NSC Calculator

What Is NSC (National Savings Certificate)?

NSC is a fixed-income investment scheme backed by the Government of India, available at post offices and authorised banks. It has a fixed 5-year tenure and currently offers 7.7% p.a. interest (Q1 FY 2024-25), compounded annually but payable at maturity.

Key Features of NSC

• Tenure: Fixed 5 years — no premature withdrawal except in specific cases (death, court order).
• Minimum Investment: ₹100, with no maximum limit.
• Tax Benefits: Investment qualifies for Section 80C deduction up to ₹1.5L/year.
• Interest Taxation: Annual interest is deemed reinvested and qualifies for 80C (except in the final year). The final year's interest is taxable as income.
• Compounding: Interest compounds annually (not monthly) — different from PPF which also earns on monthly minimum balances.
• Nomination: Can be nominated to a family member.

NSC vs PPF vs FD — Quick Comparison

• NSC: 5 years, 7.7%, tax on interest (80C reinvestment), government-backed.
• PPF: 15 years, 7.1%, fully tax-free (EEE), government-backed.
• Bank FD: 1–10 years, ~6.5–7.5%, interest fully taxable. DICGC insured up to ₹5L.

NSC is best for investors who need a fixed 5-year horizon with guaranteed returns and tax deduction, without wanting to lock money for 15 years in PPF.