Calculate National Savings Certificate returns
* Interest earned in years 1-4 is also eligible for 80C deduction as it gets reinvested.
| Year | Opening Balance | Interest @7.7% | Closing Balance | 80C Benefit on Interest |
|---|---|---|---|---|
| Year 1 | ₹1.00 L | ₹7,700 | ₹1.08 L | ✓ Eligible |
| Year 2 | ₹1.08 L | ₹8,293 | ₹1.16 L | ✓ Eligible |
| Year 3 | ₹1.16 L | ₹8,931 | ₹1.25 L | ✓ Eligible |
| Year 4 | ₹1.25 L | ₹9,619 | ₹1.35 L | ✓ Eligible |
| Year 5 | ₹1.35 L | ₹10,360 | ₹1.45 L | Maturity Year |
* Interest in Year 5 is not eligible for 80C as it is paid out at maturity.
The National Savings Certificate (NSC) is a safe, government-backed fixed income investment. With guaranteed returns and tax benefits under Section 80C, it's ideal for conservative investors looking for secure returns.
NSC is a government-backed savings scheme available at post offices. It offers guaranteed returns at 7.7% p.a. (2025) with a 5-year lock-in. It's one of the safest investment options in India with 80C tax benefit.
The current NSC interest rate for Q1 2025 is 7.7% per annum, compounded annually. The rate is revised quarterly by the government based on economic conditions.
NSC interest is compounded annually but only paid at maturity. Each year's interest is added to the principal and considered as reinvestment. This reinvested interest is also eligible for Section 80C deduction (except in the final year).
Yes, NSC interest is taxable as per your income slab. However, since interest in years 1-4 is considered reinvested, you can claim it under 80C. Final year interest is fully taxable without any deduction benefit.