Which is better - NSC or Tax saving FDs?

Which is better - NSC or Tax saving FDs?

There are many advantages of investing in NSC over Tax saving FDs. The interest accrued in the NSC will not attract TDS (Tax deducted at source). Bank FDs attract a 10% TDS deduction if the interest earned in a financial year is more than Rs.10,000. If an FD and NSC are invested in with the same principal amount, the NSC will provide a corpus at the end of the maturity period. Thus, NSC is a more attractive investment option.


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