Two widely trusted investment options are Fixed Deposit (FD) and National Savings Certificate (NSC). Both are time-tested, come with low risk, and ensure steady returns for you in the long run. However, picking between the two can often be difficult.
Learn about the differences between these two financial products so that you can make the right choice while investing your money:
Parameter | National Savings Certificate | Fixed Deposit |
Tenure |
5 years |
7 days to 10 years |
Maximum investment |
No limit |
No limit |
Loan benefit |
Can be used as collateral against loans |
Can be used as collateral against loans |
Tax liability |
TDS is not applicable |
10% TDS is deducted on interest earned |
Interest rate |
Usually higher than FD at around 8% |
Slightly lower than NSC (6%-8%) |
Compounding frequency |
Annually |
Quarterly (in most cases) |
Both FD and NSC are low-risk and secure investment options. They share several common features, including tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Interest rates on FD and NSC are fixed throughout the tenure, and neither has a cap on the maximum amount that can be invested. So, the selection is a personal choice that can vary from individual to individual.
To know which one is better for you, use the FD vs NSC calculator.
Open a Fixed Deposit with Mahindra Finance today and enjoy lucrative interest and several other benefits. Visit our website to learn more.
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For illustration purpose only
Total Amount Payable
50000