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Sovereign Guaranteed (India Post) 7.70% p.a. Compounded Annually 5-Year Fixed Tenure Section 80C Reinvestment Shield राष्ट्रीय बचत पत्र • தேசிய சேமிப்பு பத்திரம்

National Savings Certificate (NSC) Calculator 2026

Calculate 5-year guaranteed maturity returns at 7.70%, view the year-by-year Section 80C deemed reinvested interest schedule, and evaluate bank loan pledging eligibility.

Investment Deposit

₹
Min: ₹1,000 (Multiples of ₹100) No Maximum Ceiling
Maturity Tenure: 5 Years (60 Months)
Government Interest Rate: 7.70% p.a. (Annual Compounding)
Section 80C Deduction: Up to ₹1.5 Lakh / Yr
Loan Against Collateral: Allowed up to 90% LTV
Guaranteed 5-Year Maturity Payout
7.70% Sovereign Growth
₹1,44,903
Initial Deposit
₹1,00,000
Net Interest Earned
₹44,903
Estimated Tax Saved (@ 30%)
₹31,200

NSC Deposit vs Cumulative Sovereign Interest

Year-by-Year Accrued Interest & Section 80C Schedule

Under Indian Income Tax rules, interest accrued during Years 1 to 4 is deemed reinvested and qualifies for Section 80C deductions.

Section 80C Deemed Reinvestment
Year Opening Balance Annual Accrued Interest (7.7%) Closing Balance Section 80C Tax Status
Taxation Notice: For Years 1 through 4, the interest is not paid out in cash; it is added back to your principal. You report this interest under "Income from Other Sources" and simultaneously claim an equal deduction under Section 80C (subject to the overall ₹1.5 Lakh limit). In Year 5, the final year's interest is paid out alongside the principal and cannot be reinvested, making it fully taxable at your income tax slab rate.

Bank Loan & Overdraft Pledging Estimator

Need urgent cash before the 5-year lock-in? Pledge your NSC certificates to SBI, PNB, or HDFC Bank instead of premature closure.

Up to 90% LTV Margin
Max Loan Amount (90% LTV)
₹90,000
Instant secured credit line sanctioned against your certificate.
Interest Rate Benchmark
9.20% – 10.20%
Typically 1.5% to 2.5% above bank Repo Linked Lending Rate (RLLR).
Pledging Process
India Post Form 1 Lien
Submit certificate with bank sanction letter at post office for official lien stamp.

National Savings Certificate (NSC): Comprehensive Rules & Comparison

NSC vs Bank 5-Year Tax Saver FD

While commercial bank 5-year tax-saving FDs typically offer 6.50% to 7.10%, NSC provides a superior 7.70% p.a. backed by the sovereign guarantee of the Government of India. Furthermore, bank FDs deduct mandatory 10% TDS under Section 194A, whereas NSC has zero TDS deduction at source.

Premature Withdrawal Rules

NSC maintains a strict 5-year lock-in to safeguard compounding. Premature encashment is permitted only under extraordinary circumstances: on the demise of the single or joint certificate holder, on forfeiture by a pledgee bank, or when ordered by a court of law.

NSC vs KVP Comparison

NSC matures in 5 years at 7.70% and qualifies for Section 80C deductions. Kisan Vikas Patra (KVP) doubles your money in 115 months (9 yrs 7 mos) at 7.50% with premature liquidity after 30 months, but carries no Section 80C tax benefits.

Joint Holding & Minors

NSC accounts can be opened by single resident adults, jointly by up to 3 adults (Joint 'A' or Joint 'B'), or by a guardian on behalf of a minor. NRIs and HUFs cannot invest in new NSC certificates.

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