1. What is National Savings Certificate?

National Savings Certificate (NSC) is a fixed income investment scheme that you can open with any post office. It is a government backed savings bond primarily used for small savings and income tax saving investments in India.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( r \) — Annual interest rate (in decimal form)
• \( t \) — Time period in years

Explanation: The formula calculates the future value of an investment based on compound interest, where interest is added to the principal each period.

3. Importance of NSC Calculation

Details: Accurate maturity calculation helps investors plan their financial goals, understand returns on investment, and make informed decisions about savings and tax planning.

4. Using the Calculator

Tips: Enter principal amount in currency, interest rate in decimal form (e.g., 0.075 for 7.5%), and time period in years. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for NSC?
A: Interest rates for NSC are revised quarterly by the government. Please check the latest rates from official sources before investing.

Q2: What is the lock-in period for NSC?
A: NSC has a lock-in period of 5 years from the date of investment.

Q3: Is NSC interest taxable?
A: Yes, the interest earned on NSC is taxable under the Income Tax Act, but it qualifies for deduction under Section 80C.

Q4: Can I withdraw NSC before maturity?
A: Premature withdrawal is generally not allowed except in specific circumstances like death of the holder or forfeiture by a pledgee.

Q5: What is the minimum and maximum investment amount?
A: The minimum investment is usually ₹100, and there is no maximum limit for investment in NSC.