NSC Calculator (National Savings Certificate)
NSC Calculator (National Savings Certificate)
What a National Savings Certificate (VIII issue) pays after its five years, year by year — and what that is worth after inflation.
NSC maturity value
$1,00,000 in NSC at 7.7%
NSC maturity value
- P
- the amount invested
- r
- the annual rate as a decimal, compounded once a year
- 5
- the term in years; nothing is paid until then
Worked example
$1,00,000 in NSC at 7.7%
1.0775 = 1.44903
M = 1,00,000 × 1.44903 = $1,44,903
Interest $44,903
In today's money at 4% inflation: $1,19,100; real return 3.56% a year
What 1,00,000 in NSC becomes at 7.7%
| Year | Interest added | Value at year end |
|---|---|---|
| 1 | $7,700 | $1,07,700 |
| 2 | $8,293 | $1,15,993 |
| 3 | $8,931 | $1,24,924 |
| 4 | $9,619 | $1,34,544 |
| 5 | $10,360 | $1,44,903 |
How NSC interest works
The National Savings Certificate (VIII issue) is a five-year deposit sold at post offices and some banks. Interest is compounded once a year and nothing is paid out along the way: the certificate simply grows, and you receive the whole amount at the end of the fifth year. At 7.7%, $1,000 grows to $1,449.03, the figure the post office publishes, and $1,00,000 grows to $1,44,903.
The rate is set by the government every quarter. It is 7.7% a year for certificates bought in July–September 2026, unchanged from the previous quarter, under the Ministry of Finance’s office memorandum of 30 June 2026. Unlike PPF or Sukanya Samriddhi, the rate on the day you buy is locked for the full five years, so later changes do not affect a certificate you already hold. The next quarter’s rate is due at the end of September.
You can invest any amount from ₹1,000 upwards, in multiples of ₹100, with no ceiling. Early encashment is allowed only in limited cases, such as the death of the holder or a court order, so treat the money as locked in for five years.
Tax: NSC interest is taxable. Because the interest is added to the certificate rather than paid, each year’s interest except the last has been treated as reinvested, which could be claimed with the original investment under the old regime’s deduction for savings. The Income-tax Act, 2025 took effect on 1 April 2026 with new section numbers, so check the current rules. This page takes no tax off.
Inflation: at 4% a year, the example’s maturity value is worth about $1,19,100 in today’s money, a real return of about 3.56% a year before tax. For a bank deposit with a choice of term and payout use the FD calculator; for money you can add to every year, the PPF calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
What is the NSC interest rate now?
7.7% a year, compounded yearly, for certificates bought in July–September 2026 (Ministry of Finance office memorandum of 30 June 2026). The rate is fixed for the five years of each certificate.
How much will 1 lakh in NSC give after 5 years?
About $1,44,903 at 7.7%, of which $44,903 is interest, all paid at maturity.
Is NSC interest paid every year?
No. It is added to the certificate each year and compounds; the whole amount is paid at the end of five years.
Does a change in the NSC rate affect my certificate?
No. The rate on the date of purchase applies for the whole term. Only new certificates get the new rate.
Related calculators
References
- Ministry of Finance (Department of Economic Affairs). National Savings Certificates (VIII Issue) Scheme, 2019, Gazette of India, 12 December 2019: five-year certificates, interest compounded annually and payable at maturity; minimum ₹1,000 in multiples of ₹100, no maximum.
- Government of India, Ministry of Finance (Department of Economic Affairs). Office Memorandum F.No.1/4/2019-NS dated 30 June 2026: rates on small savings schemes for 1 July – 30 September 2026 (second quarter of FY 2026-27) unchanged from the first quarter — Sukanya Samriddhi 8.2%, National Savings Certificate 7.7% and Kisan Vikas Patra 7.5% (maturing in 115 months), all compounded yearly; Senior Citizens’ Savings Scheme 8.2%, paid quarterly; Monthly Income Account 7.4%, paid monthly. As listed by Indian Bank, “Interest rates for Small Savings Schemes” (accessed 22 September 2026).
- Income-tax Act, 1961, replaced from 1 April 2026 by the Income-tax Act, 2025, which renumbers its provisions. Tax on small-savings interest and on NPS withdrawals depends on the current Act, your regime and your slab; this page states no rate.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.