value

Investment69%
Interest31%

Total interest

₹44,903

Compounded annually

Claimable interest, years 1–4 (old regime)

₹34,544

Year-5 interest of ₹10,359 is taxable. No deduction in the new regime.

Balance over time

The certificate's value each year against what you invested.

Year-wise breakdown

Year-by-year NSC interest and balance, and which years' interest can be claimed under Section 123 in the old regime.

Year-wise breakdown
Year	Opening balance	Interest earned	Closing balance	Tax treatment
1Deemed reinvested: claimable in the old regime	₹1,00,000	₹7,700	₹1,07,700	Deemed reinvested: claimable in the old regime
2Deemed reinvested: claimable in the old regime	₹1,07,700	₹8,293	₹1,15,993	Deemed reinvested: claimable in the old regime
3Deemed reinvested: claimable in the old regime	₹1,15,993	₹8,931	₹1,24,924	Deemed reinvested: claimable in the old regime
4Deemed reinvested: claimable in the old regime	₹1,24,924	₹9,620	₹1,34,544	Deemed reinvested: claimable in the old regime
5Taxable, not claimable	₹1,34,544	₹10,359	₹1,44,903	Taxable, not claimable
Total		₹44,903	₹1,44,903

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Assumptions and methodology

Transparent calculation notes for NSC Calculator.

Methodology notes

Formula used

Annual compounding over the 5-year NSC VIII

Maturity value = principal x (1 + rate)^5

The calculator compounds the investment annually for the 5-year NSC VIII tenure and marks which years' interest is deemed reinvested.

Methodology

Use investment amount as principal.
Apply annual compounding at the selected NSC rate.
Show maturity value and yearly interest accrual.
Mark years 1–4 interest as deemed reinvested (claimable under Section 123 in the old regime) and year-5 interest as taxable.

Core assumptions

Interest rate remains fixed through the certificate tenure.
Interest is reinvested annually as per NSC treatment.
Investment is held until maturity.

Not included

Tax payable on the interest, your remaining Section 123 limit, premature encashment rules, and rate changes for new issues are excluded.
Actual post office rules should be verified before investing.

About NSC (National Savings Certificate) Calculator

Guide

1What is NSC (National Savings Certificate)?

National Savings Certificate (NSC) is a government-backed fixed income savings scheme available at all post offices in India. It offers a guaranteed return with a fixed maturity period of 5 years (NSC VIII; the 10-year NSC IX was discontinued in 2015), and the investment qualifies for deduction under Section 123 of the Income-tax Act, 2025 (Section 80C before April 2026) in the old tax regime.

NSC is a popular choice among conservative investors looking for a safe, fixed-return investment with tax benefits. It is backed by the sovereign guarantee of the Government of India.

2Key Features of NSC

Maturity Period: 5 years (fixed)
Interest Rate: Set by the government quarterly (7.7% p.a. for certificates bought 1 Oct–31 Dec 2026)
Minimum Investment: ₹1,000, in multiples of ₹100. No statutory maximum; this calculator models up to ₹10 crore
Compounding: Interest is compounded annually but paid only at maturity
Tax Benefit: The investment and years 1–4 interest are deductible in the old regime (within the ₹1.5 lakh Section 123 limit, formerly 80C); year-5 interest is taxable.

3NSC Interest and Tax Calculation

NSC interest is compounded annually:

Maturity Value = P × (1 + r)^5

P = Principal investment amount
r = Annual interest rate

Interest accrues every year and is taxable. In years 1–4 it is deemed reinvested, so in the old regime it also counts as a fresh Section 123 (formerly Section 80C) investment within the shared limit. Year-5 interest is not reinvested, so it is taxable and cannot be claimed. In the new regime none of the interest can be claimed and all of it is taxable.

4How to Use This NSC Calculator

Step 1: Enter the principal investment amount
Step 2: Input the current NSC interest rate
Step 3: View the year-by-year interest accrual and final maturity amount
Step 4: See which years' interest is deemed reinvested (claimable in the old regime) and which is taxable

Frequently Asked Questions

FAQ

Can I buy multiple NSC certificates?

Yes, there is no limit on the number of NSC certificates you can purchase. In the old regime, the Section 123 deduction (formerly Section 80C) is capped at ₹1.5 lakh per tax year across all eligible instruments.

Can I withdraw NSC before maturity?

Only on the holder's death, forfeiture by a pledgee (a gazetted officer) or a court order. Within 1 year only the principal is repaid; between 1 and 3 years simple interest is paid at the post-office savings rate; after 3 years a discounted maturity value is paid.

Can NSC be pledged as collateral?

Yes, NSC certificates can be pledged as security for taking a loan from banks. The certificate is transferred to the bank's name and returned after loan repayment.

Is NSC interest taxable?

Yes. Interest is taxable every year. In years 1–4 it is deemed reinvested, so in the old regime you can also claim it as a deduction within the ₹1.5 lakh Section 123 limit (formerly 80C). Year-5 interest can't be claimed. In the new regime there is no deduction.

NSC vs Tax-Saving FD: which is better?

Both have a 5-year lock-in, and the deposit is deductible under Section 123 (formerly 80C) in the old regime. NSC's years 1–4 interest can also be claimed; interest on a tax-saving FD cannot.