Post Office Schemes

NSC Return Calculator

Calculate the guaranteed maturity value and tax benefits of the 5-Year National Savings Certificate (NSC) backed by the Government of India.

Investment Details

Minimum deposit is ₹1000. No upper limit.

7.7% p.a.

Compounded annually.

5 Years

Premature withdrawal is generally not allowed.

Maturity Summary

Guaranteed Maturity

₹1,44,903

Zero default risk. Backed by sovereign guarantee.

Total Invested₹1,00,000
Interest Earned+₹44,903
Section 80C Benefit₹1,00,000

Why Invest in NSC?

  • The Reinvestment Tax Hack: NSC is unique among tax-saving instruments. Not only does the initial deposit qualify for Section 80C deduction, but the interest earned in years 1 to 4 is considered "reinvested" and ALSO qualifies for Section 80C deduction in those respective years (provided you haven't exhausted the ₹1.5L limit).
  • Sovereign Guarantee: Because it is issued by the Post Office, NSC carries the sovereign guarantee of the Government of India. It is practically impossible to lose your money, making it safer than bank FDs.
  • No TDS on Interest: Unlike Bank Fixed Deposits, the Post Office does not deduct TDS on the interest accrued. However, you must declare the interest in your final year (Year 5) and pay tax on it as per your income slab.
  • Loan Collateral: Banks accept NSC certificates as collateral for secured loans, allowing you to get emergency funds without breaking the investment.