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| Feature | PPF | FD |
|---|---|---|
| Returns | 7.1% (current) | 6.5-7.5% |
| Tax on Interest | Completely tax-free | Taxable as per slab |
| Section 80C | Yes (₹1.5L) | Only 5-year tax saver FD |
| Lock-in | 15 years | Flexible |
| Loan Facility | Yes (from 3rd year) | Yes |
| Safety | Government backed | Bank backed (₹5L DICGC) |
Verdict: PPF wins for long-term tax-free savings. FD wins for short-term liquidity needs.
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All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
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Disclaimer: This website provides general educational information only and does not provide personalized investment advice or recommendations. Financial decisions should be made after considering individual circumstances and consulting a qualified professional where appropriate. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future results.