National Savings Certificates (NSC) Calculator

This Online NSC Calculator is designed for calculating the maturity value of National Savings Certificates (NSC) invested in the Post Office for a period of 5 years.

The tenure of the NSC scheme is 5 years and the present rate of interest is 6.8% p.a. w.e.f. 01 July 2020.

NSC Investment Amount (Rs)	:
Current Rate of Interest	:
Period for Deposit (in Months)	:	(fractions not allowed)
Frequency of Compounding	:	SelectAnnual
Maturity Value of NSC (Rs)	:
Invested Amount in NSC (Rs)	:
Wealth Gain (Rs)	:
Effective Yield in %	:

Note: The more frequent the interest is compounded, the higher the return on your savings will be. The future value of savings with interest compounded at Monthly frequency (i.e., 12 times a year) will be higher than the same with interest compounded at quarterly (4 times a year) interval, which in turn is better than semi annual (twice a year) or annual compounding.

National Savings Certificates (NSC) Calculator is a general-purpose calculator used for calculating the maturity amount of National Savings Certificates (NSC) invested in Post Office for a specified period of 5 years.

This NSC Calculator requires some data like – Your NSC Deposit Amount, Rate of Interest (current interest rate for NSC is 6.8% w.e.f. 01/07/2020), Period (in No. of Months i.e. 60 months), interest Compounding Frequency (i.e. Annual). After calculation, you will get the Maturity Amount of your National Savings Certificates (NSC) after the maturity period and Effective yield in %.

National savings certificates (NSC)

National Savings Certificates (NSC) is a small savings scheme run by the Department of Posts. NSC is a government scheme, and thus it is a very safe investment option.

The minimum deposit that must be made towards the scheme is Rs.1,000. There is no maximum limit on the purchase of NSCs, but only investments of up to Rs.1.5 lakh can earn you a tax break under Section 80C of the Income Tax Act. 

Salient Features & Benefits of NSC Savings Certificates (NSC):

• Presently, NSC gives guaranteed returns (6.8% annual interest) and one can enjoy a regular income.
• Types of NSC: The scheme originally had two types of certificates – NSC VIII Issue (5 Years) and NSC IX Issue (10 Years). The government discontinued the NSC IX Issue in December 2015. So, only the NSC VIII Issue is open for subscription currently.
• Tax Benefit: It is a tax-saving scheme, one can invest for up to Rs.1.5 lakh to claim the benefits under 80C deductions.
• The minimum deposit that must be made towards the scheme is Rs.1,000. There is no maximum limit on the purchase of NSCs.
• Interest rate: Currently, the rate of interest is 6.8% w.e.f. 01 July 2020, which the government revises every quarter. It gets compounded annually but will be payable at maturity.
• The maturity period of NSC: The maturity period is five years.
• Anyone can purchase this NSC from any post office by submitting the necessary documents and doing the KYC process.
• It is easy to transfer the certificate from one Post Office to another too.
• Loan collateral: Banks and NBFCs accept NSC as a collateral or security for secured loans. To do this, the concerned postmaster should put a transfer stamp to the certificate and transfer it to the bank.
• Power of compounding: Interest you earn on your investment gets compounded and reinvested by default, though the returns do not beat inflation.
• Nomination: Investors can nominate a family member (even a minor) so that they can inherit it in the unfortunate event of the investor’s demise.
• Corpus after maturity: Upon maturity, you will receive the entire maturity value. Since there is no TDS on NSC payouts, the subscriber should pay the applicable tax on it.
• Premature withdrawal of NSC: Generally, one cannot exit the scheme early. However, they accept it in exceptional cases like the death of an investor or if there is a court order for it.

Withdrawal of National Savings Certificates (NSC):

NSCs don’t allow premature withdrawals, however, they accept it in exceptional cases like the death of an investor or if there is a court order for it. Once the 5-year or 10-year term is over, you need to submit the NSCs back to the post office to get the original investment along with interest. As an exception, if the holder of NSCs dies, the nominees can withdraw NSCs before the completion of the term.

Tax benefits for NSC:

Though there is no maximum limit on the purchase of NSCs, only investments of up to Rs 1.5 lakh annually can earn the subscriber the tax savings under Section 80C of the Income Tax Act, 1961.

The interest earned on the certificates annually, for the first 4 years are deemed to be reinvested ( ie. added back to the initial investment) and hence, also eligible for a tax break, subject to the overall annual limit of 1.5 lakh.

However, the interest earned in the 5th year is not re-invested hence taxable as per the investor’s applicable slab rate.

Comparing NSC with other Tax-saving investments:

NSC is one of the tax-saving investment options available under Section 80C of the Income Tax Act. The other popular investment options under this category are Equity Linked Savings Schemes (ELSS), National Pension System (NPS), Public Provident Fund (PPF) and Tax-saving Fixed Deposits (FD).

How Online NSC Calculator Works?

Following are the steps to calculate the FD returns through this NSC calculator:

• Step 1: Enter the fixed principal amount that anyone wants to deposit.
• Step 2: After this, fill the rate of interest that he gets from his bank or financial institution for the specified period. Different banks or financial institutions offer different rates of interest-based on the amount of investment and period of investment.
• Step 3: The next step that one has to follow is to select the period for saving in months. It depends on saving option requirement for which he wants to stay invested.
• Step 4: Thereafter choose the frequency of compounding. The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.
• Step 5: After submitting all variables required by an NSC calculator, one will get the Maturity Amount after the maturity period, Invested Amount, Wealth Gain as interest return, and Effective yield in %

How can an NSC calculator help you?

It helps you become financially disciplined and create a habit of savings that can benefit you in the future.

An online NSC calculator is a beneficial tool, which shows the estimated returns you will earn after the investment tenure.

Few of the benefits of NSC calculator for fixed deposits are –

1. It assists you to determine the amount you want to invest in.
2. Tells you the total amount you have invested.
3. It gives an estimated value of the returns.

Advantages of using this Online National Savings Certificates Calculator:

It is the best NSC calculator available online, which provides the following advantages –

• Plan your investment based on the amount and tenure.
• It helps you compute the maturity of the total value of investments at the end of your NSC tenure.
• Shows accurate results and helps you save time required during a manual calculation.

An NSC calculator for National Savings Certificates deposits ensures that your savings portfolio is as per your requirements and financial needs.