National Savings Certificate Calculator is a tool used to estimate the maturity amount and interest earned on an investment in the National Savings Certificate (NSC), a fixed-income investment scheme offered by the Indian government.
You can check NSC return by using Fincal NSC calculator Online or Fincal Mobile APP. A Fincal NSC calculator can be used to determine the earned interest periodically and the return amount at the time of maturity. It is a simple-to-use tool available in market.
What is NSC?
The National Savings Certificate (NSC) is a fixed income investment scheme that you can open with a minimum investment and a tenure of five years.
As this scheme is backed by the Indian Government, it is one of the safest investment options. You can open a National Savings Certificate by visiting any post office in India. The main goal of National Savings Certificate investment is to generate decent returns while saving tax.
It is safe investment for risk-averse individuals. It provide good wealth building option of compounding interest which helps in long-term savings growth. Easily accessible and available at all post offices across India.
Key Features of NSC:
- Tenure: NSC has a fixed maturity period of 5 years.
- Interest Rate: The interest rate is fixed by the government and reviewed quarterly. It is compounded annually but paid at maturity.
- Investment Limit: Minimum investment is ₹1,000. No maximum limit, but investments are in denominations of ₹1,000, ₹5,000, ₹10,000, etc.
- Tax Benefits: Investments are eligible for tax deduction under Section 80C of the Income Tax Act (up to ₹1.5 lakh per year). However, the interest earned is taxable.
- Guaranteed Returns: Backed by the government, it offers a risk-free return on investment.
- Transferable: Certificates can be transferred to another individual once during the tenure.
- Nomination Facility: Investors can nominate someone to receive the amount in case of their demise.
What is an National Savings Certificate Calculator?
An NSC Maturity Value Calculator refers to a National Savings Certificate Calculator, a tool used to estimate the maturity amount and interest earned on an investment in the National Savings Certificate (NSC), a fixed-income investment scheme offered by the Indian government.
Key Features of an NSC Calculator
- Principal Amount (Investment): The amount you invest in NSC.
- Tenure: The maturity period is typically 5 years.
- Interest Rate: The government decides the NSC interest rate quarterly (e.g., 7.7% per annum as of recent updates).
- Compounding Frequency: Interest is compounded annually but paid of NSC Maturity Calculation at maturity.
- Maturity Value: The total amount you receive at the end of the tenure.
How to Calculate Maturity Amount of NSC
Formula Used to Calculate Maturity Amount:
A = P × (1 + r)^n
Where:
- A: Maturity amount.
- P: Principal amount (initial investment).
- r: Annual interest rate (in decimal form).
- n: Number of years (tenure).
Since the interest is compounded annually, the entire amount (principal + accrued interest) is paid out only at the end of the maturity period.
Example of NSC Maturity Value Calculator
If you invest ₹10,000 in NSC for 5 years at an interest rate of 7.7% per annum, the maturity value can be calculated as follows:
A = ₹10,000 × (1 + 0.077)^5 ≈ ₹14,500
Below Fincal NSC Calculator Online tool provide you graphical representation of your NSC investments. Also Fincal Mobile app available on Android play store which provide NSC calculator service on the go.
Benefits of an NSC Interest Calculator
- Accurate Estimates: Ensures precise results by factoring in the compounding effect.
- Easy Calculations: Quickly computes the maturity amount without manual effort.
- Financial Planning: Helps you plan your investments by showing potential returns.
Frequently Asked Questions (FAQs):
What is a National Savings Certificate (NSC)?
NSC is a fixed-income investment scheme offered by the Indian government, with guaranteed returns and tax benefits under Section 80C of the Income Tax Act.
What is the tenure for an NSC?
The standard tenure for an NSC is 5 years, after which the principal and interest are paid out as maturity value.
How is the NSC Interest Calculator?
Interest on NSC is calculated annually and compounded annually, but the payout occurs only at the time of maturity.
Can I withdraw money from my NSC before maturity?
No, NSC is a non-transferable investment, and premature withdrawal is not allowed before maturity, though loans can be taken against NSC.
Are NSC returns taxable?
The interest earned on NSC is taxable, but it qualifies for tax benefits under Section 80C for the initial investment.
Can I invest in NSC for more than 5 years?
No, the initial tenure is fixed for 5 years, but you can reinvest in a new NSC certificate upon maturity.
What will be 1 lakh NSC after 5 years?
If you invest ₹10,0000 in NSC for 5 years at an interest rate of 7.7% per annum, the maturity value will be ₹1,44,903 after 5 year.
Which best mobile app or website available to calculate NSC returns?
Android Fincal Mobile App or Fincal NSC Calculator Online tool accurately calculate NSC return for you.
What all financial calculator available?
To know more refer Financial Calculator