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KVP vs NSC: Which post office scheme is better for a 5-year investment
- •National Savings Certificate offers an annual interest rate of 7.7 percent with a fixed maturity period of exactly 5 years.
- •Kisan Vikas Patra offers 7.5 percent interest and is designed to double the invested money in 115 months or about 9 years and 7 months.
- •Investing 50,000 rupees in NSC yields a total maturity amount of approximately 72,450 rupees after 5 years.
- •NSC qualifies for tax exemption under Section 80C under the old tax regime, whereas KVP does not offer any tax deduction.
Key Questions Answered
For the October to December quarter of 2026, the National Savings Certificate (NSC) offers an annual compound interest rate of 7.7% with a fixed maturity period of exactly 5 years. Meanwhile, Kisan Vikas Patra (KVP) provides an annual interest rate of 7.5%, designed to double the invested capital over a maturity period of 115 months, or about 9 years and 7 months.
If you invest ₹50,000 in the National Savings Certificate (NSC) at an annual compound interest rate of 7.7%, your principal remains intact while earning approximately ₹22,450 in interest. This brings your total estimated maturity amount to roughly ₹72,450 after 5 years.
The National Savings Certificate (NSC) qualifies for tax deductions up to a maximum of ₹1.5 lakh per year under Section 80C of the Income Tax Act if you choose the Old Tax Regime. In contrast, investing in Kisan Vikas Patra (KVP) offers no such tax deduction under Section 80C.
