NSC Calculator

Interest on a National Savings Certificate is compounded annually and paid with the principal at maturity, so the maturity value is simply the amount invested compounded over the term.

The rate on small savings instruments is notified each quarter. The rate that applies for the whole term is the one in force when the certificate was bought, so enter the rate at purchase and not the current rate.

Interest accrues each year even though it is not received until maturity. In practice the accrued interest is often declared as income each year, with the reinvested interest also qualifying for deduction under Section 80C in the years it accrues. The treatment of the final year's interest differs, because it is received rather than reinvested.