FD vs National Savings Certificates: What will be your returns on investments of Rs 3.5 lakh, Rs 6.5 lakh and Rs 9.5 lakh?
Compare National Savings Certificates (NSC) and SBI Fixed Deposits (FD) returns on investments of Rs 3.5 lakh, Rs 6.5 lakh and Rs 9.5 lakh.
ZeeBiz WebTeam | Jan 01, 2025, 12:46 PM IST
When choosing between National Savings Certificates (NSC) and SBI Fixed Deposits (FD), understanding their features and returns is crucial. NSC is a government-backed savings scheme offering 7.7% annual compounded interest with a 5-year maturity, while SBI FD is fixed-term bank deposit providing interest rates between 3.50%-7.25% for the general public and 4.00%-7.75% for seniors. This comparison evaluates returns on Rs 3.5 lakh, Rs 6.5 lakh and Rs 9.5 lakh investments
1/10
Overview of National Savings Certificates (NSC)
- NSC offers 7.7% interest, compounded annually and payable at maturity.
- Maturity period: 5 years.
- Minimum investment: Rs 1,000; no maximum limit.
- Qualifies for Section 80C tax deduction.
2/10
Who Can Open an NSC Account?
- Single adult or jointly (up to 3 adults).
- Minors aged 10 years and above in their own name.
- Guardians on behalf of minors or individuals of unsound mind.
3/10
NSC Returns on Rs 3.5 Lakh
- Principal amount: Rs 3,50,000.
- Total interest: Rs 1,57,162.
- Total maturity amount: Rs 5,07,162.
4/10
NSC Returns on Rs 6.5 Lakh
- Principal amount: Rs 6,50,000.
- Total interest: Rs 2,47,273.
- Total maturity amount: Rs 8,97,273.
5/10
NSC Returns on Rs 9.5 Lakh
- Principal amount: Rs 9,50,000.
- Total interest: Rs 4,26,582.
- Total maturity amount: Rs 13,76,582.
6/10
Overview of SBI Fixed Deposits (FDs)
- SBI offers 3.50%-7.25% interest for general customers and 4.00%-7.75% for senior citizens.
- Tax-saving FD interest rate: 6.50% for general public, 7.50% for seniors.
- Tenures range from 7 days to 10 years.
7/10
SBI FD Returns on Rs 3.5 Lakh (5-Year Tenure)
- Invested amount: Rs 3,50,000.
- Estimated returns: Rs 1,33,147.
- Total value at maturity: Rs 4,83,147.
8/10
SBI FD Returns on Rs 6.5 Lakh (5-Year Tenure)
- Invested amount: Rs 6,50,000.
- Estimated returns: Rs 2,91,872.
- Total value at maturity: Rs 9,41,872.
9/10
SBI FD Returns on Rs 9.5 Lakh (5-Year Tenure)
- Invested amount: Rs 9,50,000.
- Estimated returns: Rs 3,61,399.
- Total value at maturity: Rs 13,11,399.
10/10
FD vs NSC: Which Option Gives Better Returns?
- NSC provides higher returns compared to SBI FD for all three investment amounts due to its 7.7% compounded annual rate.