1. What is National Savings Certificate (NSC)?

The National Savings Certificate (NSC) is a fixed income investment scheme that you can open with any post office in India. It has a fixed maturity period of 5 years and currently offers an annual interest rate of 7.7% compounded annually but payable at maturity.

2. How Does the Calculator Work?

The calculator uses the NSC maturity formula:

Where:

• \( P \) — Principal investment amount (INR)
• \( 0.077 \) — Annual interest rate (7.7%)
• \( 5 \) — Maturity period in years

Explanation: The formula calculates compound interest over 5 years at the fixed NSC rate.

3. Importance of NSC Investment

Details: NSC is a safe, government-backed investment that offers tax benefits under Section 80C of the Income Tax Act in India. It's ideal for risk-averse investors looking for guaranteed returns.

4. Using the Calculator

Tips: Enter your principal investment amount in INR. The calculator will show the maturity amount after 5 years at the current 7.7% interest rate.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for NSC?
A: As of 2023, the interest rate is 7.7% per annum compounded annually.

Q2: Is the interest taxable?
A: Yes, the interest is taxable but qualifies for tax deduction under Section 80C up to ₹1.5 lakh.

Q3: Can I withdraw before maturity?
A: Premature withdrawal is allowed only in specific cases like death of the holder or court orders.

Q4: What is the minimum investment amount?
A: Minimum ₹1000 with no upper limit. Investments must be in multiples of ₹100.

Q5: Can I get monthly interest payments?
A: No, NSC is a cumulative scheme where interest is compounded and paid at maturity.