📜 NSC Calculator
Calculate your guaranteed maturity amount for the National Savings Certificate (VIII Issue). Perfect for rigid saving and maximum 80C benefits.
💡 Did You Know: Not only is your original NSC deposit eligible for Section 80C tax deduction, but the interest earned in the first 4 years is also completely tax-free as it gets re-invested automatically!
Certificate Details
Total Investment Amount
₹1,50,000
₹1,000₹50 L
No maximum limit on investment. Multiples of ₹100.
Annual Interest Rate (Current Govt Rate)
7.7%
6.0%9.0%
NSC interest is compounded annually.
Lock-in Period / Tenure
Guaranteed Maturity Value
₹2,17,350
Total Principal Deposited
₹1,50,000
Total Interest (5 Yrs)
₹67,350
Sec 80C Deductible (Year 1)
₹1,50,000
31%
Interest
Deposit
Total Interest
Year-wise NSC Breakdown
| Year | Opening Balance | Interest Accrued (Re-invested, Tax-Free under 80C) | Closing Balance |
|---|
Understanding the National Savings Certificate (NSC)
Why choose NSC?
The NSC is heavily favored by conservative investors who want to lock in a fixed interest rate backed by the government, while also claiming Section 80C tax benefits. There is strictly no maximum limit on how much you can invest in NSC.
The 80C Double Benefit Loophole
- Year 1: The actual amount you invest (e.g., ₹1.5 Lakh) can be claimed under Section 80C.
- Years 1 to 4: The interest you earn each year is not paid out; it is automatically re-invested. Therefore, the Govt allows you to claim this earned interest as a fresh 80C deduction for the very same year!
- Year 5: The interest earned in the final 5th year is taxable as per your income tax slab, because it is paid directly to you and not re-invested.
Withdrawal
NSC demands rigid discipline. You cannot withdraw your money before the 5-year lock-in period ends, except in severe circumstances like the death of the certificate holder.