worldofcalcsNSC Calculator
The National Savings Certificate pays 7.7% a year, compounded yearly and paid at the end of 5 years. Deposits qualify for the 80C deduction in the old tax regime.
| Year | Interest added | Value |
|---|---|---|
| 1 | ₹7,700 | ₹1,07,700 |
| 2 | ₹8,293 | ₹1,15,993 |
| 3 | ₹8,931 | ₹1,24,924 |
| 4 | ₹9,619 | ₹1,34,544 |
| 5 | ₹10,360 | ₹1,44,903 |
In the old tax regime, the interest added in years 1–4 counts as reinvested and can be claimed under 80C; all the interest is taxable income.
₹1,00,000 in each Post Office scheme
| Scheme | Rate | What you get |
|---|---|---|
| Senior Citizens' Savings Scheme 5 years | 8.2% | ₹2,050 a quarter |
| Monthly Income Scheme 5 years | 7.4% | ₹617 a month |
| National Savings Certificate 5 years | 7.7% | ₹1,44,903 at maturity |
| Kisan Vikas Patra 115 months | 7.5% | ₹2,00,000 at maturity |
| 5-year Time Deposit 5 years | 7.5% | ₹7,714 a year |
Rates for October–December 2026. * Calculated on the scheme's maximum deposit. MIS shown for a joint account.
What is the National Savings Certificate?
The National Savings Certificate (NSC) is a 5-year savings certificate sold at post offices. Your deposit earns a fixed rate, compounded every year, and you get the whole amount at the end of 5 years. It is popular as a safe way to save tax under 80C in the old tax regime. The rate for October–December 2026 is 7.7% a year, locked in when you buy.
How the maturity value is calculated
Interest is added to the certificate at the end of each year and earns interest itself in the following years. Nothing is paid out until maturity.
NSC rules
- You can invest from ₹1,000 with no upper limit, in multiples of ₹100.
- The deposit qualifies for the 80C deduction in the old tax regime, within the ₹1.5 lakh limit.
- The interest added in years 1–4 counts as reinvested, so it can also be claimed under 80C in those years.
- All the interest is taxable. Many people declare it every year as it is added, rather than all at maturity.
- You can't close an NSC early except on the holder's death or by court order.
- An NSC can be pledged as security for a bank loan.
Worked example: ₹1 lakh in NSC
- ₹1,00,000 at 7.7% a year, compounded yearly
- Year 1 adds ₹7,700, so the value is ₹1,07,700
- Interest keeps growing: ₹8,293 in year 2 and ₹9,619 in year 4
- After 5 years you get ₹1,44,903, of which ₹44,903 is interest