1. What is NSC?

The National Savings Certificate (NSC) is a fixed income investment scheme that you can open with any post office. It has a fixed maturity period of 5 years and offers guaranteed returns.

2. How Does the Calculator Work?

The calculator uses the NSC maturity formula:

Where:

• \( P \) — Principal investment amount ($)
• \( r \) — Annual interest rate (in decimal)
• 5 — Maturity period in years

Explanation: The formula calculates compound interest over 5 years, which is the standard maturity period for NSC.

3. Importance of NSC Calculation

Details: Calculating the maturity value helps investors plan their finances and compare NSC with other investment options.

4. Using the Calculator

Tips: Enter principal amount in dollars and interest rate in decimal (e.g., 0.07 for 7%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current NSC interest rate?
A: As of 2025, please check with your local post office for current rates as they may change periodically.

Q2: Is NSC interest taxable?
A: Interest is taxable but qualifies for tax deduction under Section 80C of Income Tax Act in some countries.

Q3: Can I withdraw NSC before maturity?
A: Premature withdrawal is generally not allowed except in specific circumstances like death of holder.

Q4: What is the minimum investment for NSC?
A: Minimum investment varies by country, typically starting from $20 equivalent.

Q5: How often is interest compounded?
A: Interest is compounded annually but added to the principal only at maturity.