4 min read
Both are low-risk, but PPF is a 15-year government scheme with tax-free returns, while FDs are flexible but taxable.
| Factor | PPF | FD |
|---|---|---|
| Return | ~7.1% (tax-free) | 6–7.5% (taxable) |
| Tenure | 15 years | 7 days – 10 years |
| Tax on interest | Exempt (EEE) | Taxed at slab |
| Liquidity | Partial after year 7 | Anytime (penalty) |
| Annual limit | ₹1.5 lakh | None |
Verdict
PPF wins on post-tax return and safety for long-term money; FDs win on flexibility and shorter horizons.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
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