Guides / NSC vs PPF vs FD: Which Safe Option Fits You?
NSC vs PPF vs FD: Which Safe Option Fits You?
3 Oct 2026All three are low-risk, but they differ in lock-in, returns and tax.
At a glance
| NSC | PPF | Bank FD | |
|---|---|---|---|
| Lock-in | 5 years | 15 years | Chosen by you |
| Recent rate | 7.7% | 7.1% | Varies by bank |
| Interest taxed? | Yes | No | Yes |
| Yearly limit | None | ₹1.5 lakh | None |
Rates are reset every quarter, so check the current figures.
What ₹1 lakh becomes in 5 years
| Option | Maturity value |
|---|---|
| NSC at 7.7% | ₹1,44,903 |
| FD at 7% (quarterly compounding) | ₹1,41,478 |
Use the NSC Calculator and the FD Calculator for your own numbers.
PPF plays a different game
PPF locks your money for 15 years, but the interest and maturity are tax-free under current rules. ₹1.5 lakh a year for 15 years at 7.1% becomes about ₹40.7 lakh. See the PPF guide.
How to choose
- Need the money in 5 years? NSC or an FD.
- Saving for the long term and want tax-free growth? PPF.
- Paying a high tax rate? Compare the post-tax return, not just the headline rate.
Spreading money across these options is common and sensible.
Try the NSC Calculator