FD vs PPF: Which Offers More Long-Term Benefits and Tax Savings?

• PPF offers superior tax benefits under Section 80C, falling under the 'EEE' category where investment, interest, and maturity are all tax-free.
• FD interest rates (5-8%) can sometimes be higher than PPF (7.1%), but PPF rates are government-determined and stable, while FD rates vary by bank and market conditions.
• FDs provide greater flexibility with tenure (7 days to 10 years) and premature withdrawal options, whereas PPF has a fixed 15-year lock-in.
• PPF allows small, regular investments (minimum Rs 500 annually, max Rs 1.5 lakh), while FDs typically require a lump sum deposit.
• Choose FD for short-term flexibility and potential liquidity, and PPF for long-term tax savings and stable returns; a balanced approach is often recommended.