NSC Vs FD: NSC scheme gives more interest than bank FD, tax deduction will also be beneficial..

Even today, talking about investment, most people recommend Fixed Deposit ie FD in the bank. FD is considered a better option in terms of investing, in which returns are available with guarantees. Due to the increase in interest rates on Small Savings Schemes, the deposit scheme of the post office has stood in competition with the bank FD. If you are also planning to invest in a post office scheme, then you can deposit your money in the National Savings Certificate (NSC) scheme.

The government has increased the interest in the NSC scheme of the post office. The government has increased the interest paid on the quarter from April to June this year by 70 basis points. After this increase, now depositors are being given the benefit of 7.7 percent interest on this quarter. On the other hand, if we talk about the interest being given on tax-saving FD, then many banks are offering an interest rate of around 7% on tax-saving FD.

You can start investing in NSC from Rs 1000.
You can start investing in the post office NSC scheme from Rs 1,000. In this, the lock-in period has been kept for 5 years. Any Indian person can deposit his money in this post office scheme. You can open your account under this scheme by visiting any NSC scheme near you.

Tax benefit in the NSC scheme
The most important thing about the NSC scheme of the post office is that in this you also get the benefit of tax deduction. According to Section 80-C of the Income Tax Act 1961, you get a tax benefit of up to Rs 1.5 lakh on both this post office scheme and tax saving FD. However, you will have to pay tax on the interest paid on both schemes. However, in the post office scheme, you also have the option to claim an interest deduction while filing ITR during every financial year.