Interest Rates Comparison: National Savings Certificate vs SBI 5-Year Bank Fixed Deposit

The National Savings Certificate offers a diverse range of benefits which includes tax benefits. Before planning to put your money into these savings schemes, it is required to understand how they operate, what they are, and other such features.

What is National Savings Certificate (NSC)?

National Savings Certificate (NSC) is a fixed-income post office savings scheme. It is offered by the government of India. To activate this scheme, one has to visit the post office. Since the government backs this instrument, it is a low-risk investment option.

National Saving Certificate's latest interest rate

With the recent hiked interest rates, investors can now get higher returns on their investments in the NSC account. The Government of India recently hiked the NSC interest rate to 7.7%.

Minimum amount required for NSC account opening

The minimum amount with which you can open an NSC account is ₹1000 and thereafter in multiples of ₹100. There is no limit on the maximum amount that you can invest in this scheme.

NSC interest payout

The interest on National Savings Certificate (NSC) is compounded annually but payable at maturity.

Tax saving fixed deposits

Via exemption given under section 80C of the Income Tax Act, 1961, Tax saving fixed deposits help you save income tax.

SBI 5-year bank FD latest interest rates

SBI provides an interest rate of 6.50% on tax-saving FDs.

SBI tax savings FD account opening

One can open a tax saving fixed deposit of a maximum of ₹1.5 lakhs and a minimum amount of ₹100.

SBI tax saving FD interest payout

The tax saving deposit offers either monthly or quarterly interest payout.

On 31 March, the Central Government increased the rate of interest on several small savings schemes including the Sukanya Samriddhi Account Scheme, Senior Citizen Savings Scheme, National Savings Certificate, Monthly Income Savings Scheme, Kisan Vikas Patra, and all post office time deposits during the April to June quarter of the financial year 2023-24.