NSC Calculator

Calculate your national saving certificate.

Amount to be invested

Current interest rate
Tenure will be fixed at 5 years.

How does the NSC calculator work?

An NSC calculator helps a user ascertain the future value or the maturity proceeds of the money invested in NSCs. Just key in the amount of money invested and the rate of interest (6.8% at present) and the calculator will show the maturity value of an NSC after five years.

For example, ₹1 lakh invested in an NSC at the rate of interest of 6.8% gives ₹138,949 at the time of maturity. i.e. at the end of fifth year.

Frequently Asked Questions

Who should invest in an NSC?

An NSC can be bought by resident Indian individuals. Thus, a trust and HUF (Hindu Undivided Family) or any other non-individual person such as a company cannot invest in an NSC. An NSC can be bought in a sole capacity or can be bought jointly by individual investors. Individual investors with a low risk appetite looking for assured returns may purchase an NSC. Nomination facility is available in an NSC.

Is an NSC a safe investment?

The NSC is one of the post-office saving schemes backed by the Government of India. It entails a sovereign risk. In other words, there is little scope for default. Returns are assured and investments in NSC are considered to be safe.

How much interest does an NSC pay?

NSC pays a 6.8% rate of interest at present. The rate contracted at the time of issue of the NSC does not change till the NSC matures. The interest is compounded yearly but paid at the time of maturity. The rate of interest payable on an NSC is more attractive now as compared to five-year bank deposits or company deposits with similar risk profiles. The Government of India reviews the rate of interest payable on all small saving schemes, including NSC, once in every quarter. Hence the rate of interest payable on NSC may change from time to time and investors would be better off if they confirm the rate of interest at the time of their investments.

What tax benefit does an NSC offer?

Investment up to ₹1.5 lakh in an NSC in a financial year can be claimed as deduction under section 80C of the Income Tax Act, 1961. If an NSC is bought jointly then the first investor can claim the tax deduction. Investors can also claim deduction on the interest accrued on the NSC each year till the end of the fourth year. The interest paid on an NSC is taxable in the hands of an investor according to the tax slab rate.

How can one buy an NSC?

To invest in an NSC one has to go to the nearest post office. Investors need to  fill up relevant forms, attach relevant documents, complete the Know Your Client (KYC) process and make the payment. The post office issues the NSC, after evaluating the form and realizing the payment. NSCs are not issued online.

Is premature withdrawal from an NSC allowed?

There is no provision for premature withdrawal from an NSC. The money gets locked in for five years. Premature withdrawal is allowed only in the case of death of the holder or in case of an order of a competent court.

Do banks offer loans against NSC?

Loans can be raised against NSC. This provision ensures that there is scope for interim liquidity, by pledging anNSC. Many nationalised, private sector and co-operative banks offer loans against an NSC. Depending on the tenure of an NSC, loan to value ratio is decided. If an NSC has been there for more than three years, then as high as 80% of the value of NSC is offered as loan. In case an NSC has run for a year or so, then a lower loan to value ratio is applied. The tenure of a loan is limited to the extent of the time to maturity of an NSC. For example, if an NSC has run for 3.5 years then the loan tenure cannot exceed 1.5 years. A borrower can either repay the loan in equated monthly installments or can make final payment with interest.

How does an investor get the NSC amount on maturity?

An NSC matures at the end of fifth year from the date of issue. An NSC holder has to fill up a form, surrender the original certificate duly signed by all holders, and establish his/her identity. The post office immediately pays the NSC holder or the funds are transferred to the NSC holder’s bank account.

This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Upstox does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Upstox makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.

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