NSC Calculator: National Savings Certificate Interest & Tax Benefits
7.7% Guaranteed, 80C Eligible — But There’s a Tax Catch
National Savings Certificate (NSC) is a 5-year fixed-income investment available at post offices. At 7.7%, it offers better returns than most bank FDs. The investment qualifies for 80C deduction, and the accrued interest (which is reinvested) also qualifies under 80C in years 1–4. However, the maturity amount is taxable.
NSC Maturity Calculation
| Investment | Rate | Maturity (5 years) | Interest Earned |
|---|---|---|---|
| ₹1,00,000 | 7.7% | ₹1,44,903 | ₹44,903 |
| ₹5,00,000 | 7.7% | ₹7,24,515 | ₹2,24,515 |
| ₹10,00,000 | 7.7% | ₹14,49,030 | ₹4,49,030 |
NSC vs PPF vs Tax Saver FD
- NSC: 5-year lock, 7.7%, interest taxable at maturity, 80C eligible
- PPF: 15-year lock, 7.1%, completely tax-free (EEE), 80C eligible
- Tax Saver FD: 5-year lock, 6.5–7%, interest taxable yearly, 80C eligible
NSC wins on rate but loses on tax-free status to PPF. For 5-year horizons, NSC beats tax saver FDs on rate. Use the NSC calculator to compute exact maturity values.