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what is the difference between NSS and NSC?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

how is national saving scheme(NSS) is differ from national saving certificate(NSC)?

bank general
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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

NSS offers an interest rate of 9% whereas NSC offers 8.50% and 8.8% interest rate for NSC VIII Issue and NSC IX Issue respectively. Income tax rebate for both the invested principal as well as the earned interest up to RS. 9000/- is offered by NSS whereas interest on NSC will be taxable. Interest shall be compounded annually in case of NSS but it is half yearly for NSC.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

National Savings Scheme (NSS) has a duration of four years to be matured offers tax rebates under Section 88 of the Income Tax Act, 1961. NSS do not offer any premature withdrawal facility except in case of the scheme holder's death.

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