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FD vs NSC Post Office Schemes: Generally, most people want to get good interest along with safe investment and also want to save tax. You can get this double benefit in post office schemes. Like banks, post offices also have many types of schemes, which offer good interest rates as well as tax benefits.
Post Office Time Deposit:
To get more interest and tax benefits, anyone can invest in a five-year post office FD. Which is known as Post Office Time Deposit. Which is tax free. At present 7.5 percent interest is being given on post office time deposit.
National Savings Certificate:
National Savings Certificates also come with high interest and tax benefits. In which the interest rate is 7.7 percent per annum. This scheme also offers benefits similar to fixed deposits. You can avail the benefits of this scheme by opening an account in the post office.
Rupee. How much interest will be received on investment of Rs 2 lakh in five years?
For example a person earns Rs. Rs 2 lakh is invested in post office time deposit. In which if we calculate the interest at the rate of 7.5 percent per annum then Rs. There will be a profit of Rs 89990. This means that at the end of five years Rs. There can be an income of Rs 2,89,990. Similarly, at the end of five years in the National Savings Certificate, Rs. 289807 will be eligible.
You might be wondering why even though the interest rate in NSC is higher, both are getting the same returns? So the reason behind this is that in Post Office FD the interest is calculated quarterly, whereas in NSC the interest is calculated annually.