The National Savings Certificate (NSC) and tax-saving fixed deposits (FDs) are two prominent investment vehicles in India, both designed to provide fixed returns while offering tax benefits. The NSC, available through India Post, currently offers an interest rate of 7.7% per annum for the first quarter of the 2026-27 financial year. It requires a minimum investment of ₹1,000 and has a five-year lock-in period, during which the interest earned is reinvested for the first four years, allowing for tax deductions under Section 123 of the Income Tax Act, 2025. In contrast, tax-saving FDs, which also have a five-year lock-in, offer interest rates around 7% and allow taxpayers to claim deductions under Section 80C, but only for those filing under the old tax regime. While both options are secure and low-risk, the NSC provides a unique advantage with its reinvestment strategy, whereas tax-saving FDs do not allow for early withdrawals or loans against the deposit. Investors should evaluate their tax strategies and financial goals to choose the most suitable option.