As convenient and safe form of savings, we look to invest either in Public Provident Fund (PPF) or Fixed Deposit (FD). Although both are investment instruments, the differences between PPF and FD are substantial, and each comes with its own set of features that make them unique for customers.
DID YOU KNOW? Bajaj Finance is now offering interest rates of upto 6.60% on fixed deposit and 0.25% more for senior citizens. What's more, online investors get 0.10% extra (not applicable for senior citizens) Invest Online
Here’s a brief comparison of different aspects of PPF and FDs:
To help you compare the differences between the two, here’s a table to help you understand the differences between investing in a PPF or a Bajaj Finance FD:
|Feature||Public Provident Fund (PPF)||Bajaj Finance Fixed Deposit|
|Tenure||Investment is locked in for at least 15 years||Flexible tenures from 1 to 5 years, with re-investment option|
|Premature withdrawal||Withdrawal is possible only after 5th year||Withdrawal is possible after minimum lock-in period of 3 months|
|Tax benefits||Tax benefits under Section 80C||Bajaj Finance doesn’t|
|Loan facility||Loan can be availed only after completion of third year||Easy loan against FD facility available at anytime|
|Deposit amount||Maximum amount deposited is limited to Rs. 1.5 Lakh per year||No upper limit on deposit amount|
|Rate of interest||7.1% for Q3 FY 20-21||Range from 6.41% to 6.85%, basis tenure and interest payout frequency|
As FD comes with more flexibility, it is the winner in this PPF vs FD battle. Invest with a minimum of Rs. 25,000 in Fixed Deposit with Bajaj Finance and get FD interest rates up to 6.60%, with 0.10% additional rate benefit on investing online and 0.25% additional interest rate for senior citizens.
Additional rate benefit of 0.10% on online deposit is not applicable for senior citizens
Check FD Interest Rates