This NSC calculator gives the maturity value of a National Savings Certificate bought at a post office, along with the interest added in each of its five years. Enter the amount you plan to invest; the rate of 7.7% a year, compounded yearly, is already set.
NSC is a fixed income certificate with a five year lock in, backed by the central government. Nothing is paid out along the way: interest stays inside the certificate and compounds, and the full amount comes back at maturity.
At a glance
- Rate7.7% a year, compounded yearly
- Term5 years
- Minimum₹1,000, in multiples of ₹100; no maximum
- ₹1 lakh at 7.7%₹1,44,903 at maturity
- PayoutEverything at maturity, nothing before
- TaxPurchase and deemed reinvested interest qualify for the old regime deduction; the interest itself is income
How the NSC calculator works
Interest is worked out once a year on the certificate's value, added to it, and the next year's interest is charged on the bigger figure. After five rounds the certificate pays out.
| Year | Interest that year (₹1 lakh at 7.7%) | Value at year end |
|---|---|---|
| 1 | ₹7,700 | ₹1,07,700 |
| 2 | ₹8,293 | ₹1,15,993 |
| 3 | ₹8,931 | ₹1,24,924 |
| 4 | ₹9,619 | ₹1,34,543 |
| 5 | ₹10,360 | ₹1,44,903 |
The money grows by roughly 1.45 times. ₹1,50,000 would mature at about ₹2,17,355. The certificate keeps the rate it was bought at for all five years, even if later quarters change the published rate.
NSC interest and tax, year by year
NSC interest is taxable, but it is treated in an unusual way. The interest of years 1 to 4 is deemed reinvested in the certificate, so under the old tax regime it counts as a fresh investment for the small savings deduction (within the overall ₹1.5 lakh limit) in the year it accrues. Year 5's interest is not reinvested, so it is simply taxable.
Many people report NSC interest each year in their return as it accrues, which avoids a large lump of income in year 5. No TDS is deducted on NSC. Under the new regime the deduction does not apply, and all the interest is simply income. Confirm the treatment for your situation with a tax professional.
Post office NSC interest calculator vs other options
| Option | Term | Interest | Calculator |
|---|---|---|---|
| NSC | 5 years | 7.7%, compounded, paid at end | This page |
| Five year TD | Five years | 7.5%, paid yearly | Post office FD |
| KVP | 115 months | Doubles the money | KVP |
| PPF | 15 years | 7.1%, tax free | PPF |
| Tax saving bank FD | 5 years | Bank's rate, quarterly | FD |
NSC usually beats the 5 year TD because its interest compounds rather than being paid out. PPF is tax free but locks money up much longer.
Post office NSC calculator monthly interest: does NSC pay monthly
No. NSC pays nothing until maturity. If you want income every month from a post office scheme, look at the monthly income scheme calculator instead, which pays 7.4% a year in monthly instalments. Some people build a ladder: one NSC bought every year, so that after five years one certificate matures every year.
Buying, holding and cashing NSC
- Bought at any post office, in your name, jointly, or for a minor through a guardian. Many post offices now issue it in electronic form.
- Cashing early is barred, except after the holder dies or under a court's order.
- Usable as collateral with banks.
- Can be transferred to another person only in limited situations.
- At maturity, the full value is credited to your post office savings account or paid as allowed.
For the full rule set, see the scheme page on indiapost.gov.in, and set it beside the other schemes on the post office hub.
Frequently asked questions
At what rate does NSC grow today?
7.7% yearly, added to the certificate once a year and paid out at maturity. Each certificate keeps the rate it was bought at.
How much will ₹1 lakh in NSC become?
At 7.7%, ₹1,44,903 after 5 years.
Is NSC interest taxable?
Yes. Years 1 to 4 interest is deemed reinvested and is eligible for the deduction under the old regime; the fifth year's interest is plain income.
Does NSC pay monthly interest?
No. All interest is paid at maturity. Monthly income needs MIS instead.
Can I withdraw NSC before 5 years?
Only on death of the holder or on a court's direction.
Is there a maximum limit for NSC?
No. The minimum is ₹1,000 and there is no upper limit, though the tax deduction is capped.