NSC Interest Rate 2024 in Post Office with Calculator

NSC Interest rate is 7.7% for October to December 2024 quarter, which is reviewed by government of India in every quarter. Once you issue the NSC certificate, the interest rate will be fixed for the tenure of 5 years.

Let us understand more details about NSC and interest calculation

Table of Contents

NSC Interest Rate 2024 with Interest Calculation Video
What is NSC?
Benefits of NSC (National Saving Certificate)
NSC Calculator
What will be 1 lakh NSC after 5 years?
Is NSC better than FD?
Is NSC tax free?
Conclusion

NSC Interest Rate 2024 with Interest Calculation Video

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What is NSC?

National Saving Certificate or NSC are the certificates issued by Post Office to save for your financial goals
These are low risk investment scheme to get fixed interest amount
NSC scheme is for the tenure of 5 years. This means the deposit amount will be locked for 5 years from the issue of this certificate
Minimum amount you can invest is Rs. 1000 and there is no maximum limit to issue NSC certificate
You can have multiple NSC certificates issued against your name
It helps you to save income tax under Section 80C that has a maximum limit of Rs. 1.5 lakh with old tax regime
Remember that new tax regime does not allow deduction with NSC certificates
NSC certificates are physical certificates having the details amount investment amount, interest rate, tenure and maturity amount
You can get the maturity amount encashed or transferred in bank account after maturity. Failing to do so will help you earn interest for next 2 years at post office savings account interest rate, post which you will not earn any interest
The interest portion of maturity amount in NSC is taxable as per your tax slab rates

Benefits of NSC (National Saving Certificate)

Below are some of the benefits of National Saving Certificate:

Income Tax Saving: NSC or National Saving Certificate helps you to save income tax with old tax regime under Section 80C. This means you can claim maximum of Rs. 1.5 lakh in the financial year by investing in NSC
High Interest Rate: The current interest rate in NSC is 7.7% for October to December 2024 quarter, which is high compared to other saving schemes such as Fixed Deposits and Recurring Deposits
Achieve Financial Goals: NSC helps you to achieve your financial goal of 5 years. Since NSC accepts one time investments, you can deposit the amount and get interest amount after 5 years along with your principal amount.

NSC Calculator

Use below NSC Calculator to check interest in NSC (National Saving Certificate)

What will be 1 lakh NSC after 5 years?

1 Lakh in NSC will provide you Rs. 1,44,903 as maturity amount after 5 years, based on interest rate of 7.7%. This is the pre tax maturity amount, so you will be liable to pay income tax on the interest amount you earn. Use above calculator to know more about NSC interest calculation.

Is NSC better than FD?

It depends on your financial goals to select between NSC and FD. Below are some factors to differentiate between NSC and FD savings:

Items	National Saving Certificate (NSC)	Fixed Deposits (FD)
Income Tax	Helps in Saving Income Tax under Section 80C	5 year tax saver Fixed Deposit also helps in saving income tax with Section 80C
Liquidity	Difficult to break NSC certificates before 5 years but can be done based on some conditions	You can easily break or liquidate FD before 5 years
Account opening online	Currently it involves offline process of buying certificate via Post Office	You can easily open FD via net banking of your Savings account Bank
Compounding	Yearly compounding is done based on deposit	Quarterly compounding which gives you more interest amount
Interest rate	Current interest rate is 7.7%	Interest rate varies between 6.5% to7.5% based on the bank
Maturity amount (@7.7% interest rate)	You’ll get Rs. 72,452 on Rs. 50,000 deposit in NSC after 5 years	You’ll get Rs. 73,212 on Rs. 50,000 deposit in Fixed Deposit after 5 years

NSC vs FD comparison

Is NSC tax free?

No, NSC interest amount is taxable based on your income tax brackets in a financial year. If your total income is below Rs. 5 lakh in financial year than you don’t have to pay any tax with old tax regime, where as with new tax regime, your income tax will be zero on income up to Rs. 7 lakh

Conclusion

So NSC interest rate 2024 is 7.7% which is reviewed by government of India every quarter. Once you issue the certificate, you’ll get same interest rate throughout the tenure of 5 years.

Also, you get income tax benefits under Section 80C with old tax regime if you save in National Saving Certificate.

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Income Tax Calculator App – FinCalC

For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.

What you can do with this mobile App?

Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
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