The National Savings Certificate (NSC) is a fixed-income, government-backed savings scheme available exclusively at post offices across India — making it both sovereign-guaranteed and universally accessible. It offers 7.7% p.a. compounded annually (paid at maturity), a 5-year lock-in, and Section 80C deduction. This NSC interest calculator shows your year-wise interest, cumulative balance, and total maturity amount so you can plan your tax-saving investment with complete clarity.
What Is the NSC Calculator?
The NSC calculator estimates the maturity value and year-wise interest on your National Savings Certificate investment based on your principal and the current 7.7% p.a.
interest rate.
Unlike a simple interest calculator, it shows the compounding effect year by year — demonstrating how NSC interest earned in years 1–4 is reinvested and itself qualifies for Section 80C deduction, creating a unique double-tax benefit structure.
NSC Interest Calculator — Year-Wise Interest Table
NSC interest is compounded annually.
Year-wise interest and balance for ₹1,00,000 invested at 7.7%: Year 1: Interest = ₹7,700 | Closing balance = ₹1,07,700 | 80C claim = ₹7,700 Year 2: Interest = ₹8,293 | Closing balance = ₹1,15,993 | 80C claim = ₹8,293 Year 3: Interest = ₹8,932 | Closing balance = ₹1,24,925 | 80C claim = ₹8,932 Year 4: Interest = ₹9,619 | Closing balance = ₹1,34,544 | 80C claim = ₹9,619 Year 5: Interest = ₹10,360 | Maturity = ₹1,44,904 | Taxable in year 5 For ₹1.5 lakh investment: Maturity = ₹2,17,356.
Total interest = ₹67,356.
For ₹50,000 investment: Maturity = ₹72,452.
Total interest = ₹22,452.
Interest in years 1–4 is deemed reinvested — you must declare it as income in each year's ITR AND claim it as fresh 80C deduction in the same year.
Only year 5 interest is taxable at maturity with no 80C offset.
NSC Calculator Post Office — Is It Different From Bank NSC?
NSC is exclusively a Post Office scheme — unlike PPF which is available at both post offices and banks.
There is NO bank NSC.
The National Savings Certificate can only be purchased at any post office branch across India (or via the Department of Posts' digital banking platform where available).
The interest rate (7.7%), maturity period (5 years), deposit rules, and 80C deduction are all set by the Government of India and are identical at every post office nationwide.
There is no 'post office NSC calculator' that gives different results — any NSC interest calculator (including this one) correctly computes your maturity regardless of which post office you invest through.
How NSC Interest Is Calculated
NSC uses annual compounding: Maturity = P × (1 + 7.7/100)^5.The interest is not paid out annually — it accumulates and is paid at the end of 5 years along with the principal.
This accumulated interest in years 1–4 is treated as 'deemed investment' and qualifies for 80C deduction each year — making NSC one of the few instruments where you claim 80C on interest you haven't physically invested.
Critical rule: you must declare the year-wise interest as income AND claim the same amount as 80C deduction in each year's ITR (years 1–4) to stay tax-compliant.
NSC vs PPF vs Tax-Saving FD
NSC (7.7%, 5-year, post office only): Higher rate than most FDs.
Unique dual-80C benefit on reinvested interest.
No premature withdrawal.
Not EEE — interest is taxable (partially offset by 80C).
PPF (7.1%, 15-year, post office + banks): Fully EEE.
Longer lock-in.
More flexible (partial withdrawal from year 7).
Lower rate than NSC.
Tax-Saving FD (6.5–7.25%, 5-year, banks): Interest paid annually and taxable each year.
No 80C on reinvested interest.
More accessible than NSC.
For a 30% tax bracket investor who already uses 80C fully: NSC's dual-80C benefit on accumulated interest gives the highest effective yield among all three.
Tips for NSC Investing
- Invest before March 31 each year to claim the 80C deduction for that financial year.
- Create a ladder — invest in NSC every year for 5 consecutive years, after which one certificate matures annually, providing regular liquidity while always keeping some invested.
- Use NSC as bank loan collateral — most PSU banks accept NSC certificates as collateral for overdraft facilities without breaking the deposit.
- Declare year-wise NSC interest in ITR every year (not just at maturity) to claim the corresponding 80C deduction and avoid a large undisclosed income at the end of 5 years.
Frequently Asked Questions
What is the NSC interest rate for 2026?
The NSC interest rate is 7.7% per annum, compounded annually and paid at maturity. It has been 7.7% since April 2023. The rate is reviewed quarterly by the Ministry of Finance alongside other small savings rates. Verify the current notified rate at indiapost.gov.in or the Ministry of Finance website before investing.
How is NSC interest calculated year-wise?
NSC uses annual compounding. Interest for year N = Previous year's balance × 7.7%. For ₹1 lakh: Year 1 interest = ₹7,700 (balance ₹1,07,700); Year 2 = ₹8,293 (₹1,15,993); Year 3 = ₹8,932 (₹1,24,925); Year 4 = ₹9,619 (₹1,34,544); Year 5 = ₹10,360 (maturity ₹1,44,904). Use the interest table above for exact year-wise figures.
Can I buy NSC at a bank or only at the post office?
NSC is exclusively a Post Office savings scheme — it can only be purchased at India Post offices or through the India Post Payments Bank digital platform where available. NSC is NOT available at private banks, PSU banks, or any non-postal institution. When you see 'post office NSC calculator' — there is no separate calculator; the rate and rules are identical at all post offices.
Is NSC interest taxable?
Yes, but with a partial offset. NSC interest is taxable at your slab rate. However, interest earned in years 1–4 is treated as 'deemed reinvestment' and qualifies for a fresh Section 80C deduction in each of those years — meaning the tax and the 80C deduction largely cancel out for most investors. Only the year 5 interest (the final year's accrual) is taxable at maturity with no 80C offset.
Is there a maximum limit on NSC investment?
There is no maximum investment limit on NSC. However, the Section 80C deduction is capped at ₹1.5 lakh per year across all eligible instruments. You can invest more than ₹1.5 lakh in NSC but the excess beyond your remaining 80C capacity won't generate a tax deduction — though it still earns the 7.7% return.
Can I withdraw NSC before 5 years?
Premature closure is not allowed voluntarily. NSC can only be encashed before maturity in specific circumstances: death of the holder, court order, or forfeiture by a bank (pledgee) upon the holder's loan default. There is no penalty-based early exit like in FDs — if none of these conditions apply, you must hold until 5-year maturity.
How do I declare NSC interest in my ITR?
Each year (years 1–4), declare the interest accrued on your NSC as 'Income from Other Sources' in your ITR. Simultaneously, include the same accrued interest amount under Section 80C deductions. In year 5, include the final year's interest as income — but there is no 80C offset for year 5. Keeping a year-wise interest schedule (which this calculator provides) simplifies ITR filing significantly.
Can NRIs invest in NSC?
No. NSC is only available to resident Indian individuals. NRIs cannot purchase new NSC certificates. If an NSC was purchased before becoming an NRI, it can be held until maturity but cannot be reinvested as an NRI.