Difference between NSS & PPF?



What is the difference between NSS and PPF investment options? What return & lock-in period can we expect?

Difference between NSS & PPF?
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5 Replies to “Difference between NSS & PPF?”


  1. Hey Pintoo,

    Nice name.

    Now to answer your question…

    NSS – is short form of National Savings Scheme.

    Things you should know:

    1. Minimum investment – Rs 500/- (No maximum limit … good na)
    2. Rate of interest – 8% compounded half yearly.
    3. For who – Adults, Individuals, and minor through guardian can purchase.
    4. NOTE : No pre-mature encashment.
    5. Investment theme – Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.
    6. Uses – Facility of reinvestment on maturity, Certificate can be pledged as security against a loan to banks/ Govt. Institutions, Facility of encashment of certificates through banks, Certificates are encashable any Post office in India before maturity by way of transfer to desired post office.
    7. THE BEST THING IS – Certificates are transferable from one person to another person before maturity.
    8. WARNING – Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
    9. ABOUT TAXES – Interest income is taxable but no TDS. Deposits are exempt from Wealth tax.

    PPF – is short form of Public Provident Fund

    Things you should know about this too:

    1. Minimum investment – Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than Rs. 500 and not more than Rs. 70,000 in a year.

    2. For whom – You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.

    3. Rate of Interest – 8% per annum

    4. NOTE :
    A) The accumulated sum is repayable after 15 years.

    B) The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.

    C) It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits.

    5. USES –

    A) You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 2007-08, the first loan can be taken during financial year 2009-2010 (the financial year is from April 1 to March 31). The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. In this case, it will be March 31, 2008.

    B) You can make withdrawals during any one year from the sixth year. You are allowed to withdraw 50% of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

    C) If the account extended beyond 15 years, partial withdrawal — up to 60% of the balance you have at the end of the 15 year period — is allowed.

    6. BEST THING IS – The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C. On maturity, you pay absolutely no tax.

    If you read all of it……kudos to you man.

    What don’t you go the nearest post office and get started 🙂

    Bbye.


  2. NSS– stands for national security saving–This is an- one kind of Govt. securities -which is invested for a certain period of time.After maturity –you will get the stipulated money . It is a safe investment or saving.You will get facility in income tax deduction.
    PPF—is also another kind of saving. You can save a portion of your income–in the banks or post offices.They also will give you interest as per prevailing interest rates. You can also take loan in time of emergency with the certificates or from your personal savings before maturity.


  3. NSS LOCK IN PERIOD IS THREE YEARS RETURNS ARE 8% GUARANTEED. PPF LOCK IN PERIOD IS 15 YEARS BUT LOAN CAN BE AVAILED AFTER 5 YEARS RETURNS AS PER GOVT ANNOUNCED AT PRESENT IT IS GIVING 8%.


  4. national saving scheme NSS is closed. in1996.
    PPF-public provident fund it is running it have 15 years deposit scheme through which u will get 100% exemption in INCOME TAX.RATE OF INTEREST IS-NOTIFY BY CENTRAL GOVT TIME TO TIME IN OFFICIAL GAZZETE.
    you can take loan against your deposit after one year. u can withdraw 50% of balance amount after 5 years.
    minimun deposit is rs.1000/ maximum-rs. 1,00,000. per annum





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