What is NSC Calculator?
The NSC calculator determines the final value of your NSC investment based on the principal amount and a fixed interest rate. NSCs have a mandatory 5-year lock-in period, which also serves as the maturity period. The calculator uses the compound interest formula (explained in the upcoming section) to calculate the maturity value.
The INDmoney NSC calculator has a clean and user-friendly interface. Simply enter:
- Investment amount
- Tenure (fixed at 5 years)
- Interest rate (currently 7.7% for this quarter)
Once you input these details, the calculator will instantly show your final maturity value and the total interest earned over the 5 years.
What is NSC?
The National Savings Certificate (NSC) is a government-backed savings instrument that offers a fixed rate of return over a 5-year maturity. You can easily invest in an NSC at any post office in India. An NSC is a tax-efficient investment instrument, and investments in it are eligible for a tax deduction of up to ₹1,50,000 under Section 80C of the Income Tax Act.
Types of NSC account
- Single Holder Account: An adult can open this for themselves or a minor, and additionally, a minor aged 10 years or above may open a single holder account in their name.
- Joint “A” Type Account: Can be opened by up to three adults, and when it matures, the money goes to both account holders, and they must sign together, so payments go to both of them (or, if one of them passes away, then to the survivor)
- Joint “B” Type Account: Also for up to three adults, but in this case, and when it matures, Joint “B” lets either of them sign alone, so when they are alive, either one can receive the money, and if one dies, the survivor still gets the full amount.
NSC Interest Rate Chart
Let’s look at historical NSC interest rates:
| YEAR | RATE OF INTEREST |
| 01-04-2012 to 31-03-2013 | 8.6 |
| 01-04-2013 to 31-03-2016 | 8.5 |
| 01-04-2016 to 30-09-2016 | 8.1 |
| 01-10-2016 to 31-03-2017 | 8 |
| 01-04-2017 to 30-06-2017 | 7.9 |
| 01-07-2017 to 31-12-2017 | 7.8 |
| 01-01-2018 to 30-09-2018 | 7.6 |
| 01-10-2018 to 31-12-2018 | 8 |
| 01-01-2019 to 30-06-2019 | 8 |
| 01-07-2019 to 31-03-2020 | 7.9 |
| 01-04-2020 to 31-12-2022 | 6.8 |
| 01-01-2023 to 31-03-2023 | 7 |
| 01-04-2023 to 30-06-2025 | 7.7 |
The current interest rate on the Post Office NSC is 7.7%, as shown in the table. This interest rate can also change quarterly.
How to Use NSC Calculator?
Calculating NSC maturity amount is very easy, you can use the INDmoney calculator and enter the following details:
- Invested amount: The total amount of money invested in the NSC, i.e., the principal amount
- Rate of interest (p.a.): The annual interest rate offered in the NSC scheme. Current NSC interest rate is 7.7% per annum.
- Tenure: The time period of investment, which is fixed at 5 years for NSC
- Frequency: You have to select the compounding frequency, which can be annually or semiannually
Based on the inputs provided, the NSC Maturity Calculator will quickly compute and display the following results:
- Principal Investment: The initial amount you invested in the NSC account.
- Total Interest: The total interest earned on your investment over the 5 years.
- Maturity Value: The final amount you will receive at the end of the 5-year term, including both principal and interest.
How to NSC Calculator formula with an example?
The NSC calculator is based on the compound interest formula. The interest rate is fixed and compounded annually for 5 years.
The formula to calculate the final maturity value in NSC is:
A = P(1 + r/100)^n
Where,
- A = Final value of the maturity
- P = Principal invested amount
- r = Rate of interest offered, current rate is 7.7% per annum.
- n = number of years, i.e., the maturity period, which is 5 years.
How to Calculate NSC Maturity Amount?
So there are 2 ways to calculate the NSC maturity amount
- With a manual calculator
- With Indmoney, NSC calculator
Let’s try both ways
Assumption
Amount invested (P) - 5000
Interest (r) - 7.7%
Tenure (n) - 5 years
With Manual Calculation
A = P(1 + r/100)^n
A = 5000 × (1.077)^5 = 7245.16
With NSC Calculator
Now, if you use a calculator instead of this manual calculation, you will get these figures:
Principal Amount: ₹5,000
Total Interest: ₹2,245
Total Amount: ₹7,245
This is the same as manual calculation, but also provides information on how much interest you have generated over the 5 years.
Features of National Savings Certificate
- Fixed rate of interest: National Savings Certificate provides a fixed rate of interest, which can change quarterly. The current interest rate on NSC is 7.7% per annum.
- Who can invest: Any adult for themselves or on behalf of a minor
- Deposit limit: There is a minimum deposit of ₹1000/- and thereafter in multiples of ₹100. There is no maximum deposit limit.
- Tax Limit: NSC investments are tax-deductible up to ₹1,50,000 under section 80C of the Income Tax Act.
- Premature Withdrawal: Premature withdrawal is not allowed under NSC except in case of death of the holder, order of the court, or forfeiture by a Gazetted Officer.
- Transferable – Can be transferred from one person to another once during the tenure.
- Available at Post Offices – Can be purchased at any post office across India.
Benefits of Using the NSC Calculator
- Less Error: Zero chances of error as compared to the manual calculator.
- Saves time: Easy calculation, and it saves a lot of time over manual calculation.
- Compare investment: Provide estimates of future value that can be used to compare different investment options.
Conclusion
The Post Office NSC Calculator is an easy-to-use tool that helps you calculate the final maturity value of your NSC investment. NSC (National Savings Certificate) is a fixed-income instrument backed by the Government of India. It offers a fixed rate of interest, currently 7.7% for this quarter. NSC also provides tax benefits under Section 80C, making it a good investment option for those looking to claim deductions under this section.