PPF vs FD For Safe Investment
I was recently searching about what could be the better option for safe investment, and I found out that we can get annual interest up to 9% through stable money, and even SBI also gives 7.25% interest on Fixed Deposits.
I don't know much about PPF though, but it does have 15 years of lock in period, and interest rate is I think between 7-8%, can you folks tell me what could be the better option for safe investment between FD and PPF? Also why do people even invest in PPF if FDs are giving very high returns these days
One interview, 1000+ job opportunities
Take a 10-min AI interview to qualify for numerous real jobs auto-matched to your profile 🔑
PPF interest is tax free at 7.1%
At 30% tax bracket, even a 10% FD interest is just 7% post tax
Best thing is to open a PPF and keep it active. After 10Y, the lockin will be just 5Y more. Use it like a 5Y FD
Okay, so this is the only benefit we get in PPF right? So it will be better to have fixed deposit for my family members (who are earning very less or not earning at all) than having PPF right?
PPF 7.1% interest and FD more than that. Post offjce sceme 7.4% Interest. PPF is taxfree while FD is taxable. Choice is yours