Prepared by Finin2min Editorial Desk · Rates and rules verified 5 October 2026
The National Savings Certificate (NSC VIII issue) is a 5-year, government-backed certificate with annual compounding. Enter your amount to see the maturity value, yearly interest, tax on accrued interest and the 80C benefit under the old regime.
NSC interest is compounded annually and paid on maturity. Maturity value = amount × (1 + rate)5. At 7.7% a ₹1,00,000 certificate matures at ₹1,44,903.
The rate announced at the time you buy is fixed for the full 5 years; later quarterly rate changes affect only new certificates.
The calculator taxes each year’s accrual at your slab rate plus 4% cess to give the post-tax return. For ₹1 lakh at the 30% slab this is about ₹14,010 of tax over five years.
₹1,00,000 at 7.7%: Year-1 interest ₹7,700; maturity ₹1,44,903; total interest ₹44,903. At the 30% slab (31.2% with cess) tax on accrued interest is ₹14,010 and you keep ₹1,30,894, a post-tax CAGR of 5.53%. In the old regime the ₹1,00,000 also reduces taxable income through 80C.
Compare NSC with PPF (tax-free interest, 15 years), bank FDs and KVP. NSC’s edge is the 80C deduction for old-regime taxpayers and sovereign backing; its weakness is that interest is taxable each year.
The NSC rate is 7.7% per year, compounded annually, for the October-December 2026 quarter. The rate is reviewed every quarter and the rate on the day of purchase applies to that certificate for 5 years.
Yes. Interest accrues every year and is taxable as income from other sources at your slab rate, even though it is paid only at maturity.
Yes in the old tax regime, up to the ₹1.5 lakh limit. The first four years’ accrued interest is deemed reinvested and also qualifies. There is no 80C in the new regime.
Generally not. Premature encashment is allowed only in cases such as the holder’s death, a court order or forfeiture by a pledgee.
No. The minimum is ₹1,000 in multiples of ₹100, and there is no upper limit, though only ₹1.5 lakh a year gets 80C.
Rates and rules shown here were checked against the sources above on 5 October 2026. Government notifications can change a rate or rule at short notice; always confirm on the official site before you invest, file or claim.
Educational estimate only. Tax, legal, financial or regulatory treatment depends on facts and the law applicable to the relevant period. Verify the current official source or obtain professional advice before acting.
Scope: Maturity, interest and tax of the 5-year NSC (VIII issue) at the rate you enter.
The calculation engine was checked against an independently written reference implementation across 108 NSC input combinations, and against published figures where the scheme publishes them. Review date: 5 October 2026.
Prepared by Finin2min Editorial Desk. Educational estimate only.
Background, worked examples and the rules behind these numbers.