Post Office Schemes Calculator: FD vs NSC! Which will give you more returns on Rs 10 lakh investment?

NSC vs 5 years FD, Is NSE better than FD: Fixed deposits (FDs) are considered a good option in terms of safe investment and for those who do not like to take any risk while investing. One good thing about FD is that an investor can choose the tenure from seven days to 10 years as per their convenience. But if an investor is thinking of investing in a guaranteed return scheme, they may also choose National Savings Certificate (NSC).

One can get the option of FD in both banks and the post office, but they will get the option of NSC only in the post office. In NSC, the post office offers an interest rate of 7.7 per cent compounded annually. It also provides tax benefits under Section 80C of the Income Tax Act.

How much interest on FD can one get in post office/ Interest calculator on FD post office

If an investor gets FD done in a post office, they get the interest of 6.9 per cent for a one-year FD; 7.0 per cent on a two-year FD; 7.1 per cent for a three-year FD, and 7.5 per cent on a five year-FD.

Accordingly, if calculated according to the FD calculator, on an investment of Rs 10 lakh, the maturity amount will be Rs 10,70,806 in a one-year FD; Rs 11,48,882 in a two-year FD; Rs 12,35,075 in a three-year FD, and Rs 14,49,948 in a five-year FD.

One can claim income tax deduction under Section 80C of the Income Tax Act of India, 1961, only on the deposit made in the five-year fixed deposit account.

How much interest one can earn on NSC investment 

If one invests in NSC instead of post office FD, they get 7.7 per cent interest compounded annually.

Hence, by investing Rs 10 lakh in NSC, one will get only Rs 4,49,034 as interest. In this way, a total of Rs 14,49,034 will be received at the time of maturity.

NSC deposits provide tax savings of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Furthermore, annual interest earned on NSC assets is treated as a fresh investment for tax purposes.

Who can invest in NSC?

Only Indian citizens are eligible for the scheme. Non-resident Indians (NRIs) are not eligible to invest in the scheme. There is no minimum or maximum age for an individual to invest in NSC. Public and private limited companies, trusts, and Hindu Undivided Families (HUFs) cannot invest in this NSC.