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National Saving Certificate Calculator Online

Written by - Deepak

March 7, 2023 7 minutes


There are multiple investments options available for investors in today’s era for them to choose from based on their risk appetite and return perception. While mutual funds are an excellent investment option for any category of investors, it is also important for investors to balance their portfolios with risk-free investments. An ideal portfolio is a healthy mix of aggressive investments as well as stable investments with assured returns. A very good option in the portfolio to minimize the risk is NSC. Given below is the meaning of NSC and NSC calculators as well as the need for the latter.

What is NSC?

NSC or National Savings Certificate is a government-backed savings scheme that allows investors to invest in fixed income plans. This scheme being backed by the government makes it a risk-free option along with giving the benefit of deduction under section 80C for investment up to Rs. 1,50,000 in any financial year. This scheme is available through post offices in India and can be availed by resident Indians only. Non-resident Indians and HUF are not allowed to invest in this scheme. 

NSC is one of the many risk-free investment options backed by the government but the USP of this investment is the tenure which is 5 years. This reduced tenure, although fixed, gives it an edge as compared to other similar products like PF, NPS, etc. Also, the current interest rate offered in this investment is 6.8% per annum. This interest is compounded annually and paid to the investors upon maturity of the investment. 

What is an NSC calculator?

This scheme is aimed to provide an easier investment option for small and medium-income groups. Compounding is the key to maximizing one’s wealth but it makes it difficult for the average investors to calculate their net interest benefit or the final amount that they will receive upon maturity. This is where NSC calculators can be quite handy. 

An NSC calculator allows the investors to calculate the exact amount of interest that will be received by the investor at the end of each year as well as the total interest benefit. Furthermore, this calculator can help the investors to get a fair estimate of the amount that needs to be invested to achieve their target amount at the end of the tenure of NSC.

How to use the Fisdom NSC calculator?

Fisdom provides the investors with an NSC calculator that eases the investment calculation and gives them a fair idea of the amount that will be available to them at the maturity of their investment. There are three main components (principal investment amount, rate of interest, tenure) that are used to calculate the amount of interest and the maturity amount at the end of 5 years. 

To understand the calculation of the final amount at the time of maturity, let us consider the following example. 

Investor A has an initial investment amount of Rs. 1,00,000 which is to be invested in NSC and will be compounded yearly at the arete of 6.8%. The calculation of the amount at maturity is given below.


Amount invested at the start of the year

Interest Rate

Interest amount

Amount at the end of the year






























The above calculation is simplified by the NSC calculator available on Fisdom . The users have to simply follow the steps given below to get the final amount that will be received upon maturity as well as the total interest earned by them during the tenure of investment.  

  1. Enter the initial amount of investment
  2. Enter the current rate of interest 
  3. Enter the tenure of investment which is 5 years

After providing the above data, users will get the maturity amount and the total interest amount displayed on their screen.  

What are the benefits of the NSC and NSC calculator?

NSC is one of the oldest government savings schemes that was launched for the benefit of the average Indian. Some of the key features of the scheme are,

  1. Investors can start investing in NSC with an amount as low as Rs. 100 without any upper limit on the maximum amount that can be invested in NSC.
  2. The scheme provides risk-free interest income at the rate of 6.80% which is compounded annually and given to the investor upon maturity along with the total amount accumulated in their account. 
  3. The scheme is easily accessible to every Indian in every nook and corner of the country as it is available through the vast network of post offices. 
  4. Investors get tax deduction under section 80C for their investment in NSC up to Rs. 1,50,000 in any financial year.  
  5. Most banks and NBFCs accept NSC as collateral for any loan.
  6. NSC can be easily transferred from one post office to another or from one person to another.
  7. NSC also has a nomination facility as well as a premature withdrawal facility. However, investors can withdraw from the scheme prior to completion of the tenure (lock-in period) of 5 years only in specified conditions. 

After discussing the benefits of NSC, let us not highlight the benefits of the NSC calculator.

  1. NSC calculator simplifies the calculation of the interest and final amount at maturity making it convenient for any investor even if they have no knowledge about compounding.
  2. This tool is 100% accurate apart from being available free of cost to everyone making it time-saving and easy to understand. 
  3. NSC calculators allow the investors to calculate the amount of initial investment to meet their target amount at the end of maturity. 

NSC Maturity Period & Interest Rates

Investors can earn a fixed interest rate of 7% per annum with the National Savings Certificate (NSC), which has a five-year fixed maturity period. While there is no maximum limit on the purchase of NSCs, only investments of up to Rs.1.5 lakh can provide a tax break under Section 80C of the Income Tax Act.


NSC calculators are an important tool that can help investors get an idea of the amount that can be received by them at the end of their investment tenure. This tool is quite helpful for small and relatively uneducated investors, especially from small towns who may not have a fair idea of the amount that needs to be invested and the concept of compounding. 


1. Who cannot invest in NSC?

A. The eligible investors of NSC are resident Indians. The scheme explicitly disallows the following entities from investing in NSC.
Societies or other institutions

2. What is the frequency of compounding for investment in NSC?

Interest on investment in NSC is provided at the rate of 6.8% currently and is compounded annually.

3. What are the key factors needed for the calculation of interest received from NSC?

The key inputs needed for the calculation of interest that is received from investment in NSC are tenure of investment (which is fixed at 5 years), amount of initial investment, and the current rate of interest.

4. What is the deduction available for investment in NSC?

Investors can get a tax deduction of up to Rs. 1,50,000 under section 80C for their investment in NSC.


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