Fixed-income plans are an attractive investment option for individuals prioritising stability over higher returns. These plans offer a fixed rate of return over a specified period, providing predictability and stability for investors. One of India’s most popular fixed-income plans is the National Savings Certificate (NSC). NSCs are a low-risk investment option that provides fixed returns, making them a popular savings scheme in India. Moreover, as the government backs these savings certificates, investments made in NSCs are highly reliable and secure. This assurance of safety and security makes NSCs an ideal choice for risk-averse investors looking for a reliable and predictable return on their investment. Investors looking to invest in NSCs can benefit from using the NSC calculator. Read on to learn more about how this tool can help simplify investment decision-making.
- Total Interest
- Investment Amount
National Saving Certificate (NSC) is a fixed-income investment option the government provides. They can be purchased from post offices across India.
NSCs have a minimum investment value of ₹1,000 and a lock-in period of 5 years. The interest accrued is compounded annually but paid on maturity. The interest rate for NSCs is reviewed and revised by the government periodically.
The amount invested in NSCs is eligible for tax deduction under Section 80C of the Income Tax Act subject to an overall limit of ₹1,50,000.
An NSC calculator is a valuable resource for investors in India looking to make NSC investments.
The calculator operates both as an NSC interest calculator and an NSC maturity calculator, enabling investors to obtain an estimate of their investment returns. The NSC interest calculator helps calculate the interest on NSC investments, while the NSC maturity calculator estimates the NSC's maturity value.
This tool simplifies investment decision-making, making it more convenient for individuals to make informed investment decisions.
If you're considering investing in NSCs, it's essential to know the potential returns on your investment. That's where the NSC calculator can be a valuable tool for you.
The NSC calculator works as both an NSC interest rate calculator and an NSC return calculator, providing you with an estimate of your potential returns. By considering the current interest rate, investment amount, and tenure, you can better understand your investment's growth potential. The NSC calculator can help you maximise your NSC investment opportunities and better plan your finances.
The NSC calculator uses the future value formula to calculate the maturity value of the NSC investment amount. It considers the interest to be compounded annually. The formula considers the current NSC interest rate, investment amount, and tenure.
The NSC calculation formula for finding the maturity value of an NSC is:
M = P(1 + r/100)^n
Here, M is the maturity value, P is the principal amount, r is the interest rate, and n is the number of years.
For example, if you invest ₹1,00,000 in NSC for 5 years at a current interest rate of 7%, the NSC interest rate calculator can be used to calculate the total maturity value, which would be INR 1,40,255.
The 5paisa NSC Interest Calculator is a user-friendly tool that enables you to estimate your returns on NSC investments. To use the calculator, you need to follow two simple steps:
Step 1: Enter the invested amount in the designated field.
Step 2: Input the current annual interest rate for NSCs.
Once the above data is entered, the calculator will generate the total interest earned on maturity and the maturity amount, considering the tenure to be 5 years.
An NSC calculator simplifies complex calculations and saves time for investors. Using a national saving scheme calculator, investors can easily estimate the total interest earned on their investment over a specific period and the maturity value. Some of the other benefits of using an NSC calculator include the following:
1. It is easily accessible to all investors, regardless of their financial expertise.
2. It is a free-of-cost resource.
3. It is highly accurate, providing you with reliable results.
The NSC interest rates are reviewed periodically by the government. The table below summarises the interest rate applicable for the financial year 2022-23.
There are two types of NSC, the NSC VIII Issue and the NSC IX Issue. The NSC VIII Issue has a maturity period of 5 years. On the other hand, the NSC IX Issue has a maturity period of 10 years, but it has been discontinued since December 2015.
Comparison of NSC with Other Tax-Saving Investments
|National Savings Certificate
|Public Provident Fund
|Fixed Deposit (Tax Saver)
|Equity Linked Savings Scheme
|National Pension Scheme
|Until the age of 60 years
|6.25 to 7.5%
|9 to 12%
|Investments and the annual interest accrued are eligible for an 80C deduction. On maturity, the interest portion is taxable as per the applicable income tax slab
|Investments are eligible for an 80C deduction. Annual interest accrued is exempt if the annual contributions are less than ₹2.5 lakhs. On maturity, the accumulated balance is tax-exempt
|Investments are eligible for an 80C deduction. Annual interest accrued is taxable as per the applicable income tax slab, and TDS @10% applies if it exceeds ₹40,000 (50,000 for senior citizens)
|Investments are eligible for an 80C deduction. On the sale of units, any long-term capital gains above ₹ 1 lakh are taxed at a 10% rate
|Investments are eligible for an 80C deduction. An additional deduction of ₹50,000 is available under Section 80CCD(1B). On maturity, up to 40% of the corpus is tax-exempt
NSC is a popular fixed-income savings scheme that allows you to invest even a small sum and earn great interest that compounds until maturity, offering healthy returns. Calculating the returns from your NSC investment can be made simpler and more accurate by using the NSC saving scheme calculator.
With this calculator, you can plan your investment wisely and make informed decisions about your investment strategy, helping you to optimise your savings and achieve your financial goals.
Frequently Asked Questions
NSC is a low-risk investment option that guarantees returns, making it an excellent choice for risk-averse investors seeking reliable and secure investment opportunities.
The principal amount invested is eligible for tax deduction at the time of investment and, therefore, not taxable at maturity. The annual interest accrued is reinvested and tax-exempt. However, the total interest received on maturity is taxable as Income from other sources as per the investor's applicable income tax slab.
The current interest rate on NSC is 7%.
When your NSC matures, you can withdraw the money from any post office branch by submitting an application with relevant details like serial number, issue date, and personal information.
NSC can only be withdrawn prematurely under specific circumstances, such as the death of the account holder, forfeiture by a pledgee, or court order.
It is possible to break the NSC under the specific circumstances mentioned above. However, if you withdraw NSC within one year of the deposit, you only get the principal amount. On the other hand, you get the principal amount plus interest if you withdraw between one to three years.
Yes, the interest rate on NSC is fixed at the time of investment and remains the same throughout the tenure of the investment. The government determines the interest rate, which is subject to change from time to time.
The NSC calculator post office is the same as the NSC calculator, making it easy to calculate maturity value and interest earned.
NSC and PPF are both good savings schemes with different benefits. The choice depends on your investment goals, risk appetite, and investment horizon.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..