How this calculator works
- Step 1Buyone paymentYou invest once, at the rate in force that quarter.
- Step 2Compound yearly7.7% a yearEach year’s interest is added to the balance.
- Step 3Mature5 yearsThe whole amount is paid at the end.
A National Savings Certificate earns a fixed rate, compounded once a year, and pays everything at the end of five years. The rate you buy at stays fixed for the whole term.
Worked example: ₹1 lakh
- Maturity
amount × (1 + rate)⁵
- Year 1interest ₹7,700.00₹1,07,700.00
- Year 2interest ₹8,292.90₹1,15,992.90
- Year 3interest ₹8,931.45₹1,24,924.35
- Year 4interest ₹9,619.18₹1,34,543.53
- Year 5interest ₹10,359.85₹1,44,903.38
- Maturity value₹1,44,903
The interest grows each year because it is earned on the previous years’ interest as well.
Checking against the official table
The 2023 scheme notification lists ₹1,000 at 7.0% maturing at ₹1,402.55; this calculator gives ₹1,402.55.
Assumptions and limits
- Held 5 yearsEarly encashment is not modelled.
- Rate fixed at purchaseLater rate changes do not affect it.
- Before taxTax treatment is not included.
- Check the rulesMinimums and limits are set by the scheme.
Other government savings schemes
NSC is one of several small-savings schemes. Each has its own rate, term and payout.
For a certificate that doubles the deposit, see the KVP calculator. The PPF calculator covers a 15-year account, and the post office MIS calculator a monthly income. For bank deposits, use the FD calculator.
Common mistakes
Mistake: Using today’s rate for an old certificate.
Instead: Enter the rate printed on your certificate.
Mistake: Expecting yearly payouts.
Instead: NSC pays everything at maturity.
Mistake: Treating the figure as after tax.
Instead: Check how the interest is taxed for you.
Checking the method
A separate script adds each year's interest in exact fractions and reproduces the 2023 Gazette table to the paisa.
Read how we test our calculators, or browse more money calculators.