NSC Interest Rate
- The Post Office NSC interest rate is 8% per annum compounded half yearly, which means the effective yearly NSC interest rate is 8.16%. (Rule 15(6) of the NSC (VIII) Issue Rules, 1989). This rate will be used to calculate NSC interest rate for income tax purposes.
- That means a 100 rupee invested today in National Savings Certificate will become Rs. 160.1/- at the end of the sixth year.
- But if there is a pre-closure then the Post Office NSC interest rate will be less when compared with the actual amounts calculated using NSC interest rate calculator or from NSC interest rate chart. Pre closure facility is available only after the completion of third year.
The following table on NSC interest rate will explain how your money grows over the period of six years and the amounts that you will receive if there is pre closure:
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NSC interest rate chart
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|
Year
|
This is How Your
Rs. 100 Will Grow
|
Maturity Value if there
is Pre Closure
|
Amount that will be
Lost, if there is Pre Closure
|
|
At the end of
|
At the end of
|
At the end of
|
|
6 Months
|
12 Months
|
6 Months
|
12 Months
|
6 Months
|
12 Months
|
|
1
|
104.00
|
108.16
|
-
|
-
|
-
|
-
|
|
2
|
112.49
|
116.99
|
-
|
-
|
-
|
-
|
|
3
|
121.67
|
126.53
|
-
|
121.15
|
-
|
5.38
|
|
4
|
131.59
|
136.86
|
125.09
|
129.16
|
6.50
|
7.70
|
|
5
|
142.33
|
148.02
|
133.36
|
137.69
|
8.97
|
10.33
|
|
6
|
153.95
|
160.10
|
142.16
|
-
|
11.79
|
-
|
The Above NSC interest rate chart taking into account Interest rates specified in Rule 15(6) of the NSC (VIII) Issue Rules, 1989. They are the rates applicable if NSC is purchased on or after 1-3-2003. Based on the above NSC interest rate chart the maturity value and NSC interest rate for income tax can be calculated for any amount on a proportionate basis.
Post Office NSC interest rate is different for different years depending on the year in which it was purchased. The given below NSC interest rate chart gives an illustration of how Rs. 100 invested in different periods starting from 01.01.1999 will grow over its life of six years.
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NSC Interest Rate Chart
|
|
Year
|
Period during which NSC Certificate was Purchased
|
|
01.01.1999 to
14.01.2000
|
15.01.2000 to
28.02.2001
|
01.03.2001 to
28.02.2002
|
01.03.2002 to
28.02.2003
|
01.03.2003
Ondards
|
|
1
|
111.83
|
111.3
|
109.73
|
109.2
|
108.16
|
|
2
|
125.06
|
123.88
|
120.41
|
119.25
|
116.99
|
|
3
|
139.85
|
137.88
|
132.13
|
130.22
|
126.53
|
|
4
|
156.39
|
153.46
|
144.99
|
142.2
|
136.86
|
|
5
|
174.89
|
170.8
|
159.1
|
155.28
|
148.02
|
|
6
|
195.58
|
190.1
|
174.58
|
169.57
|
160.10
|
The Post Office NSC interest rate from:
- 01.03.2001 to 28.02.2002 was 11.5% cumulated half yearly,
- 15.01.2000 to 28.02.2001 was 11% cumulated half yearly,
- 01.03.2001 to 28.02.2002 was 9.5% cumulated half yearly,
- 01.03.2002 to 28.02.2003 was 9% cumulated half yearly and from
- 01.03.2003 onwards it is 8% cumulated half yearly.
The above Post Office NSC interest rate is specified in Rule 15 of the NSC (VIII) Issue Rules, 1989, which deals with the different NSC interest rate for income tax applicable for different periods.
NSC interest rate calculator
- NSC interest rate calculator can be easily developed on Microsoft Excel.
- NSC interest rate calculator is one which calculates the maturity value and NSC interest rate for income tax for any amount of money invested based on the respective Post Office NSC interest rate.
Alternatively an investor can take the benefit of NSC interest rate calculator available in the following link: http://www.kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=Cal_NSC&Parent=Calculators&Current=NSC
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