NSC vs PPF:  A Comparative Guide

National Savings Certificate

NSC is a fixed-income instrument offered by the government of India through post offices. The plan aims to encourage people in India to save more.

Public Provident Fund

PPF is another government-backed investment scheme encouraging people to build a retirement corpus that helps secure their financial future after retirement.


The maturity period of your NSC investment is 5 years, whereas, for PPF, it is 15 years.

Interest Rate

NSC offers an interest rate of 7.7% p.a.; on the other hand, PPF offers 7.1% p.a.

Investment Amount

The minimum amount to invest in NSC is ₹1,000, with no maximum limit. Whereas in PPF, you can start investing with ₹500 to ₹1.5 lac per year.


All the resident Indians are eligible to invest in both NSC and PPF. Parents and legal guardians can open an account on behalf of minors.

Tax Benefits

Exemption up to ₹1.5 L allowed under 80C. Additionally, PPF is EEE tax-exempt, ensuring that annual contributions, interest, and maturity amount is tax free.


Both NSC & PPF are government -backed schemes. Hence, they are very low-risk investment options, offering guaranteed returns.

Premature Withdrawal

Partial or complete withdrawals before maturity are allowed in PPF but not in NSC.

Where to Invest?

NSC or PPF? What do you think suits you best? Always consider your goals and preferences before investing!