{"id":6170,"date":"2026-03-10T16:05:00","date_gmt":"2026-03-10T10:35:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=6170"},"modified":"2026-03-10T14:27:14","modified_gmt":"2026-03-10T08:57:14","slug":"tax-saving-fd-vs-nsc-which-safe-investment-option-gives-you-better-returns","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/tax-saving-fd-vs-nsc-which-safe-investment-option-gives-you-better-returns\/","title":{"rendered":"Tax-Saving FD vs NSC: Which Safe Investment Option Gives You Better Returns?"},"content":{"rendered":"\n
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Synopsis<\/strong>: Need to save on taxes and at the same time keep your investments intact. Under Section 80C, Tax-Saving Fixed Deposits (FDs) and the National Savings Certificate (NSC), two of the most popular, are guaranteed returns with a 5-year lock-in. However, they have varying interest rates, tax treatment and returns generally. This article  compares and guides you on the best option to use to attract your financial objectives.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Tax saving investments enable people to save their taxable income as they get stable returns. Two of the widely used products in Section 80C include Tax-Saving Fixed Deposits (FDs) provided by banks and National Savings Certificate (NSC) provided by the government. Although they are both locked in over a period of five years and have fixed returns, they have varying interest rates and tax treatment which is why it is important that an investor should know which one fits them best.<\/p>

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Tax-Saving Fixed Deposits (FDs)<\/strong><\/h2>\n\n\n\n

Tax saving fixed deposits are special bank FDs which enable a tax deduction of up to 1.5 lakh under Section 80C of the Income Tax Act. Such deposits are accompanied by a 5 year lock-in period which means that the funds cannot be taken out before maturity. Interest rate depends on the time of the investment, and it differs with the bank.<\/p>\n\n\n\n

How do they work?<\/strong><\/p>