Finance · Free tool
NSC Calculator
National Savings Certificate (VIII issue) — buy at any post office, hold for 5 years, earn interest compounded annually at 7.7% p.a. Reinvested interest qualifies for 80C in years 1–4.
Multiples of ₹100. 80C cap applies for tax deduction.
Current rate is 7.7% (revised quarterly).
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 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 | ₹1,34,544 |
| 5 | ₹1,34,544 | ₹10,360 | ₹1,44,903 |
NSC at a glance
- Tenure: 5 years (no premature withdrawal except in death/forfeiture).
- Rate: 7.7% p.a. compounded annually (revised quarterly by MoF).
- Min: ₹1,000. Max: no limit (but 80C cap is ₹1.5L).
- Tax: deposits & reinvested interest → 80C. Maturity year interest is fully taxable.
- Loan eligible: NSC can be pledged as collateral for bank loans.
FAQ
Can NSC be premature withdrawn?
No, except in case of death of the holder, court order, or forfeiture by a pledgee. There is no normal premature exit — you must hold the full 5 years.
Is NSC interest taxable?
Yes, but only on the year of receipt (year 5). Interest reinvested in years 1-4 also qualifies for 80C deduction (within the ₹1.5L cap). Final-year interest is fully taxable at slab.
Can I take a loan against my NSC?
Yes. NSC certificates can be pledged with banks as collateral for loans. Loan amount typically up to 80-85% of the NSC face value plus accrued interest.