PPF or FD! Which one is better to choose? Here investors will get the answer to the most difficult question

PPF vs FD: public Provident Fund (PPF) A government savings scheme, designed for those who want to make safe investments for the long term. In this, money has to be deposited for 15 years, which is called lock-in period. ppf Every year the interest fixed by the government is available, which is currently around 7%. Its biggest feature is that the money invested in it, the interest received on it and the entire amount received on maturity. , no tax on all three No feels likei,e, this one Complete Kind of a tax-free investment. ppf The risk is very less because it is a government run scheme. Small investors can also invest in it easily and can create a good fund for the future by adding a little money every year. For retirement, children’s education or major future needs. ppf Is considered a reliable option.

FD What is it and why invest in it

Fixed Deposit (FD) It is a very popular investment option offered by banks, small finance banks and post offices. In this you deposit money for a fixed time and on that First You get a fixed interest rate. FD The duration can range from a few months to several years. FD The biggest advantage of this is that the money can be withdrawn before time if needed, although sometimes a small penalty has to be paid. FD The interest received on it comes under the ambit of tax. If the interest in a year 40,000 If it exceeds TDS Also cuts. FD Ideal for those who want secure returns in a short period of time and the convenience of withdrawing money as and when needed.

ppf And FD which one is better

If we talk about returns and tax, then ppf in the long run FD Proves to be better than. ppf The interest on is tax-free, while FD The interest is taxable. even if something FD But the interest rate may be up to 7.5% or 8%, but after tax is deducted the real return becomes less. There itself ppf Even though the interest is slightly less, there is no tax on it, hence Ending In to meet the one amount More would have Is, Although, FD It is better in terms of liquidity because money can be withdrawn easily. So, if your goal is long-term safe and tax-free investment, then ppf is better. But if you need the facility to invest for short time and withdraw money quickly, then FD Could be the right choice.

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