3 Replies to “Whats the difference between RD account and National savings Certificate?”

  1. RD is Recurring Deposit here d amount u invested will be payed back 2 u wid interest as per dat bank/post office..it probably lies b/w 8-9%. it doesn yield u much more but okk its gud. it should be paid monthly as per ur wish of amount ( lik u may pay monthly 500,1000……etc it gives u full range to pay 4rm lower to higher)n d term of year u wish to take out… In National savings certificate ur amount paid @ a tme vl gt matured after years ….i feel RD is gud… hope i helped u…


  2. “RD” means Recurring Deposit. The investment is made in small amounts every month, and yet the rate of interest offered is as if a big sum is invested for a long term. This scheme is very useful for people who do not have a huge amount ready to invest, and still they like to get a huge savings by patiently saving little by little every month.
    National Savings Certificate is very safe, and useful for people who can make a deposit in lump sum. The term is for 6 years. The interest is calculated for every half year and the interest is treated as a deposit for next half year. Thus the interest is also compounded at the same rate of interest as the deposit. The present rate is 8 % . The interest calculated for every year is “deemed” as re-investment, and thus it is eligible for income tax deduction under Sec 80 C (within the overall limit of 1 lakh, along with other investments like Provident Fund contribution etc). The interest is also treated as income for that year, so it is offset by the deduction to that extent.
    Recurring deposit with post office is yielding a better rate of interest presently.


  3. RD account is a recurring deposit account that can be maintained with either Banks or Post Offices. A pre-determined amount say Rs 500/- or Rs 1,000/- needs to be deposited every month for a pre-determined term say 1 year etc.National Savings Certificate is a deposit available only at Post Office and it is a one time deposit.





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