National Savings Certificates | RBI Savings Bonds | |
Issued by | Indian Postal Service | Reserve Bank of India |
Maturity period | Five years | Seven years |
Interest rate | 7.9 per cent | 7.75 per cent |
Who can invest | Resident Indians | Resident Indians |
Amount | Minimum of Rs. 100 with no maximum limit | Minimum of Rs. 1,000 and in multiples thereof. No maximum limit |
Tax benefit on investment | Investments up to Rs. 1.5 lakh deductible from taxable income under Section 80C | No tax benefit on investment |
Tax treatment of interest | Interest is added to income and taxed according to income slab | Interest is added to income and taxed according to your slab |
Calculation of interest | Half-yearly compounded basis | Half-yearly compounded basis |
Interest payments | Cumulative, on maturity | Cumulative or non-cumulative (payable half-yearly) |
Loan facility | Can be used as collateral | Not eligible for collateral |
Where to buy | At your local post office | At nationalised banks and three private sector banks |