PPF vs Post Office FD: Latest rates of interest in contrast

Savings are an essential facet of our lives whether or not it’s to plan in your retirement or construct an emergency corpus. There are loads of good choices to take a position well and additional develop your financial savings. Fixed deposit (FD) and Public Provident Fund (PPF) are common funding instruments. Individuals can open an FD or PPF account with a publish workplace or a financial institution.

Public Provident Fund (PPF) newest rates of interest

Public Provident Fund (PPF)is one in all India’s preferred funding choices. The recognition of PPF will be attributed to varied elements. This is the one debt instrument with an exempt-exempt-exempt (EEE) standing.

PPF rate of interest for the July-September quarter of FY 2023-24 has been saved unchanged at 7.1 per cent. PPF rates of interest have remained unchanged since April 2020

Notably, the rates of interest on small financial savings schemes are reviewed each quarter by the federal government.

Post Office FD newest rates of interest

The publish workplace time deposit or fastened deposit is just like financial institution FDs. It offers a assured return to the depositor who deposits an quantity for a set time period.

With the revision, a one-year time period deposit with publish workplaces will now earn 0.1 share larger level at 6.9 %, and for the 2 years tenor — 7 per cent (up from 6.9 per cent). However, rates of interest on time period deposits for 3 years and 5 years have been retained at 7 per cent and seven.5 per cent.

Post Office Time Deposit (1 12 months)- 6.9%

Post Office Time Deposit (2 years)- 7%

Post Office Time Deposit (3 years)-7%

Post Office Time Deposit (5 years)-7.5%

The depositors may declare earnings tax exemptions value Rs. 1.5 lakh underneath Section 80C of the Income Tax Act, 1961. However, these exemptions can be found just for the lock-in interval of 5 years.

The authorities on Friday raised rates of interest on choose saving schemes by as much as 0.3 per cent for the July-September quarter.

PPF vs Post Office FD: Which is appropriate for whom?

Both FD and PPF are good choices for buyers. PPF is most popular by individuals who need to make investments from a long-term viewpoint. The safety it offers is unmatched as a result of authorities’s backing. However, it comes with a particularly lengthy lock-in interval of 15 years.

FDs are comparatively extra liquid and provide the flexibility of deciding the tenure. The tax-saving FDs have a lock-in of 5 years. But FDs go carry some danger and likewise the curiosity you earn is taxable.

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Updated: 03 Jul 2023, 02:18 PM IST