National Savings Certificate Calculator 2023

National Savings Certificate (NSC), which is also called a savings bond scheme is a fixed-income investment scheme, encourages small to mid-income investors to invest while saving on income tax under Section 80C. You can activate or avail this scheme at any Post Office in India. The NSC plan is backed by the Government of India, hence, it guarantees good returns. The lock-in period is five years. Investing in NSC qualifies for section 80C tax deduction up to Rs. 1.5 lakhs and the interest earned can be calculated using Fintra's NSC interest rate calculator. NSC, like other fixed-income instruments like PPF and Post Office FDs, is a low-risk investment vehicle. The minimum required deposit is Rs. 100, and there is no maximum investment limit. For NSC investments there is also no TDS.

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What is National Savings Certificate (NSC) Calculator? 

The interest for National Saving Certificate (NSC) is compounded once a year, and it gets payable to the investor after five years. The interest earned every year is reinvested. In Fintra's NSC Interest Calculator 2023, one can enter the amount of their investment, the term is already fixed at 5 years along with the interest rates. After this, the calculator calculates the total earnings on the investment at maturity. Fintra's NSC Interest Calculator is a fast-track source enabling you to know how much you will receive on maturity, and instantly glimpse whether the plan fits your financial goals.

How to use Fintra's NSC Interest Calculator?

Fintra's National Savings Certificate (NSC) Interest Calculator enables you to calculate the returns on your investment. To obtain accurate results you need to provide the following data:

  1. Amount Invested– This refers to the amount deposited in the account
  2. Annual Interest Rate – It's the NSC rate of interest 
  3. Time Period

When all data has been filled in into the National Savings Certificate (NSC) Calculator, click on “Submit”, and instantly results will be displayed.

How to Buy a National Saving Certificate (NSC)?

To purchase an NSC scheme you need to visit the nearest Post Office. As an investor, you'll have to present your original ID and Address proofs. Following are the steps that will assist in investing in NSC: 

  • Get the application form and fill it up with all the required details
  • For the investor verification, you'll need to provide original copies of ID proof and Address proof
  • Upon verifying the documents, you can give the investment amount via cash, demand draft, or cheque in favour of the postmaster
  • Lastly, to complete the process, you'll need to select a nominee and get a witness signature

In general, only individual Indian residents are allowed to invest in NSC. Non-Resident Indians (NRI), Hindu United Families (HUF), and trusts cannot invest in this savings scheme.

NSC Interest Rates & Maturity Period 

There are two types of NSC certificates: NSC VIII Issue and NSC IX Issue:

  1. NSC VIII Issue: The VIII Issue has a maturity period of 5 years. 
  2. NSC IX Issue: The IX Issue has a maturity period of 10 years. However, this issue has now been discontinued since December 2015.

It's believed that the National Savings Certificates VIII Issue is an excellent scheme. The initial investment and the interest accrued for the first four years get to enjoy the benefits of Section 80C of the Income Tax Act.

Benefits of Using a National Savings Certificate (NSC) Calculator

Manually calculating the interest and maturity amount of NSC could be tedious and time taking. The interest is compounded once a year and then it's added back to the investment. At the end of 5 years, the interest plus the principal gets payable to the investor. An investor would desire to know how much an investment in NSC has grown. Fintra's NSC calculator will assist in calculating the maturity amount within seconds. 

Following are a few advantages of using Fintra's NSC Interest calculator:

  • Easy to use: It's very straightforward to use the National Savings Certificate (NSC) Calculator. The investor has to simply enter the amount of investment, and once it clicks on calculate, the calculator will calculate the maturity amount.
  • Time-saving: Using National Saving Certificate Calculator saves you time because you don’t have to calculate manually. Perform complex calculations within seconds.
  • Accuracy: NSC calculator is created and designed with precision, and the calculations are accurate.
  • Future planning: You can efficiently plan your financial future with accuracy. The NSC maturity calculator returns the precise amount your investment will reap upon maturity.
  • Free to use: You can use the NSC calculator numerous times for free of cost.

The Vital Features of National Savings Certificate (NSC)

  • Small Investments: To make it easier for everyone to invest, anyone can invest in NSC by investing as low as Rs 100.
  • Fixed Income: NSC guarantees good returns. The account holder can enjoy a regular income.
  • Maturity Period: NSC schemes have a maturity of 5 years. The 10-year maturity period issue has now been discontinued from December 2015.
  • Power of Compounding: The interest earned on NSC during the tenure of the investment is reinvested into the scheme by default.
  • Corpus after maturity: Account holders will receive the entire amount upon maturity. There is no TDS on NSC payouts. However, upon receiving the amount, the investor has to pay the applicable tax.
  • Loan Collateral: Premature withdrawals aren't allowed in NSC. However, it will enable you to avail loans by having the NSC certificate as the loan collateral.
  • Premature withdrawal: In NSC investments premature withdrawals aren't accepted. However, in exceptional cases such as the death of investors or by court order, one can make early withdrawals.
  • Nomination: The NSC scheme enables the investor to nominate any family member, including a minor. Only in the unfortunate event of the demise of the investor the nominee can inherit the returns.

What are the Tax Benefits of NSC Investment?

Investment in NSC is eligible for tax exemption under Section 80C of the Income Tax Act. Interest gained during the tenure is added to the initial investment. It is also qualified for tax exemption. For example, for an investment of Rs. 5,000 in NSC, you can claim a tax benefit in the first year. From the second year onwards, the tax claim can include the interest earned on NSC in the previous year and the NSC investment made in the current assessment year. Do note there is no Tax Deduction at Source (TDS) for NSC investment payouts. However, on the maturity amount, an investor is required to pay the tax as per their income tax slab rates.

Frequently Asked Questions

Is NSC a good investment?

National Savings Certificate is a secured and low-risk instrument such as other fixed-income products like PPF and Post Office FDs. It is one of the popular savings instruments and fixed-income investment options available in India. NSC requires a minimum deposit of Rs 100, and there is no cap on the maximum limit. No TDS for NSC investments. 

How can you obtain funds after NSC maturity?

Upon maturity, you can encash the investment in hard cash. Alternatively, you can also choose to transfer it to your bank account. Moreover, if you fail to withdraw, then the investment will earn interest, and it'll be similar to a post office savings account for two years. However, post which the investment will not be earning interest.

Can withdrawals of NSC be done before maturity?

Premature withdrawals aren't acceptable, but in exceptional cases, premature withdrawals can be acceptable.

Can NSC be broken?

NSC has a lock-in period of 5 years, and you have to keep the amount locked in until maturity. However, the scheme does allow premature withdrawals upon the account holder’s unfortunate demise or upon court order.

Is the NSC interest rate fixed?

The interest rate for NSC gets announced by the Ministry of Finance every quarter. Returns from NSC are guaranteed and are compounded annually and paid at the time of maturity.

What are the features of the National Savings Certificate (NSC)?

  1. There is no maximum limit for investment.
  2. NSC deposits qualify for tax rebate under Sec. 80C of IT Act.
  3. There is no Tax deduction at source.
  4. Certificates are kept as collateral security to obtain loans from banks.
  5. The single holder type certificate could be purchased by an adult for himself/herself or on behalf of a minor or to a minor. 

What are the various types of National Savings Certificate (NSC) Certificates?  

The three different types of National Savings Certificates are: 

  1. Single Holder Type Certificate: This is issued to individuals (the holder) or individuals on behalf of a minor. 
  2. Joint A Type Certificate: This certificate is issued jointly to two adults. On maturity, the NSC will be paid to both of the joint holders.
  3. Joint B Type Certificate: This type of certificate is also issued jointly to two adults but on maturity, the NSC will be paid to one (either one) of the joint holders.

What documents are required for the National Savings Certificate (NSC)?

The documents required for obtaining the National Savings Certificate (NSC) are: 

  1. NSC Application form that has been filled up with the applicant's details 
  2. Recent Photograph
  3. Identity proof – Aadhaar card, PAN, etc.
  4. Address proof – Aadhaar card, Voter ID, etc.
  5. Cash/cheque deposit of the amount to be invested

These documents need to be submitted at any India Post Office to get the NSC in applicable denominations.

Other than National Savings Certificate NSC, what are other tax-saving investments?

The other tax-saving investments, which qualify for Section 80C of the Income Tax Act are Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, Equity Linked Savings Scheme, National Pension Scheme, and Public Provident Fund


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