Comprehensive Guide to NSC Calculator in India
The National Savings Certificate (NSC) is one of the most popular fixed-income investment options offered by the Government of India. It is an illiquid option for those who value accretive returns and higher taxes. NSC calculator: NSC calculator: Find your return before you make NSC calculator.
What is an NSC Calculator?
The NSC calculator is an online financial tool that will help you calculate the maturity value of their National Savings Certificate investment.Just type the money, duration and current interest rate to get your return in total.
How to Use an NSC Calculator?
- Visit an online NSC calculator tool on a trusted website.
- Enter the amount you wish to invest (principal).
- Input the tenure of the investment, typically 5 years.
- Enter the current interest rate applicable to NSC investments.
- Click on "Calculate" to view the maturity amount.
Advantages of Using an NSC Calculator
- Accuracy: Provides precise calculations of returns.
- Time-Saving: Eliminates manual computations.
- Easy Comparison: Enables quick comparison with other investment options.
- Free to Use: All the NSC calculators are free and accessible online.
How Does an NSC Work?
NSC is a fixed income fund which gives interest at maturity and year-on-year in compounded terms. NSC interest rate is 7.7% (December 2024) and the tenure is 5 years.
The formula used in NSC calculations is:
Maturity Amount = Principal Amount x (1 + Interest Rate/100)^Tenure
NSC Investment Returns Example
| Investment Amount (INR) | Tenure (Years) | Interest Rate (%) | Maturity Amount (INR) |
|---|---|---|---|
| 10,000 | 5 | 7.7 | 14,488 |
| 50,000 | 5 | 7.7 | 72,440 |
| 1,00,000 | 5 | 7.7 | 1,44,880 |
Comparison of NSC with Other Investment Options
| Investment Option | Interest Rate (%) | Tenure | Tax Benefit |
|---|---|---|---|
| NSC | 7.7 | 5 years | Up to INR 1.5 lakh under Section 80C |
| Fixed Deposit | 6.5 - 7.5 | 5 years or more | Up to INR 1.5 lakh under Section 80C |
| Public Provident Fund (PPF) | 7.1 | 15 years | Up to INR 1.5 lakh under Section 80C |
| Recurring Deposit | 6.0 - 7.0 | 1-5 years | Not applicable |
Key Policies and Regulations Regarding NSC
- Eligibility: NSC can be purchased by any resident individual. Non-resident Indians (NRIs) are not eligible.
- Tax Benefits: Investments up to INR 1.5 lakh in NSC qualify for tax deduction under Section 80C of the Income Tax Act.
- Lock-in Period: The investment has a lock-in period of 5 years.
- Transferability: Certificates can be transferred from one individual to another under specified conditions.
- Premature Withdrawal: Allowed only in exceptional cases like the death of the holder.