The National Savings Certificate (NSC) and bank tax-saving Fixed Deposits (FDs) are highly favored investment avenues in India, providing assured returns and tax advantages under Section 80C of the Income Tax Act. NSC stands out with an attractive annual interest rate of 7.7%, compounded yearly, making it a lucrative option for risk-averse investors. On the other hand, various renowned banks in the country offer tax-saving FDs with interest rates ranging from 6.5% to 8% per annum. These investments are widely chosen by individuals looking to save on taxes while earning guaranteed returns on their savings. It is imperative for investors to carefully assess their financial goals and risk tolerance before opting for either of these instruments to ensure they align with their investment objectives.