NSC Interest Calculator

Maturity Amount

Interest Earned

Principal Amount

What is National Savings Certificate?

The National Savings Certificate (NSC) is an interesting investment program that you can open at any post office. It is an initiative of the Government of India and encourages subscribers - mainly low and middle income investors - to invest while saving income tax.

NSC - Key Information 

Interest Rate 

7.7% p.a

Minimum Investment


Lock-in period

5 years

Risk Profile


Tax Benefit

Upto Rs.1.50 lakh under Section 80C

NSC caters to the needs of anyone looking for a safe investment opportunity to earn steady interest while saving on taxes. The government has promoted NSC for individual investors, and hence, HUFs, Trusts, and private limited companies cannot invest in it. Even Non-Resident Indians cannot purchase NSC Certificates.

To invest in NSC, the following NSC eligibility criteria must be met. -

  1. Hindu Undivided Families (HUFs), Trusts, Private Limited Companies (PLCs) are not allowed to invest in NSC.
  2. The person must be a citizen of India. Non-Resident Indians (NRIs) are not allowed to invest in NSC.
  3. A person who is more than 10 years old.

Features and Benefits of NSC

  1. Types - The scheme initially had two types of certificates - NSC VIII Issue and NSC IX Issue. The government stopped issuing NSC IX in December 2015. So only the NSC VIII edition is currently open for subscription.
  2. Interest Return - Currently, the system guarantees investors a return of 7.7%. The returns offered by NSC were generally higher than FD. It is increased annually but paid when due.
  3. Tax saving - As a government sponsored tax saving, you can claim up to Rs.1,50,000 under Section 80C of the Income Tax Act, 1961.
  4. Start small - You can invest only 1000 rupees (or multiples of 100 rupees) as initial investment and withdraw the amount whenever possible.
  5. Term - The term is for five years.
  6. Access - You can purchase this system from any post office by submitting the required documents and going through the KYC verification process. It is also easy to transfer the certificate from one post office to another.
  7. Loan Guarantee - Banks and NBFCs accept NSC as security or guarantee for secured loans.
  8. Nomination - an investor can nominate a family member (even a minor) to inherit the investor in case of unfortunate death.
  9. Post-Maturity Case -  When maturity arrives, you get the full maturity value. As there is no TDS on NSC payments, the subscriber has to pay the applicable tax on it.
  10. Early Exit - In general, you cannot exit the system early. However, they will accept it in exceptional cases, such as the death of the investor or a court order.

How to invest in NSC?

In the past, physical NSC certificates were issued by banks or post offices. It has been discontinued since 2016. Currently, certificates can be purchased either in electronic mode (e-mode) or in Passbook mode.


Although the book method is unpopular and relatively more tedious, you can easily purchase the NSC system from an authorized bank or post office with a savings account. However, it is important to note that you need to activate your Online Banking to do the same.


What is NSC Calculator?

Before making an investment it is important to know the potential returns of the investment. The NSC Calculator helps calculate the NSC maturity amount as well as the NSC interest amount which aids the investors in obtaining an estimate of their investment returns. This digital tool instantly calculates returns after inputting the amount of investment. This calculator helps you plan your investments wisely and make informed decisions about your investments, helping you optimize your savings and also to reach your financial goals.


Benefits of NSC Calculator

  1. Ease of use - It is simple and convenient to use making it user-friendly.
  2. Accuracy - It gives accuarate results avoiding errors and mistakes due to manual calculations
  3. Free of Cost - Being free of cost makes it an attractive investment opportunity
  4. Time Saving - It helps in saving time by giving the maturity and interest amount in seconds
  5. Comparision - This enables the investor to compare different investment options before making a decision.

Formulae for NSC Maturity and Interest Calculation

The NSC Calculator uses the following formula to calculate the maturity amount of the NSC scheme - Maturity Amount = P x ( 1 + r/100)

The NSC Calculator uses the following formula to calculate the interest amount of the NSC scheme - Compound Interest = P x ( 1 + r/100)- P 



P is the  Principal amount

r is the Interest Rate

n is the tenure of the investment 


Let’s calculate the maturity amount and interest amount using the formula for better understanding 

Mr Arjun wants to calculate his potential maturity amount and interest amount by investing Rs.10,00,000 in the NSC.




Principal ( P )


Interest Rate ( r )

7.7 % p.a

Tenure ( n )

5 years

Maturity Amount 

10,00,000 ( 1+ 7.7/100) 5


= 14,50,000

Interest Amount

14,50,000 - 10,00,000


= 4,50,000

(Kindly note that the above example is merely for understanding purposes. Please use the Cleartax NSC calculator for accurate results)

Frequently Asked Questions

How to open NSC Online?

NSCs can be opened online through post office internet banking. Log in to Internet banking and raise a new request for the required amount of investment. 

Where is NSC interest shown in Income Tax?

NSC Interest earned is shown under the “Income from Other Sources” head in ITR.

How is NSC interest calculated?

The NSC rate is increased every year. This is the interest calculated on the capital invested in the NSC, which should be added to the capital to obtain the capital of the second year.

How to get an NSC Certificate?

If you submit the NSC account opening form along with KYC documents, you must make payment in the same direction. Once processed, the post office will issue you an NSC certificate.

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