Difference between NSC vs KVP – Which is Better

What Is NSC?

What Is KVP?

Difference Between KVP vs NSC

Now, we will elaborate on the difference between NSC and KVP. A detailed analysis of NSC vs KVP is given below:

Features

NSC

KVP

Rate of Interest

The rate of interest was capped at 6.8% for a five years NSC for the quarter of March 2021. This is payable at maturity but is compounded annually.

The interest rate was capped at 6.9% for KVP for the quarter of March 2021. This is compounded annually.

Tenure

The investment period is 5 years

The principal amount can get doubled with a tenure of 10 years and 4 months (124 months).

Minimum Deposit Limit

₹1000 (in multiples of 100)

₹1000 (in multiples of 100)

Maximum Deposit Limit

No upper limit

No upper limit

Facility of Account Transfer

These can be transferred from a post office to another or from an individual to another.

Considering certain limited conditions, accounts under this scheme can be transferred from a post office to another or between individuals.

Lock-in Period

5 years

2 years and 6 months

Premature Closing

Not allowed

Allowed after 30 months from the date of account opening

Tax Benefits

As per Section 80C of the Income Tax Act, tax deductions can be claimed

Not applicable

What is Better KVP vs NSC?

Frequently Asked Questions