National Saving Certificate vs Public Provident Fund: There are many safe investment options for investors in the market, but even today many people prefer to invest in post office savings schemes. Keeping in mind the needs of different investors, the post office keeps on launching various schemes.
Today we are going to tell you in detail about the Post Office’s National Savings Scheme i.e. National Savings Certificate Scheme and Public Provident Fund Scheme. If you are thinking of investing in either of these two schemes, then we are giving you information about the interest rate available on these schemes. Along with this, we are giving information about which scheme is better for you.
National Saving Certificate
National Savings Certificate is a fixed income savings scheme run by the post office. Under this scheme, you can invest for 5 years. Under the scheme, any amount can be invested from Rs 1,000 to multiples of 100. No limit has been fixed for this. The government has changed its interest rates on July 1, 2023 and it has increased to 7.7 percent.
To invest in this scheme, you can buy National Saving Certificate by visiting any nearest post office. Instead, you will have to deposit the same amount and you will get the certificate. Three people can invest in this scheme as single or joint account. In this scheme also, you get a rebate of Rs 1.50 lakh under Section 80C of Income Tax.
Public Provident Fund
Public Provident Fund is also a government-backed savings scheme specially designed for the long term. Under this scheme, you can get a hefty fund in maturity by investing from Rs 500 to Rs 1.50 lakh every year. Under this scheme, at present, the benefit of interest rate of 7.1 percent is being received.
By investing in the scheme, you get a rebate of Rs 1.50 lakh under Section 80C of Income Tax. The maturity of this scheme is after 15 years. At the same time, after 5 years of investment, you can make partial withdrawal from the account in case of emergency.
Which scheme is better out of the two?
Significantly, the NSC scheme is a lump sum investment savings scheme, in which you can get the full amount on maturity after five years by investing once. On the other hand, by depositing money according to the PPF scheme month, you can get a lump sum fat fund after 15 years. This scheme has been made on the lines of Provident Fund, any Indian citizen can take advantage of it. On the other hand, in terms of interest rate, you are getting more returns on NSC scheme.
