Government Scheme
4.2/5
National Savings Certificate (NSC)
Government of India
Post office savings certificate with Section 80C benefit. Accrued interest also qualifies for 80C.
Interest Rate
7.1% p.a.
Lock-in
15 years
Min Investment
₹500/year
Tax Benefit
80C
Tax Benefits
- Investment deductible under Section 80C up to ₹1.5 Lakh
- Interest earned is tax-free
- Maturity amount is completely tax-free (EEE status)
Key Features
- Section 80C benefit
- Accrued interest also gets 80C deduction
- Government guaranteed
- No max limit
- Available at all post offices
Investment Details
Minimum
₹500/year
Maximum
₹1.5 Lakh/year
Lock-in Period
15 years
Pros
- Section 80C benefit
- Accrued interest also gets 80C deduction
- Government guaranteed
- No max limit
- Available at all post offices
Cons
- 5-year lock-in
- Final year interest fully taxable
- No premature withdrawal
- Lower rate than SSY/SCSS
- Physical certificate hassle
Eligibility
Age Requirement
18 - 60 years
Required Documents:
- PAN Card
- Aadhaar Card
- Passport Photo
Government Backed
This is a sovereign scheme backed by Government of India. Your investment is 100% safe.
Frequently Asked Questions
What is the current PPF interest rate?›
PPF rate is 7.1% per annum (Q1 FY2026-27), compounded annually. The rate is reviewed every quarter by the Ministry of Finance.
Can I withdraw from PPF before 15 years?›
Partial withdrawal is allowed from year 7 (up to 50% of balance at end of year 4). Premature closure is only allowed after 5 years for medical emergencies or higher education.
Is NPS better than PPF?›
NPS offers higher potential returns (10-12% in equity) with additional ₹50K 80CCD(1B) deduction. PPF gives guaranteed 7.1% with fully tax-free maturity (EEE). NPS is better for higher returns; PPF for guaranteed safety.
What is the maximum investment in PPF per year?›
₹1.5L per financial year. Minimum is ₹500/year. Deposits can be made in up to 12 installments per year.
Can I have a PPF account and NPS account both?›
Yes. Both accounts can be held simultaneously. Combined 80C deduction is ₹1.5L, but NPS gives additional ₹50K under 80CCD(1B) — total ₹2L tax benefit.
What happens to PPF at maturity?›
After 15 years, you can either withdraw the full amount (tax-free) or extend in blocks of 5 years with or without further contributions. The extension earns the prevailing interest rate.