1. #1
    Unregistered

    Which is better between PPF and FD? Complete details of PPF?

    I am a Software Engineer. I am very poor in terms of investment. Someone has told me that PPF is better than FD? I have no idea about PPF. Please share its complete details. I can not deposit much amount every month.

  2. #2
    RainMan Array
    Join Date
    Jul 2012
    Posts
    32

    Re: Which is better between PPF and FD? Complete details of PPF?

    PPF is public provident fund.
    the benefits are it can act as a savings scheme,
    Tax reduction scheme and also the Pension proving scheme if you dont have any pension options.
    you can open this account in the nearest post office and get it transfered to banks.
    Fd is fixed deposit which attracts tax when the income generated and also the interest it is generating.
    You can consider NSE certificates also.

  3. #3
    SKS Array
    Join Date
    Sep 2012
    Posts
    331

    Re: Which is better between PPF and FD? Complete details of PPF?

    Public Proivedent Fund (PPF) can be opened in Head Post Office or in many Branches of Nationalised Banks like SBI, PNB.
    Now even ICICI bank have started the PPF account facility for its customers.

    PPF account is opened for a minimum period of 15 years
    After expiry of 15 years , it can be renewed for another 5 years.
    Your Money is blocked for 15 years.

    Current interest rate is 8.6% compounded annually.
    Minimum Amount that can be invested is Rs 500 per year
    Maximum amount that can be invested is Rs 1 lakh per year

    Amount invested in PPF can be used for Tax benefits under 80C.

    So i would suggest that you should open an PPF account and invest atleast Rs 50000 per year in this account.
    Rest of the Money can be put in FD.
    PPF can act as long term savings for you as you get compounded annual interest on this account.

  4. #4
    anupsahu Array
    Join Date
    Apr 2013
    Posts
    106

    Re: Which is better between PPF and FD? Complete details of PPF?

    PPF is Public Proviedent fund can open in SBI, IDBI, PNB and Head Post office which gives you the interest rate of 8.6 % compounded annually. Now a day maximum limit for PPF is 100000 and minimum is 500. so either you can deposit lum sum amount or you can deposit minimum amount.
    for maximum interest on the amount you deposit money between 1st april to 5 th april it will give you the interst of whole year.
    PPF in for 15 years and you can extend for another 5 years. After 3 years you can withdrawal 30 % of your anount and after 5 years you can take loan againest your PPF ampunt.
    And it also give you the pension benefit.
    It is Tax free. and you will also get tax benefit under 80C section.

    FD is nono taxable only when for time period of 5 years or more.

    So i will suggest you to go with PPF and there is no complusion to put whole amount you can deposit what you have.

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