National Savings Certificate (NSC) Calculator 2026

Calculate 5-year post office 7.7% p.a. compounded returns and Section 80C tax deduction

Investment Amount

₹

Quick Presets:

₹1,000₹50.00 L

NSC Interest Rate (Govt Fixed 7.7% p.a.)

1%30%

Rate is fixed by the scheme. Update if it changes.

Time Period

Yrs

5 Yr5 Yrs

Tenure is fixed at 5 years by the scheme.

Your money becomes

1.4×

of what you put in over 5 years.

Final value₹1.45 L

Invested vs Interest

Total invested

₹1.00 L

Interest earned

₹44,903

Interest is 31.0% of final value

Year-by-year breakdown

Year	Total contributed	Interest earned	Value
1	₹1.00 L	₹7,700	₹1.08 L
2	₹1.00 L	₹8,293	₹1.16 L
3	₹1.00 L	₹8,931	₹1.25 L
4	₹1.00 L	₹9,619	₹1.35 L
5	₹1.00 L	₹10,360	₹1.45 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

Sovereign Debt

National Savings Certificate (NSC): Sovereign Security and Deemed 80C Reinvestment

The National Savings Certificate (NSC VIII Issue) is a 5-year post office fixed-income scheme offering 7.7% annual compounding. A unique tax advantage of NSC is that annual accrued interest (for Years 1 to 4) is treated as deemed reinvested and qualifies for fresh Section 80C tax deductions.

National Savings Certificate (NSC VIII Issue) — Complete Rules & Benefits

The National Savings Certificate (NSC VIII Issue) is a premier sovereign-backed post office small savings scheme designed for risk-averse investors seeking capital security, guaranteed compounding returns, and Section 80C income tax deductions.

1. Compounding Formula

A = P × (1 + r / 100)^t

Where P is the principal amount, r is the annual interest rate (7.7%), and t is 5 years. Interest compounds annually and matures along with principal at year 5.

2. Tax Benefits & Deemed Reinvestment

Initial investment up to ₹1,50,000 qualifies for tax deduction under Section 80C (Old Regime). Crucially, interest accrued during Years 1 to 4 is deemed reinvested and also qualifies for fresh 80C deduction in respective years.

Authoritative Government References

• India Post — National Savings Certificate (NSC VIII Issue) Portal • Department of Economic Affairs — Small Savings Interest Rate Notifications

References

Sovereign & Pension Framework

National Savings Certificate (NSC) FAQs

Key facts on certificates, pledging for loans, and tax treatment.

Can NSC certificates be pledged as collateral for bank loans?

Yes. National Savings Certificates can be officially pledged with commercial banks and housing finance corporations as tangible collateral security to obtain secured credit.

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