escort Mersin escort İzmir escort Ankara escort Antalya escort Bursa escort Gaziantep escort Denizli escort Adana escort Hatay escort Samsun escort Kocaeli escort Konya escort İstanbul escort Eskişehir escort Malatya escort Kayseri escort Sakarya escort Balıkesir escort Çanakkale escort Aydın escort Muğla escort Tekirdağ escort Yalova escort Trabzon escort Sivas escort Ordu escort Maraş escort Manisa escort Tokat escort Rize escort Amasya escort Ümraniye escort Üsküdar escort Zeytinburnu escort Çeşme escort Sincan escort Gaziemir escort İskenderun escort Buca escort Çubuk escort Marmaris escort Torbalı escort Haymana escort Kepez escort Osmangazi escort Bağcılar escort Muratpaşa escort Görükle escort Avcılar escort Darıca escort Çumra escort Anamur escort Çarşamba escort Ulus escort Kaş escort Gürsu escort Güngören escort Mut escort Kadıköy escort İznik escort Serik escort Menemen escort Aksu escort Kağıthane escort Kartal escort Maltepe escort Tire escort Finike escort Pendik escort Sarıyer escort Şişli escort Sultangazi escort Tuzla escort Konyaaltı escort Seyhan escort Melikgazi escort Ödemiş escort Mamak escort Kemer escort Mudanya escort Çekmeköy escort Körfez escort Meram escort Aliağa escort Polatlı escort Belek escort Gemlik escort Esenler escort Fatih escort Selçuklu escort Datça escort Gümbet escort Serdivan escort Konak escort Keçiören escort Lara escort Yıldırım escort Beylikdüzü escort Gölcük escort Karşıyaka escort Çankaya escort Manavgat escort Nilüfer escort Arnavutköy escort Gebze escort Beyşehir escort Silifke escort Atakum escort Çorlu escort Didim escort Kuşadası escort Merzifon escort Bandırma escort Antakya escort Ceyhan escort Battalgazi escort Elbistan escort Bodrum escort Akşehir escort Tarsus escort İlkadım escort Çerkezköy escort Bornova escort Batıkent escort Alanya escort İnegöl escort Orhangazi escort İzmit escort Keşan escort Isparta escort Bolu escort Erzincan escort Van escort Yozgat escort Zonguldak escort Afyon escort Bilecik escort Aksaray escort Elaziğ escort Osmaniye escort Şanliurfa escort Giresun escort Burdur escort Diyarbakir escort Edirne escort Kocasinan escort Onikişubat escort Salihli escort Milas escort Pamukova escort Birecik escort Yıldızeli escort Ortahisar escort Malkara escort Yakutiye escort Zara escort Yomra escort Karatay escort Mezitli escort Canik escort Efeler escort Ayvalık escort Kırıkhan escort Pazarcık escort Soma escort Dalaman escort Sapanca escort Haliliye escort Akdeniz escort Terme escort Söke escort Karesi escort Yüreğir escort Payas escort Talas escort Türkoğlu escort Turgutlu escort Karaköprü escort Samandağ escort Yunusemre escort Köyceğiz escort Siverek escort Toroslar escort Menteşe escort Kestel escort Yenişehir escort Yatağan escort Urla escort Korkuteli escort Kumluca escort Karacabey escort Alanya escort Manavgat escort Fethiye escort Kemer escort Didim escort Çanakkale escort Aydın escort Muğla escort Tekirdağ escort Manisa escort Balıkesir escort Trabzon escort Elazığ escort Ordu escort Kütahya escort Isparta escort Rize escort Kahramanmaraş escort Yalova escort Giresun escort Yozgat escort Tokat escort Şanlıurfa escort Sivas escort Batman escort Erzurum escort Sinop escort Kırşehir escort Karaman escort Kırıkkale escort Bolu escort Amasya escort Niğde escort Uşak escort Edirne escort Çorum escort Osmaniye escort Zonguldak escort Van escort Erzincan escort Söke escort Bodrum escort Çerkezköy escort Akhisar escort Bandırma escort Ayvacık escort Akçaabat escort Karakoçan escort Altınordu escort Tavşanlı escort Eğirdir escort Ardeşen escort Afşin escort Altınova escort Bulancak escort Sorgun escort Erbaa escort Viranşehir escort Zara escort Kozluk escort Aziziye escort Ayancık escort Kaman escort Ermenek escort Keskin escort Gerede escort Göynücek escort Bor escort Banaz escort Havsa escort Osmancık escort Bahçe escort Alaplı escort Başkale escort Kemah escort Nazilli escort Fethiye escort Çorlu escort Alaşehir escort Altıeylül escort Biga escort Araklı escort Kovancılar escort Fatsa escort Simav escort Yalvaç escort Çayeli escort Dulkadiroğlu escort Çiftlikköy escort Espiye escort Sarıkaya escort Niksar escort Suruç escort Yıldızeli escort Sason escort Horasan escort Boyabat escort Mucur escort Sarıveliler escort Yahşihan escort Göynük escort Gümüşhacıköy escort Çamardı escort Eşme escort İpsala escort Sungurlu escort Hasanbeyli escort Çaycuma escort İpekyolu escort Refahiye escort Kuşadası escort Marmaris escort Süleymanpaşa escort Turgutlu escort Susurluk escort Gelibolu escort Of escort Ünye escort Domaniç escort Fındıklı escort Elbistan escort Çınarcık escort Tirebolu escort Akdağmadeni escort Turhal escort Eyyübiye escort Suşehri escort Yakutiye escort Gerze escort Mengen escort Merzifon escort Ulukışla escort Sivaslı escort Keşan escort Kadirli escort Ereğli escort Özalp escort Tercan escort Efeler escort Didim escort Çine escort Dalaman escort Menteşe escort Milas escort Ortaca escort Seydikemer escort Ergene escort Kapaklı escort Malkara escort Salihli escort Şehzadeler escort Soma escort Yunusemre escort Ayvalık escort Bigadiç escort Burhaniye escort Gönen escort Karesi escort Çan escort Yenice escort Ortahisar escort Yomra escort Perşembe escort Pazar escort Onikişubat escort Pazarcık escort Türkoğlu escort Eynesil escort Görele escort Piraziz escort Yağlıdere escort Çayıralan escort Boğazlıyan escort Zile escort Siverek escort Karaköprü escort Haliliye escort Akçakale escort Şarkışla escort Gemerek escort Oltu escort Palandöken escort Mudurnu escort Suluova escort Taşova escort Toprakkale escort Kilimli escort Tuşba escort Üzümlü escort Çorum escort Düzce escort Erzurum escort Kırklareli escort Kilis escort Kars escort Karabük escort Kırıkkale escort Mardin escort Kırşehir escort Muş escort Kastamonu escort Nevşehir escort Ardahan escort Bartın escort Karaman escort Siirt escort Batman escort Bayburt escort Uşak escort Igdır escort Sinop escort Şırnak escort Adıyaman escort Ağri escort Bitlis escort Gümüşhane escort Hakkari escort Bingöl escort Safranbolu escort Boyabat escort Kızıltepe escort Üzümlü escort Bucak escort Kadirli escort Ardeşen escort Çerkeş escort Gelibolu escort Gerede escort Dinar escort Besni escort Bozüyük escort Eskil escort Diyadin escort Ahlat escort Çivril escort Bağlar escort Akçakoca escort Aziziye escort Lüleburgaz escort Şahinbey escort Bulancak escort Digor escort Keskin escort Bünyan escort Kaman escort Akhisar escort Bulanık escort Altınordu escort Bor escort Avanos escort Adapazarı escort Virenşehir escort Gemerek escort Kangal escort Akçaabat escort Erbaa escort Tavşanlı escort Çayeli escort Suluova escort Edremit escort Ilgaz escort Biga escort Göynük escort Çukurova escort Kaynaşlı escort Emirdağ escort Gölbaşı escort Söğüt escort Ortaköy escort Dogubayazıt escort Güroymak escort Karahayıt escort Bismil escort Horasan escort Mucur escort Babaeski escort Şehitkamil escort Espiye escort Kağızman escort Yahşihan escort Develi escort Doğanşehir escort Afşin escort Alaşehir escort Malazgirt escort Fatsa escort Ürgüp escort Akyazı escort Eyyübiye escort Şarkışla escort Araklı escort Niksar escort Simav escort Ergene escort Fındıklı escort Nazilli escort Taşova escort Susurluk escort Çan escort Mudurnu escort Defne escort Kozan escort Sandıklı escort Yahyalı escort Patnos escort Kahta escort Pamukkale escort Ergani escort Oltu escort Nizip escort Görele escort Sarıkamış escort Yeşilyurt escort Dulkadiroğlu escort Kırkağaç escort Varto escort Fethiye escort Kumru escort Erenler escort Akçakale escort Suşehri escort Of escort Turhal escort Derince escort Ereğli escort Erdemli escort Bafra escort Kapaklı escort Pazar escort Davutlar escort Altıeylül escort Ayvacık escort Dörtyol escort Sarıçam escort Sur escort Palandöken escort Nurdağı escort Tirebolu escort Zile escort Ünye escort Selim escort bursa escort bayan bursa escort bayan istanbul escort bayan denizli escort bayan düzce escort bayan malatya escort bayan erzincan escort bayan zonguldak escort bayan eskişehir escort bayan gaziantep escort bayan gaziantep escort bayan gümüşhane escort bayan hatay escort bayan hatay escort bayan ığdır escort bayan gaziantep escort bayan istanbul escort bayan konya escort bayan izmit escort bayan kars escort bayan kayseri escort bayan kayseri escort bayan escort bayan adana escort adıyaman escort afyon escort ağrı escort aksaray escort amasya escort antalya escort ankara escort ardahan escort artvin escort aydın escort balıkesir escort bartın escort batman escort bayburt escort bilecik escort bingöl escort bitlis escort bolu escort burdur escort bursa escort Çanakkale escort Çankırı escort Çorum escort denizli escort diyarbakır escort düzce escort edirne escort elazığ escort sivas escort sinop escort şanlıurfa escort samsun escort sakarya escort rize escort osmaniye escort ordu escort niğde escort nevşehir escort muş escort muğla escort mersin escort mardin escort manisa escort malatya escort kütahya escort konya escort kocaeli escort kırşehir escort kırklareli escort kırıkkale escort kilis escort kıbrıs escort kayseri escort kastamonu escort kars escort karaman escort karabük escort kahramanmaraş escort izmit escort izmir escort istanbul escort Isparta escort Iğdır escort hatay escort hakkari escort gümüşhane escort giresun escort gaziantep escort eskişehir escort erzurum escort erzincan escort tekirdağ escort tokat escort trabzon escort uşak escort van escort yalova escort yozgat escort zonguldak escort

Finance

FD Vs PPF: Which investments give better return?

How and where to invest money is one of the most researched areas for anyone who has a regular income. Today, the options are as varied as the personality of the investor. However, some forms of investments have stood the test of time. Fixed deposits and Public Provident Fund are very prominent examples.

How are these different? Which one is best for you? Let’s find out!

What Are They?

The basic principle is the same for both FD and PPF – you deposit an amount for a fixed duration and earn an interest on the amount. FD is a bank scheme whereas PPF is a Central Government scheme. However, the similarity ends here. The tenure, lock-in period, interest, and withdrawal policy differ for both.

What Is Their Tenure?

The tenure for FD can vary from 7 days to 10 years. There are many different types of fixed deposits, and the tenure will differ among them. The tenure of a tax-saving FD is five years. The tenure of normal FDs is flexible. They even come with the option of premature withdrawal with a small fee.

The tenure for PPF is 15 years. After this, you can extend it in blocks of five years. As you can see, PPF is a long-term investment option. It was started to offer retirement security for those working in the unorganised sector. Even though the initial target audience were those in the unorganised sector, there are no restrictions on who can invest in a PPF. You are allowed to withdraw funds from the PPF before the tenure is up, but there are limitations on the amount you can withdraw.

Since you are investing the sum for a longer period and the interest gets compounded, you get a huge amount at the end of the tenure.

What Is the Interest That I Will Earn?

The government fixes the rate of interest on PPF, and it currently stands at 8% per annum. The interest rate for FDs varies from bank to bank. It usually lies between 6.5% to 9% per annum. You can easily find a reputed bank that offers the best fixed deposit rates.

The difference lies in the taxability of the interest. The interest earned on FDs is taxable. A tax-saving FD can offer tax exemption, but the interest income is still taxable. However, the interest on PPF and its maturity amount is exempt from taxation.

Which One Offers Better Returns?

Both FD and PPF are low-risk investments with guaranteed returns. Both serve a specific purpose, and you wouldn’t go wrong with either of them.

The maximum amount that can be invested in PPF in a financial year is capped at INR 1.5 lakhs. FDs do not have this restriction. Since you can invest more, the returns are also correspondingly higher. An interest rate calculator India will tell you how much you should invest to gain the desired returns. You can use your FD as collateral for a loan in case of emergencies. You can do this with PPF too, but the PPF should be at least five years old for this.

FDs offer better returns in the short-term since you can invest more at the same interest rate as PPF. However, if you are saving up for retirement or for a really long duration, then PPF is your best bet since it is exempt from tax on all fronts.

Show More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button