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 deduction under Section 123 of the Income-tax Act 2025 (old Section 80C), within the overall ₹1.5 lakh limit and only under the old tax regime. The 5th year's interest is not reinvested, so it gets no deduction. Interest is added to your income and taxed at your slab rate; under the new regime all 5 years' interest is taxable.

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 encashment is not allowed except on the death of the holder (or any joint holder), on forfeiture by a pledgee who is a Gazetted Government officer, or on a court order. Unlike FDs, there is no partial premature withdrawal option. NSC is designed to be held for the full 5-year term.

NSC: 7.7% (Q3 FY 2026-27), 5-year lock-in, s.123 (old 80C) deduction, interest taxable. PPF: 7.1%, 15-year lock-in, s.123 deduction, interest tax-free (EEE). Bank FD: ~6.5–7.5% (varies), flexible tenure, 5-year tax-saving FD qualifies for s.123, interest taxable. NSC is better than FD on safety and post-tax returns for investors in lower tax slabs.