for investment purposes, is a “5 Year Tax Saving Fixed Deposit” is better than a NSC?



the 5 Year Tax Saving Fixed Deposit has an interest of 7.5%. I am not looking from earnings point of view, but usefulness of the investment. Like for e.g. can I avail any loan facility on the fixed deposit.

for investment purposes, is a “5 Year Tax Saving Fixed Deposit” is better than a NSC?
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2 Replies to “for investment purposes, is a “5 Year Tax Saving Fixed Deposit” is better than a NSC?”

  1. as far returns are concerned % year Tax Saving fixed deposit is better but as return on investment is concerned NSC is better u can take loan against NSC but can take loan Against 5 Year Tax Saving Bonds as far as Investment is concerned NSc is better option


  2. Bank deposit is better.

    NSC – the interest is taxable but since it is reinvested you can claim 80C exemption for it.

    Since you are adding the interest to your income and then deducting it , your 80C exemption comes down without any tax benefit.

    Ideally ELSS & PPF are the best avenues for 80C

    Invest in ELSS every year for 3 years. From the fourth year you can rotate the same .





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