NSC Calculator
Calculate your National Savings Certificate maturity value β with annual compounding, year-by-year interest breakdown, and the unique double-dip 80C benefit on reinvested interest.
NSC β The Conservative Investor's Secret Tax Weapon
The National Savings Certificate is a government-backed fixed-income instrument available at any India Post office or through the India Post online portal. At 7.7% compounded annually with a 5-year lock-in, it competes credibly with bank FDs (6β7.5%) β but beats them comprehensively on tax efficiency.
The Double-Dip 80C Advantage β Unique to NSC
This is NSC's most misunderstood feature. When you invest βΉ1.5 lakh in NSC:
- Year 1: βΉ1.5 lakh principal claimed as 80C deduction
- Years 2β4: interest earned is automatically reinvested (not paid out) β and this reinvested interest also qualifies as a fresh 80C deduction each year
- Year 5: final year's interest is NOT reinvested (paid at maturity) β taxable at slab rate in the maturity year
NSC vs FD vs PPF β When Does NSC Win?
| Feature | NSC | Tax Saver FD | PPF |
|---|---|---|---|
| Rate (2026) | 7.7% | 6.5β7.5% | 7.1% |
| Lock-in | 5 years | 5 years | 15 years |
| Interest tax | Taxable at maturity (slab) | Taxable annually (TDS) | Exempt (EEE) |
| 80C benefit | Principal + reinvested interest | Principal only | Yes (up to βΉ1.5L) |
| Premature withdrawal | Not allowed (except death/court) | Allowed with penalty | After 4 years (partial) |
NSC wins when: you want better rate than FD, need 80C benefits without 15-year lock-in, and are comfortable with 5-year hold. It loses when you are in the 30% bracket and the maturity-year tax bill is significant β PPF's EEE status then dominates.