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Published on April 18, 2022

What is the NSC calculator?

National Savings Certificate Scheme, commonly popularly (NSC), is a fixed income plan. NSC is said to be one of India's most popular saving instruments. A person can activate the NSC plan at any post office branch.

It is a government-authorised plan, therefore, guarantees a return on it. NSC boosts small and mid-income investors to save.

Additionally, investors get a tax rebate. People can purchase a maximum of 1.5 lakhs in NSC, exempting tax under ITA section 80C, 1961. NSCs are meant for the lock-in period of 5 years with an interest rate of 6.8 per cent and can get reinvested for the next four years.

NSCs do not require any higher amount to start investing. The basic amount to invest can start from Rs 100, readily available to everyone. It's a no TDS instrument.

How to buy NSC?

● To purchase NSC, you should visit your nearest branch or post office.

● Carry the original documents for your identity and address proof.

● Fill out the application form correctly and enter all the essential details.

● The next step is to get your document verification done, i.e., your ID proof and address proof.

● After the verification process, pay the amount either by cheque, cash, or DD (Demand Draft) drawn in favour of the postmaster.

● Lastly, select a nominee for your NSC certificate and get the witness signature attached, which completes the procedure.

Who cannot invest in NSC?

People who do not have permission to invest in NSC are as follows:
1. Trusts

2. HUFs

3. Non-resident Indians

Note: In the case of the subscribers who opted for the scheme and then moved abroad or became an NRI before the maturity date of the scheme is reached, the scheme will continue until maturity.

NSC interest calculator

An NSC holder calculates the interest they would receive by investing in a National Savings Certificate using the NSC Calculator.

Visit the income tax website to calculate the total amount of interest accumulated to date.

Details that need to enter to calculate the interest amount:

● NSC Type

● Year NSC was purchased

● Amount of investment

Once you enter the details, the interest calculator reveals the total interest accumulated so far. Interest paid on NSC gets calculated annually and paid at the maturity time. 

How to use the NSC calculator?

Step 1: Firstly, enter the monthly amount of investment manually.

Step 2: Secondly, input the current interest rate of NSC.

Step 3: Thirdly, specify the period for how long you want the bond to remain.

After that, when you enter all the details, you will verify your final earnings in the plan of an NSC. 

Advantages of an NSC calculator

NSC calculators calculate the total interest earned on the investment made. Below down displays the benefits of using the NSC Calculator:

1. Using NSC Calculator is straightforward.

2. It's time-saving as compared to calculating the interest manually.

3. It provides an accurate result so that you do not require rechecking it.

4. NSC Calculator is free of cost.

5. It can get accessed from anywhere and anytime you want. 

Features of NSC

● Small investments: NSC does not require any significant amount for investments. It can start with the introductory amount of Rs 100, making it available for everyone to invest.

● Fixed income: The scheme of NSC guarantees a fixed amount of return to the account holder. The NSC holder can easily enjoy a regular income regularly.

● Maturity period: The NSC scheme holds a maturity of five years as the 10-year maturity period was discontinued in December 2015.

● Power of calculating interest: The total interest accumulated during the investment period gets reinvested into the scheme by default for the next four years.

● Amount received after maturity: The NSC account holder will receive the entire amount upon the maturity period. No TDS is applicable on NSC. However, investors need to pay the applicable tax on receiving the amount.

● Loan collateral: NSC Scheme does not allow premature withdrawals, but it enables the investors to avail the loan benefits by having NSC as the loan collateral.

● Premature withdrawal: NSC does not allow premature withdrawals. Early withdrawals can get accepted in exceptional cases such as the investor's demise or by the court order.

● Nomination: NSC scheme allows its investors to nominate any of their family members, even a minor as well. Nominees can claim returns in any unfortunate demise of the investor.

Comparison of NSC with other tax-saving investments






Interest Rate





Lock-in Period

5 years

15 years

Five years

Three years

Risk Profile




Market-related risks


Investment is Tax-free.

Maturity Period: Interest is taxable

investment is tax-free. Maturity Period: Interest and maturity amount is non-taxable.

Investment: Tax-free investment. Maturity Period: Interest is taxable.

Investment is tax-free—maturity Period: 10% tax on long-term capital profits.

Frequently Asked Question

Q. How is NSC calculated?

NSC investment is a tax-free investment. Therefore, tax is calculated only on the interest earned on NSC. For example, an investor invested Rs 100000 in the NSC scheme at the interest of 6.8%.

On maturity, the investment will be worth Rs 1,39,702.89. So, the interest earned on it is Rs 39,702.89. Therefore, the tax will get applied to the interest earned.

Q. Is NSC for ten years?

No, NSC is not for ten years. The issuing period of 10 years for NSC has been discontinued since 2015. So, for now, NSC gets issued for five years. 

Q. What is the return on NSC?

The interest rate return on the NSC Scheme is 6.8%. The rate gets applicable as of 1st April 2020. It gets compounded annually.

Q. Which is better, NSC or PPF?

NSC is the better option for short-term investments. However, for tax-free income, PPF is the better option.

Q. Is NSC maturity taxable?

After completing the maturity period of NSC, the investor gets paid interest on the investment, which is taxable. It qualifies for the tax deduction under section 80C of the ITA (Income Tax Act).

Ankur Aggarwal

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About the Author

Hi all, I am Ankur Aggarwal – Digital Marketer, Entrepreneur, Traveller, Blogger, and Foodie. Have been blogging since 2010. In 2016 I scored 99.2 percentile in XAT Exam for MBA, left that to pursue my Online business dreams.
The purpose of ankuraggarwal.in is to pass on 100% accurate, genuine and FREE information on Personal Finance, Entrepreneurship, Investing, Career, and Learning Digital Marketing Online. Know more about me here: About Ankur Aggarwal

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