Investment Tips: NPS or 5-year FD, know how much you will earn before investing money..
If you are looking for a scheme in which you can get good interest and also save your tax, then you can get this double benefit in post office schemes. Like banks, many types of schemes are run in the post office too, in which good profits are available. For better interest rates and tax benefits, you can invest in the Post Office's 5-year fixed deposit scheme (Post Office FD). This is known as Post Office Time Deposit. 5 years FD is called tax-free FD.
Apart from Post Office FD, you also have a good option to invest in a National Savings Certificate. In this also you can avail good interest and tax exemption. At present, interest is available at the rate of 7.5 percent in post office FD. Whereas in NSC, interest is available at the rate of 7.7 percent. Let us tell you that if you are investing ₹ 2,00,000, then how much money will you get on 5 5-year FD and how much return will you get on 5 5-year NSC?
Returns on Post Office FD and NSC
If you invest Rs 2,00,000 in a post office FD, then the calculation based on the current interest rate of 7.5 percent shows that you will get Rs 89,990 as interest on it. In this way, your maturity amount will be Rs 2,89,990. If you invest Rs 2,00,000 in the NSC of Post Office, then you will get interest of Rs 89,807 on it in 5 years at the rate of 7.7 percent. In this way, you will get a total of Rs 2,89,807 on maturity.
Why low returns on NSC despite high interest?
If you look at the calculations here, you will see a slight difference in the returns of both. But one thing to be noted is that despite the high-interest rate on NSC, the returns are low, whereas on FD, despite the low interest rate, high returns are being given. The reason for this is that in Post Office FD, interest is calculated on a quarterly basis, and in NSC it is calculated on an annual basis.
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