Comparing PPF And FD: Where To Park Your Hard-Earned Money? Which Is Better? Check Here

When it comes to investing for better financial returns, there are lots of alternatives available in the market. But PPF and FDs are the most considerable ones. Here we have different slides in which both of these two investment options are compared. Scroll ahead to go through the slides.

Public Provident Fund, or PPF, is a government-backed tax-saving and investment tool. It functions as an investing tool that lowers your yearly taxes while enabling you to build your retirement assets.

A PPF account must be open for at least 15 years, although you can extend it in increments of 5 years if you wish.

A minimum of Rs. 500 and a maximum of Rs. 1.5 lakh can be invested each fiscal year, either as a single payment or a maximum of 12 installments. The minimal monthly deposit required to open an account is merely Rs 100. However, any annual deposits over Rs 1.5 lakh will not be eligible for tax savings and will not be able to earn interest. A minimum of once must be deposited into a PPF account each year for 15 years.

According to Section 80C of the Income Tax Act of 1961, one key benefit of PPF is that both the interest received and the maturity amount are tax-free. The annual compound interest rate for PPFs is currently 7.1 percent.

Depending on your investing goals, the term of an FD might range from a minimum of 7 days to a maximum of 10 years. On a semi-annual, quarterly, or monthly basis, cumulative FDs compound interest, producing bigger profits on the principal sum. Most banks provide a higher fixed rate of interest for senior persons, allowing them to increase their savings without taking any risks.

Some FDs offer A monthly payout option, which can be a dependable source of income for people. Furthermore, tax-saving fixed deposit plans might lower your income tax obligation. Under Section 80C of the Income Tax Act of 1961, investors may request a tax exemption of up to Rs. 1,50,000.