Are you confused, which investment is better PPF or NSC? Do you know basic difference between NSC and ppf account? Then let me tell you that both are 2 popular investment option in India but of little different type in nature. In this article I will share more details about PPF account and National savings certificates of NSC from post office and then help you to decide which one is better.

Before investing in any product, you should know the nature of that product and how it can help you to reach your investment goal. It should not be like that your friend is investing in some product and you should also start doing the same.

First understand, what are the advantages of ppf account & how to open ppf account online or why you want to buy a NSC certificate from post office. I’m sure you will find the answer after reading this article.

What is PPF Account & How To Invest in PPF Account

PPF account or Public Provident Account is like a savings bank account only which anyone can open PPF account in bank as well as post office. The current ppf interest rate 2018 is 7.6% Per Annum‘ (compounded annually). Interest will be paid on 31 March every year.

Investing in PPF account is like a regular investment or one can invest lump-sum amount also. But the maximum limit is up to Rs 1.5 lakh only. Once invested, the account will be matured after 15 years only.

In case of some special cases only you are allowed to withdraw money from PPF account. You can get income tax benefit as well under section 80C up to max 1.5 lakh.

Who can invest in ppf account? is it good to invest in ppf?

Let’s find out is ppf good investment option in India?

PPF account is good investment option for them who are investing for long term point of view. If you are not bothered about your money for next 15 years then this a great investment option where you will get guaranteed return.

In which bank ppf account can be opened?

Although PPF account in post office is very popular, but now you can open PPF account in almost every bank. Here is the list of such banks where PPF account can be opened online:


  • State Bank of India
  • State Bank of Hyderabad
  • State Bank of Patiala
  • State Bank of Bikaner
  • State Bank of Jaipur
  • State Bank of Travancore
  • State Bank of Mysore
  • ICICI Bank
  • Central Bank of India
  • BOI – Bank of India
  • Union Bank of India
  • Bank of Maharasntra
  • IDBI


  • BOB – Bank of Baroda
  • Vijaya Bank
  • Allahadbad Bank
  • Oriental Bank of Commerce
  • Canara Bank
  • Corporation Bank
  • Dena Bank
  • Indian Bank
  • Axis Bank
  • IOB – Indian Overseas Bank
  • PNB – Punjab National Bank
  • United Bank of India


So, if you still have question like which is the best bank to open PPF account then I think after post office it’s PPF account in SBI which is very popular. And the reason is very simple that SBI has wide network of branches and also earned huge trust among customers.

Although interest is getting down year by year as per last few years data, but the return is one of the best compared to other products in the same category.

So, if you are planning to invest for long term, want to build wealth or planning for retirement corpus with minimum risk on investment, than PPF could be the best option for you.

What is NSC & How To Invest in NSC Certificates

National Savings Certificate or NSC certificates are very old product from post office. They are simple investment option, where you will buy a certificate against some money with a fixed interest rate. And after 5 years time you will get the invested amount with the 5 year back calculated interest amount.

National saving certificate current interest rate is 7.8% per annum and one can invest any amount. Is nsc taxable on withdrawal ? Yes, the interest is fully taxable and that’s why the net return after would be very less.

One can’t open national saving certificate online yet. As post office has not yet launched online facilities. Another point is that nse rate of interest will be fixed for next 5 year.

Checkout the video I have shared in my YouTube channel with complete details.

Best Alternative of PPF or NSC?

If you are looking for an alternative of PPF account or alternative of NSC certificates, then I would say you should start investing in Mutual Funds. Many people think that mutual fund investments are risky, but you should know that only equity mutual funds are risky.

There are mutual funds which are less risky and can be a very good alternative to National Savings Certificates. The return is far better compared to NSC and the interest earned is tax free in case of long term.

Although PPF account is a good long term investment option, but one can try out ELSS mutual funds parralley to continue long term to balance the investment portfolio. A 15 year horizon is very good for investing in stock market through Mutual Fund way.

So, Which One Is Better PPF or NSC? I hope you will be able to make some decision now after this analysis. If you have still doubts, please write a simple comment below and share your thoughts.