NSC Calculator – National Savings Certificate
IndiaWork out what a National Savings Certificate pays after its 5-year term, how much of it is interest, what you keep after income tax at your slab, and how much of the interest counts towards 80C under the old tax regime.
By Ramanathan · NSC rate last verified: October 10, 2026
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Example
₹1,00,000 in NSC at 7.7%, compounded yearly, matures at ₹1,44,903 after 5 years: ₹44,903 of interest. At the 30% tax slab you keep ₹1,30,893.
Year-by-year value
| Year | Opening value | Interest earned | Closing value |
|---|
Estimate only. The post office rounds interest in its own way, so the amount paid can differ by a few rupees. The tax figure applies one slab to all the interest and ignores surcharge.
QUICK REFERENCE
What NSC pays at 7.7%
Maturity value after 5 years at the current rate of 7.7%, and what is left after tax at the 30% slab. The interest share is the same for every amount: about 45% on top of what you put in.
| Amount invested | Maturity value | Interest | After tax, 30% slab |
|---|---|---|---|
| ₹10,000 | ₹14,490 | ₹4,490 | ₹13,089 |
| ₹50,000 | ₹72,452 | ₹22,452 | ₹65,447 |
| ₹1,00,000 | ₹1,44,903 | ₹44,903 | ₹1,30,893 |
| ₹1,50,000 | ₹2,17,355 | ₹67,355 | ₹1,96,340 |
| ₹5,00,000 | ₹7,24,517 | ₹2,24,517 | ₹6,54,468 |
| ₹10,00,000 | ₹14,49,034 | ₹4,49,034 | ₹13,08,935 |
Rounded to the nearest rupee. Tax includes 4% cess and ignores surcharge.
HOW IT WORKS
How a National Savings Certificate grows
A National Savings Certificate (NSC) is a 5-year savings bond sold at post offices and backed by the Government of India. You invest once, and the interest is added every year and paid with your deposit at the end. Because each year's interest earns interest the following year, the growth compounds:
The formula we use
Maturity = P × (1 + r)5
Where: P = Amount invested | r = Yearly rate
At 7.7%, ₹1,000 grows to ₹1,449.03, the figure the post office publishes.
On ₹1,00,000 the interest rises each year because it is earned on a bigger balance: ₹7,700 in the first year and ₹10,360 in the fifth, for ₹44,903 in all.
The rate is fixed when you buy
The government sets the NSC rate every quarter. For October–December 2026 it is 7.7%, unchanged under the notification of 30 September 2026. Whatever the rate is on the day you buy, it applies for the certificate's whole 5 years, so a later cut does not reduce what an existing certificate pays. You can invest from ₹1,000 in multiples of ₹100, with no upper limit, in your own name, jointly, or for a minor.
Tax and 80C
NSC interest is taxable at your slab rate. It is taxed year by year as it accrues, even though you receive it only at maturity. At the 30% slab plus cess, ₹14,010 of the interest on ₹1 lakh goes in tax, leaving ₹1,30,893: an effective 5.53% a year after tax.
Under the old tax regime, the amount you invest qualifies for the 80C deduction. And because the interest of years 1 to 4 is treated as reinvested in the certificate, it counts as a fresh 80C investment in each of those years: ₹34,544 over four years on ₹1 lakh. The fifth year's interest is paid out, so it does not. All 80C items share one ₹1,50,000 limit a year, and the new tax regime, the default, gives no 80C deduction at all.
NSC, MIS, FD or PPF?
NSC suits money you can lock away for 5 years and do not need income from. If you do need income, the Post Office Monthly Income Scheme pays 7.4% every month instead. Over 5 years NSC ends slightly ahead: ₹5 lakh becomes ₹7,24,517, while the same sum in MIS with its income paid into a Post Office RD ends at ₹7,20,045. The NSC vs MIS guide compares the two in detail. A 5-year fixed deposit can be broken early and a PPF account keeps compounding tax-free for 15 years or more.
Can you get the money out early?
Generally not. An NSC can be closed before 5 years only in limited cases, such as the death of the holder or a court order. You can pledge the certificate as security for a loan from a bank. If you might need the money within 5 years, choose something you can break, such as the Monthly Income Scheme or a fixed deposit.
QUESTIONS & ANSWERS
NSC calculator — frequently asked questions
NSC interest compounds once a year and is paid with your deposit at the end of 5 years, so the maturity value is P × (1 + r)^5, where P is the amount invested and r the yearly rate. At 7.7%, ₹1,000 grows to ₹1,449 and ₹1,00,000 to ₹1,44,903, of which ₹44,903 is interest.
7.7% a year, compounded yearly, for October–December 2026. The government reviews it every quarter, but the rate on the day you buy a certificate stays fixed for its whole 5-year term, so a later change does not affect certificates you already hold.
₹1,44,903 at 7.7%: ₹44,903 of interest on top of your ₹1,00,000. ₹5 lakh becomes ₹7,24,517 and ₹10 lakh becomes ₹14,49,034. If you pay tax at the 30% slab, ₹14,010 of the interest on ₹1 lakh goes in tax (with cess), leaving ₹1,30,893.
The interest is taxable at your slab rate, year by year as it accrues. Under the old tax regime the deposit qualifies for the 80C deduction, and because the interest of years 1 to 4 is treated as reinvested, it also counts as a fresh 80C investment in each of those years, within the shared ₹1.5 lakh limit. On ₹1 lakh at 7.7% that is ₹34,544 of interest over four years. The new tax regime allows no 80C deduction.
Generally no. An NSC can be closed early only in limited cases, such as the death of the holder or a court order, so treat the money as locked for the full 5 years. If you might need it sooner, the Post Office Monthly Income Scheme or a fixed deposit can be closed early, with a penalty.
Over 5 years NSC ends slightly ahead, because its interest compounds. ₹5 lakh in NSC at 7.7% matures at ₹7,24,517. The same ₹5 lakh in the Monthly Income Scheme at 7.4% pays ₹3,083 a month; paid into a 6.7% Post Office RD, that income builds up to ₹7,20,045 with the deposit returned. MIS suits you if you need the monthly income; NSC if you do not.
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FURTHER READING
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