NSC Calculator
See what your National Savings Certificate will pay after 5 years, how much of each year’s interest you can claim as a deduction, and what NSC really returns after tax in the new and old regimes. Uses the 7.7% rate for October to December 2026, or the rate for the date you bought your certificate.
₹1,00,000 in NSC bought from 1 april 2023 grows to ₹1,44,903 in 5 years at 7.7% compounded yearly. In the new regime there is no deduction and the interest is taxed at your slab, so you keep about 6.10% a year.
Year-by-year NSC value and the interest you can claim
| Year | Opening | Interest | Closing | Deduction (old regime) |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,700 | ₹1,07,700 | ₹7,700 |
| 2 | ₹1,07,700 | ₹8,293 | ₹1,15,993 | ₹8,293 |
| 3 | ₹1,15,993 | ₹8,931 | ₹1,24,924 | ₹8,931 |
| 4 | ₹1,24,924 | ₹9,619 | ₹1,34,544 | ₹9,619 |
| 5 | ₹1,34,544 | ₹10,360 | ₹1,44,903 | Not reinvested |
Every year’s interest is taxable income, shown in your return under other sources. For years 1 to 4, the same amount is treated as reinvested in NSC, so in the old regime you can claim it within the ₹1.5 lakh limit. Year 5 interest is paid out, not reinvested.
Per ₹1,000 at 7.7%, the post office pays ₹1,449 at maturity. No TDS is deducted on NSC interest. Rates from the Ministry of Finance; checked 2026-11-05.
How is NSC maturity calculated?
NSC interest compounds once a year at the rate in force when you buy, fixed for all 5 years: maturity value = amount × (1 + 7.7%)5. Each ₹1,000 bought from 1 April 2023 pays ₹1,449.03. That figure is set in the government’s notification, so the post office pays exactly this, rounded to the nearest rupee.
On ₹1 lakh bought today:
| Year | Interest for the year | Value at the end of the year | Deduction you can claim (old regime) |
|---|---|---|---|
| 1 | ₹7,700 | ₹1,07,700 | ₹7,700 |
| 2 | ₹8,293 | ₹1,15,993 | ₹8,293 |
| 3 | ₹8,931 | ₹1,24,924 | ₹8,931 |
| 4 | ₹9,619 | ₹1,34,544 | ₹9,619 |
| 5 | ₹10,360 | ₹1,44,903 | None: paid out at maturity |
The government publishes the same schedule per ₹1,000: ₹77.00, ₹82.93, ₹89.31, ₹96.19 and ₹103.60 of interest in years 1 to 5. Your post office can give you a certificate of the interest accrued each year for your tax return.
NSC maturity value table
At 7.7%, NSC multiplies your money by about 1.45 in 5 years.
| You invest | Interest in 5 years | Maturity value |
|---|---|---|
| ₹1,000 | ₹449 | ₹1,449 |
| ₹10,000 | ₹4,490 | ₹14,490 |
| ₹50,000 | ₹22,452 | ₹72,452 |
| ₹1,00,000 | ₹44,903 | ₹1,44,903 |
| ₹1,50,000 | ₹67,355 | ₹2,17,355 |
| ₹5,00,000 | ₹2,24,517 | ₹7,24,517 |
| ₹10,00,000 | ₹4,49,034 | ₹14,49,034 |
What is the NSC interest rate?
7.7% a year for October to December 2026, unchanged since 1 April 2023. The Finance Ministry announces small-savings rates every quarter, but your certificate keeps its purchase rate until it matures. So if you hold an older certificate, use the rate for the date you bought it:
| Bought | Rate | ₹1,000 becomes | Notification |
|---|---|---|---|
| From 1 April 2023 | 7.7% | ₹1,449.03 | G.S.R. 328(E), 27 April 2023 |
| January to March 2023 | 7% | ₹1,402.55 | G.S.R. 54(E), 20 January 2023 |
| April 2020 to December 2022 | 6.8% | ₹1,389.49 | G.S.R. 284(E), 5 May 2020 |
| July 2019 to March 2020 | 7.9% | ₹1,462.54 | G.S.R. 922(E), 12 December 2019 |
A certificate bought in 2021 at 6.8% therefore pays ₹1,389.49 per ₹1,000 when it matures in 2026, even though new buyers get 7.7%. Choose the purchase period in the calculator to check yours.
How is NSC interest taxed?
NSC interest is taxable every year at your slab rate, and no TDS is deducted. In the old regime, years 1 to 4 of interest count as a fresh NSC investment for the deduction under Section 123 (formerly 80C), so in practice only the fifth year’s interest is taxed.
- Declare the interest each year under income from other sources, using the post office’s figure for that year. Leaving it all to the fifth year bunches the tax and, in the old regime, loses the deduction for years 1 to 4.
- The deduction needs room under the ₹1.5 lakh limit. If PF, PPF, ELSS and insurance already fill it, the reinvested interest saves nothing and is fully taxed.
- New regime: no deduction on the purchase or the interest, so NSC is a plain 5-year deposit.
Under the Income-tax Act, 2025, NSC (VIII Issue) stays on the list of investments that qualify under Section 123 (formerly 80C), and the scheme still treats years 1 to 4 of interest as reinvested. The claim for that interest was accepted for years under the old Act; if you rely on it for a large amount, confirm with your tax adviser for Tax Year 2026-27.
What NSC returns after tax
On ₹1.5 lakh, at 7.7%, with 4% cess on the tax:
| Your slab | New regime | Old regime, interest deduction only | Old regime, with the deduction on the purchase too |
|---|---|---|---|
| 5% | 7.30% | About 7.6% | 8.78% |
| 20% | 6.10% | 7.38% | 12.50% |
| 30% | 5.30% | 7.22% | 15.54% |
The last column includes the tax you save in the year you buy (₹46,800 at the 30% slab), which any investment under Section 123 (formerly 80C)gives you. To compare NSC with other old-regime options, use the middle column.
Is NSC better than a tax-saver FD, PPF or KVP?
For a 5-year, fixed, government-backed deposit in the old regime, NSC is usually the best of the post office options, because only its final year of interest is taxed in effect. PPF earns less but is fully tax-free, and it locks your money for 15 years.
| Option | Rate now | Lock-in | Deduction on purchase (old regime) | Interest |
|---|---|---|---|---|
| NSC | 7.7%, compounded yearly | 5 years | Yes | Taxable; years 1–4 count as reinvested |
| Post office 5-year time deposit | 7.5%, paid out yearly | 5 years | Yes | Taxable every year; TDS may apply |
| Bank tax-saver FD | Bank’s 5-year rate | 5 years | Yes | Taxable every year; TDS above the threshold |
| PPF | 7.1% | 15 years | Yes | Tax-free |
| Kisan Vikas Patra | 7.5% | Doubles in 115 months | No | Taxable |
At the 30% slab in the old regime, NSC keeps about 7.22% a year after tax (with room for the interest deduction), against about 5.3% on the post office time deposit, whose interest is all taxed. In the new regime the gap disappears: NSC keeps 5.30% and the time deposit 5.31%. Compare long-term options in the PPF Calculator and bank deposits in the FD Calculator.
Can you withdraw NSC before 5 years?
Only if the holder or a joint holder dies, a court orders it, or a gazetted government officer to whom it is pledged forfeits it. You cannot close NSC early just because you need the money. When it is closed early, the amount depends on how long it was held:
| Held for | You get, per ₹1,000 bought from 1 April 2023 |
|---|---|
| Less than 1 year | ₹1,000: your money back, no interest |
| 1 year to under 3 years | ₹1,000 plus 4% simple interest (the post office savings rate) for complete months |
| 3 years to under 3½ years | ₹1,214.77 |
| 3½ years to under 4 years | ₹1,254.80 |
| 4 years to under 4½ years | ₹1,296.16 |
| 4½ years to under 5 years | ₹1,338.87 |
| 5 years (maturity) | ₹1,449.03 |
So ₹1 lakh closed after the holder’s death at 4 years and 2 months pays ₹1,29,616. With a nominee, up to three surviving nominees or heirs can instead choose to keep the certificate until it matures.
Who can buy NSC, and how?
Any resident Indian adult, at a post office, from ₹1,000 in multiples of ₹100, with no upper limit.
- Single: for yourself, or as guardian for a minor or a person of unsound mind. A child aged 10 or more can hold one in their own name.
- Joint A: up to three adults, paid to all of them together or to the survivors.
- Joint B: up to three adults, paid to any one of them or to the survivors.
- NRIs cannot buy NSC.
- Documents: the account opening form with your PAN and Aadhaar, as for other post office schemes. Add a nominee when you buy.
Can you take a loan against NSC?
Yes. NSC can be pledged as security to banks, the RBI, cooperative societies, housing finance companies and other institutions listed in the scheme, with a transfer form submitted at the post office. The certificate keeps earning interest while it is pledged, and it is transferred back to you once the loan is repaid. How much you can borrow against it is up to the lender.
When to use a different calculator
- Saving a fixed amount every month at the post office? Use the RD Calculator.
- Investing for 15 years, tax-free? Use the PPF Calculator.
- Saving for a daughter under 10? Use the Sukanya Samriddhi Yojana Calculator.
- Comparing your whole tax bill in the new and old regimes? Use the Income Tax Calculator.
Sources
- NSC (VIII Issue) Second Amendment Scheme, 2023, G.S.R. 328(E): 7.7% and maturity values (gazette text reproduced by TaxGuru)
- NSC (VIII Issue) Amendment Scheme, 2023, G.S.R. 54(E): 7.0% (gazette text reproduced by TaxGuru)
- National Savings Certificates (VIII Issue) Scheme, 2019, G.S.R. 922(E) (gazette text reproduced by StaffNews)
- Small savings interest rates unchanged for October–December 2026 (Free Press Journal)
- Section 123, Income-tax Act, 2025: deductions list (ClearTax)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
