| National Savings Certificate (NSC) | Public Provident Fund (PPF) |
|
Interest Rate: 5 Year NSC – 8.50 %,compounded halfyearly 10 Year NSC– 8.80 %, compounded halfyearly |
Interest Paid: 8.70%, compounded annually |
| No monthly / yearly payments | No monthly/yearly payments |
|
Minimum investment: Rs 100 Maximum investment: No Limit |
Minimum investment: Rs 500 Maximum investment: Rs1,50,000 |
|
Duration of investment: 5 years for NSC VIII Issue & 10 Years for NSC IX Issue |
Duration of investment: 15 years |
| Can be used as a security for mortgage and other purposes |
Cannot be used for such purposes |
|
Tax benefit under Section 80C available. Maximum limit: Rs 150,000 |
Tax benefit under Section 80C Maximum limit: Rs 1,50,000 |
| Good medium term investment option | Good long term investment option |
| Interest is fully Taxable | Interest is fully Exempt |
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