Should you invest in a public provident fund or a fixed deposit

2 min read

To grow your savings safely, you can choose to invest in a Public Provident Fund (PPF) or Fixed Deposit (FD). Each option has its own set of unique features and benefits. The comparison between PPF and FD is given below to help you make a well-informed decision.




Joint Accounts

Not allowed


Eligibility Criteria

Indian residents

Non-Resident Indians (NRIs), firms, trusts, Hindu Undivided Families (HUFs), and residents


15 years

7 days to up to 20 years




Minimum Deposit

Rs. 500

Rs. 100 - Rs. 1,000

Maximum Deposit

Rs. 1.5 lakh per year

No limit

Tax Benefits

Fully exempt

Up to Rs. 1.5 lakh

Comparison between PPF and fixed deposit

  • Tenor: With PPF, the amount you invest will be locked in for 15 years. Bajaj Finance offers flexible FD tenors ranging from 12 to 60 months
  • Premature withdrawal: When you invest in a PPF, you can withdraw a limited amount after completion of the fifth year. Bajaj Finance enables you to withdraw prematurely after a minimum lock-in period of 3 months
  • Loan facility: You can take loans against your PPF only after completing 3 years. But, you can avail a loan against your fixed deposits anytime. Get loans up to 75% on cumulative FDs and up to 60% on non-cumulative FDs, with Bajaj Finance
  • Deposit amount: The maximum amount deposited with a PPF is limited to Rs. 1.5 lakh per year. With FDs, there is no fixed limit
  • Rate of interest: The rate of interest for PPF is set by the government while FD interest rates are set by the individual bank/ NBFC
  • Investing in tax-reducing instruments is an intelligent way of saving and growing your wealth. Fixed deposits and PPFs offer tax benefits under Section 80 C of the Income Tax Act. Interest earned through FDs is taxable. It ranges from 0-30%, depending on the income tax bracket investors fall under

Consider investing in a Bajaj Finance online FD to enjoy the benefits of a stable investment tool from the comfort of your home.

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