NSC Maturity Calculator
Calculate National Savings Certificate maturity value at 7.7% p.a. (FY 2026-27). 5-year lock-in, Section 123 deduction on both deposit and accrued interest.
- Investment₹1,50,000
- Total interest₹67,355
- Effective annual yield7.7%
- End of Year 1 (interest accrued: ₹11,550)₹1,61,550
- End of Year 2 (interest accrued: ₹12,439)₹1,73,989
- End of Year 3 (interest accrued: ₹13,397)₹1,87,387
- End of Year 4 (interest accrued: ₹14,429)₹2,01,815
- End of Year 5 (interest accrued: ₹15,540)₹2,17,355
How NSC works
The National Savings Certificate (NSC) is a 5-year, fixed-tenure, government-backed savings instrument available at post offices. As of FY 2026-27, the rate is 7.7% per annum, compounded annually, paid on maturity.
The unique 80C double-claim
NSC has a quirk: the interest accrued each year (years 1 through 4) is deemed reinvested and qualifies as a fresh Section 123 (formerly 80C) deduction in that year. So if you deposit ₹1.5 lakh in NSC, the deduction effectively continues to grow each year - up to the ₹1.5 lakh overall 80C cap.
The interest received on maturity (year 5) is taxable as Income from Other Sources.
FAQs
What is the NSC interest rate for FY 2026-27?▾
7.7% per annum, compounded annually. The rate is reviewed quarterly by the Ministry of Finance and has been 7.7% since April 2023.
Is NSC tax-free?▾
Partial. Deposits qualify for Section 123 (formerly 80C) deduction. Interest accrued (years 1-4) is also deemed reinvested and qualifies for 80C in the year of accrual. Interest received on maturity (year 5) is fully taxable.
What is the lock-in for NSC?▾
5 years from the date of purchase. Premature withdrawal is allowed only in case of death of the holder or court order.
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