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Comparison between NSC and KVP

 

This article compares the features of National Savings Certificate (NSC) and Kisan Vikas Patra (KVP)

 

National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) are very popular investment avenues among investors seeking safety of capital. But since both these are very similar, one can get confused while choosing between the two.

Here is a comparison of the features of NSC and KVP, to help you take an informed decision while investing.

(Want to know about saving income tax? Please read “Saving Income Tax – Understanding Section 80C Deductions“)

Feature National Savings Certificate (NSC) Kisan Vikas Patra (KVP)
Issued By Department of Post, Government of India Department of Post, Government of India
Can be bought from Authorized post offices Authorized post offices
Risk Category Virtually risk free Virtually risk free
Type of interest Fixed Fixed
Interest Rate 8% 8.25%
Maturity 6 Years 8 Years and 7 Months
Amount invested qualifies under Sec 80C of the Income Tax Act (IT Act)? Yes No
Interest earned qualifies under Sec 80C of the Income Tax Act (IT Act)? Yes No
At maturity, Rs. 100 becomes Rs. 160.10 Rs. 200
Minimum investment Rs. 100 Rs. 100
Maximum investment No limit No limit
Other features Interest is reinvested, and is paid along with the principal at the time of maturity Investment doubles at maturity
For more information, see: National Savings Certificate (NSC) Kisan Vikas Patra (KVP)

 

Thus, we see that the major differences between National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) are the tenure of investment, the rate of return and their tax treatment.

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