What is a NSC Calculator?
The National Savings Certificate is a fixed-tenure, government-backed instrument available at post offices, with a 5-year lock-in and interest compounded annually but paid out only at maturity along with the principal. It’s a common Section 80C option for conservative savers who want a guaranteed, government-backed return rather than market-linked instruments.
Interest for the first four years is treated as reinvested and is itself eligible for further 80C deduction each year (subject to the overall ₹1.5 lakh cap), though the final year’s interest is taxable as income in the year of maturity.
How the maturity value is calculated
Standard annual compounding over the fixed 5-year term — there’s no partial withdrawal option, so the full compounding period always applies.
Frequently asked questions
What is the current NSC interest rate?
The rate is notified at 7.7% per annum for Q2 FY 2026-27 (July–September 2026), compounded annually and fixed for the certificate’s full 5-year term at whatever rate applied on the date of purchase.
Is NSC interest taxable?
Yes — unlike PPF, NSC is not fully tax-exempt. Interest for years 1–4 is deemed reinvested and 80C-eligible, but the final year’s interest is taxable as "income from other sources" in your hands.
Can I withdraw an NSC early?
Premature withdrawal is only allowed in specific cases — the holder’s death, forfeiture by a pledgee, or a court order — not on demand, which is worth knowing before locking in funds you might need.