India, Sept. 27 -- Fixed-income investments are often preferred by investors seeking predictable returns and relatively lower risk. NSC and SBI's 5-year fixed deposit are two popular options that offer a fixed investment period. However, they differ in interest rates, tax benefits, interest payout and withdrawal rules, which can influence the overall returns and suitability for different investors.

What is a National Savings Certificate? National Savings Certificate (NSC) is a government-backed small savings scheme offered through India Post. It has a fixed five-year maturity period and provides interest that is compounded annually but paid to the investor at maturity. For July-September 2026, NSC offers an interest rate of 7.7% per an...