NSC Calculator 2024

The National Savings Certificate (NSC) is a fixed income scheme offered by the Government of India, mainly for the benefit of middle and low income household investors. It provides guaranteed returns and tax-saving benefits upto Rs. 1.5 Lakhs under Section 80c. It comes with a five year lock-in period. The current interest rate is 7.7% and the interest is compounded every year. The minimum amount required for an investment in National Savings certificate is Rs. 1000 (multiples of 100), while there is no maximum limit. NSC is one of the safest options trusted by millions of individual investors as it is a low-risk investment.

Features of NSC

• Interest Rate: The NSC offers an attractive interest rate, which is compounded every year and paid on maturity
• Tax Benefits: Investment made under NSC are eligible for tax exemption under 80C
• Safety: Being a government-backed scheme, NSC is a safe investment vehicle

What is an NSC Calculator?

An NSC calculator is an online too which helps investors estimate the maturity amount and interest accrued for their NSC investment made by them over a period. By inputting the investment amount and tenure, investors can easily calculate the returns they will earn at the end of the investment period

How Does the NSC Calculator Work?

The NSC calculator works by applying the prevailing interest rates and compounding them throughout the the investment. The interest is calculated as in calculating the compounding interest

Maturity Amount = P x ( 1 + r/100)ⁿ

• P is the  Principal amount

• r is the Interest Rate

• n is the tenure of the investment 

Benefits of the NSC Calculator:

• Quick Calculation: Helps in calculating the returns in a much shorter period
• Easy to Use: User-friendly interface, that allows users to calculate the amount quickly
• Comparison: Allows user to compare different investment amounts

How to Use the NSC Calculator?

1. Enter the investment amount.
2. Select the tenure (usually 5 years).
3. Input the prevailing interest rate (currently 7.7%).
4. The calculator displays the total maturity amount, including compounded interest.

FAQs for NSC Calculator:

1. Can I change the interest rate in the NSC calculator?
Yes, you can change the interest rate as per the government rates

2. Is the maturity amount taxable?
The interest earned is taxable, but the principal investment is tax exempted according to section 80c of IT act

3. Can I reinvest the maturity amount automatically?
No, you cannot do that. You do to obtain a new NSC account

4. What is the lock-in period for NSC?
The NSC comes with a mandatory lock-in period of 5 years

5. Does the calculator consider tax benefits?
The NSC Calculator does not take tax benefits into consideration