NSC Vs KVP

The government of India offers many kinds of investment schemes for investors from all walks of life. Most of these offer guaranteed returns, making them suitable for individuals with a low tolerance for risk.

The National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) are two of the many investment options backed by the Indian government. These two schemes come with their own unique features and benefits.

If you are an investor who is looking for some secure investment options to bring down your overall portfolio risk, the NSC and KVP are worth taking into consideration.

Want to know more about these two schemes and how they compare? Keep reading to find out all these details and more.

The National Savings Certificate (NSC) is a small savings scheme initiated by the Indian government, through the Department of Posts. Formally, the scheme is known as the National Savings Certificates (VIIIth Issue) (NSC).

You can open an NSC account with the Indian postal department by making a minimum investment of Rs. 1,000. You can also open as many NSC accounts in your name as you want, just like FDs and savings bank accounts.

The Kisan Vikas Patra is another savings scheme introduced by the government of India, through the Department of Posts. The funds that are raised through this scheme are redirected towards the development of farmers in the country, which is why this scheme is known as the Kisan Vikas Patra.

To open your KVP account with the postal department, you only need to deposit Rs. 1,000. In this aspect, both the NSC and KVP are similar. But the Kisan Vikas Patra scheme comes with several unique features of its own, as you'll see in the next section.

You've seen the top features of the NSC and KVP. Let's quickly tabulate some of those features in one place to see how these two schemes differ from one another.

NSC vs. KVP, which is better and for whom?

As you can see, both the NSC and KVP offer their own advantages to the investor. You can compare the features of these two investment schemes and choose the option that best fits your financial requirements and your budget.

Alternatively, if you have the financial capacity for it, you can also choose to invest in both the NSC and KVP. There is no explicit rule that you have to choose one over the other. So, the decision is entirely up to you.

If you are still unsure, or if you are looking for something more, a life insurance plan like the ABSLI Fixed Maturity Plan may be just what you need. It gives you everything that a fixed deposit does – right from guaranteed returns up to 6.55%^ and single premium investments starting from just Rs. 12,000. In addition to this, you also get the benefit of a life cover, so you can rest assured that even in your absence, your family will be financially secure.