RD vs PPF: Which is better for safe and long-term savings?

Planning your finances with safe and secure investment options is essential for long-term wealth creation. Recurring Deposits (RD) and Public Provident Funds (PPF) are two popular instruments that cater to risk-averse investors in India. While RD focuses on disciplined monthly savings with fixed returns, PPF is a government-backed scheme designed for long-term wealth creation and tax savings.

If you are wondering which option aligns better with your financial goals, this comprehensive guide will help you make an informed decision. Additionally, for investors seeking assured returns unaffected by market risks, Bajaj Finance Fixed Deposit (FD) can be an excellent complementary choice.

A Recurring Deposit (RD) is a term deposit where you invest a fixed amount monthly for a pre-decided tenure. It is ideal for individuals with a steady income who want predictable returns and wish to cultivate a disciplined savings habit.

Key features of RD:

• Interest Rate: Varies across institutions; compounded quarterly.
• Tenure: Flexible, ranging from 6 months to 10 years.
• Investment Frequency: Monthly deposits.
• Liquidity: Premature withdrawal allowed with penalties.
• Tax on Interest: Interest earned is taxable as per your income tax slab.
• Risk: Low, as it is institution-backed.

RDs are suitable for short-term to medium-term goals, such as building an emergency fund or saving for a specific purchase, like a vehicle or a gadget. 

For those looking to complement their savings with higher returns and flexible tenures, Bajaj Finance Fixed Deposit (FD) is an excellent alternative. With assured returns, it provides a secure option to grow your savings while addressing long-term goals like those supported by PPF. Start today and enjoy the benefits of a stable and rewarding investment.

The Public Provident Fund (PPF) is a government-backed savings scheme designed for long-term wealth creation. It is especially popular among individuals seeking tax benefits and risk-free returns. With a tenure of 15 years and the power of compounding, PPF helps investors accumulate substantial savings over time.

Key Features of PPF:

• Interest Rate: 7.1% per annum (compounded annually).
• Tenure: 15 years (extendable in blocks of 5 years).
• Investment Limits: Minimum Rs. 500, maximum Rs. 1.5 lakh per annum.
• Liquidity: Partial withdrawal allowed after 5 years.
• Tax Benefits: Contributions, interest earned, and maturity proceeds are tax-free under Section 80C of the Income Tax Act.
• Risk: Extremely low, as it is government-backed.

By combining the tax benefits of PPF with the flexibility and higher returns offered by Bajaj Finance FD, investors can achieve a balanced and secure financial portfolio. Invest now and start earning up to 7.30% p.a. returns. 

Here is a structured comparison of RD and PPF to help you understand their features better:

PPF is ideal for long-term goals such as retirement planning or saving for a child’s education. Whereas FDs can be good for short or medium-term planning. Start a Bajaj Finance FD with as low as Rs. 15,000. Book now!

Choosing between RD and PPF depends on your financial goals and investment horizon.

• Recurring Deposit (RD) is better suited for short-term to medium-term goals and is ideal for individuals who prefer regular monthly savings and predictable returns. However, it does not offer tax benefits, and the interest earned is taxable.
• Public Provident Fund (PPF) is more advantageous for long-term goals, such as retirement planning, due to its tax-free returns and government backing. The lock-in period of 15 years may be restrictive for investors seeking liquidity, but the benefits of compounding make it worthwhile for wealth creation.

Complementary option: Bajaj Finance Fixed Deposit (FD)!

For investors seeking assured returns with flexible tenures, Bajaj Finance Fixed Deposit (FD) can be an excellent addition to your investment portfolio. It offers:

• Assured Returns: Up to 7.30% p.a., unaffected by market volatility.
• Flexible Tenures: Ranging from 12 to 60 months.
• Minimum Investment: Start with just Rs. 15,000.
• High Safety Ratings: CRISIL AAA/STABLE and [ICRA]AAA(STABLE) ratings ensure your investment is secure.

Whether you are saving for short-term goals or seeking secure growth for idle savings, Bajaj Finance FD provides guaranteed returns and unmatched flexibility. Open FD account. 

Both Recurring Deposits (RD) and Public Provident Funds (PPF) are excellent savings options for risk-averse investors, but they cater to different financial needs. RD is ideal for disciplined monthly savings and short-term goals, while PPF is better suited for long-term wealth creation and tax savings.

For those who want assured returns and flexible tenures, Bajaj Finance Fixed Deposit (FD) is a reliable complementary option. With industry-recognised safety ratings and competitive interest rates, it is an excellent choice for secure and steady growth.

Looking to grow your savings safely?

Start a Bajaj Finance Fixed Deposit today with assured returns and flexible tenures. With a minimum investment of Rs. 15,000, you can begin your journey towards financial security in minutes — 100% online! Open FD.