Small savings schemes: Public Provident Fund vs National Savings Certificate
Updated : September 24, 2018 05:36 PM IST
The interest rates for Public Provident Fund (PPF) which gives decent returns coupled with income tax benefits has been raised to 8 percent from the previous 7.6 percent.
An individual holding a PPF account can deposit a minimum of Rs 500 to a maximum of Rs 1,50,000 per annum either as a lump sum amount or in a maximum of 12 instalments in a year.
Investments in a NSC can be made with a minimum of Rs 100 and in multiples of Rs 100, with no cap on the maximum amount that is to be deposited. An individual can buy NSCs every month for five years and can make a reinvestment on maturity.