and taxation to find out whether the instrument is really suited to your needs for example if you are a conservative investor saving for retirement you should bet on ppf not nsc but if you need the money after five or six years you should opt for nsc but ppf and nsc are taxed differently the proceeds from ppf are taxfree whereas returns from nsc are taxed so nsc is not at all an attractive option if you are in the highest tax bracket of 30 it may sound a bit complicated but once you sit with a paper and pen it would all fall in place