Note: Interest rate is fixed for the 5-year tenure at the time of investment but subject to government revisions for new certificates.
Total Investment₹1,00,000
Total Interest Earned₹0
Maturity Value (After 5 Years)₹0
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What is NSC (National Savings Certificate)?
The National Savings Certificate (NSC) is a fixed-income investment scheme, backed by the Government of India, that can be easily purchased from any Post Office. It's a popular savings instrument known for its safety, fixed returns, and tax benefits, primarily aimed at small to mid-income investors.
Key Features of NSC
Eligibility: Resident Indian individuals (singly, jointly, or on behalf of a minor). Trusts and HUFs cannot invest.
Investment Limit: Minimum ₹1,000. No maximum limit on investment.
Tenure: Fixed tenure of 5 years.
Interest Rate: Compounded annually but payable only at maturity. The rate applicable at the time of purchase remains fixed for the entire tenure. Rates are subject to government revision for new certificates.
Pledging: Certificates can be pledged as collateral for securing loans from banks.
Premature Closure: Generally not allowed before 5 years, except in specific cases like the death of the holder or forfeiture by a pledgee.
Tax Benefits: Investment up to ₹1.5 Lakh per year qualifies for deduction under Section 80C. The interest earned annually is deemed to be reinvested and also qualifies for 80C deduction (except for the final year's interest). However, the final maturity amount (including all interest) is taxable at the time of maturity as per the investor's income slab.
Disclaimer: This calculator provides estimates based on the rules and interest rate entered. Interest rates for new certificates are subject to government revisions. Tax rules may change. Consult the official Post Office website or a financial advisor for the latest information and personalized advice.