NSC calculator
The National Savings Certificate (VIII issue) is a 5-year post office deposit that pays 7.7% a year, compounded yearly and paid in full at maturity. Enter an amount to see what it grows to and how much of the interest you can claim under 80C.
Rules for FY 2026-27 · Checked 24 October 2026
1.45 lakh from ₹1,00,000 invested.
- You earn ₹44.9k in interest, paid with the deposit at maturity.
- The interest of years 1 to 4, ₹34.5k, counts as reinvested, so it can be claimed under 80C in the old regime.
- All of the interest is taxable at your slab rate.
- Amount invested₹1,00,000
- Interest earned₹44,903
- Amount invested
- ₹1,00,000
- Interest over 5 years
- ₹44,903
- Maturity value
- ₹1,44,903
Year-by-year interest
| Year | Interest that year | Counts for 80C | Value |
|---|---|---|---|
| 1 | ₹7,700 | Yes | ₹1,07,700 |
| 2 | ₹8,293 | Yes | ₹1,15,993 |
| 3 | ₹8,931 | Yes | ₹1,24,924 |
| 4 | ₹9,619 | Yes | ₹1,34,544 |
| 5 | ₹10,360 | No | ₹1,44,903 |
How NSC interest works
Interest is added at the end of each year and earns interest itself from then on, so the certificate grows like a lump sum compounded yearly. Nothing is paid out until the end of the 5 years.
For example, ₹1 lakh at 7.7% grows to ₹1,44,903 after 5 years. The interest is ₹7,700 in the first year and rises each year to ₹10,360 in the fifth, ₹44,903 in all.
The rate is fixed on the day you buy the certificate and does not change for its 5 years, even when the government revises the rate for new certificates.
NSC rules at a glance
- Invest ₹1,000 or more, in multiples of ₹100. There is no upper limit, and you can buy as many certificates as you like.
- An adult can buy one alone or jointly with up to two other adults. A guardian can buy one for a minor, and a child aged 10 or more can buy one in their own name.
- The certificate matures 5 years from the date of deposit.
- It cannot be cashed early except on the holder’s death, on forfeiture by a pledgee who is a gazetted officer, or by a court order. Closed within the first year, only the deposit is returned.
- It can be pledged as security for a loan with a bank, the RBI, a co-operative society, a government company or an approved housing finance company.
How NSC is taxed
The amount you invest counts for 80C (up to ₹1.5 lakh a year with your other 80C items) in the old regime only. The new regime has no 80C deduction.
The interest is taxable at your slab rate. Each year’s interest for years 1 to 4 is treated as reinvested in the certificate, so most people declare it as income each year and claim the same amount under 80C, which cancels the tax on it in the old regime. The fifth year’s interest is not reinvested, so it is simply taxed.
On ₹1 lakh at 7.7%, the interest for years 1 to 4 comes to ₹34,544. That is the amount that can be claimed under 80C over those four years.
In the new regime there is no 80C, so all of the interest is taxed. Compare with PPF, whose interest is tax-free in both regimes.
Frequently asked questions
What is the NSC interest rate now?
7.7% a year, compounded yearly, for certificates bought in October to December 2026. The government reviews it every quarter, but a certificate keeps the rate it was bought at.
How much does ₹1 lakh in NSC become?
₹1,44,903 after 5 years at 7.7%. ₹1,000 becomes ₹1,449.03.
Is NSC interest taxable?
Yes, at your slab rate. In the old regime the interest of years 1 to 4 counts as reinvested and can be claimed under 80C, so in practice only the fifth year’s interest is taxed, as long as your 80C limit is not already used up.
Can I withdraw NSC before 5 years?
Only on the death of the holder, on forfeiture by a pledgee, or by a court order. There is no option to cash it early just because you need the money.
NSC or PPF?
NSC locks your money for 5 years and its interest is taxable. PPF runs for 15 years but is tax-free throughout. For a 5-year goal in the old regime, NSC works; for long-term saving, PPF usually leaves you with more.
Sources: National Savings Certificates (VIII Issue) Scheme, 2019 (NSI), National Savings Institute (small savings rates), CBDT Circular 418 on NSC interest and 80C, India Post