NSC Calculator

National Savings Certificate (NSC) is a fixed-income investment scheme issued by India Post and backed by the Government of India. It is one of the safest investment options available. NSC has a fixed 5-year tenure and currently offers 7.7% interest p.a. compounded annually.

Yes, NSC interest is taxable. However, the interest accrued each year is deemed to be reinvested and qualifies for Section 80C deduction (except the 5th year interest which is not reinvested). So effectively, only the final year's accrued interest is fully taxable. The interest is added to your income and taxed at your slab rate.

Yes. NSC certificates can be pledged as collateral for loans from banks and NBFCs. The lender will transfer ownership or mark a lien on the certificate. Most banks offer loans up to 80–90% of the NSC value at competitive interest rates.

Premature withdrawal is generally not allowed except in specific cases: death of the holder, forfeiture by a pledgee (court order), or on order by a Gazetted Officer. Unlike FDs, there is no partial premature withdrawal option. NSC is designed to be held for the full 5-year term.

NSC: 7.7%, 5-year lock-in, 80C deduction, interest taxable. PPF: 7.1%, 15-year lock-in, 80C deduction, interest tax-free (EEE). Bank FD: ~6.5–7.5% (varies), flexible tenure, 5-year tax-saving FD qualifies for 80C, interest taxable. NSC is better than FD on safety and post-tax returns for investors in lower tax slabs.