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“We don't tell what to pick, we tell how to pick”

NSC Calculator (National Savings Certificate)

Simulate risk-free compounding in the National Savings Certificate under the fixed 7.70% p.a. sovereign rate.

💡 Motto: We don't tell what to pick, we tell how to pick.

Certificate Settings

Investment Amount
₹
₹1,000 (Min)No Maximum Limit
NSC Interest Rate

7.7% p.a.

*Compounded annually, paid at maturity.
Lock-in Period

5 Years

*Fixed maturity, no premature withdrawals.
Expected Inflation Rate
%
Total Invested

₹1,00,000

Lump Sum Principal
Nominal Maturity

₹1,44,903

Interest: +₹44,903
Real Value (Today's Power)

₹1,13,050

Purchasing power after 5 years
⚠️ The 5-Year Decay:Due to compounding inflation of 5.09%, the nominal maturity corpus of ₹1,44,903 will purchase what ₹1,13,050 does today. While NSC provides absolute principal security, its real post-inflation yields are limited.

NSC Compounding (Nominal vs. Real)

National Savings Certificate (NSC) Scheme Guide

Key Rules & Section 80C Reinvestment

  • Sovereign Guarantee: NSC is a government-backed fixed income investment scheme available at all post offices.
  • Section 80C Benefit: The initial investment qualifies for tax deduction under Section 80C up to ₹1,50,000 per year.
  • The Reinvestment Loophole: The interest earned is compounded annually and added back to the principal. Because this interest is not paid out but reinvested, it is considered a **new investment** and is eligible for Section 80C tax deduction in Year 1, 2, 3, and 4! Only the interest earned in the 5th (final) year is taxable since it is paid out.

Inflation & Fixed Yield Impact

The government sets the interest rate quarterly. The current rate is 7.7% p.a. compounded annually.

Inflation Reality: A 7.7% fixed return is highly safe, but after paying tax on the final maturity year (or if you already exhaust your 80C limit), and with general prices rising at 5%, the real purchasing power increase of your capital is roughly 2.6%. NSC is excellent for capital preservation and tax saving for low-risk portfolios, but must be balanced with equity assets for long-term purchasing power expansion.