Do you find NSC interest calculation difficult? It is not difficult. I have explained here all concepts of NSC calculations. NSC Calculator helps you to calculate interest earned from National Saving Certificate. And It also help in making decision of investment in National Saving Certificates.

The interest rates of NSC differ from period to period as it is decided by government of India through Ministry of Finance.

The interest rates also depend on the type of NSC.

Recently the interest rate for Year National Saving Certificate has been changed to 8.00% p.a compounded half yearly, by Notification No. F. NO. 1/04/2016-NS.II

Once you purchased the NSC, the rate of interest will be same for the full holding period. Any change in interest rate in between the holding period will not affect your original interest rate.

The following table shows the NSC calculator Interest rate at year zero and the amount earned on Rs. 100 after every completed year for various types of NSC.

Year | NSC VII 01/12/2011 to 31/03/2012 ( Rate per Rs. 100) | NSC VII 01/04/2012 to 31/03/2013 ( Rate per Rs. 100) | NSC VII On or after 01/04/2013 ( Rate per Rs. 100) | NSC IX Issue (10 Year) from 01/12/2011 ( Rate per Rs. 100) | NSC VII On or after 01/04/2016 ( Rate per Rs. 100) | NSC VII On or after 01/10/2016 ( Rate per Rs. 100) |

0 year | 8.4 | 8.6 | 8.5 | 8.7 | 8.1 | 8 |

1 year completed | 8.58 | 8.78 | 8.68 | 8.89 | 8.26 | 8.16 |

2 year completed | 9.31 | 9.56 | 9.43 | 9.68 | 8.95 | 8.83 |

3 year completed | 10.11 | 10.4 | 10.25 | 10.54 | 9.69 | 9.55 |

4 year completd | 10.98 | 11.31 | 11.14 | 11.48 | 10.49 | 10.33 |

5 year completd | 11.92 | 12.3 | 12.11 | 12.5 | 11.35 | 11.17 |

6 year completed | - | - | - | 13.61 | 12.08 | |

7 year completed | 14.82 | |||||

8 year completed | 16.13 | |||||

9 year completed | 17.57 | |||||

10 year completed | 19.13 | |||||

Total Earning | 50.9 | 52.35 | 51.62 | 134.35 | 48.74 | 60.12 |

The first row shows the period in which you have purchased the NSC certificate.

Example 1 of NSC calculator:

if you have Purchased NSC of Rs. 100 between 01.03.2003 to 30.11.2011, you will earn interest of Rs. 8.00 compounded half yearly. Then Rs. 8.16 at the end of 1st year, Rs. 8.83 at the end of 2nd year, Rs. 9.55 at the end of 3rd year and so on.

Read here Compounded Interest Formula with Example

Example 2 of NSC calculator:

Suppose you have invested Rs. 50,000 in NSC VII issue (5 year) on 1st April 2016.Then after five years as per above table you will receive 50000 x (1+48.74%) = 74,370/-. Here Rs. 48.74% is the total interest you will receive after five years. The income for fifth year will be Rs. 50,000 x 11.35% = Rs. 5,675/-

It is important to calculate the interest receive at the end of fifth year since all interest received will be taxable in the year of receipt. In the above example Rs. 24,370 is the total interest for all five years will be taxable in the fifth year.

Government has discontinued the sale of NSC IX ISSUE, which was used to sell for 10 years period.

Now only NSC VII ISSUE are available which are of 5 years period.

In very rare situation only the NSC can be redeemed before maturity period.

If you have not redeemed the NSC before the maturity date then the NSC will continue to earn interest for a maximum period of two years after the date of maturity. However the interest given on for such period is interest as per saving account. The present rate is 4% p.a.

Read here full details on National Saving Certificate

If you have any query related to NSC calculator, then please comment.

### CA Harish Negi

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Amit says

It’s really helpful article.

Nagindas Shivlal Gandhi (Surendranagar, Gujarat) says

I congratulate you for preparing the NSC calculator 2016 and interest rate chart in a very easy language. In this connection , I may suggest to delete the last words “IN THE FIFTH YEAR” in the sentence “. In the above example Rs. 24370 is the total interest for all five years will be taxable “in the fifth year” so as to remove doubts about interpretation oh this sentence .Your comments in this connection may please be communicated.

harish Negi says

Thanks for your appreciation and pointing our the errors, I will look into it and rectifiy it.

Thanks Again

Harish Negi says

You have correctly pointed out that the income will be received in sixth year and taxable in sixth year only.

Sanjay says

I had invested rs 10000 in 2009 and the NSC certificate said i will get rs 20000 on maturity (2015) But post office says i will get only 16000 (oct 2016). How dows that work?

Harish Negi says

Hi Sanjay,

When you invested in NSC, the rate of interest was 8%. In the above interest table you can see, Rs. 100 invested @ 8% interest gives a earning of Rs. 60.12 . SO your Rs. 10,000 becomes around Rs. 6012. So you are getting 16012.

Dr.S.C.Das says

What will be the maturity value of Rs 30,000 NSC after 5 years? Will it be Rs 44,622 or Rs 44080 or something else? I invested an amount of Rs 30,000 in a branch post office on 3.10.2016. The branch post master is confused about whether the interest is to be calculated with compound interest compounded annually or half yearly.Accordingly,the maturity value will be different in these two cases.Please confirm this immediately mentioning the exact maturity value.Thanks,

Yours faithfully,

Dr.S.C.Das,Mobile no. 9811230810; e-mail address: dr.das41@gmail.com

CA Harish Negi says

Hello,

The interest is calculated compounded half yearly and accordingly you can calculate the interest.

Dr.S.C.Das says

What will be the maturity value of 5years NSC for Rs30,000 invested on 3.10.2016 ? Is the rate of interest 8.1% compounded annually or compounded half-yearly?

CA Harish Negi says

The present rates are 8% compounded half yearly.

HASMUKH MALI says

To avail tax exemtion for the year 2016/17 i.e. Mar. 2017 when I have to buy say 1,50,000 2 certificate each of 75k? If I keep for 5 years, I need not to pay tax for 5 years. Tax have to pay in 2022/23 year on interest eatned and 150k also. IS THIS CORRECT?

Your reply by email is appreciated.

CA Harish Negi says

Hi,

you need to invest by 31st march 2017 to save tax for year 2016-17. you can not withdraw it before 5 years. interest is only taxable. Principal amount is not taxable.

JOHN says

Hi Harish, I have certificates printed as NSC VIII issue 6 year’s certificate issued on the 10.12.2011. It reads on my certificate interest should not exceed ₹16010 which works out to be 8% at issue but your table suggests otherwise 8.4%. There was no correction made by the post office on the certificate suggesting 8.4%. Are you suggesting that I will be paid more than ₹16010 on maturity?

CA Harish Negi says

Hi,

The rate were changes from 1.12.2011 to 8.4%. Before that rates were 8%. I think you should get interest @8.4% only. Kindly check with the postal department with notification of change of rates to 8.4%.

Madan Lal Arora says

Sir, I need your assistance in the matter. I shall remain obliged to you.

I purchased the NSCs as under. What amount should be taken into account for 80-C purposes.

Date of purchase 19.1.15 V years amount Rs.10000 MV Rs 15090

DOP 08.02.2016 V years Amount 100000 MV 151620.00

Mail ID mlarora_53@yahoo.co.in Mobile No.9540203636

Harish Negi says

Hello,

As per section 80C of Income Tax Act, 1961 investment of Rs. 1,50,000 in NSC is allowed as deduction every year. The investment includes the amount of NSC purchased and the interest reinvested during the year. However, the interest received at the time of maturity (Five Years) is taxable and will be included in the total income under the head ‘Income from Other Sources’. Always remember that last year (5th year) interest is not included in investment since it is not reinvested.

You can calculate the interest with the help of above table and accordingly calculate the 80C deduction.

Rikesh Baruah says

Kly inform me the maturity amount of investing Rs. 60000 in NSC for 5 years from Jan 2017

Harish Negi says

HI

it will be 50000(1+60.12%) =80060

Nilesh Rane says

I want to invest 50,000 in NSC for my mother who is 68 years old. What would be the ideal period to get maximum benefit. Also she doesn’t have any date of birth proof.

Harish Negi says

You will have to check with a post office, regarding the documents required to open a saving account and then only you can purchase the NSC on her name.

You can invest as early as possible the return will be same.

Vijayashree says

Sir

i have invested 50000/- on Kisan Vikas Patra which will fetch me returns only after 9.3 years. Can i transfer the amount on NSC if yes will i get tax exemption on having invested in KVP as well as NSC. Please advise.

Pabitra Paul says

in calculation example 2 , total interest is as u wrote is 74370..is it correct. ??? or should it be (74370-50000)=24370??? which one is correct? ? which one is taxable income at the end of fifth year? ??

Harish Negi says

Hi Pabitra, You are tight, it is corrected. Thanks

Gaurav Sharma says

Dear Sir,

In my case i have started purchasing NSC of 3k from Nov 16 on monthly basis (36k yearly) and would like to continue this for next 5 years. Further if i reinvest the interest and take it forward for another 5 years (same amount of money,i.e. 3k /month or 36k/year) then how much money will i get on maturity.

Regards

Gaurav

Venkat says

Sir,i was invested 30000/- in march 2011 in NSC for 6 years what is the maturity amount.pls clarify.

amee says

Kindly inform me the maturity amount of investing Rs. 50000 in NSC for 5 years from Mar 2017

Shafi says

Hi

I have invested 115000 in nsc on 22 march 2016

Can you please tell me how much amount of interest i have show while doing tax filing

Neeraj Sharma says

Sir

You have provided an easily understandable table for calculating interest accrued on NSC. Kindly provide the same table for KVPs.

Rakish Tripathi says

Sir I have invested Rs 100000 on 28 Feb 2017. Can I show the income of interest on 100000 for this FYr2016_2017 And how much ? And so on up to maturity date. I do not want to show total interst earned together at the end of FYr 2021_22 as an income from interest.

Prashant Kumar says

Sir

I recently govt retired person and I want to purchase nsc of rupees 3000000 for the period 5 years, what amount I have received on maturity how much income tax amount I have to pay

V K Trama says

Sir,

As per the notification the interest is compounded annually and not 6 monthly. If there is a subsequent notification please guide accordingly. Even the amount calculated and given on the certificate is based on yearly compounding. Please guide on the correct method of calculation.

1. This is for NSC purchased on 11/1/2017 for FY 2016-17. How do we

calculate the accrued interest for FY 2017-18?

2. If NSC is purchased in August 2017 for FY 2017-18 will any interest accrue

for FY 2017-18 itself or accrual of interest will start only from the next FY

2018-19.

jo says

I think You supposed to correct the below statement. Instead of “before” it supposed to be “after”

If you have not redeemed the NSC “before” the maturity date then the NSC will continue to earn interest for a maximum period of two years after the date of maturity. However the interest given on for such period is interest as per saving account. The present rate is 4% p.a.”

Dr. Stanley John says

Good article and thanks for sharing. I have some 5 NSCs (5years term) and i need to mention the yearly interest in income other than salaries during calculation of income tax. Is there any software or a ready reckoner to calculate this. Can you help me in this?

Thanks