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The National Savings Certificate (NSC) is a fixed-income investment scheme that’s widely used in India. It can be initiated at any post office and is backed by the government of India, which ensures guaranteed returns. This savings bond is designed to encourage low and moderate-income investors to save and may also qualify for tax benefits.

Under Section 80C of the Income Tax Act, NSC investments up to Rs 1.5 lakhs are tax-exempt. They come with a lock-in period of five years. NSC certificates earn a fixed interest, currently at a rate of 7.7%. NSC is a safe and low-risk investment option like other fixed-income instruments such as PPF and Post Office FDs. The minimum required deposit is Rs 100, and there’s no upper limit on investment in NSC.

What is the NSC Calculator, and How Does it Help You

The interest on a National Saving Certificate (NSC) is compounded once every year. The investor will receive interest at the end of the five years. Each year, the interest earned is reinvested. The NSC Calculator allows you to enter the amount of your investment, the term (already established at five years), and the interest rates; the tool then estimates the total earnings on the investment at maturity.

  • The calculator is a quick way to determine how much you will get at maturity.
  • You can instantly assess whether the strategy meets your financial objectives without wasting more time. 

How Does the NSC Calculator Work? 

The NSC interest rate calculator is a digital application that estimates the interest and capital the investor can withdraw at maturity once the investment is complete. The NSC interest rate calculator calculates interest earned under the Government of India-initiated initiative, and you may enter the interest rate and investment amount into the tool.

How to Use the NSC Calculator

Sure, the returns on a National Savings Certificate (NSC) investment can be calculated using the formula for compound interest, as NSC follows compound interest with annual compounding. Here’s how you can do it:

  1. Principal (P): This is the amount you initially invested in the NSC.
  2. Rate of Interest ®: This is the annual interest rate provided by NSC, divided by 100 to convert it into a decimal. For example, if the rate is 7.7%, then r = 7.7/100 = 0.077.
  3. Time (n): This is the tenure of the NSC investment in years. NSC usually has a lock-in period of 5 years.

The formula for compound interest is:

A = P (1 + r)^n


A is the amount of money accumulated after n years, including interest.

P is the principal amount (the initial amount of money).

R is the annual interest rate (in decimal).

N is the number of years the money is invested.

After substituting the P, r, and n values in the formula, you can calculate the maturity amount (A). The interest earned would be

A - P