PPF vs FD: Complete Comparison
Both PPF and FD are popular savings options in India. Let's compare them in detail.
What is PPF?
Public Provident Fund is a government-backed savings scheme with:
- Interest Rate: 7.1% p.a. (2024)
- Lock-in: 15 years
- Tax Benefit: EEE (Exempt-Exempt-Exempt)
- Min Investment: ₹500/year
- Max Investment: ₹1.5 lakh/year
Calculate your PPF returns: PPF Calculator
What is FD?
Fixed Deposit is offered by banks and NBFCs:
- Interest Rate: 5-8% p.a. (varies by bank)
- Lock-in: 7 days to 10 years
- Tax Benefit: Only tax-saver FD (5-year lock-in)
- Min Investment: ₹1,000 (varies)
- Max Investment: No limit
Calculate your FD returns: FD Calculator
Comparison Table
| Feature | PPF | FD | |---------|-----|-----| | Interest Rate | 7.1% | 5-8% | | Lock-in | 15 years | Flexible | | Tax on Interest | Exempt | Taxable | | Section 80C | Yes (₹1.5L) | Only 5-year FD | | Safety | Government | Bank | | Premature Withdrawal | Partial after 7 years | With penalty |
Which Should You Choose?
Choose PPF if:
- You want tax-free returns
- You can lock funds for 15 years
- You want government-backed safety
Choose FD if:
- You need liquidity
- You want flexible tenure
- You have surplus beyond ₹1.5 lakh
Related Calculators
Tags
#PPF#FD#Savings#Investment
