NSC Calculator

National Savings Certificate or NSC is a government-sponsored tax-saving scheme which allows people to put their money in fixed-income securities and earn returns at fixed interest rates. Currently, in India, NSCs can be accessed via post offices and being a Government-backed scheme, it is considered as a low risk investment.

Investments made into NSC are eligible for Section 80C deductions up to the cumulative limit of Rs. 1.5 lakh annually as per the Income Tax Act, 1961. Currently available NSC certificates have a maturity period of 5 years and provide investors with safe, secure and tax-efficient savings that provides assured returns. As per current rules the minimum investment allowed is Rs. 1000 and there is no maximum limit. However, tax benefits of the scheme are limited to Rs. 1.5 lakh annually as part of the cumulate limit u/s 80C.

The NSC Calculator or National Savings Certificate calculator is a free online tool that you can use to calculate the maturity value and returns that you can get at the end of the 5 year investment tenure of the certificate. This simple yet powerful financial calculator is designed to simplify the process of calculating NSC returns so that the chances of calculation are minimized and you are better placed to make informed tax-saving investment decisions so that you can reach your investment goals.

Since NSC interest is compounded annually and the interest earned in the previous year is added to the principal for the next year, the calculator takes into account the effect of compounding. The NSC interest rate which is currently 7.7% (till June 2024) and the maturity period of 5 years is automatically used by the calculator to provide the returns and maturity value data.

The NSC calculator employs the compound interest calculation formula to determine the maturity value of the NSC investment amount at the end of the 5-year tenure of the certificate. Additionally, the NSC calculation formula also takes into account that NSC interest is to be compounded annually.

Based on the above the NSC maturity calculation can be represented as: M = P (1 + r/100)^n where,

● M = maturity value

● P = principal amount

● r = interest rate

● n = number of years (maturity period)

So, if the NSC interest rate is 7.7% p.a. and the maturity period of a NSC certificate is 5 years, the NSC interest and maturity calculation formula will look like this:

M = P (1+7.7/100)^5

So, if Rs. 1 lakh is invested in NSC for 5 years at an interest rate of 7.7%, the total maturity value will be Rs. 1.45 lakh and the interest earned will be Rs. 44,903 as per the NSC interest calculation formula.

The NSC Calculator provides instant results with respect to maturity value and returns earned from the National Savings Certificate investment by using 3 key bits of information. These are:

• Amount invested in the National Savings Certificate

• Interest rate offered by the NSC certificate

• Maturity Period of NSC

Among these, the NSC Interest rate is fixed as per Finance Ministry notifications and subject to periodic review. The current NSC Interest rate is 7.7% p.a. and the maturity period of currently available NSC certificates is fixed at 5 years.

So all you need to do is enter the investment amount and the NSC calculator will immediately show the maturity value of your investment.

Some key benefits of the NSC calculator are mentioned below:

● This calculator provides instant results that help you know how much you will receive on maturity of your NSC certificate.

● It can help investors make a plan that fits their financial goal.

● Eliminates the need for tedious calculations and saves time.

● Can be used any number of times for free to help investors plan various contingencies and scenarios.

● Helps investors make an informed choice when it comes to making realistic investment decisions using the National Savings Certificate.

The NSC interest rate fixed by the government is 6.8%. However, the interest rate can often fluctuate annually. Here are the NSC interest rates over the last few years.

NSC is one of the best and most popular fixed return plans in India, which lets you make small contributions and receive substantial interest. This gradually builds up until maturity to provide you with excellent and beneficiary returns.

The NSC calculator is the most effective tool available right now for computing refunds from NSC. Some of the benefits of using the National Savings Certificate Interest Rate Calculator include:

● Accuracy and reliability

● Simple financial planning

● Comparative analysis

● Entire scenario exploration

● Time and labour savings

● The ease and flexibility with which it can be used

So, you can make a prudent choice and use the NSC calculator while planning your investment.