What is the Difference Between NPS and NSC?

What Is NSC?

What Is NPS?

What Are the Differences Between NPS and NSC?

The key differences between NPS and NSC are discussed below in the following table:





National Pension Scheme (NPS) is a long-term investment option for retirement. The scheme is governed by Central government and the PFRDA (Pension Fund Regulatory and Development Authority) The scheme was launched in 2004.

National Savings Certificate (NSC) is a fixed-income investment system, which you can open through any branch of post office. It is an initiative by the Government of India. Its term is 5 years which is also its lock-in period.

Who Can Invest

Employees working in government, private as well unorganised sectors can invest in the pension scheme. However, the armed forces are not allowed to invest here.

The National Savings Certificate (NSC) is open to all for investing in it.

Tax Benefit

Available under section 80C and 80CCD.

Available under section 80C (Up to the extent of ₹ 1,50,000)

Risk Profile

High risk but comes with high return (percentage of return varies)

Low risk due to government backing. The return is fixed.

Interest Rates

The rates of interest for NPS range between 9% and 12% per annum.

The rates of interest for NSC remain fixed at 6.8% per annum.

What Are the Benefits of NSC?

What Are the Benefits of NPS?

NPS vs NSC - Which One Is Better?

FAQs About NPS vs NSC

Can NPS be operated online? up-arrow

Yes, you can easily access the NPS account online via the eNPS portal. In addition, you can take part in several contributions online by using the eNPS portals of CRAs.

When was NSC launched in India? up-arrow

The National Savings Certificate or NSC was launched on 19th November 1998 by Atal Bihari Vajpayee, the 10th Prime Minister of India.

What is the ideal age to invest in NPS? up-arrow

Being an Indian citizen, whether resident or non-resident, the ideal age to opt for NPS investment ranges between 18 years and 60 years.

Who are the pension fund managers of NPS? up-arrow

At present, there are eight noteworthy pension fund managers of NPS as mentioned below:

  • Aditya Birla Sun Life Pension Management Limited
  • LIC Pension Fund.
  • UTI Retirement Solutions Limited.
  • Kotak Mahindra Pension Fund Limited.
  • ICICI Prudential Pension Funds Management Company Limited.
  • SBI Pension Funds Private Limited.
  • HDFC Pension Management Company Limited.
  • Reliance Pension Fund