Whenever it is about the earnings from investing money safely, then often the thought of fixed deposit comes to people’s mind. Investing in fixed deposit schemes offered by various banks and financial institutions across the country can earn returns ranging from 4.5% to 8.25% per annum. Also, you can save tax by investing in an FD scheme with a duration of 5 years.
Along with FDs, National Savings Certificates (NSCs) also provide an opportunity to invest money safely and earn great returns on them. But which of the FD and NSC do you get the benefits of investing and which option gives you the opportunity to earn more interest? Today we will try to answer some of these questions.
How much interest on a 5-year FD?
You can also save tax by investing in an FD scheme with a tenure of 5 years. NSC also has to be invested for five years and that is why we are comparing the 5-year FD scheme with NSC here. The 5-year FD is currently offered at 6.50% per annum by the State Bank of India (SBI FD Interest Rates), 6.50% per annum by Union Bank of India, 6.50% per annum by Punjab National Bank FD. Along with this, interest is being paid by HDFC Bank and ICICI Bank at 7.00% per annum and Yes Bank FD at 7.25% per annum. Along with this, you can also save tax of Rs 1.5 lakh by investing in a five-year FD.
Know how much interest will be received in NSC
The interest rate offered by the National Savings Certificate Scheme (NSC) is 7.70% per annum. NSC is one of the most popular savings schemes of the Indian Post Office. Although the amount of money invested in the scheme is calculated every year, the total amount of interest is received by the person only after maturity. Investment in NSC can be started from Rs 1000 and you also get tax exemption on the investment made here under Section 80C of the Income Tax Act.