To know how much you’ll get on your National Savings Certificate investments, NSC calculator can be used. It is an online calculator which can be accessed free of cost.
Let’s know more about the post office NSC calculator and the NSC interest calculator in this post.
What is NSC?
National Savings Certificate (NSC) is a savings scheme launched by the government of India in which you get guaranteed returns as per the NSC interest rate (6.8%). This schemes with a 5-year lock-in period which means you are not allowed to withdraw funds from it before maturity (except in some cases).
What is NSC Calculator?
NSC calculator also known as Post Office NSC calculator is an online tool that calculates the maturity amount you will get from your NSC investment. The NSC interest (6.8% p.a.) is compounded once a year and is reinvested every year.
To use this NSC interest calculator, enter the investment amount and the current NSC interest rate, and hit the ‘calculate’ or ‘submit’ button. You will know the total NSC interest earned along with the NSC maturity amount in just a click, thus eliminating long calculations and errors as well.
Benefits of Using an NSC Calculator
- The calculator is a quick way to figure out how much you’ll get at maturity
- You may immediately evaluate if NSC meets your financial objectives
How Does the NSC Calculator Work?
With the help of an NSC Calculator, you can easily calculate the amount you will receive after 5 years. The NSC calculator also does the work of NSC interest rate calculator as you will get a bifurcation of the interest earned and maturity amount separately.
For example, you have invested Rs. 20,000 in NSC for 5 years. The current interest rate set by the government on NSC is 6.8%, and the compounding frequency is yearly.
You will receive Rs. 27,783 as your NSC maturity amount.
How to Buy a National Savings Certificate (NSC)?
You can get a National Savings Certificate at your nearest post office. All you require is an authentic ID and address proof. Here’s how you can buy a National Savings Certificate-
- Go to your nearest post office
- Fill out the application form to buy the NSC certificate
- Carry your original address proof and identification card
- You can buy the certificate with a cheque, cash or the demand draft
Please note that if you buy the certificate with the cheque or the demand draft, you will have to make it in favour of the postmaster of that particular post office from where you are buying the certificate.
Tax Benefits of NSC
Maximum people prefer to invest in National Savings Certificate because of the lower risk and the numerous tax benefits. As an investor, you can claim a tax deduction on the investment in NSC of up to Rs. 1.5 Lakhs under Income Tax Section 80C.
However, the interest you will earn in the last year of the scheme will be taxable.
NSC Calculator: FAQs:
NSC or the National Saving Certificate is an investment scheme by the government of India. As an investor, you can deposit your money and get guaranteed returns. The current interest rate is 6.8%, and the scheme is immune to market trends.
Like other fixed-income products like PPF and Post Office FDs, the National Savings Certificate is a safe and low-risk investment. It demands a minimum deposit of Rs 1000 and has no maximum deposit restriction. There is no TDS on NSC investments.
The current rate on National Saving Certificates NSC is 6.8%. Once a year, it is compounded.
You can use the NSC calculator and get an estimate of the total amount you may get after the maturity of your investment.
Non-Resident Indians (NRIs) are not permitted to invest in NSC scheme.
Loans can be taken out against NSC, but only up to 80% of their value.
