The National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) are popular Post Office investment schemes that you can invest in. Both schemes attract different investors based on their various needs. If you are an investor, a parent, a guardian, or a retiree who is looking for a secure investment with guaranteed returns and tax benefits then you can invest in the NSC scheme.

On the other hand, the KVP is a scheme specially introduced for rural and semi-urban investors who are looking for long-term savings. It is a simple and accessible saving scheme that you can invest through the post office. Both NSC and KVP offer you a secure and government-backed option to get guaranteed returns.

The National Savings Certificate offers an interest rate of 7.7% while the Kisan Vikas Patra offers an interest rate of 7.5% p.a.


When it comes to investing your hard-earned money, taking the time to carefully consider the various savings schemes available is important. NSC and KVP are popular Post Office investment schemes that offer you attractive features and benefits as well as good returns. However, the two schemes are slightly different. So, below is a comparison of the two schemes to help you choose the best one that suits your financial goals.

Features NSC KVP
Minimum Investment Amount ₹1000 ₹1000
Maximum Investment Amount No limit No limit
Interest Rate 7.7% 7.5%
Tenure 5 years 10 years
Tax benefits Deduction for deposits up to ₹1.5 lakhs No tax benefits

Read More

Read Less

*Note- The interest rates are subject to change. Please check the official website for proper information.

Understanding National Saving Certificate

National Savings Certificate (NSC) is a 5 years national savings certificate offered by the Post Office to encourage long-term savings. The scheme offers you a combination of safety, attractive interest rates, and guaranteed returns. You can open an NSC account at the post office as an individual, as a joint account of up to 3 individuals, as a guardian on behalf of a minor or a person with unsound mind, or a minor who is 10 years old or above.

Features of National Savings Certificate

The National Savings Certificate (NSC) offers various features that will provide you with various benefits, these are:

  • Investment amount: The minimum investment amount that you can deposit is ₹1000 in multiples of ₹100. There is no maximum limit that you can invest.
  • Interest rate: The interest rate that you can get is 7.7% p.a. which is compounded annually and payable only at maturity.
  • Tenure: NSC offers a fixed tenure of 5 years, making it a reliable medium-term investment with a high return.
  • Tax benefits: The certificate offers tax benefits if you have a deposit of up to ₹1.5 lakhs in a year, you will be eligible for tax deductions under Section 80C of the Income Tax Act, 1961.
  • Security: The Post Office NSC scheme is backed by the Indian Government and is a low-risk investment scheme.
  • Premature Withdrawal: Withdrawal before the maturity period is not allowed under this scheme unless in case of the death of the account holder or if it is under a court order.
  • Transferability: The NSC scheme can be transferred from one Post Office to another and from one person to another under certain conditions. Making it flexible in case of relocation.
  • Pledging: The account can also be pledged as security if you need to take a loan during any financial crisis.

Are you looking for a personal loan?

Understanding Kisan Vikas Patra

Kisan Vikas Patra (KVP) is a post office investment scheme that was introduced to make investment more accessible to people from rural and semi-urban areas. It is a fixed-income savings plan that makes sure you can get double the investment amount in 115 months or 9 years and 7 months. You are eligible to open a KVP account as an individual, as a joint account of up to 3 members, as a guardian for a minor or blind person or a person of unsound mind, or as a minor who has attained 10 years of age.

Features and Benefits of KVP

Kisan Vikas Patra (KVP) offers various features and benefits that make the scheme attractive to investors, these are:

  • Investment amount: You can start investing in the scheme with as minimal as ₹1000 as the deposit with no limit to the maximum investment amount. Making savings accessible to all income groups.
  • KVP Interest rate: Kisan Vikas Patra is offering an interest rate of 7.5% p.a. which is compounded annually.
  • Tenure: The maturity period of the scheme will be as per the period prescribed by the Ministry of Finance at the time of deposit. However, your deposit will double in 115 months.
  • Low-risk investment: The scheme is reliable and secure offering guaranteed returns as it is backed by the Indian government.
  • Transferable: The KVP account can be transferred from one Post Office to another and from one person to another. Making it convenient and reliable.
  • Premature withdrawal: The KVP scheme allows you to prematurely withdraw your deposit after 2 years and 6 months from the date of deposit.
  • Pledging: The account can also be pledged to a specific authority as security for a loan.

Don't know your credit score? You can find out for free!

Check Your Credit Score for Free

Also get a Free Credit Report

Choose NSC or KVP

Choosing between NSC and KVP can be challenging as they are quite similar options, however, which post office investment scheme is better will depend on your financial goals and obligations. Consider your investment deposit amount, the interest rates, your liquidity needs, and the favourable tenure for you.

You can choose a National Savings Certificate if:

  • You want to enjoy tax deductions under Section 80C of the Income Tax Act, 1961.
  • You prefer a shorter tenure of 5 years while getting high returns of 7.7% that is compounded annually.

You can choose Kisan Vikas Patra if:

  • You are looking to double the deposit amount upon maturity.
  • You are looking for a long-term investment of up to 10 years or more.

Compare NSC with other investment options from below:

Do you need an instant loan?

Frequently Asked Questions

The National Savings Certificate (NSC) is a secure and reliable government-backed savings scheme offered by the Indian Post Office.

Kisan Vikas Patra (KVP) is a Post Office investment scheme that offers you a chance to double your invested amount in 115 months.

The key features of the NSC include government backing, 5-year tenure, tax benefits under Section 80C, fixed interest, and a minimum investment of ₹1000.

The key features of KVP are its backed by the government, investment doubles in 115 months, and a minimum investment of ₹1,000.

NSC offers a 7.7% interest rate while KVP offers a 7.5% interest rate.

If you are looking for long-term savings, you can choose KVP as it offers you the opportunity to double your investment amount in 115 months.

NSC is suitable for tax-saving, risk-averse investors seeking medium-term growth. KVP suits those looking for secure, long-term investments with assured returns.

NSC offers tax deductions under Section 80C, but interest is taxable. KVP does not offer tax benefits, and interest is taxable.

The disadvantages of KVP when compared to NSC is the lack of tax benefits, taxable interest, and a long lock-in period with limited liquidity options.

Display of trademarks, trade names, logos, and other subject matters of Intellectual Property displayed on this website belongs to their respective intellectual property owners & is not owned by Bvalue Services Pvt. Ltd. Display of such Intellectual Property and related product information does not imply Bvalue Services Pvt. Ltd company’s partnership with the owner of the Intellectual Property or proprietor of such products.

Please read the Terms & Conditions carefully as deemed & proceed at your own discretion.