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Estimate the maturity value of your NSC investment. See how annual compounding grows your principal over the fixed 5-year tenure.
Enter your investment amount and current NSC interest rate
Fill in your investment amount and interest rate to see the estimated maturity value.
Interest is taxable as Income from Other Sources.
Interest is compounded annually and paid at maturity.
National Savings Certificate is a fixed-income savings scheme issued by the Government of India through post offices. It is intended for individual investors who want predictable returns and are willing to keep funds locked in for a defined period. The tenure of NSC is fixed at five years, and interest rates are announced by the Ministry of Finance every quarter .
NSC investments qualify for tax deduction under Section 80C (old tax regime) up to ₹1.5 lakh. The interest accrued each year, except in the final year, is deemed to be reinvested and also qualifies for Section 80C deduction .
The final year's interest is taxable as Income from Other Sources at your applicable slab rate. Under the new tax regime, no Section 80C deduction is available .
| Year | Opening Balance | Interest Earned (7.7%) | Closing Balance |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,700 | ₹1,07,700 |
| 2 | ₹1,07,700 | ₹8,293 | ₹1,15,993 |
| 3 | ₹1,15,993 | ₹8,931 | ₹1,24,924 |
| 4 | ₹1,24,924 | ₹9,619 | ₹1,34,543 |
| 5 | ₹1,34,543 | ₹10,360 | ₹1,44,903 |
At the end of five years, the maturity value is ₹1,44,903. The total interest earned over the tenure amounts to ₹44,903 [citation:1][citation:3].
The current interest rate for National Savings Certificate is 7.7% per annum, compounded annually. The government has kept this rate unchanged for the July-September 2026 quarter [citation:2][citation:11]. Once you invest, the rate applicable at that point remains fixed for your certificate for the entire 5-year tenure [citation:1].
NSC interest is compounded annually. The interest earned each year is added back to the principal, and the following year's interest is calculated on this increased amount. The formula used is: M = P × (1 + r/100)ⁿ, where P is principal, r is annual interest rate, and n is the tenure (5 years for NSC) [citation:1][citation:3].
Yes, the interest earned on NSC is taxable under the head 'Income from Other Sources'. However, NSC enjoys a unique tax advantage under the old tax regime: the interest accrued every year, except in the final year, is deemed to be reinvested, making it eligible for deduction under Section 80C, subject to the overall limit of ₹1.5 lakh [citation:4][citation:13].
Premature withdrawal of NSC is generally not allowed before the 5-year maturity period. It is permitted only under exceptional circumstances such as the death of the account holder, a court order, or forfeiture by a gazetted officer. If withdrawn within one year, no interest is paid and only the principal is refunded [citation:5][citation:9].
The minimum investment in NSC is ₹1,000. There is no upper limit on the maximum amount you can invest. There is also no TDS (Tax Deducted at Source) on the interest earned [citation:1][citation:10].
Both come with a five-year lock-in and offer fixed returns. However, NSC has a tax advantage: the interest earned each year (except the final year) is deemed reinvested and qualifies for Section 80C deduction under the old tax regime. With tax-saving FDs, interest is taxed every year, which can reduce your effective returns, especially in higher tax brackets [citation:8].