NSC Calculator
5-year National Savings Certificate — safe post-office instrument with 80C benefit.
Min ₹1,000; no upper limit. Deposits qualify for 80C.
Q3 FY24-25 rate: 7.7%. Interest compounded annually.
NSC interest is fully taxable at your slab.
The main NetCorpus India planner rolls this into a 50-year retirement plan alongside your loans, EPF, taxes, trips, and life goals.
National Savings Certificate is a 5-year, government-backed, fixed-rate investment that qualifies for Section 80C deduction — one of the few 80C options with a guaranteed, government-backed return.
Interest compounds annually at the declared rate and is paid out fully at maturity along with the principal (it isn't distributed yearly). Interest is taxable each year on an accrual basis even though you don't receive it until maturity — but each year's accrued interest (except the final year) is itself eligible for a fresh 80C deduction if you're claiming it, which partially offsets the tax.
₹1L invested at 7.7% p.a. for 5 years matures to roughly ₹1.45L — about ₹45,000 in interest, taxed each year on accrual even though it's paid in one lump sum at the end.
Why does NSC interest get taxed before I receive it?▾
Because NSC is deemed to be reinvested each year — the government treats the annual accrued interest as taxable income in the year it accrues, not the year it's paid out, similar to how a cumulative FD is sometimes treated.