KVP vs NSC: Kisan Vikas Patra or National Savings Certificate, which one offers more interest, and which one doubles the money first?

KVP vs NSC: Kisan Vikas Patra or National Savings Certificate, which one offers more interest, and which one doubles the money first? Newspoint | 03/10/2025 22:39:12

If you want safe and guaranteed returns, government schemes are the best. Two such government schemes are the Kisan Vikas Patra (KVP) and the National Savings Certificate (NSC). Both are safe schemes. Both offer guaranteed returns on investment and tax benefits. But the question arises: what is the difference between these two schemes? Which one offers higher interest (KVP vs NSC Interest Rate), and which one does your money grow faster? So let's understand the complete calculation.

What is the Kisan Vikas Patra (KVP)?
KVP is a long-term investment. In this, your money doubles within a fixed period. Currently, the KVP interest rate is 7.5% per annum. This means that if you invest ₹1 lakh, it will double to ₹2 lakh in 115 months (approximately 9 years and 7 months).

What is the National Savings Certificate (NSC)?

NSC is also a small savings scheme of the government. It has a lock-in period of 5 years. Currently, the interest rate on NSC is 7.7% per annum. Interest is compounded every year and is paid in a lump sum at maturity.

Interest Rate Difference
KVP Interest Rate: 7.5%
NSC Interest Rate: 7.7%
That is, on paper, the interest rate on NSC is slightly higher. But the difference is only 0.2%.

Where will you make more money?
Suppose you invest ₹1 lakh in both schemes:

₹1 lakh in Kisan Vikas Patra will double to ₹2 lakh in 115 months (9 years and 7 months).
₹1 lakh in a National Savings Certificate will become approximately ₹1,44,500 in 5 years.
If you invest in NSC for 10 consecutive years and reinvest the amount every 5 years, your money could grow to approximately ₹2,08,000.
Which one offers tax benefits?
NSC is tax-deductible under Section 80C. While KVP is not tax-deductible, the interest is protected.

KVP vs NSC: Which one to choose?

If you want quick growth and can use it if needed, NSC is a better option. If you want guaranteed long-term doubling of your money and don't need tax benefits, KVP is the right choice.

Both schemes are safe because they are government-backed. The interest rates are almost the same. The only difference is that NSC allows for quick growth and tax benefits. KVP is for long-term investors who want to double their money without any risk.

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