Public Provident Fund Vs Fixed Deposit

Investment in different avenues generally depends upon the objectives of the investors such as amount of investment, tenure, returns, taxability, risk bearing capacity etc. Though there are many choices of investment available in the market, Bank FD and PPF are ideal for those who have a lower risk appetite.

As a long-term saving instrument PPF, backed by the Government of India, provides not only guaranteed returns but also generates tax-free maturity, is the best suited for those investors who require the old-age income security. It is the ideal option to the people whom safety of capital is of utmost importance.

If a person who is risk averse but does not want a lock in of his funds and also wants better returns then FD is the best alternative in which the investor needs to make a lump sum investment for a fixed tenure and on this invested amount, banks offer you to get a fixed interest periodically till the end of the term or you may directly get whole interest along with the principal at the time of maturity. FDs of nationalized banks are considered as highly secured instruments.

Still there may be many questions in your mind as to where to invest between FD and PPF, we have tried to compare both these instruments in order to answer maximum questions in the table given below:

Difference Between Public Provident Fund and Fixed Deposit