National Savings Certificate (NSC) Calculator
Calculate Your NSC Returns
What is National Savings Certificate (NSC)?
The National Savings Certificate (NSC) is a fixed-income investment scheme backed by the Government of India. It is a popular choice among conservative investors who seek a safe investment with guaranteed returns. The NSC has a fixed tenure, typically 5 years, and offers a competitive interest rate. The interest earned is compounded annually and paid out at maturity, making it an attractive option for long-term savings.
How Does the NSC Calculator Work?
The NSC Calculator helps you estimate the maturity value of your investment based on the following parameters:
- Investment Amount: The amount you wish to invest in NSC.
- Interest Rate: The annual interest rate offered on NSC (currently 6.8% but subject to change).
- Investment Period: The duration of the investment, typically 5 years.
The calculator uses the compound interest formula to estimate the maturity value:
Maturity Value = P × (1 + r/n)^(n*t)
- P: Principal amount (the initial amount of money)
- r: Annual interest rate (decimal)
- n: Number of times interest is compounded per year (annually for NSC)
- t: Time period (investment duration in years)
Benefits of Investing in National Savings Certificate (NSC)
- Guaranteed Returns: NSC offers guaranteed returns as it is backed by the Government of India, making it a safe investment option.
- Tax Benefits: Investments in NSC are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh per year.
- Low Risk: As a government-backed scheme, NSC carries minimal risk, making it suitable for conservative investors.
Frequently Asked Questions (FAQ)
1. Can I withdraw my NSC investment before maturity?
NSC is a long-term investment with a lock-in period of 5 years. Premature withdrawal is generally not allowed except in specific cases like the investor's death or court orders.
2. Is the interest earned on NSC taxable?
Yes, the interest earned on NSC is taxable, but it is not paid out annually. Instead, it is reinvested and paid out at maturity. The interest is eligible for a tax deduction under Section 80C within the overall limit of ₹1.5 lakh.
3. What is the current interest rate on NSC?
The interest rate on NSC is determined by the government and is subject to change periodically. As of now, the interest rate is 6.8% per annum, compounded annually.
4. Can I invest in NSC online?
Yes, you can invest in NSC through authorized banks and post offices. Many banks offer online NSC investments through their net banking platforms.