NSC vs PPF vs FD: Complete Comparison
Side-by-side comparison of India's three most popular guaranteed return savings schemes. See which offers best returns, tax benefits, and liquidity for your goals.
Quick Comparison: At a Glance
NSC
- • 7.7% interest
- • 5-year lock
- • Partially taxable
- • ₹100 minimum
PPF
- • 7.1% interest
- • 15-year lock
- • Fully tax-free
- • ₹500 minimum
FD
- • 6.5% interest
- • Flexible
- • Fully taxable
- • Most liquid
Best for: NSC (5-yr goals), PPF (retirement, 15+ yrs), FD (emergency funds, flexibility)
Interactive Comparison: Toggle Your Picks
Click on NSC, PPF, or FD above to toggle which schemes you want to compare side-by-side. Customize the view for your specific needs.
Toggle to compare:
| Feature | NSC | PPF | FD |
|---|---|---|---|
| Returns | |||
| Current Interest Rate | 7.7% PA | 7.1% PA | 6.5% PA |
| Approximate 5-Yr Return on ₹1L | ₹1,44,896 | ₹1,41,478 | ₹1,38,238 |
| Flexibility | |||
| Lock-in Period | 5 years | 15 years | Variable |
| Partial Withdrawal | Not allowed | From 7th year | Anytime (with penalty) |
| Tax Benefits | |||
| Tax on Interest | Partial (taxable) | Zero (EEE) | Fully taxable |
| Section 80C Deduction | ✓ Yes | ✓ Yes | ✓ Yes |
| Investment | |||
| Minimum Investment | ₹100 | ₹500 | ₹10,000+ |
| Maximum Investment/Year | Unlimited | ₹1.5 Lakh | Unlimited |
| Safety | |||
| Safety/Risk Level | Zero (Govt) | Zero (Govt) | Low (Bank) |
| Suitability | |||
| Best For Which Timeline | 5-year goals | Retirement (15+ yrs) | Short-term & emergency |
Full Feature Comparison (Static View)
| Feature | NSC | PPF | FD |
|---|---|---|---|
| Current Interest Rate | 7.7% PA | 7.1% PA | 6.5% PA |
| Lock-in Period | 5 years | 15 years | 5 years |
| Partial Withdrawal | Not allowed | From 7th year | Allowed with penalty |
| Tax Status (Interest) | Partially taxable | Fully tax-free (EEE) | Fully taxable |
| Min Investment | ₹100 | ₹500 | ₹10,000+ |
| Max Investment | Unlimited | ₹1.5L/year | Unlimited |
| Section 80C Benefit | ✓ Yes | ✓ Yes | ✓ Yes |
| Flexibility | Very low | Low | High |
| Risk Level | Zero (Govt-backed) | Zero (Govt-backed) | Low (Bank-backed) |
Real Example: Invest ₹1 Lakh
NSC (5 Years)
Maturity: ₹1,44,896
Return: ₹44,896
Tax on return: ~₹4,490
Net gain: ₹40,406
PPF (5 Years)
Maturity: ₹1,41,478
Return: ₹41,478
Tax on return: ₹0
Net gain: ₹41,478
FD (5 Years)
Maturity: ₹1,38,238
Return: ₹38,238
Tax on return: ~₹11,471
Net gain: ₹26,767
Which Should You Choose?
✓ Choose NSC If:
- • You have a 5-year time horizon
- • You want highest 5-year guaranteed returns
- • You prefer government-backed safety
- • You want to maximize Section 80C benefits
✓ Choose PPF If:
- • You have 15+ year horizon (retirement, child education)
- • You want fully tax-free returns forever
- • You're in 30% tax bracket (max benefit)
- • You value long-term wealth accumulation
✓ Choose FD If:
- • You need funds within 5 years
- • You value liquidity and flexibility
- • You're in low tax bracket (<20%)
- • You're building an emergency fund
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Frequently Asked Questions
Which is better: NSC, PPF, or FD?
It depends on your timeline and goals. PPF is best for long-term (15+ years) wealth with lowest tax burden. NSC suits 5-year goals with guaranteed returns. FD is most flexible but fully taxable — best for conservative short-term savings.
How much return can I get on ₹1 lakh in each?
After 5 years at current rates: NSC = ₹1,44,896 (44.9% return), PPF = ₹1,41,478 (41.5% return), FD = ₹1,38,238 (38.2% return). NSC has highest 5-year return but PPF becomes superior after year 7-8 due to tax-free compounding.
Is NSC worth it over PPF?
NSC edges PPF on interest rate (7.7% vs 7.1%) but PPF wins on tax treatment. For 5-year goals, NSC is better. For 15+ year goals, PPF is significantly better due to full tax-free compounding.
Why is FD interest fully taxable but NSC is not?
NSC interest compounds and is deemed reinvested annually, so only the final year interest is truly taxable. FD interest is credited to your account, making it immediately taxable income. This distinction gives NSC a tax advantage over FD.
Can I invest in all three simultaneously?
Yes! Many investors use a combined strategy: NSC for 5-year goals, PPF for retirement, FD for emergency funds. You can max out all three within their limits (PPF capped at ₹1.5L/year, NSC/FD unlimited).
Which gives best post-tax returns over 10 years?
At 30% tax bracket, over 10 years: PPF ≈ ₹2.55 crore (fully tax-free), NSC ≈ ₹2.30 crore (tax-efficient), FD ≈ ₹1.95 crore (fully taxed annually). PPF dominates after 7-8 years.
Calculate Your Returns
PPF Calculator
Calculate Public Provident Fund maturity amount with yearly deposits at the current 7.1% PA interest rate.
NSC Calculator
Calculate National Savings Certificate maturity value at the current 7.7% per annum interest rate for 5-year tenure.
FD Calculator
Calculate Fixed Deposit maturity amount and interest earned for any compounding frequency and tenure.