Do you find NSC interest calculation difficult? it is not. I have explained here all concepts of NSC calculations. NSC Calculator helps you to calculate interest earned from National Saving Certificate. It is important for making decision of investment in National Saving Certificates.
The interest rates of NSC differ from period to period as it is decided by government of India through Ministry of Finance.
The interest rates also depend on the type of NSC.
Recently the interest rate for Year National Saving Certificate has been changed to 8.10% p.a compounded half yearly, by Notification No. F. NO. 1/04/2016-NS.II
Once you purchased the NSC, the rate of interest will be same for the full holding period. Any change in interest rate in between the holding period will not affect your original interest rate.
The following table shows the NSC calculator Interest rate at year zero and the amount earned on Rs. 100 after every completed year for various types of NSC.
| Year | NSC VII 01/03/2003 to 30/11/2011 ( Rate per Rs. 100) |
NSC VII 01/12/2011 to 31/03/2012 ( Rate per Rs. 100) |
NSC VII 01/04/2012 to 31/03/2013 ( Rate per Rs. 100) |
NSC VII On or after 01/04/2013 ( Rate per Rs. 100) |
NSC IX Issue (10 Year) from 01/12/2011 ( Rate per Rs. 100) |
NSC VII On or after 01/04/2016 ( Rate per Rs. 100) |
| 0 year | 8 | 8.4 | 8.6 | 8.5 | 8.7 | 8.1 |
| 1 year completed | 8.16 | 8.58 | 8.78 | 8.68 | 8.89 | 8.26 |
| 2 year completed | 8.83 | 9.31 | 9.56 | 9.43 | 9.68 | 8.95 |
| 3 year completed | 9.55 | 10.11 | 10.4 | 10.25 | 10.54 | 9.69 |
| 4 year completd | 10.33 | 10.98 | 11.31 | 11.14 | 11.48 | 10.49 |
| 5 year completd | 11.17 | 11.92 | 12.3 | 12.11 | 12.5 | 11.35 |
| 6 year completed | 12.08 | – | – | – | 13.61 | |
| 7 year completed | 14.82 | |||||
| 8 year completed | 16.13 | |||||
| 9 year completed | 17.57 | |||||
| 10 year completed | 19.13 | |||||
| Total Earning | 60.12 | 50.9 | 52.35 | 51.62 | 134.35 | 48.74 |
The first row shows the period in which you have purchased the NSC certificate.
Example 1 of NSC calculator:
if you have Purchased NSC of Rs. 100 between 01.03.2003 to 30.11.2011, you will earn interest of Rs. 8.00 compounded half yearly. Then Rs. 8.16 at the end of 1st year, Rs. 8.83 at the end of 2nd year, Rs. 9.55 at the end of 3rd year and so on.
Example 2 of NSC calculator:
Suppose you have invested Rs. 50,000 in NSC VII issue (5 year) on 1st April 2016.Then after five years as per above table you will receive 50000 x (1+48.74%) = 74,370/-. Here Rs. 48.74% is the total interest you will receive after five years. The income for fifth year will be Rs. 50,000 x 11.35% = Rs. 5,675/-
It is important to calculate the interest receive at the end of fifth year since all interest received will be taxable in the year of receipt. In the above example Rs. 24,370 is the total interest for all five years will be taxable in the fifth year.
Government has discontinued the sale of NSC IX ISSUE, which was used to sell for 10 years period.
Now only NSC VII ISSUE are available which are of 5 years period.
In very rare situation only the NSC can be redeemed before maturity period.
If you have not redeemed the NSC before the maturity date then the NSC will continue to earn interest for a maximum period of two years after the date of maturity. However the interest given on for such period is interest as per saving account. The present rate is 4% p.a.