Post Office FD vs NSC: Where Will You Get Higher Returns on a 5-Year Investment?

Everyone wants their money to grow, but not everyone is comfortable taking risks. While some investors chase high returns in the stock market, many prefer safer options like fixed deposits and government-backed savings schemes. Among these, post office investment plans remain a top choice for those seeking stability and assured returns.

If you’re planning to invest your money safely for five years, two popular options stand out: the 5-Year Post Office Fixed Deposit (FD) and the National Savings Certificate (NSC). Let’s take a quick look at how these schemes perform and which one offers slightly better returns.

5-Year Post Office FD : What You Get

Post Office FDs are available for multiple tenures, with the 5-year option offering an interest rate of 7.5%. If you invest ₹2 lakh in a 5-year Post Office FD, your maturity amount will be ₹2,89,990. This means your total profit after five years will be ₹89,990. It’s a straightforward, low-risk option for conservative investors.

NSC Scheme: Slightly Higher Edge

The National Savings Certificate is another trusted government-backed scheme with a 5-year lock-in period. It currently offers a 7.7% return, slightly higher than the Post Office FD. An investment of ₹2 lakh in NSC will grow to ₹2,89,807 at maturity, giving you a profit of ₹89,807.

So, Which Is Better?

The difference in returns between the two is marginal. While the Post Office FD offers predictable interest payouts, NSC delivers a slightly higher return over five years. Your choice should depend on your financial goals, liquidity needs, and preference for interest payout or reinvestment.

For risk-averse investors, both options are safe, reliable, and ideal for long-term planning, with NSC taking a very slim lead on returns.