17/3/2024, 3:20:03 pm

NSC vs 5-year FD: Which is a better tax saving investment option?

Choosing between National Savings Certificates (NSC) and 5-year tax-saving fixed deposits (FDs) for tax-saving purposes can be tricky, as both offer advantages and limitations. Here are the key points to consider: Interest rate NSC: Currently offers 6.8% p.a. compounded annually.FD: Rates vary depending on the bank, typically ranging from 6% to 8% p.a. with quarterly compounding.