1. What is Post Office NSC?

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

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount invested
• \( r \) — Annual interest rate (in decimal)
• \( n \) — Number of years

Explanation: The formula calculates the future value of an investment based on compound interest.

3. Importance of NSC Calculation

Details: Calculating the maturity amount helps in financial planning and comparing NSC with other investment options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current NSC interest rate for 2025?
A: The current rate is 7.7% per annum (0.077 in decimal) compounded annually but payable at maturity.

Q2: What is the minimum investment amount?
A: The minimum investment is $100 with no upper limit.

Q3: Is NSC interest taxable?
A: Interest is taxable but qualifies for deduction under Section 80C of Income Tax Act.

Q4: Can I withdraw before maturity?
A: Premature withdrawal is allowed only in specific cases like death of holder or court orders.

Q5: How is NSC different from FD?
A: NSC has tax benefits under 80C, fixed 5-year term, and can only be issued by post offices.