FD vs NSC: Which will get higher return on Rs 3,00,000, Rs 6,00,000 and Rs 9,00,000 investment?

A fixed deposit is an investment scheme offered by banks and NBFCs that provides higher returns than regular savings accounts.

Fixed deposits come with fixed tenures, which can be short-term or long-term, depending on the investor's preference.

Premature withdrawal is possible but incurs penalties, making FDs less liquid.

Banks, post offices, and NBFCs offer FD schemes. Investors should compare interest rates and reliability before investing.

Rs 3 Lakh Investment:

Invested Amount: Rs 3,00,000 Estimated Returns: Rs 1,14,126 Total Value: Rs 4,14,126

Invested Amount: Rs 6,00,000 Estimated Returns: Rs 2,28,252 Total Value: Rs 8,28,252

Invested Amount: Rs 9,00,000 Estimated Returns: Rs 3,42,378 Total Value: Rs 12,42,378

Interest Rate & Features: Current Rate: 7.7% (compounded annually, payable at maturity) Minimum Investment: Rs 1,000 (no maximum limit) Tenure: 5 years

Qualifies for deduction under Section 80C of the Income Tax Act.

NSC can be pledged as security or transferred to another person under specific conditions, including the account holder’s death or court orders.

Rs 3 Lakh Investment:

Principal: Rs 3,00,000 Total Interest: Rs 1,01,468 Total Value: Rs 4,01,468

Principal: Rs 6,00,000 Total Interest: Rs 2,02,935 Total Value: Rs 8,02,935

Rs 9 Lakh Investment: Principal: Rs 9,00,000 Total Interest: Rs 3,04,403 Total Value: Rs 12,04,403  

For higher returns, FDs offer slightly better outcomes than NSC across all investment amounts. NSC, however, provides tax benefits under Section 80C, making it a preferred choice for tax-saving investments.